Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Fluctuations in currency exchange rates
• Changes in laws, regulations, and government policies affecting Toyota’s automotive operations (environmental protection, vehicle emissions, vehicle fuel economy, vehicle safety)
• Political instability in the markets in which Toyota operates
• Fuel shortages or interruptions in transportation systems, labor strikes, work stoppages

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced emissions by nearly 30% in the F-Grid project (compared to similar sized industrial complexes)
• Development and promotion of eco-cars (hybrids and EVs)

Social Achievements

• Establishment of Toyota Motor East Japan, Inc. (TMEJ) to revitalize the Tohoku region, creating approximately 500,000 vehicles in fiscal 2013
• Kokoro Hakobu Project supporting reconstruction and revitalization efforts in disaster-stricken areas (awarded 2012 Mécénat Award)
• Development of partner robots for nursing, medical, and home care

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• The Great East Japan Earthquake and its impact on the Tohoku region

Mitigation Strategies

• Establishment of TMEJ and the F-Grid project to revitalize the Tohoku region and create a smart community with energy self-sufficiency and reduced emissions

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-cars (hybrids and EVs)
• TOYOTA i-ROAD

Awards & Recognition

• 2012 Mécénat Award

Environmental Metrics

ESG Focus Areas

• Environment
• Safety
• Human Resources Development

Environmental Achievements

• Cumulative hybrid sales passed 6 million units by December 2013, resulting in approximately 41 million fewer tons of CO2 emissions compared to gasoline-powered vehicles.
• Achieved world-class thermal efficiency of 38% in a 1.3-liter gasoline engine.
• Launched 27 hybrid models and one plug-in hybrid model in about 80 countries and regions by August 2014.

Social Achievements

• Established the Toyota Mobility Foundation to provide global assistance to NPOs and research organizations.
• Conducted traffic safety education programs globally, distributing almost 134 million copies of traffic safety picture books.
• Two Toyota employees awarded gold medals at the 42nd WorldSkills Competition.

Governance Achievements

• Announced the “Toyota Global Vision” and commenced “Visionary Management” in March 2011.
• Reorganized automotive operations into four business units in April 2013.
• Appointed three Outside Directors in June 2013 to enhance corporate governance.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to various factors.
• Increased competition in the automotive industry.
• Economic slowdown in some emerging markets.
• Fluctuations in currency exchange rates.
• Stringent fuel economy and safety regulations in emerging markets.

Mitigation Strategies

• Consolidated all North American headquarters functions in Plano, Texas (planned for 2016).
• Continued cost reduction efforts with suppliers.
• Aggressive marketing efforts.
• Development of next-generation eco-cars (hybrids, EVs, FCVs).
• Strengthening of regional strategies and relationships with distributors.

Supply Chain Management

Responsible Procurement

• Close collaboration with suppliers for cost reduction and efficient component development.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and eco-cars.

Sustainable Products & Innovation

• Hybrid vehicles
• Plug-in hybrid vehicles
• Electric vehicles
• Fuel cell vehicles

Awards & Recognition

• 2013 Good Design Award for “SINCE feelas” smart houses.

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Safety and Peace of Mind
• Waku-doki (excitement and exhilaration that wows you)

Environmental Achievements

• Launched MIRAI (FCV)
• Continued to popularize HV & PHV globally
• Reduced CO₂ Emissions per Unit Produced

Social Achievements

• Established Toyota Research Institute, Inc. to accelerate research and development of Artificial Intelligence (AI) technology
• Implemented company-wide restructuring to improve decision-making and working practices
• Launched initiatives for employee well-being and development

Governance Achievements

• Adopted Toyota Global Vision in 2011
• Established CSR Committee in 2007 (later integrated into Corporate Planning and Governance Meetings)
• Implemented company-wide restructuring in April 2016

Climate Goals & Targets

Environmental Challenges

• Global economic uncertainty
• Increased competition in the automotive industry
• Technological advancements requiring significant investment
• Environmental regulations
• Aging population and labor shortages in developed countries
• Supply chain disruptions

Mitigation Strategies

• Investing in R&D for ever-better cars and advanced technologies
• Implementing TNGA to improve efficiency and reduce development resources
• Strengthening financial foundation
• Company-wide restructuring to improve decision-making and efficiency
• Building a disaster-resilient supply chain
• Promoting local production and sourcing

Supply Chain Management

Supplier Audits: 70 distributors and 3,692 dealers from 66 countries participated in the Dealer Environmental Risk Audit Program (DERAP) in FY2015

Responsible Procurement

• Toyota Green Purchasing Guideline
• Monozukuri Innovation with suppliers

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Hydrogen-based society

Reporting Standards

Frameworks Used: GRI

Sustainable Products & Innovation

• Prius
• MIRAI (FCV)
• Hybrid vehicles
• Fuel cell vehicles

Environmental Metrics

ESG Focus Areas

• Legal Compliance
• Labor and Human Rights
• Environment
• Responsible Material Procurement
• Local/Global Community

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Avoid procurement or usage of materials obtained through unethical or unacceptable means (such as conflict minerals, cobalt, natural rubber).

Climate-Related Risks & Opportunities