Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Safety
• Quality
• Cost
• Delivery
• Compliance
• Social contribution
• Human resources development
• Biodiversity
• Recycling
• Risk reduction

Environmental Achievements

• Reduced CO2 emissions from production activities by 18% compared to FY2006.
• Achieved a 10% reduction in CO2 emissions from major products compared to FY2011 (target for FY2016).
• Reduced Takahama Plant's annual CO2 emissions by about 200 tons through exhaust heat recovery.
• Developed highly efficient electric car air-conditioning compressor.
• Improved energy efficiency of electric lift trucks.
• Developed technologies to reduce power consumption in textile machinery.
• Developed lift truck engines compliant with emissions regulations ahead of schedule.
• Toyota 1KD industrial diesel engine received a Logistics Environmental Technology Development Award.

Social Achievements

• Improved frequency rate of lost workday injuries year-on-year.
• Won one gold medal and other prizes at the 52nd National Skills Competition.
• Implemented associate health improvement programs to counter risks associated with aging and stress.
• Extended the scope of age-based health education to include prevention of lifestyle diseases.
• Provided health promotion guidance to associates below 40.
• Promoted active roles of female associates, supporting work-family balance and career development.
• Supported employment of persons with disabilities (2.21% ratio).
• Created a better work environment for older associates.
• Actively engaged in social contribution activities, including mini concerts at elementary schools, support for welfare facilities, and environmental protection initiatives.

Governance Achievements

• Adopted an audit & supervisory board system.
• Appointed outside directors and audit & supervisory board members.
• Established and appropriately operated an internal control system (J-SOX compliant).
• Formulated a Code of Conduct and provided familiarization training.
• Established the Compliance Subcommittee to promote compliance throughout the Toyota Industries Group.
• Held Compliance Officer Conferences in North America, Europe, and China.
• Formulated Global Guidelines on Bribery Prevention and regulations to prevent violations of antitrust laws.
• Implemented a compliance hotline.
• Strengthened regulations and structure to promote risk management.
• Formulated the Crisis Response Manual.

Climate Goals & Targets

Environmental Challenges

• Deceleration of the Chinese economy.
• Uncertainties in the global business environment (Japan's overdependence on the U.S. economy, further deceleration of the Chinese economy, unstable situation in the Middle East, deflationary trend in Europe).
• Stagnant demand in China and other markets for air-jet looms.
• Aging of piping and potential for groundwater and soil pollution.
• Risks associated with aging and greater stress among associates.
• Need to balance work and family for female associates.

Mitigation Strategies

• Accelerated initiatives for attaining growth.
• Maintained and improved muscular business structure to respond flexibly to rapid changes.
• Comprehensive cost improvement activities.
• Development of new technologies unmatched by competitors.
• Building global production and sales structures.
• Expanding value chain to provide a wide range of services.
• Responding to environmental and safety issues.
• Raising workplace capabilities and diversifying the utilization of personnel.
• Mitigating risks resulting from business expansion.
• Creating a safe workplace and thoroughly carrying out compliance.
• Implementing disaster prevention measures.
• Promoting associate health improvement programs.
• Supporting work-family balance and career development for female associates.
• Implementing a system to constantly monitor rainwater quality.

Supply Chain Management

Supplier Audits: Annual quality audit

Responsible Procurement

• Environmentally Preferable Purchasing Guidelines
• CSR-oriented procurement practices
• BCP-related activities for a possible major earthquake

Climate-Related Risks & Opportunities

Physical Risks

• Major earthquake in Japan

Transition Risks

• Stringent environmental regulations

Opportunities

• Development of energy-efficient products
• Development of fuel cell technology

Reporting Standards

Frameworks Used: GRI G3.1, ISO 26000, Japan’s Ministry of the Environment Environmental Accounting Guidelines (2005 Version), Japan’s Ministry of the Environment Environmental Reporting Guidelines (2012 Version)

Certifications: ISO 50001 (TDDK), ISO 26262 (functional safety software development process)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Toyota Industries' initiatives contribute to these goals through the development and production of energy-efficient products, sustainable manufacturing practices, and efforts to reduce greenhouse gas emissions and promote resource efficiency.

Sustainable Products & Innovation

• GENEO internal-combustion lift trucks with lower fuel consumption
• Electric car air-conditioning compressor
• Toyota 1KD industrial diesel engine
• Plastic glazing back window

Awards & Recognition

• 2014 Good Design Award (GENEO lift trucks)
• German Design Award 2015 Special Mention (GENEO lift trucks)
• iF Design Award (GENEO lift trucks)
• 2014 Best 10 New Products Award (GENEO lift trucks)
• Logistics Environmental Technology Development Award (Toyota 1KD engine)
• Most Outstanding Practice Award (Takahama Plant's exhaust heat recovery project)
• IFOY Award (Toyota I_Site and Toyota Traigo 80)
• 2014 Best Plant Award (Raymond)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Social Responsibility
• Environmental Sustainability

Environmental Achievements

• Toyota Material Handling Manufacturing Sweden AB (TMHMS) achieved a zero CO2 emissions plant.
• Reduced CO2 emissions from production activities by 14% (vs FY06 level).
• Reduced global emission volume per unit of production by 28% (vs FY06 level).
• Reduced waste generation volume per unit of production by 44% (vs FY06 level).

Social Achievements

• Received “Platinum Kurumin” certification for excellent efforts concerning work-life balance.
• Received a “Family-Friendly Company” award.
• Received “Eruboshi” certification for promoting female engagement in the workplace.
• Received an “Excellent Company” award for female-friendly practices.
• Implemented various measures to create a workplace environment that enables a diverse range of human resources to fully exercise their capabilities.

Governance Achievements

• Established a structure to quickly and flexibly respond to changes in the business environment.
• Appointed outside directors with experience in globally operating companies.
• Established a compliance hotline to detect and prevent issues.
• Linked senior management and director compensation to business performance.

Climate Goals & Targets

Environmental Challenges

• Fatal accident at Higashichita Plant.
• Heat strokes in hot working environments.
• COVID-19 pandemic impacting supply chain.
• Stringent environmental regulations in China.
• Potential non-conformance issues identified in environmental audits.

Mitigation Strategies

• Full inspection of similar machines and operations to prevent recurrence of fatal accident.
• Implemented heat risk assessment and preventive measures, eliminating heat stroke cases.
• Formulated a COVID-19 response manual and implemented preventive measures.
• Reinforced environmental management and support in China.
• Implemented improvements to address potential non-conformance issues in environmental audits.

Supply Chain Management

Responsible Procurement

• Environmentally Preferable Purchasing Guidelines
• Fair and equitable business transactions
• Co-existence and co-prosperity with business partners
• Mold management project

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Earthquakes

Transition Risks

• Stringent environmental regulations

Opportunities

• Development of energy-efficient products
• Electrification
• Renewable energy and hydrogen utilization

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)

Toyota Industries' initiatives contribute to these goals through various environmental and social programs, including renewable energy use, waste reduction, sustainable product development, and employee well-being programs.

Sustainable Products & Innovation

• New vane-type compressor
• Next-generation electric compressor
• New vehicle
• Fuel cell lift truck
• Plastic glazing (PG)
• Carbon fiber reinforced plastic (CFRP)
• Solar heat collection tube

Awards & Recognition

• Biogas Award (second place)
• Sustainable Company of the Year
• Minister of Economy, Trade and Industry award in the Energy Conservation Grand Prize program
• Green Supply Chain Award
• A List in CDP survey on climate change (two consecutive years)

Environmental Metrics

ESG Focus Areas

• Mitigation of Global Warming
• Contribution to Circular Economy
• Creation of Innovative Values
• Safe and Healthy Work Environments
• Leveraging Diversity and Inclusion
• Sustainable Procurement
• Compliance and Risk Management

Environmental Achievements

• Reduced production-derived CO2 emissions by -28% (vs FY14 level)
• Reduced logistics-derived CO2 emissions by -8% (vs FY14 level)
• Reduced waste generation volume by -22% (vs FY14 level)

Social Achievements

• 100% implementation rate of CSR checks on target suppliers (950 companies)
• ¥840 million expenditure on social contribution activities, involving 18,224 persons
• 100% training participation rate (non-consolidated)

Governance Achievements

• Zero serious compliance violations
• Zero serious accidents

Climate Goals & Targets

Environmental Challenges

• Climate change
• Issues on energy, resources and water
• Labor shortages and rising labor costs
• Digitalization and online systematization
• Work style diversification

Mitigation Strategies

• Reducing CO2 emissions from production activities
• Adopting renewable energy sources
• Reducing CO2 emissions from production-related logistics
• Developing technologies that contribute to a greater level of energy efficiency
• Effective resource utilization in production activities
• Promoting water conservation activities
• Implementing initiatives to promote 3R (reduce, reuse and recycle) design for effective resource utilization
• Promoting development of new technologies that create new values
• Improving core technologies and utilizing the new knowledge of business partners to enter into peripheral fields of existing businesses while developing and offering technologies and products in new business fields
• Enhancing electrification-related products and services
• Offering high-quality and safe products and services
• Continuously promoting grassroots activities in local communities
• Fostering safe and healthy workplaces for everyone
• Creating the environment for everyone to get a fair share of opportunity to develop and demonstrate their potential
• Establishing the foundation to remain a company that is trusted and needed by society
• Maintaining sound transactions and strengthening structure throughout the supply chain
• Promoting risk management activities taking a risk-based approach
• Responding to cybersecurity risks

Supply Chain Management

Supplier Audits: 100% (950 companies)

Responsible Procurement

• CSR checks on target suppliers

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Mitigation of Global Warming
• Contribution to Circular Economy
• Creation of Innovative Values
• Products and Services Which Contribute to Safety, Reliability and Comfort
• Mutual Prosperity through Partnerships with Local Communities
• Safe and Healthy Work Environments
• Leveraging Diversity and Inclusion
• Sustainable Procurement
• Compliance and Risk Management

Environmental Achievements

• Reduced production-derived CO2 emissions by approximately 242 tons annually at the Higashichita Plant through improved heat balance in furnaces.
• Reduced annual CO2 emissions by about 71 tons at the Takahama Plant by changing the heat control of a painting drying oven.
• 100% of electricity used at all European bases switched to renewable energy.
• Installed approximately 3,400 solar panels on the roof of Vanderlande's head office warehouse, generating about 1.2 MWh of electricity annually.

Social Achievements

• Launched a new weight reduction program using a body composition analyzer (BCA), resulting in reductions in body-fat percentage and visceral fat level among participants.
• Increased participation in Eco-Commuting activity at Yantai Shougang TD Automotive Compressor Co., Ltd. from 73% to 89%.

Governance Achievements

• Revised the Toyota Industries Corporation Employee Code of Conduct to reflect the Sustainability Policy and Human Rights Policy.
• Formulated the Toyota Industries Group Anti-Bribery Policy.

Climate Goals & Targets

Environmental Challenges

• Unresolved supply chain disruptions causing production to remain below targets.
• Global inflation causing raw materials, transportation, labor, and other costs to soar.
• Regulatory violation related to Japan’s emissions certification for lift truck engines.
• Weaker sales due to intensifying competition.
• Change in business environment triggered by an expanding market of low- to mid-priced lift trucks.
• Suspension of production caused by supply chain disruptions.
• Weaker demand for internal-combustion lift trucks resulting from more stringent environmental regulations.
• Emergence of next-generation robotics products as an alternative to lift trucks.

Mitigation Strategies

• Set up a special investigation committee to investigate the regulatory violation and formulate measures to prevent recurrence.
• Separating the certification function from the development department to reinforce the inspection system for legal certifications.
• Steady capturing opportunities in strong markets and ensuring safety and quality.
• Raising prices due to inflation.
• Strengthening collaboration with subsidiaries engaging in logistics solutions operations in Europe and the United States.
• Expanding the lineup of products with excellent environmental performance and incorporating autonomous driving technology.
• Developing and releasing large-capacity electric compressors.
• Building a production structure less vulnerable to changes in production volume.

Supply Chain Management

Supplier Audits: 100%

Responsible Procurement

• Sustainability Guidelines for Suppliers
• Environmentally Preferable Purchasing Guidelines
• Policies and Approaches to Responsible Mineral Sourcing

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Floods
• Other natural disasters

Transition Risks

• Stricter environmental regulations
• Growing eco-consciousness worldwide

Opportunities

• Development of energy-efficient products
• Electrifying car air-conditioning compressors and other products
• Increasing engines’ fuel efficiency
• Utilizing renewable energy and hydrogen

Reporting Standards

Frameworks Used: GRI Standard, ISO 26000, Japan’s Ministry of the Environment Environmental Accounting Guidelines (2005 Version), Japan’s Ministry of the Environment Environmental Reporting Guidelines (2018 Version), International Integrated Reporting Framework by IFRS Foundation

Certifications: ISO 14001

Sustainable Products & Innovation

• Electric lift trucks
• Fuel cell lift trucks
• Electric compressors
• Bipolar nickel-metal hydride batteries
• JAT910 air-jet loom

Awards & Recognition

• A List by CDP on climate change
• Silver Medal from EcoVadis
• Aichi Biodiversity Company Certification Program
• Platinum Kurumin certification
• Family-Friendly Company award
• Excellent Company award

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by about 242 tons at Higashichita Plant through improved heat balance
• Reduced CO2 emissions by about 71 tons at Takahama Plant by changing heat control of a painting drying oven
• Vanderlande installed 3,400 solar panels, generating about 1.2 MWh annually (30% of head office electricity consumption)
• Reduced COD concentration of discharged wastewater by about 33% at Nagakusa Plant
• Reduced masking materials use by 74% at Nagakusa Plant through improved two-color painting process
• Recycled about 32 kg of household waste at Toyota Material Handling Mercosur
• Received highest A List rating from CDP on climate change
• Won JEC Composites Innovation Awards for CFRP recycling technology

Social Achievements

• 89% employee participation in Eco-Commuting activity at Yantai Shougang TD Automotive Compressor
• Increased ratio of female managers to 1.7% (1.4 times fiscal 2015 level)
• Achieved 57% female graduate recruits in office work positions and 8% in engineering positions
• 32.5% male associates taking parental leave in fiscal 2023
• Received Japan’s “Eruboshi” certification and an “Excellent Company” award under Aichi Prefecture’s “Female-Friendly Company” certification program
• Received “Platinum Kurumin” certification and a “Family-Friendly Company” award

Governance Achievements

• No nonconformance issues identified in fiscal 2023 external environmental audit
• Revised Sustainability Guidelines for Suppliers in April 2023, adding provisions on cybersecurity
• Formulated Toyota Industries Group Anti-Bribery Policy in March 2023
• Revised Toyota Industries Corporation Employee Code of Conduct in April 2023
• Internal Control Report submitted in June 2023, judged fair by independent auditors
• Formulated the Toyota Industries Group Human Rights Policy

Climate Goals & Targets

Environmental Challenges

• Water supply crunch caused by climate change and population growth
• Energy consumption increase due to expanding production volume
• Heat loss from painting drying oven
• Static electricity control in Anjo Plant
• Regulatory violation related to certification for engines
• Rising costs and supply chain disruptions
• Geopolitical risk

Mitigation Strategies

• Monitoring water input and output, promoting water recycling and reduction of water withdrawal
• Improved heat balance at Higashichita Plant
• Changed heat control of painting drying oven at Takahama Plant
• Changed static electricity control method at Anjo Plant (40% energy reduction)
• Implementing measures to ensure non-recurrence of defects
• Discussions with suppliers to address difficulties
• Implementing range of initiatives across functional management entities

Supply Chain Management

Supplier Audits: 100% sustainability check on applicable suppliers

Responsible Procurement

• Sustainability Guidelines for Suppliers
• Environmentally Preferable Purchasing Guidelines
• Policies and Approaches to Responsible Mineral Sourcing
• Hotline for suppliers to report compliance violations

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Floods
• Natural disasters

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Electrification of products
• Renewable energy utilization

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, ISO 45001, ISO 9001, IATF 16949

Sustainable Products & Innovation

• Electrified car air-conditioning compressors
• Energy-efficient engines
• CFRP recycling technology

Awards & Recognition

• Minister of Economy, Trade and Industry Award (Energy Conservation Grand Prize)
• JEC Composites Innovation Awards
• Aichi Biodiversity Company Certification Program ('Excellent' certification)
• Cars and Society Partnership Grand Prize ('Good Partnership Project' award)
• QC Circle Kaoru Ishikawa Award (encouragement award)

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• Reduced annual CO2 emissions by about 633 tons at the Kariya Plant by eliminating steam-using processes and adopting electric membrane filtration equipment.
• Reduced annual thermal energy consumption by 185 MWh at Toyota Material Handling Manufacturing Sweden AB by using exhaust heat from air compressors.
• Reduced annual CO2 emissions by about 1,938 tons at North Vernon Industry Corporation by optimizing production order and reducing heating instances.
• Reduced annual CO2 emissions by around 1,500 tons at Toyota Material Handling, Inc. by installing a solar power generation system.
• Reduced monthly waste by about 1.2 tons at the Higashiura Plant by reusing coolant.
• Reduced annual wood material use by 13.7 tons at Kirloskar Toyota Textile Machinery Pvt. Ltd. by unifying skids.
• Achieved zero wastewater from production processes at TD Automotive Compressor Kunshan Co., Ltd. by recycling wastewater.
• Reduced annual water consumption by about 16,930 m3 at TD Automotive Compressor Kunshan Co., Ltd. by implementing water recycling measures.
• Reduced dependence on local water resources at KTTM by increasing rainwater storage capacity.
• Reduced annual VOC discharge by about 5.6 tons at TACK by installing VOC collection and treatment equipment and switching to pure water washing.

Social Achievements

• Reorganized the Quality Control Department into the Quality Management Department to reinforce quality functions and established a quality control infrastructure.
• Strengthened joint quality assurance activities with major suppliers.
• Nurtured and certified internal auditors at suppliers to foster voluntary quality improvement efforts.
• Implemented a 360-degree feedback system to support OJT and supervisors’ management of subordinates.
• Received Japan’s “Eruboshi” certification and an “Excellent Company” award under Aichi Prefecture’s “Female-Friendly Company” certification program.
• Received Japan’s “Platinum Kurumin” certification and won a “Family-Friendly Company” award from the Aichi prefectural government.
• Increased the ratio of male associates taking parental leave to 45.6% in fiscal 2024.
• Increased the ratio of female managers to 2.0% (1.7 times the fiscal 2015 level) and the ratio of female graduate recruits to 53% in office work positions and 3% in engineering positions.

Governance Achievements

• Established a new, more robust quality governance structure consisting of three check lines to enhance quality awareness.
• Reexamined the Quality Vision and rebuilt the Company-wide quality management system.
• Established the Executive Appointment and Compensation Committee, chaired by an independent outside director, to ensure objectivity and transparency in senior management selection and compensation.
• Appointed independent members of management (three outside directors and two outside audit & supervisory board members).
• Established the Compliance Committee to manage and promote compliance throughout the Group.
• Formulated the Toyota Industries Group Anti-Bribery Policy.
• Expanded the scope and increased the frequency of the employee compliance awareness survey.

Climate Goals & Targets

Environmental Challenges

• Global warming and climate change impacts.
• Depletion of natural resources.
• Water supply crunch caused by climate change and population growth.
• Stringent environmental regulations.
• Chronic labor shortages in the logistics industry.
• Risk of forced labor of non-Japanese trainees.
• Risk of human rights abuses in raw material procurement (minerals).
• Potential for antitrust law violations.
• Risk of information security breaches.
• Impact of a major earthquake.

Mitigation Strategies

• Set a goal of establishing a zero CO2 emissions society in Environmental Vision 2050.
• Promoting energy savings, utilizing renewable energy and hydrogen in production activities.
• Promoting 3R (reduce, reuse and recycle) design for effective resource utilization.
• Implementing measures to reduce resource consumption at the source and ensure maximum resource recycling.
• Monitoring water input and output and promoting water recycling and reduction of water withdrawal.
• Anticipating and responding to fuel efficiency and emissions regulations.
• Minimizing the use of substances of concern such as VOCs.
• Developing automation technologies for materials handling equipment.
• Conducting surveys to check trainee enrollment and appropriate operation of the Technical Intern Training Program.
• Formulating Policies and Approaches to Responsible Mineral Sourcing based on OECD Due Diligence Guidance.
• Conducting periodic minerals surveys and exercising due diligence throughout the supply chain.
• Operating a whistle-blower system to detect and prevent compliance violations.
• Establishing a compliance officer hotline for direct communication with the GCCO.
• Formulating the Code of Conduct and providing comprehensive education and training.
• Implementing an internal control system in compliance with J-SOX.
• Formulating a business continuity plan to mitigate the impact of a major earthquake.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Environmentally preferable purchasing guidelines.
• Sustainability Guidelines for Suppliers.
• Periodic checks on commodity items of concern, such as conflict minerals.
• Joint quality assurance activities with major suppliers.
• Support for suppliers in achieving carbon neutrality.
• Safety and health activities for suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Floods
• Other natural disasters

Transition Risks

• Stringent environmental regulations
• Changes in market demand

Opportunities

• Development of energy-efficient products
• Utilizing renewable energy and hydrogen

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Third-party verification obtained for energy-derived CO2 emissions, waste volume, water withdrawal, and wastewater discharge.

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Toyota Industries' initiatives contribute to these SDGs through various environmental, social, and governance programs.

Sustainable Products & Innovation

• Electrified car air-conditioning compressors
• Energy-efficient engines
• Automation technologies for materials handling equipment

Awards & Recognition

• Three consecutive encouragement awards under the QC Circle Kaoru Ishikawa Award program.
• Eleven awards in the Creativity category in the Commendation for Science and Technology by Japan’s Minister of Education, Culture, Sports, Science and Technology.