Climate Change Data

TOYOTA TSUSHO CORPORATION

Climate Impact & Sustainability Data (2013-04 to 2014-03, 2023-04 to 2024-03)

Reporting Period: 2013-04 to 2014-03

Environmental Metrics

Total Carbon Emissions:50,556 t-CO2e/year (domestic) + 11,643 t-CO2e/year (overseas)

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced CO2 emissions in the molten aluminum business through the installation of energy-saving equipment
  • Established the world’s first bio-polyethylene terephthalate (PET) supply chain integrating raw materials procurement, manufacturing, and sales.
  • Became the first Japanese company to launch an auto dismantling and recycling business in China.

Social Achievements

  • Established the Toyota Kenya Academy to provide training for technicians and engineers.
  • Established a social contribution-type venture fund (Toyota Tsusho CSV Africa Pte. Ltd.) in Mauritius to finance entrepreneurial start-ups in Africa.
  • Launched a public campaign called “no drink & drive” to raise awareness on this issue among taxi and bus drivers in Congo.

Governance Achievements

  • Elected three outside directors for improved oversight and independent perspective.
  • Established a Security Management Group to bolster overseas crisis management.
  • Revised rules for handling confidential information and personal information.

Climate Goals & Targets

Long-term Goals:
  • Achieve a 50:50 ratio of automotive and non-automotive businesses by 2020.
Medium-term Goals:
  • Reduce power consumption by 10% by 2020 compared to 2009.
Short-term Goals:
  • Establish 20 recycling sites in China over the next five years.

Environmental Challenges

  • Increased number of accidents at overseas operations in 2013.
  • Cost issues related to bio-plastics.
  • Need to expand ELV recycling model across China and other emerging countries.
Mitigation Strategies
  • Declared a “state of safety emergency” and implemented various safety measures, resulting in a decline in accidents.
  • Actively seeking customers who understand the significance of bio-plastics and gradually expanding the market.
  • Investing in a joint venture (Beijing Boruiliantong Auto Recycling Tech Co., Ltd.) to develop a model ELV recycling plant for China and plans to deploy model plants throughout China.

Supply Chain Management

Responsible Procurement
  • Toyota Tsusho Supply Chain CSR Behavioral Guidelines

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products
  • Renewable energy business expansion

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Guidelines (Ver. 4.0), Ministry of the Environment, Japan, Environmental Reporting Guidelines (2012 version), ISO 26000

Certifications: ISO 14001

Sustainable Products & Innovation

  • Bio-PET (GLOBIO®)
  • Energy-efficient HVLS fans

Awards & Recognition

  • Japan’s Prime Minister’s Prize for 3R activities in vehicle recycling

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:736,000 t-CO2e (2023)
Scope 1 Emissions:444,279 t-CO2e (2024)
Scope 2 Emissions:291,509 t-CO2e (2024)
Scope 3 Emissions:124,128,000 t-CO2e (2023)
Renewable Energy Share:76% (2024)

ESG Focus Areas

  • Climate Change
  • Circular Economy
  • Africa Development
  • Human Rights
  • Safety and Compliance

Environmental Achievements

  • Reduced total CO2 emissions by promoting energy-saving activities and introducing renewable energy facilities despite increased production.
  • Achieved A rating from CDP for Climate Change and Forests.

Social Achievements

  • Launched a volunteer leave system.
  • Selected as a Health & Productivity Stock for four consecutive years.
  • Expanded the Practical Safety Workshop to over 11,000 participants.

Governance Achievements

  • Increased the number of independent outside board members.
  • Improved transparency and enhanced corporate governance.
  • Implemented a comprehensive safety and compliance inspection of major consolidated subsidiaries.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050.
Medium-term Goals:
  • Achieve a 50% reduction in GHG emissions by 2030 compared to 2019 levels.
  • Achieve carbon neutrality by 2050.
Short-term Goals:
  • Increase revenue from products and services that promote zero traffic casualties to 320 billion yen by 2027.
  • Increase renewable energy share to 82% by 2027.

Environmental Challenges

  • Supply chain disruptions due to geopolitical risks and natural disasters.
  • Increasing demand for recycled materials due to stricter environmental regulations.
  • Need to reduce Scope 3 emissions.
Mitigation Strategies
  • Strengthened relationships with suppliers and partners.
  • Developed alternative sourcing strategies.
  • Implemented various initiatives to reduce Scope 3 emissions throughout the automotive supply chain.
  • Introduced an internal carbon pricing system.

Supply Chain Management

Supplier Audits: Approximately 6,000 suppliers assessed; approximately 250 in high-risk fields and regions.

Responsible Procurement
  • Supply Chain Sustainability Behavioral Guidelines
  • Sustainability clause added to Basic Sale and Purchase Agreement

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Flooding
  • Rising temperatures
  • Sea level rise
Transition Risks
  • Policy and regulation changes
  • Technological changes
  • Market shifts
  • Reputational damage
Opportunities
  • Increased demand for recycled materials
  • Increased demand for renewable energy
  • Development of energy-efficient products and services

Reporting Standards

Frameworks Used: TCFD, GRI Standards, UN Global Compact, IFRS Foundation's Integrated Reporting Framework, METI's Guidance for Collaborative Value Creation

Certifications: ISO 14001, ISO 50001:2018

Third-party Assurance: Lloyd’s Register Quality Assurance Ltd.

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)

Initiatives contribute to these goals through renewable energy development, resource recycling, sustainable supply chains, and emissions reduction.

Sustainable Products & Innovation

  • Recycled materials
  • Renewable energy solutions
  • Electrified vehicles
  • Biofuels

Awards & Recognition

  • CDP A List for Climate Change and Forests