Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Performance
• Social Performance
• Governance

Environmental Achievements

• Increased water recycling to 10.83% of total water withdrawal.
• Installed onsite photovoltaic, producing 516 MWh of energy (0.38% of total energy consumption).
• Planted more than 130,000 trees as part of the Million Tree Plantation Drive.

Social Achievements

• Increased community investment by 20% to PKR 230 million.
• Employees contributed more than 5,230 hours to volunteering.
• Supported various health initiatives, including medical camps and donations to hospitals.
• Supported education initiatives, including the Toyota Goth Education Program and contributions to The Citizens Foundation.

Governance Achievements

• No significant fines or non-monetary sanctions for non-compliance with laws and regulations.
• Implemented a risk management system aligned with TMC’s Toyota Global Risk Management Standards (TGRS).

Climate Goals & Targets

Environmental Challenges

• Dwindling economic conditions in Pakistan (currency devaluation, reduced purchasing power, increased costs).
• Climate change (increasing emissions, changing weather patterns).
• Water scarcity.

Mitigation Strategies

• Continuous improvement in production processes (Kaizen) to increase efficiency and reduce costs.
• Investment in clean energy resources and efficient energy management.
• Increased water recycling.
• Improved waste management.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Toyota Green Purchasing Guidelines (GPG)

Climate-Related Risks & Opportunities

Physical Risks

• Changing weather patterns

Transition Risks

• Introduction of carbon tax

Opportunities

• Shifting to renewable energy resources.

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, UNGC Ten Principles

Certifications: ISO 14001 (manufacturing plant)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16

Various initiatives contributing to these goals (detailed in the report).

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Corporate Excellence Award 2018
• Overall Most Outstanding Company and Most Outstanding Company in Automobile and Components Sector in Pakistan 2018
• The Global SAP Innovation Award 2019
• Business Sustainability Award 2018
• Corporate Social Responsibility Award 2019
• Consumer Choice Award - Corolla GLi 2018 and Toyota Fortuner 2018
• CEO of the Year Award 2018
• Annual Environmental Excellence Award 2019

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Decreased energy consumption by 228,854 GJ
• Decreased GHG emissions by 11,404 Mt
• Decreased water consumption by 32%
• Planted 300,000 saplings as part of a 1 million tree plantation drive

Social Achievements

• Contributed 1% of pre-tax profit to CSR activities
• 4,800 man-hours of employee volunteering
• Supported various educational and healthcare initiatives

Governance Achievements

• No significant fines or non-monetary sanctions for non-compliance

Climate Goals & Targets

Environmental Challenges

• Reduced economic activity due to the COVID-19 pandemic
• Currency devaluation
• Declining exports
• Decrease in customers' disposable incomes
• Increased taxation
• Supply chain disruptions due to COVID-19 lockdowns

Mitigation Strategies

• Continuous improvement in production processes to decrease costs and increase efficiencies
• Efficient handling of supply chain issues
• Adoption of cleaner technologies to reduce environmental impact
• Investment in renewable energy

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Toyota Quality Standards
• Sustainability guidelines
• 'Just-In-Time' techniques
• Kaizen culture

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather patterns

Transition Risks

• Lack of clear policy for Electric Vehicles (EVs)

Opportunities

• Investment in renewable energy

Reporting Standards

Frameworks Used: GRI Standards: Core option, UNGC “Ten Principles”

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 2
• SDG 3
• SDG 4
• SDG 5
• SDG 7
• SDG 8
• SDG 11
• SDG 12
• SDG 13
• SDG 15
• SDG 16

IMC's activities contribute to these goals through various initiatives in education, health, environmental conservation, economic development, and community engagement.

Sustainable Products & Innovation

• Toyota Yaris (more fuel-efficient)

Awards & Recognition

• Pakistan Stock Exchange - Top 25 Companies
• Asiamoney - Most Outstanding Company in Pakistan
• Management Association of Pakistan - Corporate Excellence Award
• The Global Compact Network Pakistan of UNGC – Living the Global Compact Best Practices Sustainability Award
• National Forum for Environment & Health - Corporate Social Responsibility Award
• Toyota Motor Asia Pacific - Outstanding Customer Service Excellence Award
• Toyota Motor Asia Pacific - 1st Prize in the Asia Pacific Toyota Business Practice (TBP) Contest
• Toyota Motor Asia Pacific - Toyota Commendable Kaizen Award

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Planted more than 680,000 tree saplings across Pakistan.
• Reduced water withdrawal to 338 ML compared to 347 ML in 2021.
• Increased renewable energy share to 15% of total energy consumption, resulting in a reduction of 3,000 tons of CO2 emissions.

Social Achievements

• Enrolled 50 out-of-school children from the Hindu community into the Toyota Goth Education Program.
• Contributed Rs. 92 million to The Citizens Foundation (TCF) Endowment Fund.
• Provided free medical camps treating over 17,000 patients.

Governance Achievements

• No significant fines or non-monetary sanctions for non-compliance with laws and regulations.
• Implemented a strong corporate governance structure aligned with the Companies Act 2017 and Toyota Guiding Principles.
• Maintained a strong internal compliance culture.

Climate Goals & Targets

Environmental Challenges

• Global supply chain disruptions.
• Increasing competition.
• Currency exchange rate fluctuation.
• Higher policy rates.
• Geopolitical and security situation.
• Decreasing disposable incomes.
• Climate change.

Mitigation Strategies

• Efficient handling and vibrant supply chain partners to manage the supply of materials and parts.
• Continuous upgradation of the plant to position itself in the competitive market.
• Investments in cleaner technologies for increased fuel efficiency and reduced emissions.

Supply Chain Management

Responsible Procurement

• Toyota Quality Standards
• Sustainability guidelines
• Just-In-Time techniques
• Kaizen culture
• Toyota Green Purchasing Guidelines (GPG)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes, market shifts towards EVs

Opportunities

• Development of fuel-efficient products

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, UNGC

Certifications: ISO 14001:2015, ISO 9001:2008, ISO 45001 (implied)

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 3 (Good Health and Well-being)
• SDG 8 (Decent Work and Economic Growth)
• SDG 2 (Zero Hunger)
• SDG 7 (Affordable and Clean Energy)
• SDG 13 (Climate Action)

IMC's initiatives contribute to these goals through education programs, healthcare initiatives, employment opportunities, food distribution, renewable energy adoption, and emissions reduction strategies.

Sustainable Products & Innovation

• Toyota Yaris (fuel-efficient)
• Corolla Cross Hybrid (CBU)

Awards & Recognition

• Customer Delight Excellence Award 2021 (Gold)
• Customer Delight Kaizen Evolution 2021 (Best Kaizen Award)