Toyota and the Environment

Kaizen

“Continuous improvement.

As no process can ever be declared perfect,

there is always room for improvement.”

Toyota in Europe

One of the world’s leading automobile manufacturers, Toyota has been operating in Europe since the early 1960s.

The company has invested over e7 billion throughout Europe since 1990 and currently employs around 80,000 people –

directly and through retailer channels. With its European Head Office in Brussels, Toyota Motor Europe (TME) is supported

by 31 National Marketing and Sales Companies operating in 56 countries, a total of around 3,000 Toyota and Lexus

retailers, and 9 manufacturing plants. In 2008, Toyota sold 1,112,021 vehicles in Europe.

February 2009 edition

1. aim: zero emissions | 04

2. towards the ultimate eco-car | 06

3. green technologies | 08

4. clean operations | 16

5. reduce, reuse, recycle | 19

6. making a difference | 20

7. today for tomorrow | 22

contents

aim: zero emissions

4

By 2020 it is estimated that there will be as many as 1.5 billion cars on the road, almost twice the current number. This rise in car ownership will take place in Europe as much as elsewhere around the world – particularly in emerging markets.

This growth will have a major impact on Greenhouse Gas emissions. Roughly one quarter of today’s CO2 emissions in Europe are generated by the transport sector, and around 50% of that comes from automobiles. Bearing this in mind, the automotive industry has a key role to play in reducing CO2

and other emissions.

The practical questions are: what can be done; who will be responsible; and when will they act?

At Toyota we believe that something must be done and that it is our responsibility to lead the industry’s response to the environmental challenge. Through a combination of wide-ranging creative technologies,

and in cooperation with our key stakeholders – industry, government, non-governmental orga nisa tions, partners and customers – we have already achieved a great deal, and with their support we aim to achieve much more.

We believe that environ mental sustainability is the single biggest challenge facing our industry and our society this century. Our response affects not only our products

but every aspect of our business and every person in it. Guided by a clear vision of sustainable mobility, which strikes a balance between economic growth and environmental protection, we are:

•pioneering ground-breaking environmental techno-logies such as hybrid (petrol/electric), and fuel cell (hydrogen) drive systems

•developingawiderangeofvehiclespoweredbyfuel-efficient petrol and clean diesel engines

•reducing the environmental impact of all our opera-tions

•minimisingthenaturalresourcesweuseinmanufactureand maximising recycling and reuse, and

•workingwithlocalcommunitiestoimprovethequalityof the environment.

We call this our 360° approach to environmental leadership.

We strive to achieve zero emis sions, with zero waste across every part of our business. We believe that, given the time and skills, and through Kaizen (the Japanese word for “continuous improvement”), this is possible. Our goal is not just to minimise damage to the environment, but to improve it. We believe that the growth and success of our business depend on this.

30% Electricity and Heat Production

24% Transportation

16% Manufacturing Industries and Construction

12% Residential

5% Commercial / Institutional

4% Petroleum Refining

9% Other

Source EEA (European Environment Agency) Technical Report 6/2006

24%

30%

9%

16%

12%

5%4%

European CO2 emissions by sector

5

EMISSIONS from the manufacture and use of cars

Carbon Dioxide (CO2)

Particulate Matter (PM)

Nitrogen Oxides (NOx)

Volatile Organic Compounds (VOCs)

Sulphur Oxides

a Greenhouse Gas that contributes to global

warming.

found in soot from factories and car exhaust

amongst others. Can cause respiratory diseases.

cause acid rain. Also generate ozone that can

contribute to photochemical smog and global

warming.

hydrocarbons from industrial processes, factories

and cars. Contribute to smog.

include sulphur dioxide, a key ingredient in acid

rain.

how do cars affect the ENVIRONMENT?

MANUFACTURING

•Energy

•Water

•Waste

•Emissions

DRIVING AND MAINTENANCE

•CarbonDioxide

•ParticulateMatter

•NitrogenOxides

•SulphurOxides

•VolatileOrganicCompounds

END OF LIFE

•Reuse

•Recycling

•Energyrecovery

•Landfill

2

3

4

1MATERIAL PRODUCTION

•Resourcesused

•Energyused

The Toyota 360°

approach

to minimising

environmental

impact runs through

every part of our

business

and its operating

environment.

Product Design& Development

Recycling of End-of-Life

Vehicles

Sales & Marketingand After Sales

Logistics

Productionour 360°

APPROACh

towards the ultimate eco-car

6

21st century fuels

Oil is a limited resource and its use has a negative impact on the environment. This means that now is the time to start developing vehicles powered by alternative fuels such as biofuels, electricity or fuel cells.

IfwepursuethisR&Deffectivelyenough,webelieve thatwe will achieve a step change in reducing the environmental impact of the car, creating an “ultimate eco-car” – a car with zero exhaust emissions and no negative impact on the environment.

In the immediate future, no single engine technology or fuel can deliver the solution to the emissions problem, so we

are simultaneously exploring a whole range of cleaner and greener innovations.

We have made a fundamental commitment to developing hybrid systems as the core technology for eco-cars, as it allows us to combine different power sources in ways that maximise the strengths of each.

Our vision is ambitious. But while we work towards it, we will continue to push the technological advances we are making into the market, providing the right car, for the right place, at the right time, to drive improvements on the road today.

THE RIGHT CAR • THE RIGHT PLACE • THE RIGHT TIM

E

CO2

reduction

Biofuels Syntheticfuels

Energy

diversity

Gasoline

Diesel

Gaseous

fuels

Air

qual

ity

hyd

roge

n

Elec

tric

ity

Hy

br i d T E C H n O l O

gy

7

toyota ecological

Vehicle assessment

system (eco-Vas)

To achieve lower emissions and greener vehicles on the way towards the ultimate

eco-car, it is essential to plan and measure progress. So we developed the Toyota

EcologicalVehicleAssessmentSystem,orEco-VAS.Thisisacomprehensive

approach to assessing a vehicle’s whole life cycle – from production, through use,

todisposal–intermsofitsimpactontheenvironment.Eco-VASstartsattheearly

stages of development, before the vehicle is built.

“For Toyota, hybrid technology is the common thread for the future and we are convinced that

hybrid is truly the core technology for the 21st century.”

Tadashi Arashima, CEO and President, Toyota Motor Europe

830 Km on one tanK

of hydrogen

Zero emissions are not as far away as many people think. The Toyota Advanced

FuelCellHybridVehicle(FCHV-adv),afive-seatconceptcar,usesahighpressure

hydrogen tank making it possible to travel up to 830 km

without a single fuel stop. If clean, renewable hydrogen fuel

sources can be guaranteed, Fuel Cell vehicles offer the

prospect of emission-free driving. But obstacles still remain

in terms of technology, infrastructure and cost.

Toyota’s i-REAL personal transport concept is one step towards zero emission

urban transport. Powered by an electric battery and with a high-speed

cruising mode of up to 30 km/h, the i-REAL has a range of up to 30 km between

charges.

VehicleplanningTarget setting

DesigningandprototypebuildingTarget-achievement status check

Evaluation-results feedback

ProductionTarget-achievement status

confirmation

THE RIGHT CAR • THE RIGHT PLACE • THE RIGHT TIM

E

green technologies

8

petrol and diesel

Petrol and diesel come at a price, and not just at the pump. They emit CO2 and other gases and particles that pollute the atmosphere. As petrol and diesel will continue to power vehicles in the immediate future, we are dedicated to developing technologies that continuously improve fuel efficiency to reduce these emissions.

We have re-examined the whole structure of the internal combustion engine to find ways for petrol and diesel engines to burn less fuel more efficiently without compromising on performance. This has led to new intelligent technologies that use advanced fuel solutions.

toyota optimal

driVe

No longer do you have to choose between green credentials and driving performance

when purchasing conventional technologies like petrol or diesel. By the end of 2009,

upto80%ofToyota’svehicleline-upwillcomewiththeToyotaOptimalDrive

assurance: innovative environmental solutions that deliver a powerful balance of

reduced fuel consumption, low CO2 emissions and uncompromised driving pleasure.

getting more from petrol

If you use less fuel, you reduce the whole chain of pollution. And you save money.

Toyota’s Variable Valve Timing-intelligent (VVT-i) uses lessfuel than comparable petrol engines and emits less Carbon Dioxide, Nitrogen Oxides and Hydrocarbons. Dual VVT-I

takes this technology one step further, by varying the timing of the intake valves, as well as the exhaust valves, simultaneously. In2008,weintroducedValvematic,whichcomes as standard on the all-new petrol engine Avensis, reducing CO2 emissions by up to 26% while also increasing power by some 20%.

clean diesel, outstanding performance

On the road, diesel engines can use less fuel and produce less CO2 than petrol engines. Thanks to these benefits and the potential cost savings, more than 50% of all new cars sold in Europe today are diesels. But diesel exhaust contains higher quantities of Particulate Matter (PM) as well as Nitrogen Oxides (NOx), which, unless managed properly, pollute the air.

Toaddressthis,welaunchedD-4D,whichincludesasystemdesigned to inject a precise amount of fuel directly into the combustion chamber to deliver more efficient combustion, better fuel economy and lower emissions. In 2003, we also developedaspecialcatalyst–ToyotaDieselCleanAdvancedTechnology – to reduce PM and NOx. Later, a DieselParticulateFilter(DPF)wasintroducedtocapturePM.

9

ToyotaD-CAT,asitisknown,isamaintenance-freesolutionthat simultaneously reduces PM and NOx without the need for additives, making it one of the world’s cleanest diesel engine technologies.

It offers superior performance in terms of power and torque, noise levels, vibration and harshness, and is generally up to 20% more fuel-efficient than diesel engines of similar power.

Shifting up a gear earlier can lead to fuel savings of up to 8%. Toyota’s Gear Shift Indicator (GSI) shows

drivers when to shift gear – saving money and helping the environment.

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designed for low-emission living

Clever design which improves everyday life and lowers fuel use is also at the heart of sustainable mobility. The Toyota iQ is a breakthrough in ’small yet spacious’ layout. Less than three metres in length, it is the world’s smallest four

seater. Packed with design innovations – such as its flat under-floor fuel tank and asymmetric dashboard – the iQ is a serious driving machine with CO2 emissions starting as low as 99 g/km.

iQ

10

roughly one third of urban driving time is spent waiting at lights or in traffic jams. Toyota’s

Stop & Start system cuts the engine when your car slows to a standstill and instantly restarts when

you push the clutch – saving you fuel and helping the environment.

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hybrids – the environmental choice

When we launched Toyota’s hybrid model – Prius – in 1997, it was the world’s first mass-produced hybrid vehicle. Now, despite the launch of competitor models with hybrid features, Prius is still by far the world’s most popular hybrid, with more than 1.2 million cars sold

worldwide. We don’t just focus on reducing vehicle emissions. We also assess the environmental impact of our hybrids at every stage of their life cycle. For more information on Prius, please refer to the product brochure.

Multidrive S represents Toyota’s latest continuously variable transmission technology;

itistheperfectillustrationoftheToyotaOptimalDrivedouble-wininbothdrivingand

environmental performance. Offering a smooth

shift, it automatically leverages power and fuel

consumption, by always using the optimum

engine speed.

hybrid synergy drive®

To meet customer needs, and because we believe that hybrids are the key to sustainable mobility, we are constantly pushing this technology further.

Hybrid Synergy Drive (HSD) arrived with the secondgeneration Prius in 2003, bringing improved battery performance. HSD combines driving pleasure with fueleconomy, low emissions and silent driving in Electric Vehicle mode. The third generation Prius, launched in 2009, has taken fuel efficiency and driving performance to a new level.

multidriVe s

Avensis wagon

new

on the third

generation

prius

11

how do our hybrids work?

Hybrid technology improves vehicle efficiency whatever the energy source – gasoline, diesel, gaseous fuels, biofuels, synthetic fuels, hydrogen or electricity. Most hybrids use an ultra-efficient petrol engine combined with a zero-emission electric motor matched to a Nickel Metal Hydride (NiMH) electric battery pack to provide additional power. The revolutionary breakthrough achieved by hybrid technology

is the intelligent management of the energy flows from these two different power sources so that each dimension of driving – acceleration, open road, braking and stop-and-go – is optimised. In a petrol/electric hybrid, for instance, the electric motor is powered by a battery that is recharged during braking or deceleration. Then, when extra power is required, the petrol engine kicks in.

Energy recovered and storedHigh fuel-efficiency driving Zero fuel consumption

Electricity is generatedand partly recharges the battery

Engine power &electric motor power

Runs with electric motorand engine in most fuel-efficient

configuration

Engine stops automaticallyand can run on electricity alone

Deceleration/brakingFull-throttle accelerationOrdinary driving Stop-and-go

Engine

Electric motorBattery

Engine

Electric motorBattery Battery Electric motorBattery

•hybridsystemindicatorencourages ultra fuel-efficient driving

•normal,EcoandPowerdriving modes

•world’sfirstpre-air-conditioningsystem powered by solar panel on roof

The third generation Prius

Unlike “mild hybrid” alternatives, the new Prius is equipped with a “full hybrid”

systemcapableofrunningexclusivelyinElectricVehicle(EV)mode.Toyota’sfull

hybrid technology offers superior fuel economy and driving performance.

not all hyBrids

are eQual

12

“My company has been running Prius taxis since 2002. We now have 14 cars in our

fleet, each driving two shifts per day with different drivers, seven days a week. Our

first Prius clocked up 360,000 km. Reliability is key in our line of work …we have

never experienced a breakdown.”

Bernd Engel, Owner, Eastside Taxi Company (Berlin, Germany)

“The Prius already has iconic status because of its green credentials; now it’s

demonstrating that it’s also the watchword for reliability and satisfaction.”

Steve Fowler, Editor, What Car?

•emissions: CO2 emissions as low as 89 g/km(1)

ThE 4 BENEFITS of hyBrid synergy driVe

(1) 15" alloy wheels

•engine noise: unlike other hybrids, Prius can run on the electric motor alone, offering a completely silent driving experience

In The drIvInG SeaT

Turning on your air conditioning can add up to 25% to fuel consumption.

PRIUS hSD: an all-round winner

•fuel consumption: overall fuel economy improved by 14% at 3.9 litres/100 km - compared to previous generation Prius(1)

•driving performance: matches any conventional D-segment2.0-litrevehicle

13

lexus hybrid drive®

Lexus first introduced hybrid technology in the RX 400h in May 2005. Since then, the Lexus GS 450h, the LS 600h and the RX 450h have been launched to great acclaim. LexusHybridDrive(LHD),asitisknown,combinesaV6ora V8 petrol engine with one or two high output electricmotors for superior performance that rivals a bigger petrol engine. LHD vehicles start silently, accelerate powerfullyand seamlessly, and deliver exceptional fuel economy and significantly reduced CO2 emissions.(1)

(1) As compared with conventional vehicles of similar size and engine output.

hISTORY of hyBrids

199720032005

20062007

2008

2009

•Toyotalaunchestheworld’sfirstmass-producedhybridcar,Prius

•HybridSynergyDriveintegratedintothesecondgenerationPrius

•PriusvotedEuropeanCaroftheYear

•LexusRX400hlaunchedwithLexusHybridDrive(LHD)–theworld’sfirstpremiumperformancehybrid

•LexusGS450hlaunch–thefirstpremiumperformancehybridsedan

•LexusLS600hlaunch–apremiumhybridsedanwithpermanentAll-WheelDrive

•FrenchenergysupplierEDFandToyotaannouncePlug-inHybridVehicle(PHV)partnership

•CumulativeworldwidesalesofToyotaandLexushybridstoponemillionvehicles

•SalesofPriuspasstheonemillionunitmark

•Over1.7millionToyotaandLexushybridvehiclessoldworldwide,over175,000oftheminEurope

•ToyotalaunchesthethirdgenerationPrius

•LexusRX450hlaunch–asuccessortotheworld’sfirstpremiumperformancehybrid

RX 450h

14

phV – the best of both worlds

Currently being road-tested in France and the UK, Toyota’s Plug-inHybridVehicle(PHV)representsthenextstepinoureffortstocreatetheultimateeco-car.APHVcanbechargedeither during driving like a regular hybrid (through decele-ration or braking) or by plugging it in at home, at work, or at a dedicated power outlet using a standard electrical plug. Recharging takes just one and half to two hours. Compared toToyota’shybridPrius,aPHV isable to runmoreoften

in its petrol-free, electric-only mode, meaning lower running costs and less CO2 – especially when renewable electricity is used.

Toyota’snewBatteryResearchDepartmentisnowworkingwith Panasonic EV Energy to develop and lease PHVsequipped with more advanced lithium-ion batteries to European fleet customers by the end of 2009.

Statistics show that in many european countries more than 70% of daily car journeys do not exceed 10 km.

For driving distances of less than 10 km between recharges, actual driving of the Toyota Phv generates

zero CO2 emissions.

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the power

of partnerships

OurPlug-InHybridVehicle(PHV)programmeshowshowenvironmentalprogresscan

beachievedthroughpartnerships.InadditiontoourworkwithPanasonicEVEnergy

to boost battery performance, we have

teamedupwithEDFGroupinEurope,aspart

ofaglobalR&Dprogrammetoroad-test

PHVs.PHVsarenowbeingtrialledaspart

ofEDF’scompanyfleetinLondonandParis,

and we are working together to develop a

recharging and payment system for a new

generation of public charging stations.

phV – Building

on the Benefits

EarlytestssuggestthataPHVisupto60%morefuelefficientthanToyota’shybrid

Prius for trips of up to 25 km, and could reduce running costs by up to 20%.

15

fuels for the future

Our attention to environmental gains goes beyond the engine to the source: fuel. We are pursuing a range of alternative fuels that promise to lower or eliminate emissions and which take into account that oil is a limited resource. This ensures that Toyota vehicles, today and tomorrow, can be powered in the most advanced and

environmentally-friendly way.

Liquid biofuels work today. All current generation Toyota and Lexus petrol vehicles in Europe can run on petrol blended with up to 10% bioethanol (E10), while our diesel models can run on a blend of up to 5% biodiesel (B5).

better biofuels – a tree in your tank

First generation biofuels are made from food crops such as corn, sugarcane, and soybeans, and their widespread adoption is having a serious knock-on effect on land use, protected species, and food supply and prices. To help remedy this, and as part of our continuous development of more efficient and stable fuels, we are using our bio-technology expertise to develop production capability for cellulosic ethanol – otherwise known as second generation

biofuels. This will enable biofuels to be obtained from non-food plant sources, such as wood chips and straw.

With new technology comes new responsibility. We are also working with NGOs, governments, other vehicle manufacturers and industry bodies to develop standards and criteria to safeguard against any potential negative consequences of biofuel production and use.

hydrogen cars – a new age of steam?

The chemical reaction between hydrogen and oxygen can produce clean electrical energy with no emissions except water vapour. Since 1992 we have been resear ching how to store this energy in a fuel cell that can drive a car long distances. In 2002 we built the world’s first Fuel Cell Hybrid Vehicle(FCHV),equippedwiththeToyotaFCStack–afuelcell developed completely in-house.

Thelatestprototype,theFCHV-adv(advanced):•storeshydrogeninanextremelyhighpressuretank

(70 MPa)• improvesfuelefficiencyby25%comparedtotheFCHV,

and•hasapotentialdrivingrangebetweenfuelstopsofup

to 830 km.

Checking tyre pressure monthly and setting it to the

recommended pressure can save up to 3% in fuel

consumption, as well as making your tyres last longer.

In The drIvInG SeaT

clean operations

16

For Toyota, producing environmentally-friendly vehicles is not enough. They must be produced and sold in sustainable, environmentally-friendly facilities by people who measure their performance in terms of positive social and environmental impact. This forms part of our 360° approach to environmental leadership.

By striving to reduce the amount of energy, water and substances of concern used, as well as the amount of waste created in the manufacturing process, we are continuously reducing the environmental impact of our operations. At the heart of our progress is Kaizen (the Japanese word for continuous improvement).

“We must take a much longer view than the life-cycle of a single vehicle. If we

want to produce truly environmentally-friendly vehicles they must be made in

environmentally-friendly plants which are sustainable over several generations.”

DidierLeroy,ExecutiveVice-President,ToyotaMotorEuropePresident of Toyota Motor Manufacturing France

sustainable plants

In 2007, Toyota selected five “Sustainable Plants” worldwide to serve as industry-leading prototypes for clean and green production. Two of them are in Europe: one in the UK and one in France. They act as pilots, testing out the best ways for us to realise our ambitious environmental targets. Once established, best practices are passed onto the rest of our operations by the process known as Yokoten.

In our journey towards sustainability, we believe that a Sustainable Plant should be able to operate for more

than 100 years with minimal impact on the environment. To achieve this vision, it should:

•userenewableenergy,suchassolarandwindpower•implement innovative technologies to reduce waste

and achieve groundbreaking environmental perfor-mance, and

•enhance thenaturalenvironmentandpreserveeco-systems through tree planting and other conservation activities.

since 2001,

our car,

engine and

transmission

plants in europe

haVe:

reduced average water use per car built by 42%

reducedaverageVolatileOrganicCompounds(VOCs)percarbuiltby47%

reduced average energy use per car built by 44% – achieving the lowest levels of any volume manufacturer in Europe(1)

secured ISO 14001 certification – the international reference for environmental management

achieved zero-waste-to-landfill

(1) Internal Toyota study

sustained improVement

17

tps:

“do more with less”

The Toyota approach to manufacturing efficiency and standardised quality began

over 70 years ago with the world-renowned Toyota Production System (TPS), whose

core principle was to “do more with less”.

Kaizen (continuous improvement), Yokoten (best practice) and Genchi Genbutsu

(going to the source to find the facts) are each core processes in TPS. Over the years,

TPS has evolved to include environmental targets and new environment-focused

initiatives, including the Sustainable Plants programme.

ToyotaMotorManufacturingFranceinValencienneshasdeliveredarangeofpowerful

efficienciesintheproductionoftheToyotaYaris:

• Since2002theplanthasreducedCO2 emissions (from electricity and other fuels)

percarbuiltby41%;energyconsumptionpercarbuiltby40%;VolatileOrganic

Compounds per car built by 51%.

• Theplantnolongersendsanywastetolandfill.Ofthe9.5kgofwastecreatedin

theproductionoftheYaris,4kgisdirectlyrecyclableandtheremaining5.5kgis

used as a substitute fuel for industrial processes.

• Justover1.13m3ofwaterisusedperToyotaYarisproduced–thelowestwater

usage per car built of any Toyota plant in the world. The plant is now striving for a

new target: less than 1m3 water usage per car produced.

18

sustainable retailers

With over 3,000 Toyota and Lexus retailers across Europe, a lot of our emissions are ‘spent’ selling cars. We decided to set ambitious new sustainability targets in this area.

In 2008, we launched the “Sustainable Retailer” programme to reduce our energy consumption, CO2 footprint, water consumption and overall running costs across our entire retail network. It is the first pan-European initiative of its kind by any vehicle manufacturer in Europe.

The programme covers everything from roofing insulation

and rainwater re-use to solar panels on the roof. It applies to both new builds and major refurbishments – each must undergo a rigorous environmental assessment – as well as existing retail outlets, which are subject to an energy kaizen programme. On-site audits help business owners implement simple and practical changes to reduce their impact on the environment.

To kick-start this programme, we are building a Sustainable Retailer in La Rochelle, France, paving the way for a new generation of eco-friendly dealerships.

1 2

SUSTAINABLE RETAILER,

LA ROCHELLE, FRANCE

NEW RETAILER

BUILDING WITh

• greenroof

• solarpanelsforheating

and electricity

• recycled/reusedmaterials

from existing building

BENEFITS/SAVINGS VS. AVERAGE

RETAILER PERFORMANCE

• 72%reductioninenergyconsumption

per square metre

• 50%savinginwaterconsumptionpervehicle

• 29%reductioninwaterconsumption

per employee

• 100%lessNOxemissionsperyear

• 100%greenelectricityfromsolarpanels

offsetting >16 tonnes of CO2 per year

The all-new Avensis has been designed to minimise environmental impact

at every stage of its life cycle.

• CO2 emissions from design to disposal have been cut by 9% compared

to the previous model.

• EachAvensisbuiltatTMUKusesupto17kgofrecycledmaterials.

• Powertrainshavebeenre-engineered,reducingCO2 levels by up

to 26% on some petrol engines, and up to 10% on some diesels.

• Evenatitsendoflife,whendroppedoffatoneofToyota’stake-back

points, the Avensis is designed to be 95% recoverable.

from design

to disposal

at toyota motor

manufacturing uK

Avensis sedan

19

reduce, reuse, recycleWhen you buy a Toyota you can rely on an environmental commitment that covers the whole life of the vehicle. This extends from selecting the best materials to creating the most efficient design, right through to recovery and recycling at the end of the vehicle’s useful life. We are committed to

making vehicles which minimise environmental impact at every stage in the lifecycle. Our 2015 target is to have 85% of the vehicle weight reused or recycled and 10% energy recovery, leaving the remaining 5% for disposal. We are on-track to achieve this ahead of schedule.

the end of the road

avoiding harmful substances

Lead, together with Mercury, Cadmium and Hexavalent Chromium, are heavy metals that

cause long-term damage to the environment if buried unprocessed in landfill. Our cars are

now virtually free of these heavy metals. For example, we use zero-lead car parts and anti-

corrosion coating as well as mercury-free lighting and switches. We also avoid harmful

substances in solvents and various kinds of paints.

reusing parts

Batteries, tyres and oil filters all need to be replaced during a vehicle’s lifetime. So we have

set up a waste collection system that retrieves used parts from European retailers and sends

them back for recovery. We also recondition more robust parts. “Remanufactured” parts now

include air conditioning compressors, power steering racks, cylinder heads, starters,

automatic transmissions, alternators, engines and clutch kits.

driver take-back points

When a Toyota or Lexus car reaches the end of its life, the driver can simply return it to a

Toyota take-back point. Take-back points have been set up in 30 countries across Europe.

easy to dismantle

Tosimplifythedismantlingprocess,wedesignednew‘EasytoDismantle’marks.Theyshow

useful points for dismantling, like the positions at which large resin parts can be separated

easily and the points where holes can be drilled for removing fuel.

best practice dismantling

To make it easier to identify parts and materials suitable for recycling, we use internationally-

approved parts and material coding standards. Best practice dismantling treatment is

guaranteedthroughtheInternationalDismantlingInformationSystem(www.idis2.com),

which includes detailed dismantling advice on 48 Toyota and 14 Lexus models.

material

difference

Cars often contain plastics that are hard to recycle. So Toyota has developed a special

recyclable plastic called Toyota Super Olefin Polymer, or TSOP, that can be used

to make car bumpers and other parts which can then be recycled many times over.

Most of our cars are now manufactured with an improved TSOP, greatly improving

recyclability.

Keeping your windows closed makes a real difference to fuel consumption, reducing it by up to 5%.

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making a difference

20

Our greatest asset in implementing any environmental measure is our people, who possess a huge range of technical capabilities, plus the motivation to use them to protect and improve the environment. Wherever possible, we try to share our technical knowledge and enthusiasm for the environment, and the way cars interact with the environment, with the wider community.

In addition to our road safety and technical education

programmes, in 2002 we set up a pan-European social contributions programme – the Toyota Fund for Europe (www.toyotafund.eu) – which leads and supports interna tional environmental projects. Thanks to the efforts of our national marketing and sales companies and manufacturing companies, many other environmental activities also take place at a local level, as a natural extension of our relationship with the communities in which we live and work.

“The challenge is not just about cars and the environment, it’s about people and the

environment. It is people, through cars, who can choose either to pollute or make a

difference. At Toyota, we are committed to making a difference, and we try to use

our expertise to help others do the same.”

GrahamSmith,SeniorVice-President,ExternalAffairs,ToyotaMotorEurope

Chairman, Toyota Fund for Europe

eco-schools The Eco-Schools Environment and Innovation Programme challenges pupils

to invent and implement environmental problem-solving ideas.

The 2007 European winner was “Stamp Stanley”,

a project created by Millfield Primary School in

Norfolk, England, to encourage children to walk

to school. Walkers earn stamps for each “green

journey” made, which can be exchanged at the

school for a wide range of rewards.

www.eco-schools.org

21

how far can you

driVe on a cupful

of petrol?

By applying eco-friendly

driving habits, drivers can

reduce vehicle emissions

by as much as 10%. Toyota

and NGO network, Global

Action Plan International,

have launched

“EcoDr iv ing

Europe”.

Together, they will organise up to 800 workshops and events, reaching an

estimated 32,000 drivers across Europe. Participants learn smart driving

practices on specially-designed simulators that test how far drivers can

travel on just one cupful (0.1-l ) of fuel. To participate in an EcoDriving

workshop near you, visit www.ecodriving-online.eu.

Wind drag caused by roof loads and roof racks can increase fuel consumption by as much as 40%.

In The drIvInG SeaT

Toyota Germany, Plant for the Planet

ToyotaSpain,GreenDay

today for tomorrow

22

Global warming is such an enormous challenge that it is easy to lose sight of the progress made in the rush to achieve more. With the help of our customers and partners, we have made good progress so far. But our job is far from over.

The key to our approach is not being afraid to make mistakes along the way, and capturing these mistakes and their solutions as we go. This is Kaizen, or continuous improvement, and it provides a sound base today for tackling the challenges of tomorrow. Today’s responsible companies must focus on being proactive in predicting problems and taking corrective measures before these problems take hold.

Through innovation, we believe that we can help support an ideal mobile society in which conservation of our natural environment is compatible with economic growth. The accumulated wisdom of generations of Toyota

innovators has become our value system, which we call The Toyota Way. It instructs us to meet challenges with courage and creativity, and with respect for people and teamwork.

These are the key principles that have maintained our company spirit for more than 70 years and that drive us toward a sustainable future for mobility, people and the planet.

“It’s up to manufacturers like Toyota to invest in new technologies that lead to the

creation of an automobile that won’t harm the environment. Our dream is to one day

produce a car that actually cleans the air.”

Tadashi Arashima, CEO and President, Toyota Motor Europe

ThE ROAD AhEAD selected enVironmental goals

2009s

2010s

early 2010s

2015s

2020s

•16ToyotaandLexusmodelsintroducedtoEurope,eachofferingagreaterleveloffuelefficiency

•Fleet-averageCO2 emissions on new cars sold to fall below 140 g/km

•Plug-inHybridVehiclesequippedwithlithium-ionbatteriesmadeavailabletoEuropeanfleet

customers

•Toyota’smanufacturingplantsinEurope(includingRussia)toachievestrictenvironmentaltargets(1)

- 25% reduction in average water use per car built

- 10% reduction in average power use per car built

-36%reductioninaverageuseofVolatileOrganicCompounds(VOCs)percarbuilt

- 13% reduction in average waste levels per car built

•GlobalsalesofonemillionToyotaandLexushybridsperyear

•100%ofToyotaretailersinEuropetobeISO14001-certified

•HybridtechnologyavailableoneverymodelacrosstheentireToyotaandLexusrange

(1) base year: 2005

genchi genbutsu

“Going to the source to find the

facts to make correct decisions, build

consensus and achieve goals.”

Toyota Motor Europe

Corporate Affairs & Planning

Avenue du Bourget 60 – Bourgetlaan 60

1140 Brussels, Belgium

Tel. +32 2 745 21 11 / Fax +32 2 745 20 67

e-mail: pr@toyota-europe.com

web: www.toyota.eu

This report has been printed on CyclusP

rint © paper, produced with 100%

recycled pulp and without the use of O

BA

(Optical B

leaching Agent).

Toyota Motor Europe is proud to be an Official Partner of UNEP’s Plant for the Planet: Billion Tree Campaign.

Toyota and Partners aim to plant 1.2 million trees across Europe by the end of 2009.