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Toyota European
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About the report
About Toyota Motor Europe
Data measurement and collection
This is Toyota Motor Europe’s fourth Sustainability Report. It covers our environmental, social and economic performance for Financial Year 2009 (FY09) from the 1st April 2009 to 31st March 2010. This report follows our 2009 Sustainability Report which was published in September 2009.This is the ninth year we have been reporting on our environmental performance. We began publicly reporting on our environmental performance in 2001 when we published our first annual Environmental Report. In 2007, we broadened the scope of the Environmental Report to include a wider range of sustainability indicators and since this date publish our Sustainability Report annually. More than 100 people have contributed to this report. They have made a great deal of effort to provide high-quality, accurate and transparent information. Without their contribution, this report would not be possible. Without the daily commitment to sustainability of all our employees in Europe, sharing the progress we have made would not be possible.
Toyota Motor Corporation is one of the world’s largest automotive manufacturers and began selling cars in Europe in 1963. Toyota Motor Europe NV/SA (Toyota Motor Europe) is 100% owned by Toyota Motor Corporation. The head office of Toyota Motor Europe is located in Brussels, Belgium. Toyota in Europe has operations in 17 countries with 9 manufacturing plants, 9 vehicle logistics centres and 14 parts distribution centres. Caetano in Portugal (one of the nine manufacturing plants) is a joint venture in which Toyota Motor Corporation has a 27% share. The data for this plant is not included in this report. Similarly, Toyota Motor Manufacturing Russia (TMMR) is fully owned by Toyota Motor Corporation. The data for this plant is not included in this report, but in the Sustainability Report of Toyota Motor Corporation.
Toyota Motor Europe serves 57 territories through 30 National Marketing and Sales Companies (NMSCs) that are either Toyota-affiliated companies or are independently-owned. A new National Marketing and Sales Company (one of the 30) was established in Kazakhstan in FY09. Apart from this, there have been no significant changes to our structure in the reporting period. We welcome your comments and opinions on this report and invite you to share them with us by emailing us at [email protected]. This report is also available online at www.toyota.eu and complements Toyota Motor Corporation’s Sustainability Report 2010, which can be viewed at: www.toyota.co.jp/en/csrWe hope you enjoy reading this report.
The environmental performance data is gathered from internal reporting procedures. The methodology used is in line with the Greenhouse Gas Protocol of the World Business
Council for Sustainable Development and the World Resources Institute.The social performance data is from formal statistics on customer relations, quality, safety, health and human resources. The economic data is from our finance
group and all financial data is in line with corporate annual reporting procedures. There have been no major changes in the reporting
procedures from previous years.We have developed this report using the Global Reporting Initiative G3 Guidelines, which provide a useful framework for examining the environmental, social and economic aspects of our performance to be included in the report. The report applies the GRI framework to an A level, which means that we have undertaken the G3 Profile and Management Approach disclosures and reported on all core indicators. The GRI Index is located on pages 86-91. Our internal and external stakeholder feedback processes (see pages 57-61) have also helped shape the content of the report.
Report Coordination Team :Front left to right : Gabrielle Lods, Colin Hensley,Sharka Holler, Willy Tomboy,Maria Isabel Rodriguez Leon
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Message from the President “ Tough times, while preparing for the future ”
In our 2009 Sustainability Report, we said that our company has the ability and spirit to solve problems and to navigate through the difficult times brought on by the global economic crisis.
Then, at the beginning of 2010, we were hit with another crisis - product recalls. The recall crisis was unexpected given Toyota’s reputation for quality, durability and reliability - the major characteristics of any Toyota car.
Toyota Motor Corporation President Akio Toyoda suggested going back to the basics and said “Let’s simply make better cars”.
For that purpose, Toyota Motor Corporation established a Special Committee for Global Quality. To represent Toyota Motor Europe, I have been appointed Chief Quality Officer and I am leading the European Quality Taskforce.
Our utmost priorities were fixing the problem, regaining customers’ trust, people’s respect and customer confidence in Toyota’s commitment to superior quality. The improvements have been quicker than we initially anticipated.
‘Customer First’ remains a landmark Toyota philosophy. Each member of our team in Europe aims to always deliver their best and our retailers are committed to providing the best overall customer experience. Customer satisfaction is
part of our everyday commitment to excellence.
Since 2006, customer satisfaction as measured by Toyota retailers has improved by 19% in sales and 13% in after sales.
Looking to the future, the automotive industry can make a substantial contribution to the creation of a low-carbon society by improving fuel efficiency and developing and introducing new technologies which reduce emissions and enable personal mobility. In FY09, according to JATO, our company’s average carbon dioxide emissions of cars sold reduced by more than 10% from FY08 to 132.2 g/km (1). We will make continuous efforts to reduce C02 emissions of cars sold.
Our technological leadership is further demonstrated by the introduction of a fleet of 200 Plug-in Hybrid Vehicles that will be tested in 18 European countries. At the same time, we are testing Fuel Cell Hybrid Vehicles in Germany.
Plug-in Hybrid technology will make an important contribution towards ensuring sustainable mobility. In our view, this hybrid technology is the best way of achieving the major efficiency improvements needed and will pave the way towards a low-carbon future.
Didier LeroyPresident, Toyota Motor Europe Managing Officer, Toyota Motor Corporation
(1) Toyota brand 2009 average : 130.1 g/km.
Didier LeroyPresident, Toyota Motor Europe
Immediate action has been taken with the product recallsA Special Committee for Global Quality was established. Didier Leroy was appointed Chief Quality Officer to lead the process with this issue and to re-instate Toyota’s reputation for quality, durability and reliability and ‘Customer First’ attention.
10% reduction in the average CO2 emissions of Toyota and Lexus vehicles sold in 2009The company’s average CO2 emissions of cars sold has been reduced by more than 10% from 2008 to 132.2 g/km (1). Full hybrid sales were 55,476 units or 6.28% of our total sales. We will continue to further reduce emissions.
The first rollout of full hybrid technology in Europe (Toyota Motor Manufacturing UK)The start of production of the Toyota Auris Hybrid Synergy Drive® marks the first rollout of full hybrid technology in Europe. The vehicle has category-leading fuel consumption of 3.8 l/100 km and emissions of 89 CO2 g/km. The car’s lifecycle CO2 emissions over a distance of 150,000 kilometres are 33% less than the Auris petrol model and 25% less than the Auris diesel model.
Plug-in Hybrid Vehicle (PHV) programme launchedThe European PHV project is a part of a global Toyota project involving more than 600 Prius Plug-in Hybrid Vehicles that are also being tested in Japan, the US, Canada and Australia. The European project is leasing 200 (of the 600 vehicles) to selected partners and customers in 18 European countries, who will road test the vehicles. Toyota’s main objective is to further investigate the technology and performance of the PHV with respect to the customer’s needs.
Solar energy investment at Toyota Parts Centre Europe
A solar panel was installed on the roof of Toyota Parts Centre Europe in 2009. Covering 80,000 m², it is one of the largest thin-film solar panel rooftop installations in Belgium. The installation will produce between 15% and 20% of the annual electricity requirements of the facility. As a result, Toyota Parts Centre Europe will be able to make savings on its energy costs while reducing its CO2 emissions.
An Integrated Approach is needed to real-ise the vision to de-carbonise automotive transportThe car industry, fuel companies, suppliers, regulators, infrastructure providers, and users of vehicles must work together to make significant contributions to reducing green-house gas emissions from road transport.
Maintaining stable employmentThe crisis, while challenging, was an opportunity for Toyota to demonstrate our commitment towards making every effort to maintain stable employment and improve mutual trust and understanding with our employees through thorough communication and long-term development.
Engaging with the communityBeyond our core business of producing and selling environ-mentally friendly cars, Toyota Motor Europe has a tradition to serve the local communities it operates in. In 2009 our employees and retailers were involved in over 150 projects, totalling a spending of €4.2 million in strategic community projects.
Engaging with business partnersToyota Motor Europe has a true 360° approach to the environment. We aim to minimize the environmental footprint involving all partners in the lifespan of our cars. With our retailers we work closely together in the Sustainable Retailer programme which will "green" the 3,000 retailer network in Europe by 2015. In the supply chain, we work in close cooperation with all suppliers to promote Sustainable Purchasing Practices.
(1) Toyota brand 2009 average : 130.1 g/km.
Executive summary
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ISO14001 certified European Manufacturing Companies (EMC) 7 7 7
ISO14001 certified National Marketing and Sales Companies (NMSC) 22 26 28
Certified Environmental Management System Toyota and Lexus Retailers 185 724 918
ISO14001 certified Parts Distribution Centres(1) 13 (1) 14 14
ISO14001 certified Vehicle Logistics Centres 8 9 9
Percentage of Vehicle Parts Suppliers that are ISO14001/EMAS certified - 85% 85%
EMC energy usage (kWh/vehicle) 1,356 1,495 1,442
EMC CO2 (kg/vehicle) 417 443 419
CO2 emissions – EMC (t CO2) 339,000 261,000 228,000
EMC water usage (m3/vehicle) 1.98 2.11 1.90
EMC VOC emissions (g/m2) 19.9 18.9 18.4
EMC waste-to-landfill (kg/vehicle) 0.05 0 0
EMC number of fines 0 0 0
EMC number of prosecutions 0 0 0
EMC number of complaints 0 1 0
CO2 emissions – NMSC (t CO2)(2) 12,650 11,009 11,747
CO2 emissions – Production Parts Logistics (t CO2) 103,000 87,000 72,000
CO2 emissions – Vehicle Logistics (t CO2) 82,274 75,563 53,154
CO2 emissions – Service Parts Logistics (t CO2) 52,062 48,434 44,175
CO2 average emissions from Toyota vehicles – EU-27(3) 151 145 130
Sales of Remanufactured Parts (units) 58,381 63,635 58,601
Social pErformancE fy07 fy08 fy09
Employment (direct) – Head Office, NMSC, Logistics Group 7,432 8,496 4,587
Employment (direct) – EMC 18,920 18,702 15,464
Gender distribution – % of women in Head Office, NMSC, Logistics Group 26% 28% 32%
Gender distribution – % of women in EMC 10% 9% 11%
Injury frequency rate – EMC (No. of lost-time-injuries x 1 million / No. of hours worked)
3.0 3.0 2.2
Injury frequency rate – Head Office, Zeebrugge, Zaventem (No. of lost-time-inju-ries x 1 million / No. of hours worked)
0.7 0.3 1.1
Injury frequency rate – Regional Parts Centers and TPCE (Toyota Parts Center Europe) (No. of lost-time-injuries x 1 million / No. of hours worked)
35.29 28.56 27.77
Suppliers – purchased local European content of core models >90% >90% >90%
European social contributions – total amount (million €) (Revised figures FY07) 10.5 7.8 4.2
European social contributions – % of total spending linked to strategic focus on education, road safety, environment
62% 66% 72%
Economic pErformancE fy07 fy08 fy09
Net revenue (million €) 24,651 20,925 16,390
Operating income (million €) 874 -995 -252
Number of vehicles manufactured 814,093 589,794 544,050
Number of engines and transmissions produced 1,396,106 1,210,913 1,108,694
Annual total sales of Toyota and Lexus (Calendar Year) 1,233,807 1,112,021 882,351
Annual hybrid sales (Calendar Year) 48,958 57,819 55,456
Market share (Calendar Year) 5.6% 5.3% 4.9%
Investment since 1990 (billion €) almost 7 > 7 >7
Key figures
(1) Excludes NMSC-owned Parts Distribution Centres.(2) The figures for the CO2 emissions for NMSCs in FY07 and FY08 are different from the figures we reported in our Sustainability Report 2009
(respectively 12,585 and 13,585 tons CO2). We changed the emission factors to enable more accurate calculation.(3) Based on JATO data, 26 Feb.2010.
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Toyota’s approach to quality“ The strongest connection between our customers
and us is their trust in Toyota. This connection is the
foundation of our ‘Customer First’ approach to quality.
Recently, this connection was challenged with the
quality issues we faced. This situation has given us
the opportunity to improve our processes and our
understanding of our customers’ expectations. As a
result, we are reforming our operations to return to our
basic principle of ‘Quality First, Customer First’ „Necdet Senturk
In response to the product recalls that affected customers at the beginning of 2010, Toyota Motor Corporation is providing leadership to its companies around the world to understand what went wrong and identify improvements for the future.
To do this, Toyota Motor Corporation’s President Akio Toyoda has established a Special Committee for Global Quality and appointed a Chief Quality Officer in each region to steer actions around the world.
Improvement activities have been identified and include:
Reviewing all processes that have an impact on quality: from the vehicle product planning stage to the After Sales service we provide to our customers.
Increasing our ability to identify and to solve customer concerns: we are strengthening our entire After Sales operation to better capture information and to provide faster and more effective solutions to our customers.
Strengthening human resources development as a key to quality assurance: we will further develop our peo-ple to ensure their development is aligned with Toyo-ta’s quick expansion and growth. We are establishing a Customer First Training Centre in each region.
The product recalls have provided an opportunity for us to improve the way we work.
Highest Quality at Affordable Cost
Quality First :
Safety – Durability - Reliability
Customer First:
Customer Trust & Satisfaction
Necdet Senturk Vice-President, Quality,
Toyota Motor Europe
Special feature
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Recurrence
Prevention
AdvancedQuality
Prevention
Quality
Improvement
OutflowPrevention
Early Detection &
Early Resolution
1 Stop the problem from happening
4 Do not generate the same problem
2 Stop the problem before
it reaches the customer
3 Minimize the problem: solve the problem quickly
Recurrence prevention
The Toyota Quality System looks at quality throughout the complete vehicle lifecycle. The system seeks to ensure quality from the first stage of the vehicle’s development, with the aim of identifying and preventing potential problems in future vehicles.
Additionally, our customer concerns are stringently
followed through by field reports, warranty issues and customer feedback for improvement.
In terms of the recent product recalls, we are now analysing potential problem areas to ensure the quality, durability and reliability of critical vehicle components. The aim is to eliminate any risk for our customers.
Environmental Performance 16Introduction 17
Special Feature : Moving towards a Global Climate Agreement after Copenhagen 19
Special Feature : Integrated Approach needed for de-carbonising transport 21
Research and Development 23
Manufacturing 32
Logistics 36
Sales and Marketing 44
Lexus 52
After Sales 54
End-of-Life Vehicles and Sustainable Recycling 55
Social Performance 56Toyota : a Good Corporate Citizen 57
Engaging with Customers 63
Engaging with Employees 67
Engaging with Business Partners 75
Engaging with the Community 78
Economic Performance 82Market Context 83
Vehicle and Market Share in Europe 84
Production Volumes 84
Investments 84
Message from the President 4Executive Summary 5Key Figures 6Special Feature : Toyota’s Approach to Quality 7Table of Contents 9
Vision and Strategy 10Vision 2020 11
Governance Structure 12
Measuring Environmental Performance 13
Measuring Corporate Social Responsibility Performance 14
Table of contents
Vision & “Our vision is to be a leading player in the European automotive industry by taking a ‘Customer First’ approach to safety, quality and environment and ensuring we meet and exceed the expectations of our customers, partners and communities. This gives our company and employees direction. To achieve the vision, formal planning, target-setting process and governance structure makes us responsive when faced with major issues.„
Didier Leroy
Strategy
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Didier LeroyPresident, Toyota Motor Europe Managing Officer, Toyota Motor Corporation
Vision 2020Vision 2020 explains the path to ‘ Becoming a Leading Player ’ in Europe by focusing on four key pillars.
From vision to actionThe Toyota European Vision 2020, distributed to our employ-ees in May 2010, will drive our targets, decision making and action plans. The pyramid shows how this vision is cascaded throughout the organisation.
We, as a team, embrace this challenge and will translate this vision to become a leading player and a key contributor to global Toyota.
(1) Hoshin is an objective and target-setting process that enables the vision to be translated into action.
Self Reliance
with Focus on
locally produced
ModelsGood Corporate
CitizenEnvironmental
Leadership
To be a Leading Player in greater Europe
To be a Key Contributor to Global Toyota Success
Customer
Delight
Vision
European
Regional
hoshin(1)
Member
objectives
Company, function and
divisional hoshin or
business plan
Our vision provides
the European direction
for all Toyota employees.
European Regional hoshin(1)
re�ects the current business
condition and short-term
challenges to advance
towards realising
our vision.
Each company, function and division re�ects
the European Regional hoshin and their
own current challenges into their planning.
Each individual contributes by de�ning their
own objectives and undertaking activities
that support the vision.
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About Toyota Motor Europe’s Board of Directors
The Board of Director of Toyota Motor Europe is composed of 6 members, all of whom are executive directors. The company has processes in place to ensure there are no conflicts of interest. These processes are consistent with the Company Code of Conduct and include the obligation to disclose conflicts of interest.
The directors of Toyota Motor Europe are selected based on their qualifications, experience, performance and industry knowledge and are appointed by Toyota Motor Corporation.
Senior executives of Toyota Motor Corporation, the sole shareholder of Toyota Motor Europe, review the performance of directors and of the Board as a whole. Executives are compensated according to industry rates and performance.
Governing committees
Our governing committees help set our strategic direction and monitor progress in reaching our goals.One of the tasks of the committees is to lead our corporate social and environmental responsibilities. Each committee has cross-functional representation.
Governance structure
Quality
Committee
Chair: President
TME Executive
Committee
Chair: President
Environment
Committee
Chair: President
CSR Committee
Chair: President
Audit Committee
Chair: Executive
Senior Vice-President
Electric Mobility
Committee
Chair: President
Communication
Strategy Committee
Chair: Vice-President
Toyota Fund for
Europe Board
Chair: Vice-President
Toyota Motor Europe Head Office
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priority area 2009 achievementspage
in this report
2010 Direction/target
I. Reduce Energy and Climate Change Impact
Reduce CO2 emissions and increase fuel efficiency
1. Carbon footprint of the company reduced by 18% versus 2008.
2. Company average CO2
emissions : 132.2 g/km.
3. Full hybrid sales (CY09) : Toyota : 42,712 Lexus : 12,744 Total : 55,456 (6.28% of total sales)
34-35
Further reduction of emissions and fuel consumption is possible by advanced vehicle technology and by taking an Integrated Approach with all stakeholders including car manufacturers, oil companies, public authorities and users.
Expanding hybrid vehicles into mainstream models. In 2010 this includes introducing the Toyota Auris Hybrid Synergy Drive ® (HSD).
II. Effective Use of Resources
Contribute to a recycling-based society
Fully compliant with European Union (EU) Directive 2000/53/EC on end-of-life vehicle recycling (ELV).
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Continue to work towards achieving the 2015 recycling/recovery targets.Further investigate recovery and treatment of hybrid batteries.
Promote lifecycle analysis
The Toyota Auris HSD shows a 33% improvement in CO
2 emissions
through its complete lifecycle versus a comparable petrol model and a 25% improvement versus a diesel model.
30-31 Continue to improve new model performance versus current/old model.
III. Reduce use of Substances of Concern
Reduce and eliminate substances of concern
Fully compliant with EU Directive on end-of-life vehicles, and with the EU Chemical Regulation REACH.
Continue full compliance with EU Directives and REACH.
Ensure compliance with the new Classification, Labelling, Packaging (CLP) regulation.
IV. Expand Environmental Management
Strengthen consolidated environmental management based on ISO14001
1. National Sales and Marketing Com-panies added : 2, bringing the total to 28 out of 30.
2. Logistic hubs added : Finland (TPCFI).3. Started with energy improvement
audits at retailers.
4. Implemented Green Month Campaign in June 2009 with the theme ‘You control climate change.’
5. Promote the use of renewable energy : introduced 80,000 m² solar panels at Toyota Parts Centre Europe in Diest, Belgium.
3
1748-51
18
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Continue with actions.
Prepare for next Five Year Environmental Action Plan (FY2011-15) to be introduced in April 2011.
Hold a Green Month Campaign in 2010 with the theme ‘Many Species, One Planet, One Future : Make a Smart Choice.’
Increase share of renewable energy.
In order to ensure environmental risk management and compliance across all business activities, we have developed a consolidated Environmental Management System (EMS). In order to manage this activity across all business areas a Five Year Environmental Action Plan defines mid-term targets and key activities to achieve the targets. The purpose of the action plan is to set five-year goals and targets designed to help the European operations achieve our overarching Environmental Policy and vision of ‘Environmental Leadership’. The current
five-year plan runs from FY06 to FY10 and preparations are beginning for the next five year period.
The following table summarises our key environmental targets and achievements against our Five Year Environmental Action Plan. The table includes our performance in energy and clima-te change, improving resource use, eliminating substances of concern and expanding our environmental management system. Please note that these results refer to the calendar year.
Five Year Environmental Action Plan
Measuring environmental performance
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priority area 2009 plan 2009 achievement 2010 Direction
1. CSR management fully integrated with business processes and planning
Human resource management
By FY10, implement measures to reduce gender gap in employee recruitment by 50%.
By FY10 further realise multi-year action plan on work/life balance.
This action was not implemented as there was a hiring freeze due to the global financial crisis.
No additional measures were imple-mented.
Introduced measures to reduce working hours in FY09 to maintain stable employment.
Focus on continuous two-way communi-cation, employee motivation and people development.
Supply chain management
Continue to communicate CSR policy to suppliers.
Communicate results of CSR supply chain survey to the purchasing Annual Business Meeting.
Reinforced business partnerships through consistent application of the founding business principles.
CSR was communicated at the Annual Business Meeting.
Improved competitiveness by sharing best practice and manufacturing experience.
Advanced the quality assessment process from the development phase to the design phase.
Achieved successful three-year strategy for Toyota in Europe Association of Ma-nufacturers (TEAM), including a quality improvement of around 90%.
Launched Sustainable Purchasing Guidelines (SPG).
Continue to share manufacturing experience by establishing an activity calendar.
Intensify collaboration for quality improvement with the aim of ultimate customer satisfaction.
Increase the total number of TEAM members to represent 75% of purcha-sing spend ( see page 77).
Broaden tools and methods for monito-ring SPG compliance.
To be able to truly integrate CSR targets into our business, we needed to develop a common understanding and measurement of what CSR Leadership means to our company. We measure our CSR performance by conducting an annual CSR Assessment of our National Sales and Marketing Companies, European Manufacturing Companies and Head Office. The CSR assessment measures company performance with respect to five stakeholders:
Customers Shareholders Employees Community Business Partners
CSR Three Year Business Plan
Our CSR Three Year Business Plan focuses on four key areas :
the integration of CSR management in our day-to-day business practices,
value-added contributions to society, increased stakeholder engagement and urban mobility.
Using this measurement system, we identify kaizen (improvement) projects and integrate them into our local planning cycles. The CSR Three Year Business Plan captures CSR targets and actions for the years to come, based on CSR Assessment results.
Within these areas, each of our affiliates identifies areas for improvement and sets targets which are entered into the three-year planning cycle.
Measuring Corporate Social Responsibility (CSR)performance
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priority area 2009 plan 2009 achievement 2010 Direction
Support to affiliated companies
Increase internal and external CSR communication.
Ensure definition of European CSR Action Plan which sets targets for National Mar-keting and Sales Companies (NMSCs).
Integrate CSR activities into business plans of affiliated companies.
Support was provided for focused communication on social contributions and Code of Conduct.
European CSR Action Plan was defined in line with Vision 2020.
Integrated CSR activities into business plans of 60% of Toyota Motor Europe companies.
Ensure integration in 100% of Toyota companies based in Europe.
Support development of local CSR gover-nance structures.
Special mobility
Strengthen programme in UK and other countries.
This programme was discontinued due to the global economic crisis.
Not applicable.
2. Enhanced and efficient system of social contributions that create social and business value
Increase alignment of social contribu-tions with overall business strategy.
Enhance visibility of social contributions in Europe.
Focus on environmental programmes.
Increase retailer involvement in CSR.
Increase employee involvement in CSR.
The percentage of total social contribu-tions with a strategic focus increased to 72%, with 44% of contributions funding environmental activities.
Enhanced visibility of our social contribu-tions through Toyota Fund website and newsletter.
Continued to develop flagship projects Eco-Driving and Eco-Schools.
Retailer involvement piloted in five countries.
3% of our manufacturing and Head Office employees were involved in our social contribution activities.
Rebuild local admiration and respect by:
Increasing the involvement of retailers in our social contribution activities.
Setting enhanced targets for employee involvement in manufacturing plants and Toyota Motor Europe offices.
3. Key stakeholders understand Toyota performance and have a positive image of the company
Conduct European Key Stakeholder Survey on a bi-annual basis.
Design and implement a proactive stakeholder engagement strategy.
Develop Key Performance Indicators (KPIs) for stakeholder relations.
Third European Key Stakeholder Survey completed, with Toyota Motor Europe achieving the number one ranking for corporate citizenship.
KPIs for stakeholder relations developed.
Set up and implement continuous CSR communication with stakeholders.
Provide communication and stakeholder relations templates to retailers.
4. Urban mobility
Not applicable, as this was not included in the FY08 plan.
Electrical Mobility Committee esta-blished.
Launch of Plug-in Hybrid (PHV) Limited Lease project in Strasbourg, France.
Implement PHV Limited Lease projects in 18 European countries.
“Our Environmental Policy, which was revised in 2009, sets out our aim to reach environmental leadership throughout the whole vehicle lifecycle.We take a holistic and Integrated Approach to reducing energy and emissions throughout the lifecycle of our products and services, from the sourcing of the materials to recycling end-of-life vehicles.„
Hiroyuki Ochiai
PerformanceEnvironmental
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Addressing environmental issues is a management priority and we strive to address these issues in line with the Toyota Way. In order to ensure environmental risk management and compliance across all of our business activities, we have developed a consolidated Environmental Management System (EMS), which sets specific requirements for each of our various business activities.To implement our environmental management activities we use the international environmental management standard ISO14001. This standard outlines requirements for an effective EMS based on the Plan, Do, Check, Act cycle.
Plan : Establish an environmental policy, define environ-mental impacts and legal requirements and set objectives and targets
Do : Implement action plans, training and awareness Check : Conduct audits to check the system is operating
according to the standard Act : Management review and recommendations for
improvement.
At the end of FY09, 91% of our operations were ISO14001 certified. Our operations include all manufacturing sites, Parts Distribution Centres, Vehicle Logistics Centres and National Marketing and Sales Companies. In addition, more than 32% of our retailer network is now certified to an EMS, with a number of markets achieving complete certification including Adria, Poland and Denmark.
Having a consolidated EMS enables us to reduce environ-mental impacts such as energy, waste and water and rai-ses awareness across the organisation. The Green Month campaign, held in June each year coinciding with the World Environment Day, aims to raise environmental awareness among our employees. The campaign uses the EMS as a platform to engage our employees in implementing specific environmental activities. We held our first Green Month in 2004 at our Head Office in Brussels. Green Months are now held at more than 50 of our sites in Europe. This activity has helped generate ideas to further reduce our environmental impact.
Hiroyuki OchiaiExecutive Vice-President, Toyota Motor EuropeManaging Officer, Toyota Motor CorporationCo-Chairman of Environmental Committee, Toyota Motor Europe
Our Aim : Low Carbon Company
Environmental Management System
Respect
Challenge
CO2
Energy
Emissions
Waste
Water
REACH
Batteries
ELV
Teamwork
Toyota EMS Zero Emissions
Baseline – ISO14001 Environmental Management System (EMS)
Toyota Operations – R&D / Production / Logistics / Head Office / NMSCs / Retailers
Genchi Genbutsu
Green Month
Campaign
Emergency
Response
Work
Instructions
Procedures
Environmental
Training
Awareness
Performance
Legal Compliance
Risk Management
Kaizen
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Toyota Spain implemented a Green Month campaign in 2009, which included hosting an Eco-Driving workshop and encouraging employees to switch off computers and lighting
when they are not needed. Switching off lights resulted in an 8% reduction in energy usage during three months from June-August 2009.
To create a low-carbon company we need to be pro-active at each stage of vehicle manufacture and distribution. We examine sustainability throughout the lifecycle by :
1- Developing energy-efficient, recyclable vehicles
2- Operating sustainable manufacturing plants and facilities
3- Bringing our vehicles to market via sustainable logistics and operations
4- Selling and servicing our vehicles at sustainable retailers
5- Recycling end-of-life vehicles
Green Month Campaign at Toyota Spain
Sustainability throughout the lifecycle
Sustainableproductdevelopment
Sustainablemanufacturingplants
Sustainablelogistics
and operations
Sustainableretailers
Sustainablerecycling
1
2
3
4
5
LowCarbon
Company
European Manufacturing Companies100%
93%
National Marketing & Sales Companies
Parts Distribution Centres
Vehicle Logistics Centres
Offices / Technical Centre
Retailers
100%
100%
100%
32%
2008
2009
June July August
15
20
25
30
35
40
45
39
3332 32
4241
MWh
Implementation of EMS
Lighting energy consumption evolution
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Moving towards a global climate agreement after Copenhagen“ We are pleased to include this contribution from
Mr Jos Delbeke, Director General for Climate
Action, at the European Commission. As Europe’s
chief negotiator in the international climate change
talks, Mr Delbeke expresses his strong conviction
for urgent global action on climate change. „Piet Steel
Jos Delbeke (left) Director General for Climate Action, European Commission
Piet Steel (right) Vice-President European and Government Affairs, Toyota Motor Europe
“ The participation of some 120 world leaders at the December 2009 United Nations (UN) Climate Change Conference in Copenhagen, Denmark confirmed that climate change is now seen throughout much of the world as an issue justifying attention at the highest political level. But the outcome of the conference was a disappointment for Europe, and many other countries, particularly when measured against the high hopes that it would clear the way for reaching a legally-binding global climate agreement this year. A global agreement is crucial if the world is to prevent climate change from reaching dangerous levels later this century which could endanger the lives of millions of people and cause massive damage that could wreck our economies.
Forward-thinking companies have recognised the massive business opportunity that building a low-carbon global economy represents. But progress towards this goal is not advancing fast enough or with sufficient ambition to address the enormous challenge we face. A global agreement will reduce the cost of action, enable us to act faster and go some way
towards creating a level-playing field for business. Though the Copenhagen Conference outcome did not live up to expectations, it has nonetheless taken us a step closer to a global deal, and the international community is now busy building on it.
Firstly, it produced the Copenhagen Accord, with which more than 120 countries have associated themselves to date. The Accord provides important political guidance to the UN negotiations on detailed texts that will form the future global agreement. Secondly, negotiations on the UN texts themselves advanced well in a number of areas.
But perhaps most importantly of all, the Copenhagen Accord brought an unprecedented momentum to the willingness of the vast majority of countries to act, even in the absence of a global agreement. This is a message that has been confirmed in our many contacts with European partners since the European Commission set up its Directorate-General for Climate Action in February 2010.
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The Copenhagen Accord’s endorsement of the goal of keeping global warming below 2°C compared with the temperature in pre-industrial times represents a major step forward. This is the ceiling that much of the scientific community warns we must stay within if we are to have a 50/50 chance of stopping climate change from reaching dangerous levels.
The Accord does not set any reduction targets for greenhouse gas emissions in order to meet this objective. Instead it invites industrialised countries to notify their emission reduction targets and developing countries to submit the actions they plan to address emissions. Altogether more than 75 nations, accounting for more than 80% of global emissions, have done so to date.
This too is significant progress - it is the first time in history that industrialised and developing countries together have accepted that they share responsibility for keeping warming below 2°C. Perhaps the Accord’s most concrete breakthrough is on the issue of finance to help developing countries adapt to climate change and develop their economies along a low-carbon path.
The industrialised world has committed to provide nearly US $ 10 billion a year in new and additional resources over 2010, 2011 and 2012 to get these efforts off to a fast start. Around US $ 2.4 billion a year, or almost a third of the total, will come from the European Union. For the medium to long term, the rich world has pledged to mobilise US $ 100 billion a year by 2020.
So what are the prospects for reaching a legally-binding global deal soon?
The European Union would be ready to do so at the UN climate conference that will be held in the Mexican resort of Cancún at the end of 2010. However, it
seems likely that some other big players will not. Much will depend on whether the US Congress can pass domestic climate legislation. Without US action it is hard to imagine that China will be willing to bring its domestic actions into an international framework.
In the meantime, countries are not waiting for a global agreement to work together internationally. Several partnerships have been launched for example on deforestation, adaptation and mitigation policies to help progress discussions on specific issues.
There is broad international recognition that, rather than go for a ‘big bang’ as we did in Copenhagen, the international community has to make steps towards a global deal. In practice, this means the Cancún conference needs to deliver an action-oriented set of decisions that will provide a solid basis for reaching an international agreement at the conference in South Africa at the end of 2011.
In parallel with the international negotiations, the EU will push forward with de-carbonising our economy, and in particular the energy and transport sectors.
The European Commission has put the achievement of greener, more resource-efficient, low-carbon growth at the heart of our vision for the EU’s development over the coming decade and beyond. Building a low-carbon society is not only essential for controlling climate change – it is also a huge opportunity to modernise and rejuvenate our economies and develop new, future-oriented sources of sustainable growth and jobs.”
Jos DelbekeDirector General for Climate Action,
European Commission
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Integrated Approach needed for de-carbonising transport“ We are committed to creating a low-carbon
company which will contribute to a low-carbon
society. To do this we need to take an Integrated
Approach by working with key stakeholders, such
as car companies, the oil industry, policymakers
and road users, to improve eco-driving, road
infrastructure, traffic management, fuel efficiency
and vehicle technology. „Michel Gardel
We would like to share three reports that have called for an Integrated Approach on de-carbonising transport and share our position.
1- European Commission report : A European strategy on clean and energy efficient vehicles (1)
European Commission President, José Manuel Barroso, has made it clear that de-carbonising the transport sector is a priority for the Commission. In this report, the Commission indicates it will “promote additional measures that may help to decrease CO2 and pollution emissions from road transport – such as eco-driving, intelligent transport systems (ITS), including onboard technologies, infrastructure measures and urban transport management”.
2- European Environment Agency (EEA) report : Towards a resource efficient transport system (2)
In this report, Professor Jacqueline McGlade, Executive Director of the EEA, says that a common vision for sustainable transport and mobility is needed to reduce greenhouse gas emissions from transport.
3- McKinsey & Company : Roads toward a low-carbon future: reducing CO2 emissions from passenger vehicles in the global road transport system (3)
This report states that automotive manufacturers cannot solve the sector’s carbon abatement problem on their own. Suppliers, consumers, fuel and energy providers and policymakers will all need to take action.
(1) European Commission (2010), A European strategy on clean and efficient vehicles – Communication.(2) European Environment Agency (2010), Towards a resource efficient transport system, TERM 2009: Indicators tracking transport and environment in
the European Union.(3) McKinsey & Company Inc (2009), Roads toward a low-carbon future: reducing CO2 emissions from passenger vehicles in the global road transport
system.
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Michel Gardel Vice-President, External and Environmental Affairs, Toyota Motor Europe
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The automotive industry agrees. At the World Econo-mic Forum in Davos, Switzerland, in January 2010, the leaders of six major car manufacturers, including Toyota Motor Corporation President Akio Toyoda, signed a letter to policymakers which identified four key challen-ges to the sustainability of automotive transport :
Oil dependency : Automotive transport is 99% dependent on petroleum-derived fuel and 53% of the world’s annual oil consumption is used for transportation (58% for the countries in the Organisation for Economic Co-operation and Development – OECD).
Contribution to climate change : Automotive trans-port accounts for 8% of CO2 emissions globally, but 12% of CO2 emissions in OECD countries. Between 2006 and 2030, 80% of the increase of road transport CO2 emissions is expected to come from non-OECD countries.
Strains of urbanisation : Urban areas, particularly in the developing world where the growth of vehicle use is highest, urgently need to address both congestion and air quality challenges.
Accessibility and affordability : For the solutions and technologies to address the first three challenges to be effective, they need to be accessible and affordable to consumers in both the developed and developing world.
The letter states that “To find solutions to these challenges, we commit to a vision of de-carbonising automotive transport.”
The leaders of the companies say that while technology is an important part of the solution, it alone cannot achieve the changes required to address the threat of global climate change. We need to work together to find solutions :
Governments need to implement consistent, long-term policies and incentives to assist in bringing advanced technology vehicles to the market and create the necessary infrastructure to facilitate widespread use of these technologies.
Energy providers and utilities will need to provide low-carbon fuels, such as hydrogen and electricity generated from clean renewable sources.
Consumers need better education to understand the transport choices available.
Research from Japan and Europe has already shown that a combination of vehicle technology, low-carbon fuels, road infrastructure measures, and driving behaviour can significantly reduce the greenhouse gas emissions from road transport.
To implement significant greenhouse gas emission reductions, partnerships are needed. Building trust and maintaining dialogue with all stakeholders will be fundamental. The car industry, suppliers, regulators, fuel and infrastructure providers, and users of vehicles, can all make a significant contribution. An integrated approach, bringing together all stakeholders, will
be indispensable if we are to make quick progress. It seems to me that all stakeholders agree on the principles of taking an Integrated Approach. What is missing is agreement on the content, and when and how to implement the next steps. We commit with other members of ACEA to spare no effort in seeking to secure that agreement.
Our position
Our action
Vehicle
Technology
Development
User
•Distance travelled
•Co-modality(1)
Low Carbon
Fuel
Traffic Flow
Improvements
Integrated Approach
(1) Co-modality refers to using different types of transport in one trip.
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The European market is the most competitive in the world. For example, in the C-segment (small family car), which includes our Auris model, at least four new models are launched each year.
Within the global Toyota research and development organisation, I believe that we, at the European Technical Centre, have a vital role to play. We are the closest to the local market and can quickly respond to market needs, ranging from performance to environmental and safety requirements, and at the same time, keeping our products competitive.
For example, in terms of responding to environmental needs, the Toyota Auris family now includes the Auris Hybrid Synergy Drive® (HSD). The Auris HSD has CO2 emissions of just 89 g/km and switches between petrol and electric engines to suit the driving needs of each motorist.
Drivers can also choose the electric-only mode, which is silent and emissions-free for short distances.
We are researching regional market solutions in line with local regulations and incentive programmes for reduced emissions. This includes adapting our powertrains and vehicles for lower-emission fuels, such as liquified petroleum gas (up to 10% lower CO2 compared to petrol) and compressed natural gas (up to 25% lower CO2 compared to petrol).
In addition, we continuously research new breakthrough technologies with our European partners to maintain our environmental leadership position.
Diesel engines are popular in Europe and much of the development of diesel technology occurs in Europe. This type of technology will continue therefore to be a key area for our research and development team (see page 24).
Masato KatsumataSenior Vice-President, Research and Development, Toyota Motor Europe
Research and Development
“ More than ever we have to focus our research
and development efforts on developing cars
that suit European customer demands and
requirements. It is our responsibility to assure
the vehicle’s product power and quality reflects
passion for excellence in design, performance
and safety. „Masato Katsumata
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Diesel engines consume less fuel and emit less CO2 per kilometre than petrol engines. They are popular in the European market where they are suited to European driving, which typically includes highway driving and long-distance driving over weekends and holidays. In other markets, such as Japan and the US, the number of cars with diesel engines is lower due to different driving conditions and emission regulations.
Our diesel development group is comprised of three teams of engineers and technicians that specialise in diesel technology. The group focuses on the development of the 1ND diesel engine, which is installed in Toyota’s iQ, Yaris, Urban Cruiser and Auris models.
The application team adapts the Engine Control Unit to ensure the injection system and emission systems, catalyst and diesel particulate filter, work together in precisely-controlled timing. This is necessary to provide smooth and powerful driving performance while emitting the lowest possible CO2 and exhaust emissions.
The design team then works with our suppliers to source the required parts for the engine compartment for each model. Intensive testing during the development process ensures the quality of the parts.
Finally, the technology team focuses on future diesel engine technology. Working with European universities and engineering institutes, the team analyses the processes involving air and fuel in the engine for improvement, using computer-aided engineering.
Toyota Motor Industries Poland began manufacturing the 1ND engine in 2010, marking an important milestone in Toyota’s diesel engine development in Europe.
Diesel engine development in Europe
Engineers and technicians in the diesel application team
1ND diesel engine
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What is PHV ?
A Plug-in Hybrid Vehicle uses Toyota’s full hybrid techno-logy. In addition, the vehicle’s battery can be recharged using a standard electrical outlet. Toyota’s PHV is ‘the best of both worlds’ : for short distances, it can be dri-ven as an electric vehicle, resulting in nearly zero CO2 emissions. For longer distances, the PHV works as a conventional hybrid vehicle, providing low emissions and fuel consumption, and excellent driving performance.
Toyota expects the PHV to bring unsurpassed fuel efficiency and record low emissions compared to other mass-market vehicles on the road today.
Based on the third-generation Toyota Prius, the new Prius Plug-in Hybrid is equipped with a lithium-ion battery and emits only 59 g CO2/km in combined cycle of the New European Driving Cycle (1).
European PHV project launched in Strasbourg, France
The European PHV project is part of a global Toyota project involving 600 Prius Plug-in Hybrid Vehicles that are being tested in Japan, the US, Canada and Australia. The European project is leasing 200 vehicles to selected partners and customers in 18 European countries who will road test the vehicles. Toyota’s main objective is to further investigate the technology and performance of the PHVs with respect to the consumer’s needs.
France is at the centre of this project. In collaboration
with our partner, French energy provider EDF and the City and Urban Community of Strasbourg (CUS), we launched the programme in Strasbourg in April 2010.
About 100 PHVs are being leased to selected fleet customers and public bodies in Strasbourg, supported by charging points in users’ homes, the offices of business partners, public parking lots and on public roads. The project has received support via the Research Fund managed by the French Environment and Energy Management Agency, ADEME.
(1) CO2 emissions of Prius Plug-in Hybrid are measured according to the new official international regulation for plug-in hybrid electric powertrains, as adopted by the United Nations Economic Commission for Europe.
Plug-in Hybrid – A new step towards sustainable mobility
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ce Toyota Motor Corporation Executive Vice-President, Takeshi Uchiyamada, said “Plug-in Hybrid technology is key in our path towards sustainable mobility. Based on Toyota’s full hybrid powertrain, PHV is the most practical way of increasing the use of electricity for personal transport today.”
The Chairman and CEO of EDF, Henri Proglio, said: “EDF is proud to engage in a great industrial adventure involving the expertise of a manufacturer, an energy provider and public bodies.” EDF will evaluate different operational options for the charging infrastructure of the vehicles. EDF, with the operational support of its subsidiary, Electricité de Strasbourg (ES), will establish 150 charging points for the vehicles. In addition, German energy
provider EnBW Baden-Württemberg AG (which is part of the EDF Group), is extending the programme to the German state of Baden-Württemberg by demonstrating ten PHVs and their dedicated charging infrastructure.
The Mayor of Strasbourg and Vice President of the City and Urban Community of Strasbourg, Roland Ries, said: “I am pleased to be able to host this unique experiment that will be taking place over the next three years. The project shows how important it is nowadays to combine technological breakthroughs and innovative initiatives with sustainable development”. This project is part of ADEME’s Research Demonstrator Fund programme, which aims to test future technologies that reduce greenhouse gas emissions.
PHV in Belgium
Out of the 200 units that are being distributed to more than 18 European countries, five vehicles have been allocated to Belgium. The five Belgian partners are Agoria-Vlaanderen, Colruyt, Telenet, the Federal Public Service for Mobility and Transportation, and the office of the Direc-tor General for Climate Action, European Commission.
The partners will use the car for a period of three years. Together with these partners, we are examining how users adapt to PHV technology which will help facilitate increased market take-up and mass commercialisation of this technology from the mid-
2010s. We are also studying the impact on electricity usage. Deficiencies in the energy market can then be raised with the authorities and the network operators.
We are also road testing two PHVs in our Head Office and at our European Technical Centre. This includes researching and monitoring the vehicles’ charging units. Currently the cars are charged by using a normal household plug. In the future, the charging pole may be updated with the new EU-wide standard plug, once it is available on the market.
Didier Stevens, Senior Manager, Environmental Affairs, using the recharging station at Toyota Motor Europe’s office in Brussels
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The European energy framework
Although the energy sector is generally stable, major events such as the oil crisis of the 1970s and the air pollution and acid rain problems of the 1980s, have initiated a number of energy shifts, first from oil to nuclear and then from coal to gas. The latest concerns about energy security and climate change will likely be the catalyst for a new shift: from fossil fuels to non-carbon fuels.
Security of energy supply is a significant issue for the European Union. Today, the EU (27 member states) imports 55% of its energy needs. The EU imports more than 85% of oil, almost 60% of natural gas and 40% of coal. The energy we require is expected to continue to grow. To limit the consumption of fossil fuels and the resulting CO2 emissions, the EU has set targets which include :
A 20% reduction in greenhouse gas emissions by 2020 compared to 1990.
A 20% reduction in primary energy use compared with projected levels, to be achieved by improving energy efficiency.
20% of the EU’s energy consumption to come from re-newable resources and a 10% binding minimum renewa-ble energy usage in transport.
Muriel Desaeger, Mikako Le Lay Akihito TankeEnergy Research Group, Toyota Motor Europe
“ Transport makes up 28% of the total gross energy
demand of the European Union (1). It is therefore
clear that the availability of energy should be a key
concern for car manufacturers. Working with our
stakeholders, we need to develop products that
can be powered with available and sustainable
energy and to ensure that this energy is used
efficiently. „Akihito Tanke
Our approach to global energy challenges
European Climate Change Package
20% GHG reduction vs 1990
20% RE share in final
consumption
10% RE in Transport
Companies
Energy & Industrial
21% CO2 reduction vs 2005
ETS: Emission Trading System
Country
Transport, household, agriculture
10% GHG reduction vs 2005
Non-ETS: Emission Trading System
20% increase in
energy efficiency
(1) Eurostat 2007 (published 2010).
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8090
100110120130140150160170180
Toyota
CO
2 g/
km
140
120
02Year 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20
The transport sector’s contribution to climate change
These commitments, called the 20-20-20 action plan, directly affect the transport sector.
The transport sector, consuming about 28% of the total energy used in the EU, is an energy-intensive sector and a significant contributor to the manmade generation of CO2 emissions. We need to balance the need for enhanced mobility with the needs of our environment and society. To contribute to a low-carbon society, we need to improve the energy efficiency of our cars and to encourage low-carbon fuels usage.
We have long considered energy efficiency and the develop-ment of fuel-efficient vehicles a priority. We have introduced technologies such as Dual-VVTi, Valvematic and D-4S dual injection, as well as our innovative Hybrid Synergy Drive® technology. Plug-in Hybrid solutions represent the next step in fuel-efficiency.
To create a low-carbon society, we also need to switch from fossil fuels to low-carbon fuels, preferably made from renewable energy sources.
Biofuels
We believe that biofuels can offer a sustainable and lower-carbon alternative, provided they meet certain criteria and are available in sufficient volume. Today, most biofuels used in transport are made from agricultural feedstock and are referred to as first-generation biofuels.
Ethanol originates from sugar-based feedstock such as sugar cane, cereals or sugar beet, and is then blended into petrol. Biodiesel originates from oil-seed based feedstock such as rapeseed, and is then blended into diesel.
Regarding the use of biofuels, Toyota has three concerns:
1- Biofuels must be produced in a way that minimises CO2 emissions and environmental impact. Toyota is involved in a number of initiatives to establish criteria to guarantee that biofuels are produced in a sustainable way.
2- Biofuels must meet strict quality criteria to ensure the fuel is fit for purpose and delivers expected performan-ce in the vehicle. Toyota supports the Committee of Euro-pean Normalization’s work in drafting common fuel standards and calls for their introduction across EU member states. Hydro-treated Vegetable Oil (HVO) is a promising low-carbon biological alternative to diesel and is available on the market to-day. Made by a refinery-based process which converts vege-table oil to paraffin, HVO is a high-quality product that has the potential to substantially reduce greenhouse gas emissions. Toyota is also a member of the Alliance for Synthetic Fuels in Europe that promotes the uses of synthetic fuels as a high-quality alternative to diesel fuel. For more information please see www.synthetic-fuels.org/index_en.php
3- The production of biofuels should not compete with food production. Toyota support second-generation
Contributions to the EU CO2 targets
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biofuels, where the fuel comes from waste material from the forestry or agricultural industries, rather than from agricultural feedstock. Further, Toyota is involved in researching second-generation biofuels made from wood or straw. These advan-ced biofuels promise a number of benefits and could be used in existing vehicles, with the potential of even greater green-house gas emissions reductions. This technology, however, is still in its early stage of development and it may be several years before these advanced biofuels become available on a commercial scale.
For these reasons, we support low biofuel blends in Europe (E10 and B7) as a first step. We will support higher biofuel blends in the future if they meet criteria on availability, sustainability, greenhouse gas performance and quality.
Most of the Toyota and Lexus petrol vehicles made for the European market after January 1998 can run on petrol blended with up to 10% volume bioethanol (E10) (1). Since 2008, all Toyota and Lexus petrol vehicles made for the European market are compatible with E10.
All European Toyota and Lexus diesel models can run on diesel blended with up to 7% volume biodiesel (B7) in accordance with the European diesel standard EN 590:2009.Besides our support of biofuels, we are encouraging the development of energy-efficient and low-carbon vehicles by introducing cars that run on de-carbonised electricity and hydrogen (see pages 45-47).
Multi-stakeholder engagement
Advancing the best energy solution is not an easy task and the long-term impacts to the community and various stakeholders must be considered. We have therefore started to develop energy/fuel modelling capabilities and scenarios that are tested and discussed with energy-related entities.
We believe that engaging multiple stakeholders will be essential in solving energy and environmental concerns. We are therefore establishing links with energy industries, local authorities and the EU commission. The PHV project in Strasbourg is an example of our approach (see pages 25-26).
(1) Detailed information on E10 compatibility of our vehicles can be found on our corporate website http://www.toyota.eu/pages/default.aspx.
Plug-in Hybrid Prius
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Auris HSD-Toyota’s first full hybrid vehicle made in Europe
An eco car made in an eco factory, built by eco-minded people
Toyota Motor Europe celebrated a milestone in 2010 with the start of production of the Toyota Auris Hybrid Synergy Drive ® at our manufacturing plant in Burnaston, UK. This is Toyota’s first mass-produced full hybrid vehicle to be manufactured in Europe.
Over and above the benefits of exceptional fuel efficiency and low CO2 emissions inherent in Hybrid Synergy Drive®, the everyday usability, driving comfort and quietness of Toyota’s full hybrid powertrain will offer the Auris HSD customer a smooth and sophisticated driving experience unique to the small family car (C-segment).
Features of the Toyota Auris Hybrid Synergy Drive ®
Contributes to the reduction of greenhouse gas emissions throughout the vehicle lifecycle
High air quality standards : Complies with Euro 5 emission standards, with few nitrogen oxide and particulate matter emissions
Four driving modes including EV mode, which enables driving using electric power alone
CO2 emissions of 89 g/km Use of recycled plastic materials More than 95% recoverability and 85%
recyclability
CO2 emissions in the vehicle lifecycle
The diagram below shows the CO2 emissions per kilome-tre of the Auris HSD compared to the equivalent petrol and diesel models throughout the lifecycle - from material pro-duction and vehicle production to driving, maintenance and disposal. The total CO2 emissions of the Auris HSD across the lifecycle of the vehicle are 33% less than the Auris petrol model and 25% less than the Auris diesel model.
While the CO2 emissions related to the production phase are similar to the Auris petrol and diesel vehicles, there is a substantial reduction of CO2 emissions during the driving phase. The driving phase of conventional engine types accounts for more than 75% of the lifecycle CO2 emissions.
Petrol Vehicle Diesel Vehicle Hybrid Vehicle
0.0
0.2
0.4
0.6
0.8
1.0Index
Vehicle ProductionMaterial Production
DisposalDriving Maintenance
-33% -25%
CO2
Special feature
Life Cycle CO2 emissions
Auris HSD
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Kilometres travelled and CO2 emissions
We have analysed the CO2 emissions of the Auris HSD when it is driven for 150,000 kilometres. Over this distance, the Auris HSD shows a reduction in CO2 emissions of between 25% (compared to the equivalent
diesel vehicle) and 33% (compared to the equivalent petrol vehicle).When driven more than 150,000 kilometres, the relative CO2 emissions savings of the vehicle will be even greater.
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
50,000 100,000 150,000
X: Auris HSD = 25% less CO2 than DieselY: Auris HSD = 33% less CO2 than Petrol
4,800
Petrol Vehicle
Diesel Vehicle
Hybrid VehicleX
Y
Distance (km)
Index
Hybrid Vehicle Petrol VehicleDiesel Vehicle
Special feature
Ratio between distance and CO2
A unique eco-driving experience
The Auris HSD has four driving modes, including three that can be selected ‘on demand’ by the driver. The EV mode runs on the electric motor power
alone, resulting in nearly zero fuel consumption and emissions. The ECO mode maximises hybrid system efficiency and fuel economy, and the POWER mode boosts system performance. In addition, the Eco Drive Monitor helps drivers maximise the fuel efficiency of Toyota’s Hybrid Synergy Drive ® system.
Drivers are also able to monitor the flow of energy within the Hybrid Synergy Drive ® system for each driving mode. This helps them develop fuel-efficient driving techniques and maximise system efficiency. In addition, a power consumption gauge shows how much power is being used or generated at any given time.Eco-Drive Monitor
FY09 marked the second year of decreased vehicle production volumes in Europe although the 7.8% reduction to 544,050 vehicles was significantly less than the 27.6%
decrease reported in FY08. Combined unit (engine and transmission) volumes over the same period decreased by 8.4% to 1,108,694 units.
We remain committed to our FY10 environmental targets which were originally adopted as part of the Toyota Global Fourth Environmental Action Plan covering FY06-10, but were revised to be more challenging in FY07, before the global economic crisis.
We performed well against these targets in FY09 and achieved record consolidated performance in our manufacturing facilities in water, volatile organic compound usage and at-cost waste. This is waste which has a net disposal cost, but excludes scrap, project and recycled waste for which revenue is gained.
Ikuo KasaharaVice-President, Production Engineering, Toyota Motor Europe
Manufacturing“ Our European Manufacturing Companies
(EMCs) achieved strong environmental results in
what was another challenging year. As a result,
all our main environmental Key Performance
Indicators (KPIs) showed a marked improvement
from FY08. This is due to individual team members
across our European operations who have worked
hard to reduce unnecessary energy and water
usage in FY09.„Ikuo Kasahara
Manufacturing volumes
Key Performance Indicators - Manufacturing
SuStainability rEport 2006 2007 2008 2009 2010
Absolute Emissions (1) fy05 fy06 fy07 fy08 fy09
Total energy usage (MWh) 956,686 1,075,240 1,103,859 881,854 784,735
Total gas & oil (MWh) 541,309 576,229 603,732 457,472 417,616
Total electricity (MWh) 415,377 499,011 500,126 424,382 367,119
Total CO2 (1,000 tonnes)(2) 276 311 339 261 228
Total water usage (1,000 m³) 1,410 1,782 1,608 1,242 1,035
Total discharged water (1,000 m³) 1,025 1,166 1,095 845 689
Total VOC emissions (tonnes) 1,752 1,913 1,575 1,075 957
Total waste-at-cost (tonnes)(3) 17,256 26,329 23,728 15,061 11,038
Total waste-to-landfill (tonnes) 2,319 71 44 0 0.45
Total European production volume (vehicles) 622,907 807,134 814,093 589,794 544,050
Number of plants covered by result 5 7 7 7 7
Legal compliance
Total number of fines 0 1 0 0 0
Total number of prosecutions 0 0 0 0 0
Total number of complaints 0 1 0 1 0
(1) For TPCA joint venture – Toyota includes 1/3 reporting of total production volume & emissions
(2) This includes direct emissions from fuels and indirect emissions from purchased electricity
(3) All production waste which has net disposal cost (excludes scrap steel, project waste and recycled waste for which revenue was gained)
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Toyota in the UK has been recognised by Cleangreencars.co.uk as the first automotive manufacturer in the UK to achieve CO2 emissions averaging below 130 g/km across the model range, already meeting the 2013 European Union target set for automotive manufacturers. TMUK began manufacturing cars in 1992. Since that time, it has placed environmental considerations at the forefront of its business planning and sought to minimise its environmental impact. The company was the first UK automotive manufacturer to achieve ISO14001 in 1996 for its manufacturing operations and the first to achieve zero waste to landfill in 2002.
Toyota Motor Manufacturing UK – towards the ultimate Eco-Factory
Leading Environmental
Performance
1
Plant in harmony with its
natural surroundings
Innovative Production Technology
Kaizen
Increasing use of wind, solar,
biomass and geothermal
Inspire members to take action
Encourage and engage
the local community
Preserve and promote
the local ecosystem
Increasing use of
renewable energy
2
3
Leading by example
This commitment is demonstrated by the following reductions that have been achieved :
Reducing CO2 emissions
TMUK is striving to reduce its CO2 emissions by reducing its energy usage and by using the most efficient energy sources. Initiatives include :
Introducing control technology at its paint shop booths, which are a major user of energy.
Solar energy is used in the visitor centre to heat water. A wind energy feasibility study has been completed
at Deeside, Wales and is now proposed for Burnas-ton. Further pilot projects are ongoing.
Engaging employees
TMUK encourages its employees to reduce their own environmental impacts through an Eco-points programme. As part of this programme, employees make a personal commitment and a group declaration to reduce their impact on the environment.
They also attend environmental events such as the eco-plant exposition and tours around the on-site lakes, wastewater treatment plant and the on-site recycling facility. There are six points to collect in total and to achieve full eco-points, employees need to implement an improvement activity to reduce packaging, material, energy or waste.
In 2010 TMUK will become the first Toyota plant in Europe to produce a full hybrid vehicle with production of the Auris Hybrid Synergy Drive® (see pages 30-31).
0102030405060708090
100
2004/5 Fixed set
point contro
2005/6 Manual energy
manipulation
2006/7 Manual energy
manipulation plus Primer
Booth 1 trials
2007/8 Primer Booth 1 optimised
window control
2008/9 Roll out of
window control to remaining
booths
2009/10
%
Reduction 15,468Tonnes22%
Reduction 25,760Tonnes
36%
Reduction 28,024Tonnes
40%
Reduction 44,902Tonnes
61%
Reduction 53,299Tonnes
74%
TMUK Paint Shop Annual Steam Consumption 2004-10
Special feature
rEDuction from 1993 to 2008
Energy (kWh/vehicle) > 68%
Waste (kg/vehicle) > 60%
Volatile Organic Compound emissions (g/m2) > 70%
Water (m3/vehicle) > 70%
TMUK Weld Pilot Group Eco-points presentation
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As part of our vision to contribute to a sustainable society, we continue to examine technologies and solutions which can complement our production processes and lessen our overall environmental impact. This section details the environmental performance of our production plants.
Energy and carbon dioxide (CO2)
In FY09 despite falling production volumes and one of the coldest winters on record, the average amount of energy required to produce a vehicle declined by 10.3% to 1,442 kWh / vehicle. This improvement is due to :
The efforts of our European Manufacturing Companies to reduce all unnecessary energy usage by implementing improvement activities - the ideas of which are shared locally, regionally and globally.
The impact of significant investment in terms of time and resources in specially-trained energy reduction teams.
Consolidated CO2 emissions reflected this, with a 5.2% reduc-tion from 443 kg / vehicle in FY08 to 420 kg / vehicle in FY09.
Currently, Toyota Motor Manufacturing UK at Burnaston remains the only European Manufacturing Company included within Phase II of the EU-Emissions Trading Scheme for 2008-2012. We expect that for Phase III (2012-2020) at least one more of our manufacturing plants will be included.
Waste reduction
Waste disposed of at cost decreased by 20.5% from 25.5 kg /vehicle in FY08 to 20.3 kg / vehicle in FY09. This reduction means that we have achieved our FY10 target of 24.0 kg / vehicle ahead of schedule. To reduce waste, we first look at how we can decrease waste at source before looking at reuse or recycling options.
In FY08, we reported that since January 2008 all our manufacturing facilities achieved zero waste to landfill. This was a target set in our Fourth Environmental Action Plan in 2005. In FY09 one of our manufacturing plants needed to dispose of a small quantity of asbestos to comply with legislation. The figure would not be included due to rounding methodologies, but we mention it for transparency.
Manufacturing Key Performance Indicators
0200400600800
1,0001,2001,4001,6001,800
05 06 07 08 09
FY10 target = 1,375 kWh/unit1,536
kWh/unit
1,332 1,3561,495 1,442
FY
0
5
10
15
20
25
30
35
05 06 07 08 09
FY10 target = 24 kg/unit
27.70
kg/unit
32.62
29.15
25.54
20.29
FY
0
1
2
3
4
05 06 07 08 09
FY10 target = 0 kg/unit3.7240
kg/unit
0.0875 0.0545 0.0000 0.0008
FY
050
100150200250300350400450500
05 06 07 08 09
FY10 target = 425 kg/unit443
Kg/unit
386
417443 420
FY
Energy
Waste disposed of at cost
Waste to landfill
CO2 emissions
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Our designated ‘sustainable manufacturing plants’ (facilities nominated by Toyota Motor Corporation in 2007 as being model plants for carrying out sustainable activities) in the UK and France have a zero incineration policy which means that energy is recovered from any waste and is used as a fuel substitute.
Water usage
In FY09 the amount of water required to produce one vehicle in Europe decreased by 10% from FY08 to 1.90 m3/vehicle. This is our best consolidated result on record and reflects significant indivi-dual activity at our European Manufacturing Companies to reduce baseline water usage while facing declining production volumes.
Our manufacturing company in France now harvests a significant proportion of its water needs from rainwater in addition to recycling its wastewater using reverse osmosis treatment. As a result of these activities, 30% of the plant’s water consumption was met using sustainable sources in FY09.
Looking to FY10, achieving our target will be challenging as we had expected significant technological investment at our Turkish manufacturing plant, which is currently on hold due to the current economic climate. We will continue to look for ways of reducing water usage across all our manufacturing facilities.
Volatile Organic Compound (VOC) emissions
Last year we were able to report that we achieved our FY10 target two years ahead of plan with the understanding we would continue to focus on Toyota’s guiding principle of kaizen (conti-nuous improvement). This focus has led to us setting a new re-cord in FY09 with a further 3% reduction in VOC emissions from solvent-based paints and cleaners in the vehicle painting pro-cess. The average VOC emissions per square metre (m2) of vehi-cle body surface painted across our four vehicle assembly plants decreased from 18.9 grams in FY08 to 18.4 grams in FY09. In terms of absolute emissions (total tonnes), our improved perfor-mance combined with the decrease in production volume resul-ted in an 11% reduction in VOC emissions compared to FY08.
Environmental managementAll seven of our European Manufacturing Companies have Environmental Management Systems (EMS) that are independently certified to the international environmental management standard, ISO14001 (see page 18). In FY09 we continued to support our manufacturing facilities with the ongoing implementation of Toyota Environmental Management System which is complementary to ISO14001.
Toyota EMS is built on three pillars : Ensuring compliance Minimising environmental risk Achieving number one performance.
This is the focus and guiding philosophy of Toyota’s environmental activities globally.
Environmental leadership
Our aim is to be at the forefront of environmental leadership in the automotive industry. In FY09 our manufacturing plants received the following external recognition :
National Toyota Motor Manufacturing UK (TMUK) received the Big
Tick Award for environmental leadership and climate change reduction activity from business membership organisation, Business in the Community, and the ‘Process Premier Award’ from environmental not-for-profit organisation, Business Commitment to the Environment.
Regional Toyota Motor Manufacturing France (TMMF) received
the ‘Energy Efficiency Award’ from the North of France Industrial Society (SINF).
TMUK received the ‘East Midlands Carbon Positive Pioneer Award’ from business membership organisation, Business in the Community.
0
1
2
3
05 06 07 08 09
FY10 target = 1.70 m3/unit
2.26
m3/unit
2.21
1.982.11 1.90
FY
0
5
10
15
20
25
30
35
05 06 07 08 09
FY10 target = 19 g/m2
29.7
g/m2
25.6
19.9 18.9 18.4
FY
Water usage
Volatile Organic Compound emissions
Logistics
Production and Logistics Control
“ Our Production and Logistics Control division distributes
components from suppliers to our manufacturing sites
for vehicle assembly. We monitor CO2 emissions from
transportation activities on a monthly basis. We aim to
minimise CO2 emissions involved in the collection and
distribution of parts by reducing kilometres travelled and
ensuring the optimal use of trailers. „ Vehicle Logistics Group
“ The Vehicle Logistics Group manages the import and
export of new vehicles and customises individual orders.
The group continues to expand its European operations
and scope of its responsibility, although at a slower rate
than previous years due to the global economic situation.
Despite these pressures, the group has maintained its
strong commitment to our environmental objectives and
targets. „ Parts Logistics Group
“ Our group manages the procurement, storage and distribu-
tion of accessories and spare parts for Europe. It is our respon-
sibility to ensure the availability of parts for every vehicle that is
on the road in Europe, regardless of age or origin. To do this we
maintain relationships with all current and previous suppliers in
Europe and co-ordinate the exchange of parts across Toyota’s
global After Sales network. The main environmental impacts of
our operations come from transportation, warehouse opera-
tions and the packaging of parts. „
Hiroyuki IkedaVice-President, Strategic Production Planning and Production and Logistics Control, Toyota Motor Europe
Emile BenaimDirector, Vehicle Logistics, Toyota Motor Europe
Jonathan BallardDirector, Parts Supply Chain, Toyota Motor Europe
Production parts logistics
The collection and
distribution of parts
from suppliers to
manufacturing plants
Vehicle logistics
The import and export of
new finished vehicles and
customising
of individual orders
Service parts
and accessories logistics
The distribution
of spare parts
and accessories to retailers
Our logistics operations are divided into three separate divisions : Production and Logistics Control, Vehicle Logistics Group and Parts Supply Chain Group.
Logistics operations
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To reduce CO2 emissions from transportation, the Production and Logistics Control division focuses on improving three core aspects of its operations :
1- The loading efficiency of trailers and collection routes.2- Restructuring the network to reduce the number of
kilometres travelled between suppliers and European Manufacturing Companies.
3- Identifying opportunities to change the mode of trans-portation from road to train or ship.
The situation today
In FY09 our Production and Logistics Control division achieved its environmental performance target of reducing CO2 emissions by three kilograms per vehicle, from 99 kg to 96 kg. This reduction was a result of network restructuring and logistics planning.
Preparing for the future
Our Production and Logistics Control division is participating in si-multaneous engineering for new projects. The purpose of this work is to minimise the impact of parts and packaging design on the ef-ficiency, and eco-efficiency, of logistics. For the 2011 model sourc-ing, we have optimised the bulkiest parts unit packaging. Regard-ing the heating component it means we can transport 510 pieces in one trailer instead of 272 pieces. This space optimisation has resulted in fewer truck loads, saved 4,920 kilometres of travel per day and will reduce CO2 emissions by 1,020 tonnes per year.
Production and Logistics Control
0
20
40
60
80
100
120
03 04 05 06 07 08 1009
57
70
81
100 103
87
72 73
CO
2 em
issi
ons
(kto
nnes
)
Est
imat
ion
FY
unused space
After kaizen proposal510 Pces/Trailer
Heating component packaging kaizen
1,020 tonnes of CO2 spared per annum
Original272 Pces/Trailer
0
20
40
60
80
100
120
140
FY
CO
2 / ca
r em
issi
ons
(kg
/ car
)
03 04 05 06 07 08 09 10
121 121115
100102
102100
99 96
98 9694
Result 5-year Target
2009:96 kg Co2 / car
CO2 Emission - Absolute Amount
CO2 Emission per Car
ItalianSuppliers
LYONCrossDock
TMMF
TMUK TMIP
TMMP
I
F
DCZ
PL
SKA
CH
UK
H
VALENCIENNES
CrossDock
ItalianSuppliers
ITALIANconsolidation
point
TMIP
TMMP
I
F
DCZ
PL
SKA
CH
UK
H
TMMF
TMUK
VALENCIENNES
CrossDock
Flow Before
Flow After (as of October 2009)
before after
Trucks equivalent/annum 34 34
Distance to final delivery (km) 4,600 2,500
CO2 emissions (tonnes) 131 71 co2 rEDuction :60 tonnES / yEarS
Getting an engine part from an Italian supplier to our Polish manufacturing plant
Network restructuring progress in FY09
We rationalised our parts collection strategy in the south of Europe and around the Alps. This equates to a reduction of 5,900 kilometres a day and 1,200 tonnes of CO2 emissions a year.
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Environmental management in our Vehicle Logistics Group
In line with our Five Year Environmental Action Plan, the Vehicle Logistics Group maintains the international environmental management standard ISO14001 throughout its European operations. The group is also supporting the activities of the pan-European Environmental Team, which is composed of representatives from all hubs and meets on a regular basis. In FY09 the team’s main objectives were to manage and maintain environmental key performance indicators on energy and waste for the vehicle logistics sites.
Energy
Despite one of the coldest winters on record and a decrease in vehicles handled, energy usage per vehicle handled increased by only 7%. Continued efforts to reduce the absolute energy
consumption resulted in a 13% improvement compared to FY08. One such example can be seen below from our facility in Sagunto.
Waste
Last year we achieved zero (1) waste to landfill at our vehicle logistics centres in line with the target set in our Five Year Environmental Action Plan. This was maintained in FY09 with only 1% of waste from vehicle hubs going to landfill.In terms of the total waste produced per vehicle handled, we have seen a steady decrease since FY06 partly due to increasing our
returnable packaging. Additionally, efforts have been made to re-duce the amount of non-recycled waste per vehicle handled, which has resulted in a 54% reduction since FY06. This is primarily due to the vehicle logistics centres introducing further waste streams to recycle different types of materials and ensuring employees know how to correctly segregate the waste.
Vehicle logistics
FY06 FY07 FY08 FY09
2.16
kWh / vehicle
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2.29
3.29 3.34
FY10 target = 2.16 kWh/vehicle
Total energy per vehicle handled
Special feature
Ferdinand Krijnsen and Mercedes Navarro Puig
(1) Definition of zero waste is < 3% landfill
Sagunto Vehicle Logistics CentreGiven the warm climate in Spain, an air-conditioning system was required in our Sagunto Vehicle Logistics Centre. Air-conditioning systems tend to consume a significant amount of energy. Therefore, the team in Sagunto focused on how they could reduce usage to an absolute minimum. This resulted in a 74% improvement in the energy consumed per vehicle handled. The measures included :
• Changing the on/off settings• Changing the temperature settings • Workshop doors were opened at night, which reduced
the number of hours the air-conditioning system was needed by 50%.
FY08 Actual
FY09 Target
FY09 Actual
Ene
rgy
(kW
h/ve
hicl
e ha
ndle
d)
0
2
4
6
8
10
12
14 12.8
7.9
3.3
Energy use at Sagunto
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Managing CO2 emissions in our vehicle logistics
Our Vehicle Logistics Group continued to expand in FY09 and introduced new routes to supply Japan produced vehicles to Turkey, Cyprus, Slovenia, Kazakhstan and the Caucasus region. Despite the introduction of new routes, absolute CO2 emissions decreased. This was largely a result of the economic downturn and the consequent decrease in our production volumes. CO2 emissions per unit have however increased. This is due to the significant shift of destination mix, particularly from the East (Russia) to the West. Distribution in Western Europe generally covers short distances and uses trucks, rather than ship and/or rail. In contrast, distribution to Russia and other Commonwealth of Independent States (CIS) countries is primarily ship and rail based.
The change in our mix of destinations increased the distance covered by truck transportation from 21% in FY08 to 28% in FY09 while the most CO2 efficient mode of vessel reduced from 67% to 58%.
To offset the negative impact of this, the group continued to analyse its distribution network with the aim of optimising the mode and distance covered. In FY09, the group introduced a new route for vehicles manufactured in Turkey for the French market by opening a new hub in Sète, in the south of France. This has shortened the overall distance and has led to a 14.63% reduction in CO2 emissions (421 tonnes).
To improve our ability to measure, and consequently manage our emissions, the Vehicle Logistics Group aims to introduce a new data collection, measurement and management tool in FY10. This requirement is part of our Sustainability Purchasing Guidelines issued at the beginning of 2010.
FY06 FY07 FY08 FY09
%
02468
101214161820
2%1%1%
18%
FY10 target = 3%
FY06 FY07 FY08 FY09
1.77
kg
0.00.20.40.60.81.01.21.41.61.82.0
1.69
1.21
1.65
FY10 target = 1.77 kg
FY06 FY07 FY08 FY09
kg
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.49
0.29
0.39
0.66
FY10 target = 0.66 kg
Waste to landfill Total waste per vehicle pre-delivered
Mixed waste per vehicle pre-delivered
fy04 fy05 fy06 fy07 fy08 fy09
Number of vehicles transported 888,442 940,456 1,161,681 1,254,836 1,188,428 769,733
Total km (million) 1,317 1,578 1,999 1,869 1,476 1,039
Kg CO2 / km 0.042 0.040 0.042 0.044 0.051 0.051
Total CO2 (tonnes) 55,661 62,831 84,410 82,274 75,563 53,154
Kg CO 2 / vehicle 62.65 66.81 72.74 65.57 63.58 69.06
Special feature
Vehicle Logistics Management Team, Toyota Motor Europe
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In FY09, our Parts Supply Chain Group divisions continued their efforts to further improve and reduce CO2 emissions. While the Warehouse Operations Division focused on improving case and truck density by adapting internal picking, packing, modulating and loading processes, the Transportation Division concentrated on switching to environmentally friendly transportation modes. In 2009 a number of activities were completed including:
1- Changing the mode of transport for all of our shipments to Por-tugal from trucks to ships, which has led to a reduction of 1,103 kilometres travelled and 288 tonnes of CO2 emissions per year.
2- Two other routes have been reviewed to reduce the distance travelled by trucks. Firstly, routes to Ireland were sent by sea resulting in an 84% reduction in distance travelled by truck a year, which equates to a saving of 19.76 t CO2 emissions. Secondly, routes to the Finnish depot in Helsinki were also
changed with the distance by truck reduced by 52% resulting in a saving of 37.76 t CO2 emissions.
3- Implementation of a rail connection between Genk and Verona for shipments to Italy and Greece, resulting in an annual saving of 257.53 t CO2 emissions.
We reduced airfreight volume by 14% from FY08 to FY09. This was achieved by introducing measures such as consolidating packaging and adapting the box size to the actual volume. The graph above shows the impact of changing the way we transport our parts, which helps us reduce CO2 emissions from transportation. It also has helped increase operational efficiencies and reduce costs. We will continue to review the network to identify other ways we can reduce CO2 emission from transportation, and we will work with our logistics partners to invest in environmentally friendly trucks.
CO2 emissions from transport
Parts logistics
Parts Supply Chain Group (PSCG)
Within our network we have one central warehouse in Belgium and 13 regional depots in Europe. In 2009 we have been able to make environmental improvements and at the same time, reduce costs which is essential in the global economic context.
With this sense of urgency we have taken our environmental mission to the centre of every process and to our transport network. For example, we have built on our previous successes in network optimisation so that our shipping
partners can now directly optimise every load in their process. By looking at how we can reduce environmental impacts throughout our supply chain we have made significant steps and will continue to look for improvements for the future.
The three main environmental impacts of our operations are :
1- CO2 emissions from transportation2- The environmental impact of our facilities3- Packaging materials
Managing CO2 emissions (1) fy04 fy05 fy06 fy07 fy08 fy09
Total CO2 emissions (tonnes) 29,919 38,174 46,429 52,062 48,434 44,175
CO2 emissions (kg/m3 transported) 15.49 15.82 15.30 16.18 15.31 15.14
CO2 emissions (kg/km transported) 0.489 0. 499 0. 516 0. 520 0. 491 0. 472
04 05 06 07 08 09t CO2 kg CO2/km
0
20
40
60
80
0
0.2
0.4
0.6
0.81,000 t CO2 kg CO2/km
29.92
0.48 0.49 0.510.52 0.49 0.47
38.17
46.43
52.06 48.43 44.17
FY
C02 emissions
Sea
Air
Rail
Truck
FY07 FY08 FY09
% fo
r S
ea, A
ir an
d R
ail t
rans
port
% fo
r Tr
uck
tran
spor
t
0%
2%
4%
8%
6%
12%
10%
70%
72%
74%
78%
76%
82%
80%
Transport methods evolution (share of kilometer)
(1) The reported data includes all Toyota Motor Europe controlled parts accessories logistics.
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Environmental impact of facilities
All 14 of our parts distribution centres are certified to the ISO14001 Environmental Management System. The key environmental aspects we track are energy consumption and waste management.
Energy consumption
Despite one of the coldest winters on record and the number of parts handled increasing, the total energy used in FY09 by our parts distribution centre decreased by 7% since FY08. The Parts Supply Chain Group has two energy related Key Performance Indicators (KPIs) to monitor :
1- total energy/1,000 pieces shipped2- total energy/warehouse volume multiplied by the number
of operating hours
We achieved a 10% reduction in energy consumption for the first KPI. However, for the second KPI there was a slight increase of 3.5% from FY08. However, we remain on target to achieve the FY10 target for both KPIs set out in the Five Year Environmental Action Plan.
The increase for the second KPI is due to the number of ope-rating hours reducing at a faster rate (10%) than the ener-gy reduction (7%). The decrease in energy is due to each site team maintaining the kaizen (continuous improvement) principles and making improvements wherever possible. For example, Toyota Parts Centre Deutschland carried out a re-lighting project which contributed to 5% reduction in energy consumption.
Waste management
All parts distribution centres worked hard to achieve zero waste to landfill, which meets the target set in our Five Year Environmental Action Plan.
Additionally the total waste produced per part shipped de-creased by 10% as a result of increased reuse of packaging material at a number of depots. The amount of mixed waste per part handled was 1.78 kg / 1,000 pieces shipped, which is a 57% decrease since FY06.
0
50
100
150
200
250
300
350
FY06 FY07 FY08 FY09
288.1307.2
329.9
296.0
kWh FY10 target = 288.1 kWh
Energy per 1,000 pieces shipped
0
5
10
15
20
25
30
35
40
FY06 FY07 FY08 FY09
33.09 33.55 33.65
25.96
kgFY10 target = 25.76 kg
Total waste per 1,000 pieces shipped
0.00
0.01
0.02
0.03
0.04
0.05
0.06
0.07
FY06 FY07 FY08 FY09
0.0610 0.0558 0.0563 0.0584
kWhFY10 target = 0.0610 kWh
Warehouse energy use per m3
0.00.51.01.52.02.53.03.54.04.5
FY06 FY07 FY08 FY09
4.11
3.02
2.75
1.78
kg
FY10 target = 3.29 kg
Mixed waste per 1,000 pieces shipped
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New carton used for one
way packaging small partsStore oil filter over pack
carton ready for reuse
Reuse of oil filter over pack
carton for small parts to Ukraine
Reducing packaging material
Packaging material is used in the distribution of our spare parts and accessories to retailers in Europe. Fluctuating volumes and different shipping styles means that we have a number of ways of packaging these parts.
Despite efforts to standardise our in and outbound flows, we continue to generate packaging waste at our Parts Centres and Dealerships. To reduce this waste we are:
Increasing the usage of returnable packaging in inbound supply flows.
Standardising shipping pallet boxes through specifica-tion agreements with our suppliers. These boxes are then reused for outbound shipping purposes. In FY09, 89% of packaging was either returnable or re-usable packaging. Only 11% of the packaging was from new packaging material, which is 8% lower than in FY06.
Continuing to monitor the accuracy of our data to support correct waste declarations by our National Marketing and Sales Companies to their local authorities.
Ensuring Kaizen (continuous improvement) of the individual and logistics packaging conditions realising a saving of 173 tonnes in FY09.
New material
Re-use packaging
Returnable palets
0
20
40
60
80
100
03 04 05 06 07 08 1009
%
FY
21.74
11.38
66.87
20.92
17.35
61.72
16.43
15.88
67.69
19.07
16.19
64.74
19.37
16.84
63.78
16.47
13.88
69.65
13.25
17.56
69.19
11.41
17.35
71.24
Evolution usage re-use or returnable packaging vs new material
Special featureImplementing employees’ ideas on reducing wasteToyota Parts Centre Austria (TPCAT) implemented an initiative to reduce the environmental impacts of distri-buting parts to the Ukraine. Previously, small parts which were shipped to the Ukraine were shipped in small boxes which were packed inside large carton boxes to avoid damage. The small boxes needed to be pur-chased and generated waste. A TPCAT employee suggested carton boxes which were used to pack oil filters should be reused for this purpose. This has now been implemented and has reduced the need to purchase 1.9 tonnes of carton boxes a year, which has also helped reduce costs.
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Installing solar panels at our European parts distribution centre
Our aim is to make all operations sustainable through-out the product lifecycle.
In line with this aim, solar panels were installed on the roof of Toyota Parts Centre Europe (TPCE), in Diest, Belgium in FY09. Covering 80,000 m2, it is one of the largest thin-film solar panel rooftop installations in Belgium.
This installation will produce between 15 and 20% of the annual electricity requirements of the facility. This will reduce TPCE’s energy costs as well as CO2 emissions associated with energy use.
The 80,000 m² roof, which was financed, built and operated by Blue Planet Solar NV, includes 12,800 panels. With a peak power supply of 1.84 MW, the panels can produce 1,620 MWh a year. The CO2 saving forecast is 1,700 tonnes / year.“This project is a great example of how government support in combination with industry initiative results in innovative renewable energy projects” said Freya
Van den Bossche, Flemish Minister for Energy at the opening ceremony.
TPCE has implemented the environmental manage-ment standard ISO14001 since 2001.
Major improvements at TPCE include :
In the latest expansion of our building we incorporated several new environmental initiatives such as using rainwater for sanitary facilities.
In FY09 we organised two tree planting events and 3,000 trees were planted.
In terms of electricity consumption :
1- We purchase 100% green electricity. 2- We have upgraded lighting, installed light and
movement sensors and raised awareness through events such as the Green Month campaign and through environmental training for newcomers.
These initiatives are expected to result in a significant reduction in our energy consumption.
Special feature
0
2,000
4,000
6,000
8,000
10,000
12,000
07 08 09 10
Consumption(MWh)
FY
-3% -13%
-16%solar energyProjects saving(target -3%)
-19%
Forecast
TPCE Electricity consumption - MWh
TPCE solar roof
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Sales and Marketing“ Having ongoing dialogue with our customers
is essential to our business, particularly when it
concerns the quality and safety of our vehicles.
Alongside our commitment to our customers, is
our commitment to protect the environment and to
create pathways for sustainable mobility. „Andrea Formica
Our aim is to become the cleanest brand in Europe
We believe that we can achieve this aim by investing in innovative technologies, such as hybrid and Plug-in Hybrid, and reducing emissions associated with our vehicles and distribution.
Developing our hybrid line-up will create one of the main pathways to becoming the cleanest brand in Europe. In FY09 we launched the third-generation Prius. In FY10, we began producing the first full hybrid vehicle in Europe - the Auris Hybrid Synergy Drive® at our Burnaston plant in the UK. We aim to have a hybrid version of every vehicle in our model line-up by the 2020.
Our CO2 performance is on the right track. We have made significant progress in reducing the CO2 emissions associated with our vehicles, and met the EU target of 140 g/km CO2 emis-sions in 2009. We achieved 130.1 CO2 g/km (a reduction of ap-proximately 10% from 2008, and about 20% from 2005).
In terms of distribution, getting our vehicles to our customers requires a network of hubs and retailers. For more information on the environmental performance of our vehicle distribution ( please see pages 38-39 ).
Our commitment to European society is built on a solid foundation
Ensuring cus-tomer safety by providing clean and safe prod-ucts, while us-ing advanced technologies to ensure energy-efficient vehicles, is key to the on-going success of our company. Our passion for excellence is brought to all stages of our operations - at design, manu-facturing and marketing. Our commitment to regaining cus-tomer confidence in our products is genuine, absolute and urgent. Combining this passion and demonstrating our accountability is key to our vision to grow in harmony with society.
Andrea FormicaSenior Vice-President, Sales, Marketing, Product Planning and Communication, Toyota Motor Europe
Stage 1
2010 2015~2020
Stage 2 Stage 3
Prius only
Prius +Auris HSD
HSD mix>20%
HSD mixtowards 50%
Toyota strategy to bring HSD / Hybrid to mainstream models
Bridie Tucker is a team member in the production area of our Burnaston, UK plant. She is featured in our Toyota Brand campaign. ‘Your Toyota is My Toyota’
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Towards zero emissions
Toyota Motor Corporation (TMC) has been researching and developing environmentally friendly mobility solutions for more than 40 years with the aim of developing the ultimate eco-car.
With fossil fuels remaining the key energy resource of the immediate future, we will continue to improve the efficiency of our petrol and diesel engine vehicles by using Toyota Optimal Drive technologies, which already feature in most of our model line-up in Europe.
Today, Toyota’s early vision has been realised. The past few years have seen a marked increase in the production of environmentally friendly vehicles, and most manufacturers are now developing hybrid technology.
Toyota’s Hybrid Synergy Drive ® has led hybrid powertrain innovations, throughout the three generations of the Toyota Prius.
360° approach to our environmental leadership activities
Toyota Optimal Drive
Designed to optimise the balance of performance and driving enjoyment with fuel economy and low emissions, Toyota Optimal Drive focuses on several key aspects of powertrain development such as environmentally friendly technologies, low-friction components, light-weight materials, compact design and enhanced combustion efficiency.
In FY09 we completed the rollout of Toyota Optimal Drive as a core standard technology on the petrol and diesel powertrains, as per below.
Environmental leadership in our products
Toyota Optimal DriveBenefits
Toyota Optimal Drive
Petrol - R Series
1.0 Engine
Valvematic
(1.6L, 1.8L, 2.0L)
1.33 Engine
Diesel-D-4D seriesTechnology as standard
1. Reduce Emissions
2. Increase Fuel Efficiency
3. No compromise on
driving pleasure
2.2 D-CAT
D-4D Engine Concept
(1.4L, 2.0L, 2.2L)
Toyota Optimal Drive in Auris range
Toyota’s Auris is in the C-segment, a small family car. This segment represents almost 20% of total European new car sales. In 2010 we plan to sell 101,000 Auris. The applica-tion of Toyota Optimal Drive across the Auris range in 2009 has resulted in a significant improvement in the model’s en-vironmental performance, lowering CO2 emissions to seg-
ment best levels. Even prior to the introduction of Hybrid Synergy Drive® to the model range in 2010, the overall Auris CO2 average has been reduced from 152 g / km in 2007 to 142 g / km in 2009. In 2011, which will be the first full year of Auris Toyota Optimal Drive and Hybrid Synergy Drive® sales, the figure is expected to decrease to just 125 g / km.
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Full hybrid technology
Toyota’s hybrid cars are powered by a petrol engine and an electric motor. The technology is designed to operate at maximum efficiency by combining the advantages of both energy sources. The vehicles consume less fuel and therefore help reduce greenhouse gas emissions. They also produce less emissions than conventional, diesel-powered vehicles and less CO2 and nitrogen oxide emissions than petrol powered vehicles.
Hybrid Synergy Drive® has been fundamental to the global success of the Prius. The Prius is now in its third generation. The first generation was launched in 1997, the second generation in 2004 and the third generation in 2009. Since the first generation Prius, improvements have continued to be made including increasing the system’s power by 30% and decreasing fuel consumption and CO2 emissions by about 25%.
Toyota’s Hybrid Synergy Drive® was awarded ‘Green Engine of the Year’ in 2010, winning the award for the 6th time since 2004.
FY09 review
Toyota has sold more than 2.6 million hybrid vehicles globally (June 2010) since launching the world’s first mass-produced hybrid. This vehicle was also the first commercial hybrid to be introduced in Europe in 2000. Since that time, we have sold more than 230,000 Toyota and Lexus hybrids.
In FY09, we sold 44,179 Prius vehicles in Europe, an increase of 3% from FY08. Given the challenging economic market, this was a significant achievement. The third-generation Prius made up two thirds of the sales. We are committed to extending Hybrid Synergy Drive® to our core models, making these benefits accessible to more customers.
In August 2009, the Prius was ranked as the most environmentally friendly car for the fourth time since 2004 by Verkehrsclub Deutschland, the German transport non-profit organisation. The third generation Prius has CO2 emissions of 89 g / km, an industry first for a car of this size.
The Prius has also been awarded the maximum five star rating in the newly revised Euro NCAP crash test assessment (see page 65).
The perception of Toyota as a green car manufacturer continued to grow in 2009, as shown by customer survey results (chart at left). Considerable gains in perception were made in the major European markets from the previous year with the 2009 results continuing the positive trend of the past eight years.
Prius has been the leading driver of Toyota’s environmentally friendly and innovative image in recent years. In Germany, the UK, France, Italy and Spain customers’ awareness of the Prius has a significant effect on the Toyota brand image.
30
40
50
60
30
40
50
60
Cares of environment
Among those aware of Prius
Launches innovative models
Among those aware of Prius
% %
Prius awareness continues to contribute to Toyota image
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Auris Hybrid Synergy Drive ®
The Auris Hybrid Synergy Drive ® (HSD) made its world debut at the 2010 Geneva Motor Show.
Exclusively designed for the European market, the Auris HSD introduces full hybrid technology to a core model at the heart of the Toyota line-up, This is the first step in the deployment of hybrid technology across the company’s entire European model range by the early 2020s. Built at Toyota Motor Manufacturing UK, the Auris HSD marks an important milestone for Toyota Motor Europe and for the European automotive industry.
With CO2 emissions of 89 g / km, the Auris HSD will help reduce Toyota’s whole fleet CO2 average. In FY09 the whole fleet CO2 average was 130.1 g / km, down by 16 g / km from FY08.
For more information about the Auris HSD please see pages 30-31.
Eco-driving with ‘A Glass of Water’ iPhone application
To encourage and teach the principles of eco-driving, we introduced a free application to iPhone users: A Glass of Water. The aim is to drive without spilling any water. The application helps motorists adapt their driving styles to drive at lower speeds and to accelerate and brake more smoothly. This application can be downloaded at www.aglassofwater.org
The hybrid effect in mainstream
Two years before governments in Europe started introducing incentives for motorists to exchange their old vehicles for new cars, Toyota Germany launched a competition with a Sunday newspaper to win a Prius.
A total of 104 people won a Prius ( the number of winners reflects the 104 g / km CO2 emissions of the second generation Prius ) and in exchange, needed to dispose of their existing older vehicle. Winners were not typical Prius buyers and the competition helped increase awareness in Germany of the benefits of the Prius to a wide audience.
In FY09 we contacted the winners to find out about their experien-ces of driving the Prius. We were able to reach 80% of the original winners. Around 75% of them still owned and drove the car.
The research found that the ownership experience has been satisfying – with an overall satisfaction level of nine on a ten-point scale. Feedback from the winners suggested that the strongest source of satisfaction is not the low fuel consumption. Rather customers were most satisfied with the experience of owning and driving a hybrid vehicle and described it as stress-free, relaxing and comforting. The research found that success of the Prius is based on four pillars of customer satisfaction (as below).Auris HSD
Relaxed
driving pleasure
Avant-garde concept
Pride of ownership
and powerful technology
Low consumption
Enabling driving pleasure
while minimising
ecological damage
Reliability
Safe, secure,
and reliable partner.
Easy maintenance,
warranties
Comfort
Comfort and ease
of the drive
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360° environmental leadership approach
The National Marketing and Sales Companies are respon-sible for marketing and sales in the national markets across Europe. As such, they have a key role to play in advancing environmental activities among customers, retailers and in their own operations.
A 360° approach has been developed which outlines the contribution sales and marketing makes to our vision of achieving environmental leadership.
The approach focuses on four key areas : products and service, communication, retail environment and behaviour, and has led to the development of a range of environmental activities. Two examples of these activities are given below from Toyota Sweden and Toyota Motor Hungary.
Sustainable National Marketing and Sales Companies (NMSCs)
ELV & HV
Battery collection
POS
Materials
Energy
kaizen Audit
Toyota
Optimal Drive
360° Environmental Leadership Action Plan & KPI Planning
Environmental
BrochuresFull Hybrid
Launches
(Prius/Auris)
Greening
the Fleet
PHV/EV
Achieve
120 g / km CO2
Retailer
CO2 Targets
Social
Contributions
ISO14001New Retailers
Sustainable
Retailer (SR)
Eco Events
@ Retailers
Eco Tours /
Roadshows
Motorshows
Prius Lifecycle
Analysis
Environmental
Leadership
COMMUNICATION
BEH
AVIOUR ENVIR
ON
MEN
T
Environmental
Knowledge-Skills
Grand Prix
HSD/Toyota
Optimal Drive
AwarenessEnvironmental
e-learning
courses
PR
OD
U
CTS
& S
ER
VICES
Eco-Drive
& Hybrid Drive
@ Retailers
Special featureToyota Sweden launches C O2 competition at its retailersFor the fifth consecutive year, Toyota retailers in Sweden have managed to reduce the average CO2 emissions from new car sales. The average carbon dioxide emissions for all new Toyota cars which were sold in Sweden during FY09 was 133.8 g CO2 / km exceeding the planned target of 138 g CO2 / km. An ambitious target has been set for FY10 to achieve 129.85 g CO2 / km.The “CO2 @ retailer scheme” was introduced in 2007 to reduce the total average CO2 emissions from the new cars that are sold. All retailers have individual targets that are adjusted to their respective markets. In the four years since the CO2 targets were introduced, the average CO2 emissions for new Toyota cars sold in Sweden have reduced by almost a fifth, from 163 g CO2 / km to 133.8 g CO2 / km in FY09.
“ Our retailers have done fantastic work, better than we hoped for. It is all about helping customers reflect on questions such as ‘ Do I really need a big car ? ’ Through this dialogue, we can help meet customers’ needs while making positive changes for the environment, ” says Ulf Winberg, President of Toyota Sweden AB.
120
130
140
150
160
170
180
06 07 08 09
CO2 g/km
TargetResult
FY
168163.4
158154.9
149.1
146.6
138133.7
Average CO2 emissions of Toyota cars sold in Sweden
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Environmental performance at National Marketing and Sales Companies (NMSCs)
NMSCs in Europe continued to steadily improve their performance in energy consumption, waste management, water consumption and paper consumption in the reporting period. To manage and control their environmental impacts, the NMSCs have all either attained ISO14001 certification or are planning to attain it in the near future.
Each NMSC is responsible for operating their office and training facilities. In FY09 a total of 11,747 tonnes of CO2 was produced by NMSC facilities, an increase from 11,009 tonnes of CO2 in 2008.
This was mainly due to the addition of energy data from the new facility in Russia. However, significant efforts have been made to increase the amount of energy used from renewable resources. About 33% of all energy needs for NMSCs is now drawn from renewable sources, compared to 19% in FY08. Unfortunately, waste going to landfill increased due to the new facility opening in Russia, where current rates to landfill are high. This has had an adverse impact on the NMSC’s total landfill rate. We are now investigating how to reduce the volume of waste to landfill.
0%
10%
20%
30%
40%
50%
60%
06 07 08 09Landfill rateRenewable energy
FY
56%
39%
5% 7%
19%22%
37%33%
Renewable energy use and landfill rate
Volume of CO2 emitted:
11,747 tonnes
National Marketing &
Sales Company
Input:
Total energy consumption:
60,225 kWh
Total renewable energy:
33% kWh
Total Water consumption:
101,057 m³
Output:
Total volume of waste
generated: 2,645 tonnes
Special featureToyota Motor Hungary promotes hybrid technologyToyota Motor Hungary (TMH) participated in European Mobility Week (16th-22nd September 2009) with a number of activities in Budapest. The aim of the events was to motivate the public to reduce their fuel consumption and to publicise Toyota’s hybrid technology and environmental philosophy.
As part of European Mobility Week, the company took part in a conference on Green Mobility at Budapest University of Technology and Economics. TMH also displayed a Toyota Prius in the centre of Budapest that people could test drive.
The mayor of Budapest and local politicians took part in this event. Information about Toyota’s environmental commitments and performance were distributed. In total, more than 100,000 people were reached through these events.
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Environmental action at the point of sale
Our Sustainable Retailer Programme, which was launched in 2008, aims to ‘green’ all 3,000 Toyota retailers in Europe. The main objectives of the programme are to reduce CO2 emissions and energy consumption and to improve Toyota Motor Europe’s overall impact on the environment while reducing operating costs in all European retail facilities. The programme applies to existing retailers, new builds and major refurbishments. A sustainable building is defined as one capable of being maintained at a steady level without causing ecological damage or exhausting natural resources. Our ultimate objective is for retailers to achieve zero emissions.
Energy audits
Existing retail outlets are subject to an energy kaizen (improvement) audit. There are two parts to the audit. Firstly a specialist engineer analyses a retailer’s actual use of electricity and gas and benchmarks this against similar size facilities to determine whether the retailer can reduce its energy consumption. This can be done remotely based on historic energy bills.
If this analysis shows that energy usage is high, a specialist will visit the facility to understand how energy is used and recommend improvements. The targeted payback for any eventual investment is a maximum of three years. Pilots in several markets have seen savings ranging from 10% to 25% which, for a small retailer, can be worth more than € 8,000 a year. All Toyota retailers in Europe are expected to have participated in the audit by 2013.
Environmental Management System
We have set a target for all retailers to have a certified Environmental Management System by 2015. Currently a number of markets have achieved complete certification to ISO14001 or an equivalent standard including Denmark, Italy, Adria(1), Poland and Switzerland, with more than 32% of Toyota Motor Europe retailers already achieving certification to ISO14001 or an equivalent standard.
Environmental assessment for new retailers
Each new retailer or major refurbishment will be subject to a Toyota Retailer Environmental Assessment on eight key areas : energy, water, waste and materials, pollution, land use and ecology, health and well being, management and transport.
The assessment is designed to encourage best practice in eco-friendly construction and design and has been deve-loped by Toyota Motor Europe based on standards set by the UK’s Building Research Establishment Environmental Assessment Method (BREEAM).
We have a flagship Sustainable Retailer in La Rochelle, France (see next page). Our Maribor Sustainable Retailer in Slovenia opened in December 2009. In FY10, additio-nal Sustainable Retailers will open in (Salzburg) Austria and (Weil am Rhein and Freiburg) Germany. Several other countries also have planned projects.
Sustainable retailers
(1) This includes Bosnia and Herzegovina, Croatia, Montenegro, Serbia, Slovenia, and Kosovo.
Sustainable Retailer
New Outlets
& Full
Refurbishments
Existing Outlets
Toyota retailer
environmental
assessment
Certified EMS
(e.g ISO14001)
Energy
kaizenaudit
12
(L-R) Katarina Manske, Maribor Retailer Owner (Stajerski Avtodom) and Tadashi Arashima, former President and CEO of Toyota Motor Europe
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Our flagship La Rochelle Sustainable Retailer demonstrates the business case for eco friendly design and construction. The retailer was opened on the 17th June 2010 by Toyota Motor Europe President Didier Leroy, Hiroshi Ito, Chairman of Toyota France, and Ronan Chabot, the owner.
Sustainable Retailer La Rochelle
Special feature
Q&A with Ronan Chabot, Owner, Toys Motors Group
Where did the idea come from?It fits with the development of our current retailer network. Further, this new project fits with the brand and Toyota’s approach to sustainable development across the vehicle lifecycle.
Is doing such a project complicated?Naturally it is more complicated than a ‘normal’ retailer building, but we have engaged specialist consultants to help us make the best choices. Either way, I consider going in this direction as essential. This is not a fashion statement but a real step by Toyota to reduce environmental impact, with a sound business case behind it.
The retailer in La Rochelle demonstrates how a retailer can implement innovative environmental technologies and be-come ‘carbon neutral’(1). The aim is to achieve an ‘excellent’ rating from an independent environmental assessment based on BREEAM(2), a European assessment procedure for sustainable construction and building design.
The La Rochelle facility has been designed in line with envi-ronmental best practice. A ‘green roof’ will provide a natural internal cooling system and serves as a wildlife habitat. The other roofs capture and divert rainwater into a 150,000 li-tre underground tank. A system of pipes (a Canadian well) which is two metres underground pre-heats the air in the winter and pre-cools the air in the summer. This efficient ven-tilation approach reduces the building’s energy consump-tion. Also, 2,000 m2 of solar panels have been installed producing three times the energy needed for the building. A wood pellet boiler is used to heat the paint booth.
These measures are expected to provide significant environmental improvements such as: CO2 neutral with photovoltaic solar panels produ-
cing three times its own energy consumption. Consumes 50% less energy than a standard building
(according to French building regulation RT2005). Uses 67% less water compared to a similar type
of building. The rainwater tank provides 70% of the site’s
water requirements. By using LED technology, the lighting is 40% more
efficient than in a conventional showroom. The car wash recycles 80% of the water used,
while 20% is topped up by rainwater. All road surfaces contain 20% of recycled aggregate.
(1) Carbon neutral – according to the UK’s Department of Energy and Climate Change carbon neutrality guidance 30th September 2009.(2) BREEAM – Building Research Establishment Environmental Assessment Method.
La Rochelle Sustainable Retailer
View of Opening Ceremony
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Lexus“ Lexus has pioneered key technologies that
offer a premium driving experience with category
leading environmental performance. In particular,
Lexus is building on its leading knowledge and
experience with full hybrid technology to increase
the proportion of cars sold with ‘Lexus Hybrid
Drive’, which provides a refined and rewarding drive
with category-leading environmental results. „Andy Pfeiffenberger
Now in its second generation, Lexus Hybrid Drive combines electric motors and a petrol engine into a sophisticated power source that reduces emissions, boosts fuel economy and offers refined performance.
Lexus Hybrid Drive meets customers’ demands for lower CO2 emissions as well as their preference for performance. The demand for improved environmental performance continues to increase. The concept of full hybrid technology has substantial development potential compared with conventional powertrains. The new RX 450h, the first vehicle to use second-generation Lexus Hybrid Drive, demonstrates the advances that are already being made. Compared to the previous model, it benefits from a 10% improvement in power output and a 23% reduction in CO2 emissions.
In 2010, the CT 200h will go on sale, reinforcing Lexus’ commitment to making full hybrid technology available to a wider section of the European customer base. The CT 200h will have category leading environmental performance. Its CO2 emission levels will be the lowest in the segment and particulate matter and nitrogen oxide emission levels will be significantly lower than diesel engines.
The CT 200h will contribute to the acceleration of the mix of full hybrid technology within Lexus’ overall European sales. Currently, approximately 50% of all Lexus’ sold in Europe are equipped with Lexus Hybrid Drive. The launch of CT 200h will see this proportion increase to around 75%. The aim is to have 100% of all Lexus’ sold in Europe equipped with Lexus Hybrid Drive by 2013. In addition, Lexus Hybrid Drive uses a flexible platform, which
can be further developed as new technology becomes more feasible. For example, hybrid technology works together with a whole range of current and advanced fuels, from advanced biofuels to hydrogen.
Andy PfeiffenbergerVice-President, Lexus, Toyota Motor Europe
Full hybrid technology
RX 450h
CT 200h
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Both petrol and diesel fuels will continue to be the dominant sources of internal combustion engines in the immediate term, and so Lexus is making major efforts to reduce the environmental impact of powertrains using these fuels.
By re-examining the whole structure of the internal combustion engine, Lexus has developed technologies like Electronic Variable Valve Timing with Intelligence, which raises the efficiency of the combustion process meaning less fuel is used and D-4S, which features both direct and port injection, improving performance and efficiency across the power band.
Lexus looks at the whole lifecycle of a car to help measure its overall environmental impact in terms of materials, emissions and end-of-life vehicles. Lexus is pioneering the use of materials with high recoverability, and researching and utilising parts that are easy to reuse at the end of their life. For example, bumpers are recycled to make trim for the luggage compartment and shredded sound proofing material is used for the silencer behind the dashboard.
Car door trims are now made with the stem of kenaf, a member of the hibiscus family, rather than the woodchips previously used. Kenaf absorbs between two and five times as much CO2 as other plants and is mixed with old waste bumpers from car repair shops to make door trim that is lighter, has better sound-proofing, and uses material that does not deplete forests.
Engine technology
Lifecycle impact
0
20
40
60
80
100
0
0.2
0.4
0.6
0.8
1
ACO2 NOx NMHC PM SOx
B A B A B A B A B
Material ProductionVehicle/Parts Production
Driving/MaintenanceRecycling
AB
RX 400hRX 450h
-16% -16%
-3%
-4%
-5%
CO2 and NOx Lexus RX 450h versus competitors
0140160180200220240260280300320
0.05 0.10 0.15 0.20 0.25 0.30 0.35
Com
bine
d C
O2
(g/k
m)
NOx (g/km)
Petrolaverage
Dieselaverage
V8
V86-cylinder
6-cylinder
RX 450h
CO2 and NOx Lexus RX 450h versus competitors
100130
150
170
190
210
230
250
270
140 180 220 260 300
Com
bine
d C
O2
(g/k
m)
Output (kW)
4-cylinderaverage
6-cylinderaverage
V8 average
Petrol
Diesel
Petrol
Diesel
Petrol
Diesel
+10%
-23%
RX 400h
RX 450h
RX 400h and RX 450h system output and combined CO2 versus competitors
After Sales“ Our After Sales business is made up of Authorised
Retailers and Repairers who are the primary contact point
for customers for parts and accessories, maintenance
and repairs. Despite the global economic downturn, our
After Sales business remained robust with parts sales
showing an all-time sales record and accessories sales on
target. After Sales contributes to Toyota’s environmental
leadership by maintaining the car’s performance through-
out its lifecycle while minimising environmental impact by,
for example, using remanufactured parts. „Bas Kasteel
Our Toyota Customer Service Management (TSM) programme provides retailers and repairers with training and encourages them to pursue a culture of continuous improvement. Modules in the programme include sales, parts and service, environmental management, marketing and operations management. We are in the process of enhancing the programme by introducing elements such as “Fix it Right” which aims to ensure that customers’
cars are repaired satisfactorily the first time.
As part of this programme, retailers must comply with environmental standards. Out of a total of 3,000 retailers, more than 1,700 retailers have been certified to the first level in the TSM programme. The remainder have started the certification process. There is an auditing process to ensure continued compliance to the standards over time.
In FY09 we made our 0w-20 engine oil widely available on the market. The oil, which is made from a fully-synthetic formula, increases the fuel economy
performance versus traditional higher viscosity oils by reducing friction while maintaining the necessary lubrication in the engine.
To avoid waste in workshops, we utilise reusable protection covers for Toyota and Lexus vehicles. No magnets or lead weights are used in the reusable wing and front covers, so there are no metals to recover at
the end of the product’s lifecycle. Our disposable floor mats are made from 100% recycled paper, and steering wheels and handbrakes are made from recyclable plastic.
By reusing components and thereby reducing the demand for raw materials, we are also saving the energy needed to convert those raw materials into finished products. We are expanding our range of remanufactured products
and in FY09 the volume of remanufactured parts increased by 10%. We recorded a core return rate of 90% and managed a lead time from the retailer to the supplier of less than a month.
Bas KasteelDirector, Customer Service, Sales and Marketing, Toyota Motor Europe
Toyota Customer Service Management
0w-20 Engine Oil
Use of reusable and recyclable materials
Remanufactured parts
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End-of-Life Vehicles and Sustainable Recycling
“ Earlier this year, the Environmental Committee
of the European Parliament met with the European
Commission to discuss the implementation status of the
EU Directive 2000/53/EC on end-of-life vehicles (ELV).
The implementation of this Directive by the member
states has not always been smooth due to :
• The involvement of different government bodies
• Problems in making economic operators liable
• The insufficient number of qualified, certified dismant-
ling facilities
• Different methodologies used to comply with the
targets (a working group with representatives from
the car industry has been established to prepare
common guidelines). „Willy Tomboy
Members of the European Automotive Manufacturers’ Association (ACEA) have identified some action points to improve the results of the ELV Directive :
1- Harmonise legislation. National recycling definitions must follow the definition given by the waste framework directive. There should be no constraint for acceptance of applications with regard to the definition of recycling throughout EU member states.
2- Harmonise and establish quota calculation systems. Use the fixed assumption approach proposed by ACEA in all member states for parts of ELVs which are constant like metals, oils and other fluids, tyres and non-metallic reuse. This provides a transparent and clear definition of the recycling and the recovery quotas. Establish quota calculation systems using the expertise of the car industry who can share the experience they have gained over the past decades.
3- Use of existing infrastructure. Select the most professional and efficient operators for ELV collection and treatment. Where fund or deposit systems are legally required, financial resources must be directed to the most
efficient recycling infrastructure, such as post-shredder technologies and energy recovery options, and not used for other purposes.
4- Enforce landfill ban. This will help direct shredder and post-shredder material streams into recycling and energy recovery routes. If it is prohibited to dispose of more than 5% in landfill there will be more pressure to build up recycling and recovery infrastructure and to increase the performance of the whole recycling chain.
5- Put pressure on non-authorised facilities. Member states have to fight against fraud. Non-authorised facilities increase the risk of not achieving set quotas. This creates market distortion.
Our industry is increasingly concerned about the apparent rise in illegal ELV treatment and illegal ELV export. Both activities have negative environmental impact, and are detrimental to the authorised ELV treatment business. Authorised facilities have stringent environmental standards and are managed by national Environmental Protection Agencies.
Willy TomboyDirector, Environmental Affairs, Toyota Motor Europe
“Our focus is on maintaining stable employment and employee morale. We also focused on achieving our aim to be the number one company for complete customer satisfaction, enhancing a culture of health and safety and strengthening Toyota’s good corporate citizenship performance.„
Didier Leroy
PerformanceSocial
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We aim to build long-lasting, co-operative relationships with our stakeholders. We measure our success, and areas for improvement in our stakeholder relations, through a yearly European Key Stakeholder Survey, in which stakeholders rate Toyota’s environmental, social and business performance (see pages 60-61).
Our stakeholder engagement includes :
1- Customer engagementWe seek to establish strong relationships with customers during and after the sale of a vehicle, from both a service and quality perspective. All employees in the Toyota network are trained in programmes to ensure a focus on “ Customer First ”, “ Envi-ronmental Leadership ” and “ Good Corporate Citizenship” (see pages 63 to 64).
2- Employee engagementEmployees are one of our most important stakeholder groups. To encourage dialogue, we carry out regular satisfaction sur-veys at all European affiliates to identify areas for improvement in the management of human resources (see pages 71 to 72).
3- Business partner engagementWe support our suppliers by providing training and shopfloor improvement clinics where we can share best practice. Various programmes are in place to ensure that our supply partners are fully integrated into our business and enjoy open two-way communication. (see pages 75 to 77).
4- Engaging with the community We aim to build long-term relationships with the community. This is reflected in our initiatives and partnerships with non-pro-fit organisations and other stakeholders at the local level (see pages 78 to 81).
Didier LeroyPresident and Chairman of CSR Committee, Toyota Motor EuropeManaging Officer,Toyota Motor Corporation
Toyota: a Good Corporate Citizen
Transparency and cooperation with stakeholders
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The management of Corporate Social Responsibility (CSR) at Toyota Motor Europe is underpinned by a process which emphasises continuous improvement (kaizen) in our CSR performance.
Our CSR process is based on internal (CSR Assessment) and external performance measurements (European Key Stake-holder Survey). These measurements provide opportunities for improvements which contribute to mid and long-term growth.
Managing our CSR performance
CSR Assessment definition and process
The CSR Assessment is an internally developed tool which enables us to identify performance improvement opportuni-ties. The tool is based on Toyota’s Global CSR Policy.
The diagram on the right shows how the commitments made in our CSR Policy are linked to our key performance indicators. The assessment is undertaken among all National Marketing and Sales Companies and majority owned European Manufacturing Companies.
Measuring CSR performance – Internal stakeholders
Internal CSR
Performance Enhancement
Toyota CSR Activities in Europe
Mid-term Growth
ExternalImage
Enhancement
Toyota commitmentsSocial
contributions
Stakeholder
Communication
Economic, environmental
and social performance
CSRPolicy
Vision 2020
CSRPolicy
Contributiontowards
SustainableDevelopment
Toyota CustomerDelight
Environ-mental
Leadership
GoodCorporate
Citizen
Selfreliance
with focuson coremodels
To be Leading player
in greater Europe
To be a Key contributor
to global Toyota success
CSR Assessment
(internal)
EKSS(external)
Good
Corporate
Citizen
Favourable Business
Environment
Regulatory bodies, local authorities,
NGOs, Media
Attractive partner
Future business partners
Future employees
Customer Affinity
enhancement
Connect to
consumers in a
more efficient and
effective way
SELLING POWER
Improve ability to
convert considerers
to sales
PRODUCT
POWER
AWARENESS
KNOWLEDGE
LIKING
CONSIDERATION
PREFERENCE
MARKET REPRESENTATION
RETAIL & SERVICE CAPACITY
TRADE-IN
AVAILABILITY
BUY (OR
RE-BUY)
Ownership
Experience
BRAND
POWER
StakeholdersCommitments
• Innovation
• Product Safety
• Quality
• Customer First
• Respect and employee satisfaction
• People development
• Equality and no discrimination
• Health & safety
• Respect for our business partners
• Mutual growth
• Building long-term relationships
• Fair procurement
• Enhance corporate value
• Shareholders benefits
• Ensure stable growth
• Disclosure
• Harmony with the environment
• Eco-friendly network
• Environmental technology promotion
• Environmental partnerships
• Compliance
• Philanthrophy &
contribution to Society
Customers
Employees
Business Partners
Shareholders
Environment
Community
KPI
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CSR Assessment results
Specifically in relation to our priorities for FY09 (be number one in Complete Customer Satisfaction, maintain employee morale and motivation, enhance a culture of health and safety and strengthen Toyota’s European good corporate citizenship performance) the CSR Assessment FY09 shows :
On a standardised scale of ten, results are shown below for 2007-2009 by company type.
1- Be number one in Complete Customer SatisfactionOur NMSCs have improved their position across Europe and score well on customer satisfaction in sales and after sales. In the recent recall campaigns, the NMSCs and the retailer network have shown exceptional dedication to serving our customers and maintaining customer trust and loyalty.
2- Maintain employee morale and motivation Scores for ‘respect and employee satisfaction’ are up both in EMCs and NMSCs. This shows that the measures we undertook to maintain stable employment and employee motivation (see pages 67-74) were well received by the employees.
3- Enhance a culture of health and safety This examines employees’ perception and operational health and safety indicators. Especially in our European Manufacturing Companies, health and safety is a fundamental element in the yearly planning cycles and in continuous improvement projects. The average score for health and safety has improved significantly due to focused activities in several plants and continued employee awareness of the health and safety systems in place.
4- Strengthening good corporate citizenship performanceOverall corporate citizenship performance is measured by the Corporate Citizenship Index (CCI). As shown in the graphs, the score steadily increases over the years, due to the sharing of best practice in our companies and a growing awareness of CSR.
Based on the CSR Assessment the following areas for improvement activities in FY10 were identified, both on a pan-European and on a local level :
For the manufacturing plants (EMCs) : European projects will be introduced to strengthen risk management, to create awareness on CSR and Environment in the local supplier base and to follow up on any Code of Conduct cases.
For the sales and marketing companies (NMSCs) : Due to the large spread of individual company scores, support will be given to the countries with the lower scores. In addition we will focus on helping increase retailers’ involvement in environmental and social contribution activities. Special attention will also be given on a European level to strengthen the risk management processes.
0123456789
10
CCI Respect & Employee
Satisfaction
Health & Safety
FY07FY08
FY09
(1)
6.5 6.77.5 7.1 7.2
7.8
5.8
6.6
9.3
European Manufacturing Companies (EMCs)
0123456789
10
CCI(1) Respect & Employee
Satisfaction
CustomerFirst
Health & Safety
FY09FY08FY07
6.87.7 7.9
9.08.4
8.9
6.7
8.5 8.68.2
9.4 9.3
National Marketing and Sales Companies (NMSCs)
(1) CCI = Corporate Citizenship Index.
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We measure the perceptions of our external stakeholders through our European Key Stakeholder Survey. In the survey, which results in an overall corporate citizenship score, external stakeholders from 11 European countries rate our environmental, social and economic performance. These three pillars are further broken down into drivers and specific attributes (as illustrated in the graphs below). The survey compares our performance against other companies in our industry.
Results of the 2009 survey show that Toyota remains the leader in corporate citizenship achieving the highest overall corporate citizenship score in the industry.
The global economic crisis seems to have affected overall corporate citizenship (CC) scores for the car industry with both the absolute score of the industry average and Toyota showing a slight decrease.
The graphs show the deviation from the mean scores (average score of all OEMs including Toyota), which are represented as the 0.0 axis on the graphs. In other words, both the highest and the lowest score compared to the average score (all OEMs including Toyota) and Toyota’s performance versus the average are visualised.
Measuring CSR performance – external stakeholders
-1,5
FY
-1,0-0,50,00,51,01,52,0
07 08 0907 08 09 07 08 09 07 08 09Toyota Worst scores Best scores
Environment Society Business Corporatecitizenship
Overall CC score compared to competitors in industry
Society
2
Business
3
Environment
1Environmental
Inspiration
Environmental
Performance
Economic
Contribution
Social
Contribution
Responsible
Employer
Innovation
Integrity
Business
Performance
Corporate
Citizenship
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CSR Assessment results
Toyota remains the leader in environmental performance and has improved its score in four of six attributes. This is
due to the leading environmental technologies applied to both its vehicles and operational processes.
In general the perception of Toyota’s social performance has re-mained stable. However the company is performing below aver-
age on two of the nine attributes. It is our priority to address these attributes and overall improve our performance as a result.
The score for Toyota’s business performance has increased. The values of the business performance : safety, integrity
and quality are part of the Toyota Way and as such, form the foundations of the company.
-1,5
FY
-1,0-0,50,00,51,01,52,02,53,0
07 08 0907 08 09 07 08 09 07 08 09 07 08 09 08 09
Environmental Indicators
Question
Its activities has led to environmental issues moving up society’s agenda
Is committed to help tackling climate change
Is a leader in developing environmentally-friendly
vehicles
Is reducing the environmental impact of its car from
manufacture to disposal
Is committed to reduction the environmental impact of its vehicles across its full range
of models
Is a leader in hybrid technology
Toyota Worst scores Best scores
Rating for Toyota on ‘Environmental Performance’– deviation from industry average
07 08 09 07 08 09 07 08 09 07 08 09 07 08 0908 09 07 08 09 07 08 09 07 08 09
Social Indicators
Important contribution to the economies of Europ.
Countries
Creates employment in Europe
Is committed to reduction road
accidents
Works in partnership with and supports local
organizations
Builds relationships with gov., NGOs and
other
Offers employees excellent learning and
development opportunities
Treats employees & jobs applicants equally
Has good labour relations
Offers secure employment
-1,5-1,0-0,50,00,51,01,5
Toyota Worst scores Best scores
FY
Rating for Toyota on ‘Social Performance’– deviation from industry average
07 08 09 07 08 09 07 08 09 07 08 09 07 08 09
Business Indicators
Produces high quality products Puts customers first Acts with integrity Is a company you can trust Makes cars which are amongst the safest on the road
-1,5-1,0-0,50,00,51,01,5
Toyota Worst scores Best scores
FY
Rating for Toyota on ‘Business Performance’– deviation from industry average
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In Europe, we were determined to have the right information on which cars were going to be recalled. Our primary obligation is to the customer and this meant that we had to give the correct information to the media to ensure the customers were well informed. However, it takes time to get the information in a recall of this size. The accelerator pedal which was potentially showing some ‘stickiness’ was used in a wide variety of models, and we needed to be sure of the facts. Consequently, this took longer than we would have liked, and left the customers with some uncomfortable uncertainty.
In an effort to minimise that uncertainty, we maximised the use of online tools to communicate. Special web pages were developed on toyota-europe.com and on many of the National Marketing and Sales Companies websites. An online vehicle identification number checker was developed, allowing customers to instantly check if their car was affected. This was in parallel to the letters that were issued to all of the affected owners. Traffic to the news section of the Toyota European websites peaked at approximately 40,000 per day at the beginning of February 2010, which were ten times more visits than normal.
The External Affairs team also spent many hours directly engaging with our stakeholders, primarily the media, but also with the authorities when necessary. We were han-dling about 20 enquiries from journalists every day, in each case explaining the latest developments. Media sentiment had quickly changed to being negative, so direct discus-sion and explanation was essential for us to get the facts across. This was all the more important as we established new processes, to ensure customer satisfaction. You can read more about these on pages 63-64.
Special featureHow did Toyota handle the recall campaign ?“ Here in the Corporate Communications division, there
are two things that we need to do when a recall happens:
first, get the facts and second, explain them to the media.
The media will then interpret those facts and any other
information that they have to produce their articles. Of
course, they are able to get information from other sources
as well, in order to build their story. These days, with the
internet it is very easy to gather material from across the
globe to compare and contrast what is being said. It
became clear from the start of the accelerator pedal recall
that the speed of change of coverage of the issues and of
the public opinion on those issues was way beyond what
we had previously experienced.„Colin Hensley
Colin Hensley General Manager, Corporate Affairs
and Planning,
Toyota Motor Europe
0
10
20
30
40
50'000s of visits % of all visits
Visits% of site Visits
22/01/2010
24/01/2010
26/01/2010
28/01/2010
30/01/2010
01/02/2010
03/02/2010
05/02/2010
07/02/2010
09/02/2010
11/02/2010
13/02/2010
15/02/2010
17/02/2010
19/02/2010
21/02/2010
23/02/2010
25/02/2010
27/02/2010
0
5%
10%
15%
20%
25%
Toyota European websites News section = visits and share
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To build customer loyalty we have set a strategic objective of achieving Complete Customer Satisfaction (CCS) by delivering products and services of superior quality.
Our ‘Customer First’ philosophy guides our interactions with our customers. By focusing on the total customer experience, from the time of purchase and throughout ownership, we seek to build a long-term relationship with customers.
To track our progress, we conduct an annual benchmarking survey which asks customers to rate their experience from completely satisfied to completely dissatisfied.
The graphs below show our CCS position in European countries for both sales and after sales, and overall satisfaction levels for these groups.
In early 2010, for the first time in its history, Toyota globally implemented a major recall for several of its models. We are fortunate to have a strong network of retailers around Europe who helped us get information about the recall to our customers.
To better understand the impact of the recalls on our customers and their concerns, we also contacted thousands of customers directly. Feedback from customers suggested that the company handled the recalls in a satisfactory way.
Complete Customer Satisfaction (CCS)
Product recalls
Engaging with customers
0
5
10
15
20
06 07 08 09
12/26 12/1913/20
14/20
FY
Num
ber o
f cou
ntrie
s
Toyota CCS#1 position in European countries - Sales
0
5
10
15
20
25
30
06 07 08 09
17/29
24/29
19/2921/29
FY
Num
ber o
f cou
ntrie
s
Toyota CCS#1 position in European countries - After Sales
Special feature
(L-R) Customer Relations, Experience & Satisfaction Team : Nancy Mboga, Diane Ramirez, Tom Abrahams, Sofia Ovlinger Ann Cleynhens, Ilaria Todesco and Leila Kerroudj.
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The beginning of 2010 was an exceptional period for our customer relations team, largely due to the recall of some of our models. Most of our markets in Europe experienced customer recall volumes that were about ten times higher than their normal levels. This increased activity lasted for about two months and particularly affected our major markets - the UK, Italy and France.
In keeping with the current nature of global issues, the media was a key factor in determining how events unfolded. For example, on the day a major UK newspaper published the Toyota recall issue on their front page, almost 14,000 customers called Toyota Great Britain.
In line with our commitment to put our customers first, all markets responded immediately to ensure adequate resources were available to look after each customer. Toyota Great Britain and Toyota France brought in extra staff and extended working hours. In Toyota Motor Italia, each department allocated staff from their team to respond to customer concerns.
The recall situation has provided us with an opportunity to learn and improve, and our focus for FY10 is to reaffirm our commitment to customer satisfaction, customer relations and the overall customer experience.
The role of the Customer Relation Team
0
1,000
2,000
3,000
4,000
5,000
……
..
14,000
Fri.29/01
Tue.02/02
Sat.06/02
Wed.10/02
Sun.14/02
Thu.18/02
Mon.22/02
Fri.26/02
Tue.02/03
Sat.06/03
Thu.18/03
Sun.14/03
Wed.10/03
Answered Cust. Calls
13,696
Russia Great Britain Spain
Germany Italy France
Trend of Customer Calls - Pedals
Whether or not myvehicle is involved
72%
Not involved in therecall but experienced a similar problem2%
Experienced the sameproblem in the past
3%
Wants to knowdetails of recall23%
Nature of Customer Contacts
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Safety
nEw rating SchEmE year overall rating adult child pedestrian Safety
assist
Toyota Verso 2010 89% 75% 69% 86%
Toyota Urban Cruiser 2009 58% 71% 53% 86%
Toyota Prius 2009 88% 82% 68% 86%
Toyota Avensis 2009 90% 86% 53% 86%
Toyota iQ 2009 91% 71% 54% 86%
New Euro NCAP ratings for Toyota vehicles
360° approach to safety
As a major vehicle manufacturer, we seek to reduce traffic accidents, injuries and fatalities, by making vehicles safer to drive. We also need to take an integrated approach to road safety by working in partnership with our stakeholders.
Supporting road safety initiatives
We have a responsibility to raise public awareness about road safety. We have supported the Road Safety Performance Index (PIN) programme, run by the European Transport Safety Council, since 2006. PIN encourages EU member states to improve road safety and identifies key road safety performance indicators.
In FY09, Toyota Motor Europe and our affiliates participated in three PIN debates in Italy, Germany and Spain, bringing the total number of countries visited since the beginning of the programme to 23.
Findings from the PIN programme on issues such as speeding, drinking and driving and child safety, may help determine targets set in the EC’s European Road Safety Action Programme 2011-2020.
eSafetyAware! initiative
We are also a founding member of eSafetyAware!, an EC funded pro-gramme that organises events to demonstrate how advanced vehicle technologies can help save lives.
In September 2009, we took part in the eSafety Challenge in Italy and demonstrated the life-saving potential of the Pre-Crash Safety
System in the new Prius. The technology aims to warn the driver about a potential collision. The speed is then reduced which lowers the likelihood of injury in the event of a collision.
European New Car Assessment Programme (Euro NCAP) safety tests
Euro NCAP is an independent safety assessment programme backed by seven European governments, the European Commission and motoring and consumer organisations in every country in Europe.
Currently, Toyota and Lexus has vehicles that are among the best overall performers in safety across the full range of Euro NCAP tests. In FY09 Toyota vehicles achieved the top score for four out of the five cars tested.
Safety research
We are one of 15 public and private partners of the EU co-funded project ASSESS, which commenced in July 2009 and aims to develop a set of test and assessment methods for active safety, such as pre-collision systems. Project deliverables should form the basis for future rating procedures for these systems and provide policy recommendations for their implementation.
We are also collaborating with the French National Institute for Transport and Safety Research (INRETS) on the passive safety of vulnerable occupants (elderly people) and rear seat occupants. Through the partnership we are also examining ergonomics, by identifying future potential protection of users in the pre-collision phase.
Further information on these programs can be found at : PIN programme : www.etsc.eu/PIN.php eSafetyAware ! program : www.esafetychallenge.eu ASSESS program : www.assess-project.eu Safety at Toyota Motor Europe : www.toyota.eu/safety
★ ★ ★ ★ ★
★ ★ ★ ★ ★
★ ★ ★ ★ ★
★ ★ ★ ★ ★
★ ★ ★
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Eco-Driving
By making simple changes to everyday driving behaviours, motorists can reduce their fuel consumption. This is the message that our retailers are promoting to customers to raise awareness of eco-driving.
In FY08, 55% of our retailer network implemented eco-driving activities, such as giving customers eco-driving tips at showrooms or demonstrating eco-driving techniques during test drives.
This year, with non-profit organisation Global Action Plan International, we launched eco-driving workshops at showrooms. Under the guidance of trained supervisors, participants learn new driving techniques on Toyota simulators that recreate the driving experience and test how far drivers can travel on 0.1 litres of fuel.
Eco-driving practices include shifting earlier into a higher gear, looking ahead and anticipating the traffic flow, keeping car windows closed and using the ventilation system. Savings can be achieved through proper vehicle maintenance and planning journeys ahead of time. By having the correct tyre pressure, for example, drivers can improve fuel economy by around 3%.
We piloted the workshops with retailers in the Netherlands, Norway and Belgium. The programme was well received by the local community. For example, one of our retailers in the Netherlands, Valkema B.V., hosted nine workshops at its showroom and an eco-driving tour in various municipalities in the local region.
Eco-driving activities are also undertaken in other countries such as :
Germany: Toyota Deutschland launched a country-wide Eco-Driving programme with the national motoring organisation, ADAC. The company has donated 50 Avensis cars, which are stationed at 15 of ADAC’s safety driving centres and used to train people in eco-driving techniques.
Denmark: In the run-up to the Copenhagen summit, Toyota Danmark rolled out an extensive eco-driving test drive programme to its entire retailer network. It also held an Eco Roadshow.
Special feature
Customers attending a dealer Eco-Driving workshop
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We make a significant contribution to local economies by directly employing 20,051 people in our Head Office (Evere and Zaventem), our European distribution centre (Toyota Parts Centre Europe), our European Manufacturing Companies and in our majority-owned National Marketing and Sales Companies.
Toyota Motor Europe (Head Office) – 2,023 people Toyota Parts Centre Europe (TPCE) – 645 people European Manufacturing Companies (EMC) – 15,464 people National Marketing and Sales Companies (NMSC) –
1,919 people
Also includes temporary employment
European Manufacturing Companies
TMUK = Toyota Motor Manufacturing UK (Burnaston+Deeside)TMMF = Toyota Motor Manufacturing FranceTMMT = Toyota Motor Manufacturing TurkeyTMIP = Toyota Motor Industries PolandTMMP = Toyota Motor Manufacturing PolandTPCA = Toyota Peugeot Citroën Automobile (Czech Republic).
Engaging with employees
“ The global economic crisis, while challenging,
was an opportunity for us to demonstrate our
commitment to our people to maintain stable
employment and improve mutual trust and
understanding. This strategy is built on a solid
foundation of thorough communication and the
long-term development of our people.„Seiji Abe
Seiji AbeVice-President Human Resources, Toyota Motor Europe
FY08 FY09
Temporary TPCEPermanent TPCE
Temporary Head OfficePermanent Head Office
0
500
1,000
1,500
2,000
2,500
3,000
169
672
149
645
343
2,167
268
2,023
TPCE and Head Office Headcount TMMFTMUK
TMMPTMMT
TPCATMIP
FY07 FY08 FY09
0
5,000
10,000
15,000
20,000
3,600
1,040
2,108
3,347
3,965
5,547
3,578
8902,008
2,959
3,344
4,904
3,602
7142,055
2,860
3,377
3,987
Headcount at EMC
Special feature
Workforce statistics
Note : The employment data reflects the situation on 31st March at each financial year.
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National Marketing and Sales CompaniesTGB = United KingdomTFR = FranceTES = SpainTMI = ItalyTDG = Germany+TIS = Toyota Information SystemsTMP = PolandTMH = HungaryTDK = DenmarkTSW = SwedenTFO = FinlandTNOR = NorwayTNRD = Nordic
Also includes temporary employment
FY07 FY08 FY09
0
500
1,000
1,500
2,000
2,500
4
62
4
61
TFRTGB
TMITES
TMPTDG
TDKTMH
TFOTSW
TNRDTNOR
418
109
425
282
169200
371
88
8482
5
60
320
112
427
299
182194
361
88
8382 221
111
402
269
177186
343
86
8079
Headcount NMSCs
The tables below show our permanent employees at Head Office, Toyota Parts Centre Europe, European Manufacturing
Companies and our majority-owned National Marketing and Sales Companies.
EmployEES by gEnDEr male (%) female (%) total
Head Office 1,406 (70%) 617 (30%) 2,023
Toyota Parts Centre Europe 428 (66%) 217 (34%) 645
European Manufacturing Companies 13,691 (89%) 1773 (11%) 15,464
National Marketing and Sales Companies 1,336 (70%) 583 (30%) 1,919
Total 16,861 (84%) 3,190 (16%) 20,051
EmployEES by agE < 25 (%) 25-34 (%) 35-44 (%) 45-59 (%) >60 (%) total
Head Office 9 (<1%) 951 (47%) 758 (37%) 292 (14%) 13 (1%) 2,023
Toyota Parts Centre Europe 37 (6%) 271 (42%) 220 (34%) 117 (18%) 0 (0%) 645
European Manufacturing Companies 906 (6%) 8,155 (53%) 5,002 (32%) 1,375 (9%) 26 (<1%) 15,464
National Marketing and Sales Companies 15 (1%) 464 (24%) 714 (37%) 658 (34%) 68 (4%) 1,919
Total 967 (5%) 9,841 (49%) 6,694 (33%) 2,242 (12%) 107 (1%) 20,051
Employees by gender, age and by length of service
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We make every effort to ensure stable employment and job security for our employees. Responding to changing environments and market requirements can mean evaluating job functions and workforce totals.
The global economic crisis and the decrease in demand for vehicles meant that during FY09 we needed to implement measures to minimise the loss of employee income. These measures include temporarily re-allocating work to other parts of the business in Europe. For example :
Several team members voluntarily moved from Toyota Motor Industries Poland (TMIP) to Toyota Peugeot Citroën Automobile (TPCA) in the Czech Republic and Toyota Mo-tor Manufacturing Poland (TMMP).
Toyota Motor Manufacturing UK (TMUK) employees volun-tarily took the opportunity to work for Toyota Parts Centre Europe in Belgium, shifting from manufacturing activity to After Sales operations.
Some of our companies also introduced work-sharing. Where applicable, such conditions were discussed and agreed with local trade union representatives :
TMUK and Toyota Motor Manufacturing Turkey (TMMT) introduced work-sharing in their operations to cover non-production days and reduce labour costs. Almost all man-ufacturing companies introduced work-sharing features in FY09.
In certain cases, where decreases of sales volume were si-gnificant and long term, the company negotiated to introduce voluntary separation programmes to make structural adjust-ments to the operations.
In FY09, TMUK and TMIP introduced voluntary separation programmes and about 400 employees opted for such re-lease schemes.
EmployEES by lEngth of SErvicE (1) <1 year (%) 1- <3 years (%) 3-5 years (%) 6-10 years (%) 11-15 years (%) >15 years (%) total
European Manufacturing Companies 74 (<1%) 2,014 (13%) 4,298 (28%) 7,029 (45%) 901 (6%) 1,148 (7%) 15,464
National Marketing and Sales Companies 18 (1%) 281 (15%) 335 (17%) 395 (21%) 318 (17%) 572 (30%) 1,919
Total 91 (1%) 2,295 (13%) 4,633 (27%) 7,424 (43%) 1,219 (7%) 1,720 (10%) 17,383
EmployEES by lEngth of SErvicE (1) <1 year (%) 1-4 years (%) 5-9 years (%) 10-14 years (%) >15 years (%) total
Head Office 20 (1%) 923 (46%) 631 (31%) 261 (13%) 188 (9%) 2,023
Toyota Parts Centre Europe 0 (0%) 234 (36%) 225 (35%) 118 (18%) 68 (11%) 645
Total 20 (1%) 1,157 (43%) 856 (32%) 379 (14%) 256 (10%) 2,668
(1) We calculate length of service using different categories for Head Office and TPCE, compared to EMCs and NMSCs.
Maintaining stable employment
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Company
(Top management)
Supervisors
Employees/Union
Unions and
Employee
RepresentativesHR
Other measures included :
Our Head Office in Brussels introduced 16 unpaid days in FY09.
Toyota Deutschland (TDG), working with their works council, re-engineered their company operations based on a benchmarking study that examined Toyota Motor Europe, other National Marketing and Sales Companies (NMSCs) and other automotive distributors.
Other NMSCs introduced voluntary unpaid holidays and implemented organisational changes to enable better flexibility to ensure long-term prosperity and employee stability.
With improved market conditions towards the end of FY09, some of these measures were scaled back. For example, work-sharing was stopped in most offices and manufacturing plants prepared for a gradual return to stable working conditions.
To make the required structural changes for the long-term recovery of the organisation, some of the measures were retained, such as limiting the number of overtime hours.
In FY09 our turnover rate was 4.00%, compared to 7.70% in FY08. These figures are for our Head Office (Evere and Zaventem, Belgium). We do not currently report turnover for our other operations but plan to do so in the mid-term future.
FY07 FY08 FY09
0%
2%
4%
6%
8%
10%
7.40 7.70
4.00
Employee Turnover
Communication ChannelsIn all the European countries in which we operate, we adhere to European and national legislation and we have established employee representative bodies to inform and communicate within the framework of social dialogue. Where required, Toyota Motor Europe has established collective bargaining agreements covering all employees at a specified location. European and national consultations have helped to create and maintain awareness and motivated two-way communication concerning the company’s business position, surrounding environment and business challenges.
Under the severe business conditions caused by the economic downturn, it was essential for us to provide open and timely communications to our employees on critical business issues and company decisions
Employee communication
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One of the ways we share information with our employees is through the Toyota European Works Council, which is also called the Toyota European Forum (TEF). The Forum consists of representatives from each country in Europe that Toyota has op-erations in and includes representatives from National Market-ing and Sales Companies (NMSCs), European Manufacturing Companies (EMCs), the Head Office and senior management. Through TEF, employees receive regular updates on various business issues for Toyota’s global and European operations.
In FY09, much of the discussion was related to the global economic downturn and the impact on employees. TEF usually meets twice a year, but due to these concerns, additional meetings were arranged.
At the December 2009 meeting, a new TEF agreement was signed between management and employees representati-ves (in line with the new European Works Council directive, despite no legal necessity to do so). The agreement ex-pands TEF priorities, including information and consultation by management with TEF representatives when significant changes are being considered that impact our employees.
300K Communication
To strengthen communications, Toyota has globally launched the “ 300K communication activity. ” The name of the initiative comes from the 300,000 employees that Toyota employs
globally. The purpose of the initiative is to ensure all Toyota employees around the world are provided with up-to-date information about business operations. Communication packs are prepared and sent to divisions, sales and marketing affiliates and manufacturing companies. Communication sessions are held by local management with employees to share information and employees can request additional information and give feedback at these sessions.
Work-life balanceWe have continued to introduce measures to ensure employees have a work-life balance. By identifying priorities in our day-to-day operations and optimising processes, we are helping employees manage their workloads during a time when there are measures in place for no recruitment or overtime. Among other activities, in our Head Office in Brussels, reducing overtime hours has enabled employees to better manage the ratio between the time spent at work and at home (work/life balance).
Based on local laws and regulations, employees in our affiliates were provided with the opportunity to take advantage of flexible work arrangements, sabbaticals and part-time work.
Current issues /hot topics
34%
Terms & conditions /stable employment
31%
Vision / Mission of Toyota in Europe18%
Global & European business situation12%
Other 5%
Two-way Communication - Employees Feedback
Corporate28%
5,5%97 employeesR&D
10%
Sales - Marketing43%
Manufacturing support19%
Current utilisation of Time Credit Promotion in Head Office per main functions
Note : Collective Labour Agreement allows 6%.
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(1) The training figures include Toyota Motor Europe’s Head Office and Technical Centre.(2) TBP = Toyota Business Practices(3) JKK = Jikotei Koteï Kanketsu
We support long-term employee development by offering internal training courses. These courses are offered to employees in the Head Office and in our manufacturing companies, as well as to retailers and the after sales network.
Training sessions for our employees are complemented by annual performance appraisals and competency assess-ments for all permanent and temporary employees.In FY09, the number of training hours decreased from FY08 (see graph above) due to training being limited to internal training because of cost-saving initiatives.
Learning and development
On the job development
The On-the-Job Development course provides managers and supervisors with a standardised approach to facilitate employee development in their daily work. The purpose of the course is to help employees to practice the Toyota Way principles. The course takes the participants through the four stages in the Plan-Do-Check-Act cycle. In the Plan stage, suitable work is identified which slightly challenges employees so that they gain a sense of achievement. The Do stage includes assigning the work and motivating the employee. In the Check and Act stages, the manager or supervisor evaluates the work and discusses the employee’s personal growth and the next steps needed to help them in their development.
This course takes junior management through all elements of the Toyota Way, hoshin kanri (direction management) and On-the-Job Development, and demonstrates how these philosophies can be implemented in daily practice.Designed as a tool to enhance the management skills of newly-promoted managers, the course also serves as a refresher course for more experienced leaders in the company. The core elements are (a) the role of a Toyota manager in devel-oping human resources (b) motivating employees to continually improve and (c) the role of management in ensuring employee development.
Managing people the Toyota Way
FY07 FY08 FY09
0
10
20
30
40
50'000 hours
36.5
45.7
38.8
TME training hours overall (1)
Members
Members
Efficient workplace
TBP(2)
JKK(3)
dev
elo
p
Th
ink
de
eply
Ac
t e
ffic
ien
tly
mo
tiva
te
ma
nag
eOn the Job
Development
Giv
e a
Sens
e of
A
chievement
(Per
sona
l Growth)
On the JobDevelopment
Identify Suitable Work
(Per
sona
l Growth)
Assign
Wor
k
3
4
2
1
Monitor& Lead
Complete Work
Team building
During a time of global economic change, it has been important to maintain and enhance employee motivation. In FY09 employee events included the Ekiden (relay race) Festival for employees and their families. At our Head
Office, more than 130 employees in 34 teams participated in this event, which was organised by the employees. Local Ekiden were also held in Toyota companies around Europe.
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Having a strong foundation for safety is fundamental in a changing environment. Changes in FY09, including preparation for manufacturing hybrid vehicles in Europe, meant we faced many new challenges. This process has given us an opportunity to expand our knowledge and further strengthen our safety culture.
This effort has already been recognised, with Toyota Motor Manufacturing Poland (TMMP) winning a national award for safety in the workplace – “ Pracodawca – Organizator pracy bezpiecznej ” (Safe Work Organiser) in 2009. More than 400 organisations competed to win this award.
In FY10, we will continue to strengthen safety communication with the creation of a ‘Safety Promotion Committee,’ made up of representatives from senior management, who will set the direction on safety throughout our European operations. In parallel, the process of sharing safety information and best practice between different areas of our business will be strengthened, so that our safety management system will continue to develop.
Safety in our parts centres
Our 14 parts distribution centres are responsible for the storage and distribution of parts and accessories to retailers around Europe.
Following the introduction of a global strategy (called “ STOP 6 ”) in FY08 which aims to reduce the risk of the most serious and frequently occurring types of accidents within our operations, a significant improvement was made. This improvement has continued through FY09.
STOP 6 risk assessment tools and check sheets were developed and are now used at each depot. As a result of these assessments, we implemented a number of improvements and the level of risk has significantly reduced.
As part of its STOP 6 activity, Toyota’s European distribution centre - Toyota Parts Centre Europe (TPCE), focused on separating human work and machine work, avoiding falls from height and developing a safety awareness plan.
Formula: No of LTI/ Work hours x 1,000,000
Note : TPCE included
Safety in vehicle logistics
We take an active role in ensuring the safety of our contracted vehicle logistics network. In FY09, for example, we worked with our rail logistics partners to prevent falls from height during rail transport.
Pedestrian access to the top of the rail carriages used to transport our cars is essential. Due to the height of rail bridges, it is not possible to install a fixed barrier which would protect employees from falling from the top of the rail carriage. Our vehicle logistics team worked with our rail logistics partners to overcome this challenge. The group developed a system of adjustable barriers, which protects employees from falling while ensuring that the carriages remain suitable for rail travel throughout the European network.
FY07 FY08 FY09
%
0
10
20
30
40
50
Freq
rate
13 Parts Centres only
35.29
28.56 27.77
Lost Time Injury frequency rate in Parts Centres and TPCE
Health and Safety
Adjustable barriers fixed to rail carriages
Production and health and safety employees at TMMP with the Safe Work Organiser award
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1st line stop (30 mins)
Members asked to identify
and list their safety
improvement points
2nd line stop (30 mins)
Feedback to members
including explanation of
action plan
Obtain member feedback on,
Action plan realisation
The activity as a whole
Feedback to all, including
via Weekly newsletter
1 month action
plan development
6 months of
intensive activity
Safety in our manufacturing plants
In FY09 we saw a significant improvement in our Lost Time Injury (LTI) rate. During the year we strengthened our reporting of ergonomic injuries and now report these types of injuries separately.
Toyota Peugeot Citroën Automobile data integrated from FY07
Ergonomic injuries are reported separately from FY09, previously they were integrated into these statistics.
Formula: No. of LTI/ Work hours x 1,000,000
In November 2009 we established an Ergonomics Working Group (EWG). The EWG complements existing ergonomics activity within our manufacturing plants and provides an opportunity for specialists from all of our plants to share best practice.
EWG works jointly with our Safety Working Group, which provides a platform for discussion on safety in Europe.
Ergonomics at Toyota Motor Manufacturing TurkeyToyota Motor Manufacturing Turkey’s (TMMT) approach to
managing ergonomics is through the Plan-Do-Check-Act cycle (see bottom left). The start of production of the new generation Auris provided an opportunity to further improve the company’s ergonomic management system.
Employee involvement
Initiatives undertaken in FY09 to encourage employees to engage on safety include:
Toyota Motor Manufacturing UK (TMUK) Deeside introduced departmental safety meetings, providing all members with a forum to discuss safety.
Toyota Motor Industries Poland (TMIP)’s annual safety month focused on the importance of employee communication in identifying and reducing risks. To encourage employee participation, TMIP even stopped the production line.
Overview of line stop activity at TMIP
To date more than 80% of improvement points have been addressed and 70% of employees said they would like to have this opportunity more often. A more permanent system for employee safety suggestions is being developed.
Head Office and Zaventem
We strengthened our risk assessment system for chemical products at our Head Office in Brussels and our Zaventem sites, which include garages, workshops and laboratories. Using a preventative approach, the risk to safety, health and environment is recorded, evaluated and subsequently controlled throughout the lifecycle including during purchase, storage and disposal.
PRODUCTIO
N
Cooperation at design stage, including
other plants, to reduce risk of ergo
concern during parts fit.
• Established system observation
to identify remaining risk
• Member health
• Early identifiation of members
who may be at risk of ergo concerns.
PLAN
• Ergonomics training for all TMMT.
• Additional training for Team and Group
leaders.
• Member health
• Provide access to physiotherapist.
ACT
CHECK
A P
DC
• Improved part design
• Improved process design
• Use of "ergo centre" (fitness centre)
to help prepare & remain fit for work.
Reduce burden
to member}
Learning from
past models
DO
PREPRODUC
TIO
N
ERGONOMIC
IMPROVEMENT
FY05 FY06 FY07 FY08 FY09
0
1
2
3
4
CO
2/ca
r em
issi
on (k
g/ca
r)
Single eventErgonomic
2.8 2.73.0
0.4
2.6
1.6
0.5
LTI Frequency rate in European plants
TMIP production members receiving a health and safety award for their efforts during safety month.
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CORPORATE SOCIAL RESPONSIBILITYSafety
Quality
Production
Cost
Sustainable Growth
The global economic crisis, as well as natural disasters, have all delivered challenges to suppliers of automotive components. These challenges include supply disruption, production interruption and logistics failures.
We are not immune to the consequences of these macro events, and the past year has provided an opportunity to fully test the strength of our purchasing policies and supplier relationships.
We believe that Toyota’s Guiding Principles and the Toyota Way in Purchasing provide us with a sound approach to business that will deliver sustainable business results for our suppliers and us as well.
The words of Toyota Motor Corporation founder, Kiichiro Toyoda, are still valid today: “Toyota and its suppliers work together as one entity, not only in times of prosperity, but also in times of adversity.”
Mark AdamsVice-President,Purchasing,Toyota Motor Europe
Engaging with business partners
“ Our relationships with our business partners
and specifically our suppliers were challenged in
recent months. As a company, we chose to dem-
onstrate even stronger consistency and alignment
with our Purchasing Policy which allowed us to
further build and rely on our established business
relationships.„Mark Adams
At a time when the automotive industry is facing unprecedented challenges, we believe that our Purchasing Policy is more important than ever. The three cornerstones of the policy are:
Fair competition based on an open-door policy supporting our aim of continuously improving the supplier base
Mutual benefit based on mutual trust through an open and transparent dialogue
Good corporate citizenship by contributing to local communities and economies.
Throughout our history, the application of these principles has cultivated long term and sustainable growth for our partners and us. We remain committed to ensuring that the Purchasing Policy is consistently practiced in order to support the overall company vision of growth in harmony with society.
Corporate social responsibility is the foundation of our Purchasing Policy and priority model, with safety and quality representing core principles in our relationships with suppliers.
Toyota purchasing priority model for global manufacturing
The Toyota Purchasing Policy
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Deploy Contingency plan
Solve the problem
Manage back to normal
Data gathering through
multi-stakeholder network
Risk Assessment
Predict
PROACTIVE PLANNING
Monitor
Cure(if risk occurs)
Risk monitoring (tracking)
Develop Contingency plan
A European cross-functional taskforce, led by the Purchasing Risk Management team, ensures the continuation of business and production within the supply chain.
Its effectiveness relies on the Toyota Way principles of transparency, clarity, honesty, mutual trust and speed of
information sharing when managing relationships with all suppliers and other stakeholders in the business.
The following diagram outlines our process to protect the business from any type of risk in the supply chain (financial, social or natural disasters).
Protecting the Supply Chain
We aim to develop long-term partnerships with our suppliers to ensure mutual growth for ultimate customer benefit.
The market context today sets a challenging framework for development and growth. We are therefore focusing on sharing our core in-house knowledge and experience by assigning Toyota Production System specialists to our
suppliers’ production teams. Their mission is two-fold: to conduct a thorough production process assessment and to apply the Toyota Production System and tools, with the aim of constantly improving supplier competitiveness.
In FY10 we will continue to work with our suppliers to share our knowledge and further strengthen our supply base.
In partnership with our collective supply base, we conti-nuously look to improve the quality of our suppliers’ pro-ducts and processes.
This principle is applied to both the development of new vehicles and to existing production and has led to significant quality improvements in the order of 90% since FY06. We introduced a number of activities to support our suppliers.
These include:
Quality information system : Just-in-time quality perfor-mance information with multiple dimension data ensures maximum visibility for enhanced quality improvement ac-tivities.
Remedial quality communication : Building on the suc-cesses made in FY08, our top management work with
their counterparts in our supply chain on quality issues. Built-in quality at suppliers: Transferring our manufacturing
knowledge and experience to achieve zero defects in the manufacturing processes of our suppliers.
In addition, we improved our processes by examining quality considerations at the design stage. Engineers from Toyota and our suppliers work together to study and identify opportunities to eliminate risks in the development and design phase and allocate resources appropriately to ensure the highest-quality output.
Despite our core principles of quality and continuous improvement, recent warranty incidents have demonstrated an opportunity to identify further areas for improvement in the production preparation stages of new vehicles and existing production to ensure ultimate customer safety and satisfaction.
Competitiveness and Sustainability
Quality in our Supply Chain
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The Toyota in Europe Association of Manufacturers (TEAM) is an association of strategic European Toyota business part-ners who come together to improve their individual and collec-tive performance through networking, mutual assistance and through the sharing of ideas and techniques. We bring the suppliers together, who meet regularly to exchange best prac-tice ideas from the shop floor. In the reporting period, we also made our internal training facility available to TEAM members and shared the latest techniques used in our assembly plants.
In FY09, the quality performance of TEAM members showed a near 90% improvement compared to FY06.
We plan to expand TEAM membership over the next three years to more accurately reflect the geographic distribution of our supply base. This will double the membership num-bers and these suppliers will represent 75% of our annual purchasing spend.
Around 350 suppliers and senior management from Toyota Motor Europe attended the Annual Business Meeting in March 2010 at the Toyota Technical Centre in Zaventem, Belgium.
The annual meeting enables suppliers and Toyota represen-tatives to meet each other face to face and exchange ideas regarding business targets and achievements.
Highly sought after awards are presented to suppliers who
have demonstrated outstanding achievements, with 29 awards being handed out in 2010.
The focus of the meeting was on Toyota’s commitment to sustainable growth based on the Toyota Way and the Pur-chasing Policy. The meeting concluded with the agreement that in times where new challenges are constantly emerging, we need to remain focused on maintaining and continuously improving our supplier relationships towards recovery.
In 2002, we issued our first Environmental Purchasing Guidelines. Addressing the increased expectations towards sustainable development, we revised the guidelines in 2007 to become the Green Purchasing Guidelines, which included ‘Contribution towards Sustainable Development’, focusing on good corporate citizenship.
In the 2010 edition, named Sustainability Purchasing Guidelines, the Corporate Social Responsibility (CSR) Policy and Guidelines were added, along with a separate chapter on chemical substan-ce management, REACH, substances of concern and recycling.
The new guidelines include :
Human rights : No child labour or forced labour to be used Labour : The right of employees to freely associate, or not
to associate Legal compliance : Comply with applicable laws and
regulations of each country and region as well as the spirit thereof
Disclosure of information to stakeholders : Strive to disclose to stakeholders such information as is pertinent to them.
Our culture of Genchi Genbutsu (‘going to the source to find the facts’) means that we regularly visit the workplace of our suppliers. This gives us the opportunity to witness first hand, the implementation of our SPG guidelines in the supply chain.
Expanding TEAM in Europe
Annual Business Meeting 2010
Sustainable Purchasing Practices across the Supply Chain
Engaging with the community
“ We understand that we need to focus on rebuilding trust
with our stakeholders : our customers, our employees and
their families, and our business partners. One way of doing
this is by engaging with the communities we operate in.„Andy Pfeiffenberger
Our social contribution projects provide us with the opportunity to understand the expectations of our local stakeholders. We want to be a good corporate citizen at the most local level.
In FY09, 20% of retailers and 3% of manufacturing and Head Office employees were involved in local social contribution projects.
In addition to social contribution programmes, we interact with stakeholders on corporate social responsibility as a member of international associations and federations including:
ACEA: European Automobile Manufacturers’ Association. We are a member of the association and participate in the various expert groups dealing with issues of interest to the European automotive sector. For more information please see www.acea.be
BUSINESSEUROPE (Confederation of European Businesses): BusinessEurope is composed of 40 industrial and employers’ federations. We participate in the Confederation’s working groups on subjects such as climate change and research and development. For more information please see www.businesseurope.eu
CSR Europe: We are a member of CSR Europe, the business organisation that promotes corporate social responsibility in Europe. For more information please see www.csreurope.org
World Business Council for Sustainable Development: We are actively involved in a number of WBCSD activities and working groups, namely those on Energy and Climate and Mobility for Development. For more information please see www.wbcsd.org
Andy PfeiffenbergerVice-President,Corporate and Business Planning, CSR,Toyota Motor Europe
Working Together
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The Toyota Fund for Europe provides seed funding and gives direction to social contributions within the company.
The TFfE is governed by a Board composed of 13 members from senior management and representatives from our subsidiaries. The Board meets twice a year to define the overall social contributions strategy of both TFfE and Toyota Motor Europe as a whole. Its role is to : Identify, select and fund appropriate projects for TFfE. Review, follow up and evaluate the projects funded. Support Toyota subsidiaries’ project development and
strategy setting.
In FY09, the TFfE Board committed to supporting 18 projects. Spending on social contributions via the TFfE in this period totalled just under €600,000.
Despite the changed business environment, the TFfE con-tinued to support key international and national projects
2009 European total spend on social contributions
Although there has been a reduction in the amount spent on social contributions across our operations since the start of the financial crisis in 2008, we have maintained a steady level of support to our local communities. Our focus on the strategic areas of environment, road
safety and technical education increased from 66% to 72%. Environmental projects received increased funding and make up 44% of our total contributions. We also supported non-profit organisations through employee involvement, fundraising and in-kind donations.
2009 achievements: Examples of our environ-mental projects in Europe
Toyota involvement in Eco-Schools extended to Toyota retailers
Eco-Schools is an environmental education programme run by the Foundation for Environmental Education which helps schools become more sustainable. More than 2,000 schools in 30 European countries are part of the Foundation’s Eco-Schools network.
We support the Eco-Schools Environment and Innovation Competition, which encourages schools to come up with innovative and creative solutions to environmental problems. Winning entries receive a grant to help them put their ideas into action.
Since 2005, the competition has generated 188 entries from schools and has led to the funding and implementation of 59 environmental projects.
Toyota Fund of Europe (TFfE)
07 09
%
0
4
8
12
05 06 08
0
20
40
60
80
100
Environment
Road Safety
Technical Education
Other
Strategic focus
Mill
ions
€
69%
51%
62%62%
66%
Evolution of Social ContributionsA student in Turkey signs to commit to take responsibility for the electricity use in his classroom
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In FY09, for the first time, Toyota retailers in Denmark and Slovenia worked together with schools to develop and implement environmental projects in their local communities.The winner of the last cycle was the Odtü Gelistirme Vakfi Özel Ilkögretim Okulu Primary School in Ankara, Turkey. The school received the award for the ‘I Take Responsibility’ project, which encourages students to take responsibility for electricity use in their classrooms. For more information please see www.eco-schools.org
Reforestation activities by Toyota España
Toyota España held its second Reforestation Day in November 2009 (see pictures below). More than 10,000 people, including staff and customers from Toyota’s retail network, planted seed-lings in 61 locations across Spain. Around 160,000 oak tree seeds and 10,000 seedlings were planted on the day.
The aim of the project is to increase awareness of environmental issues in the community. Toyota’s retail network and Toyota España were supported by the Spanish Environmental Ministry, the Fundación Biodiversidad (Biodiversity Foundation), the Fundación Felix Rodriguez de la Fuente, and more than 50 local partners including public institutions, non-profit organisations and companies. For more information please see www.habiaunavezunbosque.com
Toyota Slovakia Living Trails
Together with the Ekopolis Foundation, Toyota Slovakia supports the ‘Living Trails’ initiative to improve tourist infrastructure and reforestation in the Low and High Tatras mountain parks. The 2009 project began in January with the launch of a competition to fund local initiatives to protect the natural and cultural heritage of the parks.
As part of this project, seven tourist paths in the parks were rehabilitated. The paths are located in five different Slovak national parks. The activities undertaken ranged from cleaning trails after windstorms to improving their safety by repairing surfaces, fixing safety chains, undertaking anti-erosion activities, improving trail markings and installing information panels (see below).
This is the second consecutive year that Toyota Slovakia has supported this initiative. The company has received the Via Bona Award in recognition of its environmental projects, including the Greenways and Living Trails initiatives.
Our manufacturing plants intensified their contribution to the local communities in FY09. Initiatives include:
Toyota Motor Manufacturing UK (TMUK)
Technology Challenge : A nationwide competition to educate
students about environmentally friendly vehicle engineering and to encourage the consideration of engineering as a future career.TMUK Charitable Trust : Established in 2008 to distribute funds to good causes, the Trust generated £201,403 in FY09 from corporate and employee fundraising activities. Every pound will be donated to support local projects.
Toyota manufacturing plants interact with the local communities
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Toyota Motor Manufacturing Poland (TMMP)
Safe Driver Programme: TMMP has organised this programme with the Walbrzych Safe Driving Academy since 2006. In FY09 a number of training sessions were held to educate staff and local residents on ecological and safe driving.
Renovation of bike and running trail: A bike and running trail was renovated near the company’s facilities in Walbrych by TMMP staff members in July and August 2009.
Toyota Motor Industries Poland (TMIP)Playgrounds renovated: Playground renovation was undertaken by volunteers from TMIP, their families and local residents from Miloszyce and Leg.
Clean up the world: From 2007-2009, TMIP employees volunteered to help local authorities clean up the forests and schools around the plant. More than 250 TMIP employees and friends participated. In FY09 a follow-up project was launched on recycling waste.
Toyota Motor Manufacturing Turkey (TMMT)
Road safety competition: TMMT continued its traffic safety education campaign during Traffic Week 2009.
The campaign includes a regional drawing contest and the distribution of 6,800 education packs and videos on
traffic safety features for children.Technology challenge: This competition aims to engage young people in technical research and development. Students submit ideas and Toyota employees lend support by showing them how they can turn their ideas into practical solutions.
Toyota Motor Manufacturing France (TMMF)
Educational partnership for sustainable development: Since December 2005, TMMF has partnered with sustainable development organisation, CPIE Bocage de lCPIE Boca, to:
Maintain biodiversity on the plant’s grounds Enhance children’s environmental awareness of the sur-
rounding communities.
More information about these and more than 300 Toyo-ta social contribution projects in Europe can be found at www.toyotafund.eu
TMUK Charitable Trust
Opening of the renovated trail
TMMT volunteers supporting students to develop their ideas
Students learn about biodiversity near TMMF plant
PerformanceEconomic“We need to put in place strategies and actions to adapt to ever-changing market conditions. Flexibility in the development and production of our vehicles in order to satisfy customer needs will become a significant area of competitive advantage. Our top priority must be on rebuilding our customers’ trust.Long-term trust is more important than short-term profits. We will pursue mutual growth with our business partners based on mutual trust.„
Ludo Vandervelden
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In FY09, the automotive market continued to expand in China, India and other developing countries. In developed countries, despite government efforts to stimulate demand, overall market conditions were difficult.
One of the reasons for this was a change in the market structure resulting from shifts in consumer demand to small family cars (C-segment) and for cars in the lowest price segments.
In FY09, our net revenues in Europe decreased by 22% from FY08 to €16,390 million as a result of both reduced sales and vehicle unit production.
However, our operating loss was €252 million in FY09 compared to €995 million in FY08. This was mainly due to cost reduction efforts in all areas.
Market Context
Ludo VanderveldenSenior Vice-President,Accounting and Finance,Business Services, Legal,Toyota Motor Europe
Self Reliancewith Focuson Core Models
Consolidated Financial Results for Europe (in million Euro)fy05 fy06 fy07 fy08 fy09
Net Revenues 19,764 23,615 24,651 20,925 16,390
Operating Expenses 19,083 22,699 23,777 21,919 16,641
Operating Income 681 916 874 (995) (252)
Assets 17,908 19,448 19,294 16,143 15,733
Source: TMC Annual Results - Segment Information
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The European car market decreased by 2.8 million units to 18.3 million units, falling below the FY02 level.
The year-on-year decrease in Western Europe was contained at 2.6% by the introduction of programmes to provide incentives to motorists to scrap old vehicles and replace them with new more energy-efficient vehicles. However, these programmes were not offered in Eastern Europe, where markets collapsed by 41.5%. Under these conditions, Toyota’s 882’351 sales in Europe represented a decrease of 229’670 units or 20.7% compared to CY08. Toyota’s market share was 4.9% in CY09, which is 0.4% lower than in CY08.
Despite this, we managed to contain the impact of the decrease in volume and mix deterioration by substantially reducing our costs. In addition, by enhancing the supply and demand management process, we have reduced inventory levels and adjusted production volume to meet market demand.
We expect sales to decrease further in 2010 when government stimulus and incentives packages will come to an end.
Vehicle and Market Share in Europe
Investments in FY09 amounted to €229 million compared to €777 million in FY08, which is the lowest investment for the past ten years.The €548 million reduction is due to the absence of major model changes in FY09 (investments for Avensis and Corolla Verso model changes incurred in FY08) and because we needed to prioritise investment projects in FY09.
In FY09, the production of a full hybrid version of the Auris in the UK-based facility in Burnaston, Derbyshire was confirmed. Production of Toyota’s first European-built full hybrid will commence at Toyota Motor Manufacturing UK (TMUK) in mid-2010. Engines will be produced at TMUK’s facility in Deeside, North Wales.
In FY09, construction for the expansion of the testing facilities of our research and development premises in Zaventem, Belgium began. Through this investment, we intend to strengthen our capability to develop vehicles that meet the expectations of our European customers.
Investments
Our production volumes were adjusted to adapt to the decrease in demand. As a result, our annual production volumes reduced from 589,794 units in FY08 to 544,050 units in FY09. The reductions mainly affected production of the Avensis and Auris vehicles.
This reflects the market trend towards small family car vehicles. Government scrapping incentives programmes in FY09 also benefitted cars in this segment.
Production Volumes
300
500
700
900
1,100
1,300
97 98 99 00 01 02 03 04 05 06 07 08 09
490 55
6 614 67
8
677 76
9 855 95
0
1,00
1
1,12
5 1,23
3
1,11
2
882
'000s of vehicles
Vehicle sales
Market share
CYMarketshare
(%)
0
1
2
3
4
5
6
2.8%3.1% 3.2%
3.6% 3.6%
4.1%4.5%
4.7%4.9%
5.4%5.6%
5.3%
4.9%
0
200
400
600
800
97 98 99 00 01 02 03 04 05 06 07 08 09
'000s of vehicles
TMUK
TMMF
TMMT
TPCA
FY
0
200
400
600
800
1000
00 01 02 03 04 05 06 07 08 09
(million Euro)
707
804
882
659
539
946
798
715777
229
FY
Source: TMC Annual Results
Vehicle Sales and Market Share
Vehicle Production Volumes
Investments
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ADEMEAgence de l'Environnement et de la Maîtrise de l'Energie
ABM Annual Business Meeting
ASSESSAssessment of Integrated Vehicle Safety System for Improved Vehicle Safety
ACEAEuropean Automobile Manufacturers’ Association
B7Diesel Blended with up to 7% Volume Bio-diesel
BREEAMBuilding Research Establishment Environment Assessment Method
CC Corporate Citizenship
CCI Corporate Citizenship Index
CCS Complete Customer Satisfaction
CEO Chief Executive Officer
CIS Commonwealth of Independent States
CLP Classification, Labelling, Packaging
CO2 Carbon Dioxide
C-Segment Small Family Car
CSR Corporate Social Responsibility
CUS Urban Community of Strasbourg
CY Calendar Year (1st January – 31st December)
D-4D Direct Injection 4-Stroke Diesel Engine
D-4SDirect Injection 4-Stroke (Petrol) Superior Engine
Dual-VVTi Dual Variable Valve Timing (intelligent)
E10Petrol Blended with up to 10 % Volume Bio-ethanol
EC European Commission
Eco-DrivingA way of driving that reduces fuel, greenhouse gas emissions and accidents
ECO ModeIntelligent software controls (battery) power consumption
Eco SchoolsProgramme to implement sustainable development education in schools
EDF Electricité de France
EEA European Environment Agency
Ekiden Relay Running Race (Japanese)
EKSS European Key Stakeholder Survey
ELV End-of-Life Vehicle
EMC European Manufacturing Company
EMAS Environmental Management and Audit Scheme
EMS Environmental Management System
ES Electricité de Strasbourg
ETS Emission Trading System
ETSC European Transport Safety Council
EU European Union
EURO 5European Directive that caps vehicle pollutants’ emissions
EV Electric Vehicle
EWG Ergonomics Working Group
FY Financial Year (1st April – 31st March)
Genchi genbutsuJapanese term that roughly translates to “go to the source to find the facts”
GHG Greenhouse Gas
GRI Global Reporting Initiative
Hoshin kanri Direction Management System (Japanese)
HSD Hybrid Synergy Drive
HVO Hydro-treated Vegetable Oil
INRETSFrench National Institute for Transport and Safety Research
ITS Intelligent Transport Systems
ISO International Organization for Standardization
JAMA Japan Automobile Manufacturers’ Association
JKKJikotei Kanketsu (Built-in Quality, Process Standardisation Methodology)
Kaizen Japanese term that roughly translates to ’continuous improvement’
KPI Key Performance Indicator
LED Light Emitting Diode
LCA Lifecycle Assessment
LTI Lost Time Injury
NCAP New Car Assessment Programme
NMHC Nonmethane Hydrocarbons
NMSC National Marketing and Sales Company
NOx Nitrogen Oxide
OECDOrganisation for Economic Cooperation and Development
OJD On-the-Job Development
PDC Parts Distribution Centre
PDCA Plan-Do-Check-Act
PHV Plug-in Hybrid Vehicle
PIN Performance Index
PLC Parts Logistics Centre
PM Particulate Matter
PSCG Parts Supply Chain Group
R&D Research and Development
RE Renewable Energy
REACH Registration, Evaluation and Authorisation of Chemicals
SE Simultaneous Engineering
SINF North of France Industrial Society
SOC Substances of Concern
SPG Sustainable Purchasing Guidelines
TBPToyota Business Practices (Toyota problem solving methodology)
TCP Time Credit Promotion (Programme in Belgium)
TEAM Toyota in Europe Association of Manufacturers
TEF Toyota European Forum
TFfE Toyota Fund for Europe
TMC Toyota Motor Corporation
TME Toyota Motor Europe
TMH Toyota Motor Hungary
TMIP Toyota Motor Industries Poland
TMMF Toyota Motor Manufacturing France
TMMP Toyota Motor Manufacturing Poland
TMMR Toyota Motor Manufacturing Russia
TMMT Toyota Motor Manufacturing Turkey
TMUK Toyota Motor Manufacturing UK
TSM Toyota Customer Service Management
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gri inDicator gri DEScription commEntS pagES
1.1 Statement from the President. 4
1.2 Key impacts, risks, and opportunities. 4
2.1 Name of organisation. 3
2.2 Primary brands, products, and/or services. 3
2.3 Operational structure of organisation. 3
2.4 Location of organisation’s headquarters. 3
2.5 Number of countries where the organisation operates. 3
2.6 Nature of ownership and legal form. 3
2.7 Markets served. 3
2.8 Scale of the reporting organisation. 3, 67, 83
2.9 Significant changes during the reporting period. 3
2.10 Awards. 35,46,73
3.1 Reporting period. 3
3.2 Date of most recent previous report. 3
3.3 Reporting cycle. 3
3.4 Contact point for the report. 3
3.5 Process for defining report content. 3
3.6 Boundary of the report. 3
3.7 Limitations on the scope or boundary of the report. 3
3.8 Reporting on joint ventures and other entities. 3
3.9 Data measurement techniques. 3
3.10 Explanation of re-statements. 6
3.11 Significant changes from previous reporting periods. 3
3.12 Table of standard disclosures. 86-91
3.13 External assurance. We undertook rigorous internal auditing to ensure the data in this report is correct. Our GRI application level has been checked by an independent provider, Net Balance. We have not undertaken external assurance for this report.
4.1 Governance structure. 12
4.2 Chair of the highest governance body. 12
4.3 Independent and/or non-executive board members. 12
4.4 Mechanisms to provide recommendations or direction to the board. 12
4.5 Compensation and performance. Executives within Europe are compensated according to industry rates and performance.Senior executives of Toyota in Europe review the performance against annual objectives and key performance indicators under the Toyota Global Assessment Performance framework.
4.6 Avoidance of conflicts of interest. 12
4.7 Board selection process. 12
4.8 Mission and values statement, codes of conduct and principles.
10-12
4.9 Management of performance. 11-12
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4.10 Performance evaluation. Executive remuneration is subject to annual review and is composed of a fixed salary payment and an incentive programme that is tied to the achievement of organisational targets in the financial year.
4.11 Explanation of whether and how the precautionary principle is addressed.
4,17,21-22
4.12 Externally developed economic, environmental, and social charters.
78
4.13 Memberships in associations. 28,65,78
4.14 List of stakeholder groups. 58
4.15 Basis for identification and selection of stakeholders. 57
4.16 Approaches to stakeholder engagement. 56-61
4.17 Key stakeholder topics and concerns. 56-61
EconomicDisclosures on management approach.
4,82-84
Economic Performance
EC1 Direct economic value generated and distributed. 6,79,82
EC2 Financial implications of climate change. 21-22
EC3 Organisation’s defined benefit plan. Depending on the country of operation, our operations in Europe have social security systems that are competitive in the industry and locality where required by local practices.
EC4 Significant financial assistance received from government. Toyota Motor Europe has not received significant financial assistance from government in the reporting period.
Market Presence
EC6 Locally based suppliers. 6
EC7 Procedures for local hiring. Since our operations are spread across Europe, we attempt to hire from across the region, with a focus on hiring local people wherever possible.
Indirect Economic Impacts
EC8 Development and impact of infrastructure investments and services.
78-81
EC9 Indirect economic impacts. 78-81
EnvironmentalDisclosures on management approach.
4,21-2227-29,32
44,54
Materials
EN1 Materials used by weight or volume. We do not have the data collection systems to collect this information. We plan to do so in the mid-term future.
EN2 Percentage of materials used that are recycled input materials.
See EN1. 54
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EN3 Direct energy consumption by primary energy source. 32,34-3538, 41,43
EN4 Indirect energy consumption by primary source. 32,34-3538, 41, 43
EN5 Energy saved due to conservation and efficiency improvements.
32,33,3437,38,40-41,43
EN6 Initiatives to provide energy-efficient or renewable energy based products and services.
5, 23, 24- 26, 28, 30-31, 45-47, 50, 53, 55
EN7 Initiatives to reduce indirect energy consumption and reductions achieved.
5, 13, 1619, 33, 43
Water
EN8 Total water withdrawal by source. Most of the company’s water is sourced from municipal water suppliers with the remainder sourced from rainwater harvesting methods.
6, 32, 49
Biodiversity
EN11 Land in biodiversity habitats. We do not report on this indicator as it is not deemed material as we do not have land in biodiverse habitats.
EN12 Impact on biodiversity rich areas. Not applicable - please see EN11 comment. 80
Emissions, Effluents and Waste
EN16 Direct and indirect greenhouse gas emissions. 6, 32, 34, 37, 39, 40, 48
EN17 Other indirect greenhouse gas emissions. We do not have the data collection systems to report on this indicator fully. We plan to do so in the mid-term future. The majority of our greenhouse gas emissions are covered by EN16.
EN18 Initiatives to reduce greenhouse gas emissions. 13, 18-20, 25-31, 33, 34, 37, 38-41
EN19 Emissions of ozone-depleting substances. Toyota Motor Europe sites do not use materials that contain ozone-depleting substances, except for fire extinguishers, some refrigerants and air conditioning units, therefore emissions of these substances are minimal and not deemed significant.
EN20 NOx, SO
x, and other significant air emissions. 32, 33,
35, 53
EN21 Total water discharge. Our water discharges are associated with our manufacturing facilities. In FY09 the total amount of wastewater was 689,261 m3 for our production sites.
32, 33, 35
EN22 Weight of waste by type and disposal method. 6, 32, 33, 34-35
EN23 Significant spills. There have been no significant spills in the reporting period.
Products and Services
EN26 Impacts of products and services. 5, 25-26, 27-29, 45-47
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EN27 Products sold that are reclaimed. We do not have the data collection systems in place to be able to report on this indicator fully. We plan to do so in the mid-term future.
55
Compliance
EN28 Fines and sanctions for non-compliance with environmental laws and regulations.
6,32
Transport
EN29 Impacts from transport. 36-42
LabourDisclosures on management approach.
69-74
Employment
LA1 Workforce. 67-69
LA2 Employee turnover. 70
LA3 Benefits for full-time employees. 71-72
Labour/Management Relations
LA4 Percentage of employees covered by collective bargaining agreements.
Percentages differ by our countries of operation. We recognise the right of employees to freely associate and adhere to all applicable laws on collective bargaining in each country we operate in.
70-71
LA5 Minimum notice period for operational changes. Operational changes are determined in line with the local legislature of the locations in which we operate and, in line with which and as applicable, discussions with our social partners.
Occupational Health and Safety
LA7 Absentee rates and injuries. 6, 73-74
LA8 Programs for serious diseases. 74
Training and Education
LA10 Training per employee. 72
LA11 Career and skill development programmes. 72
Diversity and Equal Opportunity
LA13 Workforce by diversity. 67-69
LA14 Salary ratio by gender. In terms of pay between males and females, the company’s pay policies are designed to promote equal pay for equal contribution, capability and experience. There is no difference between pay ratios by virtue of gender.
Human RightsDisclosures on management approach.
10-11, 77
Investment and Procurement Practices
HR1 Investment agreements with human rights considerations. 77
HR2 Supplier screening on human rights. 77
Non-discrimination
HR4 Total number of incidents of discrimination and actions taken. We have had zero number of incidents of discrimination.
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HR5 Risk to freedom of association and collective bargaining. In line with our CSR policy, all employees have the right to freely associate or not to associate, complying with the laws of the country in which we operate. Based on local legal requirements employees are covered by collective bargaining.
Child Labour
HR6 Risk of child labour. In line with our CSR policy and local legal requirements, we do not tolerate any forms of child labour in our business.
Forced and Compulsory Labour
HR7 Risk of forced or compulsory labour. In line with our CSR policy, we do not tolerate any forms of forced labour in our business.
SocietyDisclosures on management approach.
56-57, 78
Community
SO1 Managing impacts on communities. 56-60, 65, 78-81
Corruption
SO2 Analysis on corruption. Toyota’s Code of Conduct sets out our approach to preventing corruption and managing corruption if it occurs or is reported.
SO3 Employees trained on corruption. Every employee at Toyota Motor Europe is required to read and understand the company’s Code of Conduct which sets out the type of ethical behaviour that is required of every employee, including honest and fair transactions and the policy on receiving gifts, hospitality or other favours.
SO4 Actions in response to corruption. No significant incidents of corruption have been reported or been found in the reporting period.
Public Policy
SO5 Public policy positions and lobbying. 21-22, 27-29
Compliance
SO8 Fines and sanctions for non-compliance with laws and regulations.
6
Product ResponsabilityDisclosures on management approach.
4,44, 62-64, 65
Customer Health and Safety
PR1 Life cycle stages of products and services. 5, 15, 18, 21-22, 62-64, 65
Product and Service Labelling
PR3 Product and service information. 63
PR5 Customer satisfaction. 4, 47, 63-64
Marketing Communications
PR6 Marketing communications. 63-64
Compliance
PR9 Monetary value of significant fines. Nil.
© Toyota Motor Europe NV/SA. All rights reserved 2010.
Toyota Motor Europe is a Belgian limited company with a registered office at :
Avenue du Bourgetlaan 601140 Brussels, Belgium
The Toyota European Sustainability Report 2010 is provided to you by Toyota Motor Europe for informational purposes only.For any questions, please contact :
Corporate Affairs and Planning: [email protected] Affairs: [email protected]
www.toyota.eu/sustainability
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