Toyota Australia - Environment and Community Report 2006 · Environment and Community Report 2006 2 1 Toyota Australia Message from the President Throughout 2005 and now into 2006,

Environment and Community Report 2006

Toyota Motor Corporation Australia Limited ACN 009 686 097

Environment and Community Report 2006 21 Toyota Australia

Message from the President

Throughout 2005 and now into 2006, theenvironmental activities of Toyota acrossthe globe have been unified with thephrase ‘Think and Act’. It is a phrase thatis consistent with the pillar of the ToyotaWay that encourages continuousimprovement in everything we do.

One great strength of this approach is thatit recognises the ability of individuals to actand generate change. The actions of oneperson can create a ripple effect thatultimately can touch on people at ourworkplace, in our homes or in ourcommunity.

Toyota Australia knows that a decision tochange a process in the manufacturingplant in a bid to reduce energy use, orsteps to engage with specific stakeholdergroups can have a ripple effect on peoplein other parts of the business or community.Our efforts must be focused on managingthese effects and channelling them in away that promotes benefits for everyoneconcerned.

During the past year, Toyota Australia hasdeveloped a five year environment planand revised its governance structure in aneffort to streamline information flows andconsultation regarding environmental andcommunity engagement issues.

We have adopted global projects whichwill have a positive affect on our Australianoperations and we are regularly seekingopportunities to engage with ourcommunities.

The environmental and communityengagement programs operate across thecompany, and I am proud of the effortsToyota Australia people have made toadopt the ‘Think and Act’ approach ineverything they do. I am also pleased withthe relationships we have developedacross the country and we look forward tofuture opportunities to engage and tolearn.

As an automotive company, we are wellaware of the great responsibility we haveto work with the environment to create abetter place to live and work. We lookforward to continuing our journey in 2006.

Ted Okada,

President and CEO, Toyota Australia

01Contents Page

01 Introduction

Environment and CommunityHighlights 3

02 Principles, values andpeople

Guiding Principles 5

Health and Safety 6

Compliance 7

Stakeholder Engagement 8

03 Environment

Environment Plan 9

Environmental Awareness Survey 11

Vehicle Life-Cycle 12

Product 13

Supply Chain and Purchasing 15

Manufacturing 17

Export and Distribution 21

Sales and Marketing 23

04 Community involvement

Toyota Community Spirit 25

Support of Major Community Events 30

i n t r o d u c t i o n

Key Facts 2003 2004 2005Sales revenue $7.13b $7.30b $7.62b

Total assets $1.83b $1.74b $2.05b

Employees 4,700 4,463 4,512

Vehicle production 113,614 109,862 109,222

Engine production 86,673 85,037 85,769

Local component suppliers 97 89 84

Purchase value $1.6b $1.03b $1.01b

Vehicle sales, domesticToyota 186,370 201,737 202,817

Lexus 4,490 5,009 6,005

Daihatsu 4,845 5,016 3,007

ExportsVehicles exported 66,200 65,400 68,989

Export countries 24 24 23

Export revenue (incl. parts) $1.4b $1.2b $1.3b

DealersToyota 218 217 218

Lexus 17 18 18

Daihatsu 83 79

Dealer employees 11,400

* All figures relate to calendar years

Toyota Australia - Historical Facts 1958 First 13 Landcruisers imported for use on Snowy Mountains Scheme

1962 Toyota passenger vehicle franchise acquired by Australian Motor Industries(AMI)

Thiess (Sales) appointed to distribute Toyota commercial vehicles

1963 Tiara assembly begins at AMI Port Melbourne plant

1964 Corona assembly begins at Port Melbourne

1967 Crown assembly begins at Port Melbourne

1968 Corolla assembly begins at Port Melbourne

Toyota acquires 51% of AMI, and 40% of Thiess sales and changes name to Thiess Toyota

1978 First engines built at Altona

1980 Toyota acquires 100% of Thiess Toyota

1985 First Corona wagons exported to New Zealand

1987 Camry replaces Corona at Port Melbourne

Toyota acquires 100% of AMI and York Motors

1988 Toyota Motor Corporation Australia formed

1990 Lexus LS400 launched in Australia

1991 Toyota Australia becomes Australian overall market leader

1992 One millionth locally built Toyota produced

1995 Altona assembly plant officially opened. Camry enters production at Altona

1998 Altona plant achieves ISO14001 Environmental Management System certification

2000 National Sales and Marketing headquarters opened in Woolooware Bay, Sydney

2001 Launch of Prius hybrid petrol/electric vehicle onto the Australian market

2003 Toyota Australia overall Australian market leader with industry record sales of 186,370 vehicles



Scope of the 2006 ReportThe 2005 Environment and Community Report used acalendar year for reporting purposes. In this transitionyear, manufacturing data is used from the Japanesefiscal year (April 1 to March 31), the key facts tableuses calendar year data, and all other information coversthe period from 1 January 2005 to 31 March 2006.All manufacturing data refers to the Altonamanufacturing site, which accounts for 92% of local

energy use and 91% of local water use. Additionaloperations in Port Melbourne included themanufacture of fuel tanks, metal stamping andbumper bar painting. Relocation of the bumper barpainting operations was completed in March 2006with the commissioning of a new facility at Altona.From June 2006 all manufacturing operations will belocated at Altona.

Important noticeToyota Australia has made every reasonable effort toensure that this report is correct at the time ofpublication. However, as vehicle specifications andbusiness processes may vary, the details in this reportmay change over time. To the extent allowed by law,Toyota Australia will not be liable for any reliance whichmay be placed on this report.

Toyota in Australia

Toyota Australia (Toyota Motor CorporationAustralia Limited) is one of Toyota’s(Toyota Motor Corporation) globalmanufacturing centres.

The corporate headquarters, manufacturingand engineering activities are in Melbourne,and sales and marketing operations arelocated in Woolooware Bay, Sydney. There are also regional offices and partsdistribution centres in Victoria, New SouthWales, Queensland, and the NorthernTerritory.

Toyota Australia has a long-termcommitment to both its domestic andexport markets. Apart from the locally builtCamry, Toyota Australia imports a widerange of passenger, 4WD and commercialvehicles. These include the Yaris, Corolla,Avensis, Tarago, RAV4, LandCruiser,Prado, HiLux and HiAce, as well as thehybrid-model, Prius. In addition the luxuryLexus range of vehicles is also sold anddistributed. Sales of Daihatsu vehicleswithin Australia ended on 31 March 2006.

Toyota Australia is the largest Australianvehicle exporter. In 2005, 68,989 carswere exported to 23 export destinations,supplying Camry vehicles to the MiddleEast, South Africa and several SouthPacific countries.

Front cover: Andy Dudok has worked in the Body Shopin Altona manufacturing and then in Rectifications since1997. He decided to use scrap metal from a ToyotaCamry to create this accurate replica of a southernrock lobster. This sculpture was displayed as part ofthe Toyota Community Spirit gallery exhibition, ‘NaturalSelection’, from December 2005 to February 2006.

i n t r o d u c t i o n

3 Toyota Australia

e n v i r o n m e n t & c o m m u n i t y

h i g h l i g h t s

Environment and Community Report 2006 4

01Key focus areas for 2005

1. Finalise long-term industry and corporate fuel consumption targets for all new lightpassenger and commercial vehicles

2. Complete the development of local and imported vehicles to comply with Euro 3and Euro 4 emissions standards

3. Launch new model incorporating direct injection LPG system

4. Continue initiatives to raise awareness of environmental issues among productdevelopment staff

1. Continue to support cross divisional environmental projects with an increasedemphasis on in-plant substances of concern procurement

2. Develop Supplier Environmental Management System policy beyond 2005

3. Support information sharing between manufacturing and the supply chain

1. Maintain ISO 14001 certification and achieve 2005 performance targets

2. Home focus training & awareness program

3. Assist with new project targets (water 70%, and electricity 10% - reductions)

4. Establish Work Group Leaders for Action Learning Teams

5. Release TEMS guide (for use by work group members)

6. Support environment graduate rotation into manufacturing shops

7. Increase parts & accessories monthly review of environment activity

8. Establish training-gap analysis system

9. Support & identify training requirements

10. Utilise the introduction of a new waste contract to focus on waste minimisation

11. Determine the most appropriate replacement for afterburners in the paint shop

1. Review environmental compliance in the dealership network

2. Waste audits and colour-coded waste segregation will be extended across allparts distribution centres in 2005

3. Start the use of returnable packaging modules from Japan in February 2005

4. Provide environmental practice coaching and support, coordinated with theEnvironmental Policy Department, to field representatives and district salesoperations managers, as well as dealers who complete the self assessment andregister with Toyota Australia’s national database

1. Increase dealer participation in Toyota Community Spirit activities

2. Increase employee participation in Toyota Community Spirit

3. Foster links between the Toyota Community Spirit partnerships and partners

Toyota Australia Environment & Community highlights

Performance 20051. Industry agreed to a target of 222g CO2/km at 2010 for all light vehicles

2. All vehicles certified to Euro 3 (ADR 79/01) from January 2006. A number of models certified to Euro 4 or beyond

3. New model HiAce incorporating sequential vapour injection LPG system available as an option with the petrol engine model

4. Product development awareness initiatives not progressed due to changes in organisational responsibilities

1. Established a program to remove four substances of concern from the supply chain

2. Environment Policy updated and distributed to suppliers

3. Toyota Australia supplier conference held

4. Toyota Australia signed up as founding member of ECO-Buy

1. Recertified EMS to ISO14001 with no non-conformances. ‘Per vehicle’ reductions achieved in overall energy use, waterconsumption and waste disposal

2. Increased participation in home focus and awareness activities with over 200 staff attending the Phillip Island Nature Park

3. Manufacturing Environment Group assisted TEMS work groups to implement 16 documented environmental improvementprojects, saving approximately $775,000 per year

4. Launch of TEMS work group leader Action Learning Team

5. Design and launch of the ‘Green Guide’ to assist in TEMS development and implementation

6. Successful graduate rotation undertaken in Powertrain plant

7. Parts & accessories review not undertaken

8. Training gap analysis system not implemented

9. Environmental awareness training expanded to non manufacturing areas including Brisbane Parts Distribution Centre

10. Additional recycling opportunities identified through new waste contract, such as windscreen glass recycling

11. Major energy saving project implemented in Paint Shop with the decommissioning of the Topcoat A afterburner

12. Commissioning of new bumper resin plant featuring water borne painting technology

1. 61.6% of dealers completed TSM environmental management self-assessment

2. Colour-coded waste segregation implemented in Sydney and extended across other parts distribution centres

3. Confirmed strategy and schedule for the implementation of returnable modules from Japan

4. Environmental practice coaching deferred

5. Export and Distribution Division completed review of CO2 emissions for vehicle distribution

6. Waste reporting system to be implemented as part of 5 year environment plan

7. Staged reductions in cardboard packaging resulting in significant reductions in cardboard packaging waste throughoutsupply chain

8. Brisbane Parts Distribution Centre installed plastic baler

9. Environmental Management System (EMS) Co-ordinator appointed to implement EMS into the five parts distribution centres

1. Dealer participation statistics developed for each state

2. Full roll-out of Toyota Community Spirit to each state and regional offices. Employee participation in Project Penguin Homes

3. Toyota Community Spirit still investigating ways to foster links between partners

Products

Supply chain andpurchasing

Manufacturing

Sales and after sales,marketing and partsdistribution

Community and stakeholderengagement


Guiding PrinciplesToyota’s seven Guiding Principles serve asthe fundamental management policy for alloperations. The principles reflect Toyota’scommitment to providing clean, safe andinnovative products, while respecting theenvironment and culture of the localcommunities. The Guiding Principles forma foundation for Toyota’s Earth Charter,adopted in April 2000.

Contribution to sustainabledevelopment

As Toyota’s business operations havebecome global, society’s expectation ofthe company’s contribution towardssustainable development has increasedand the scope of these expectations hasexpanded. Toyota has prepared anexplanation paper called ‘Contribution toSustainable Development’ which interpretsthe ‘Guiding Principles’ from theperspective of how Toyota can worktoward sustainable development ininteractions with stakeholders. The full text version of this paper is available at:

Toyota Way

Toyota has stated its corporate values andmethods in The Toyota Way 2001.

These are shared throughout the Toyotagroup as an aid to realising the GuidingPrinciples. The Toyota Way defines howemployees should perform and behave insupporting the Guiding Principles.

The Toyota Way is supported by two mainpillars: continuous improvement, andrespect for people.

Toyota Way training in Australia

The Toyota Way Foundations is a one daytraining course, based on The Toyota Way2001. It is an education and developmentstarting point, designed to give employeesa firm grasp of the terminology andconcepts of the Toyota Way, as well asthe basic history and heritage of Toyota.By 30 March 2006, 1,891 employees inAustralia had received Toyota WayFoundations training.

Human resources development

Toyota Australia is committed to improvingthe performance of the entire organisationthrough improving the abilities of eachemployee and maintaining and improvingthe morale of employees by providingthem with the opportunity for growththrough work.

Workplace agreement (WPA)

The Toyota Australia 2005 WPA wascertified in the Australian IndustrialRelations Commission in July 2005. This agreement isbinding for a periodof three years, witha commitment for afourth year. The overall purposeof the WPA is toexpress thecommitment ofthe partiestowards ToyotaAustralia achievingsustainablesuccess in aglobal company.This agreementalso assists Toyota Australia in businessplanning, maintaining competitiveness ona local and global scale, and in ensuringconsistency and fairness of workconditions.

Workplace diversity

Toyota Australia is proud that there is adynamic mix of cultures, ages, religionsand beliefs represented amongst 4,512employees. There are approximately 60nationalities, with ages ranging from 18 to80. The workforce is 13% female and87% male, the average length of service is10.3 years, and the longest length ofservice is 51 years.

Health and SafetyThe Health and Safety system withinToyota Australia is structured around thePlan-Do-Check-Act continuousimprovement process.

Toyota Australia ‘Plans’ using riskassessments, undertakes the ‘Do andCheck’ by performing regular workplacesafety checks and ‘Acts’ by addressinghazards immediately when they becomeapparent.

SafetyMAP

The Safety Management AchievementProgram (SafetyMAP) is an audit tool,managed by the Victorian WorkcoverAuthority. Use of SafetyMAP makes anindependent audit and review of anorganisation's health and safetymanagement systems possible.SafetyMAP helps to establish saferworking environments consistent with therequirements of health and safetylegislation, and protects people byeliminating, or better managing, any healthand safety hazards. The SafetyMAP auditcriteria allow an organisation to:

• measure the performance of its healthand safety program

• implement a cycle of continuousimprovement

• compare health and safety performancesystems to a recognised benchmark

• gain recognition for the standardsachieved by management of health andsafety.

There are two levels of SafetyMAPcertification, an initial and an advancedlevel, with Toyota Australia at presentholding the initial level certification.

Toyota Australia first achieved SafetyMAPcertification in August 2003. Since thenauditors from Lloyds have audited variousdepartments every six months to makesure safety systems are operatingeffectively. In 2006 all Victorian sites will beaudited for recertification (certification isvalid for three years).

President’s Safety Shield

The Toyota Australia President’s SafetyShield was introduced to manufacturingoperations in Victoria in 2001. Since thenit has evolved into a national program thathas increased awareness of health andsafety and encouraged enhancements tosafety systems. The objectives of thePresident’s Safety Shield are:

1. To reward and recognise outstandinghealth and safety management; and

2. To implement regular monthly auditingof safety management systems to ensurecompliance with corporate policy andprocedures.

To be eligible to receive the award adepartment must:

• Report, investigate and effectivelycountermeasure every accident/incidentoccurring for that month, including near-miss incidents

• Support and facilitate successfulrehabilitation of any injured teammember as a result of an accident inthat month

• Share accident report details with otherdepartments to prevent a repeat of theaccident

• Update and maintain accurate visualcontrol boards (these display inspectionresults, managers audit results, hazardidentification and countermeasure)

• Display near-miss reports on visualcontrol boards.

Recipients of the award are presentedwith a trophy each month, with a majorprize being awarded annually to adepartment for the achievement ofoutstanding health and safetyperformance.

02p r i n c i p l e s , v a l u e s a n d p e o p l e

Brisbane Customer Services Division won the 2005President’s Safety Shield. The award was presented to Philippe Faydherbe,Corporate Manager Operations (right), by ExecutiveVice-President of Manufacturing, Shoji Baba.

Continuous Improvement

Respect for People

ChallengeForm a long term vision,meeting challenges withcourage and creativity torealise our dreams.

KaizenWe improve our businessoperations continuously,always driving forinnovation and evolution.

Genchi GenbutsuPractice GenchiGenbutsu… go to thesource to find the facts tomake correct decisions,build consensus andachieve goals at our

best speed.

RespectRespect others, makeevery effort to understandeach other, takeresponsibility and do ourbest to build mutual trust.

TeamworkStimulate personal andprofessional growth, share opportunities ofdevelopment andmaximise individual andteam performance.

1. Honour the language and spirit of thelaw of every nation and undertake openand fair corporate activities to be agood corporate citizen of the world.

2. Respect the culture and customs ofevery nation and contribute to economicand social development throughcorporate activities in the communities.

3. Dedicate ourselves to providing cleanand safe products and to enhancing the quality of life everywhere through allour activities.

4. Create and develop advancedtechnologies and provide outstandingproducts and services that fulfil theneeds of customers worldwide.

5. Foster a corporate culture thatenhances individual creativity andteamwork value, while honouring mutualtrust and respect between labour andmanagement.

6. Pursue growth in harmony with theglobal community through innovativemanagement.

7. Work with business partners in research and creation to achieve stable,long-term growth and mutual benefits,while keeping ourselves open to newpartnerships.

Two pillars. Five Principles.

http://www.toyota.co.jp/en/sustainability/index.html

http://www.toyota.co.jp/en/sustainability/index.html


ComplianceToyota Australia has established aCorporate Compliance Committee toprovide a strong and consistentcommitment to the highest standards ofcorporate governance and to maintain aculture of compliance at all levels.

The Corporate Compliance Committeemeets every two months and addressesToyota Australia’s key compliance areas:

• Trade Practices Act

• National Privacy Principles

• Occupational Health & Safety

• Environment

• Australian Design Rules.

Compliance is a fundamental requirementfor fulfiling Toyota’s Guiding Principles andbusiness objectives. It is also included inthe annual Balanced Scorecard for eachdivision.

Toyota Australia Board members haveresponsibility for different corporate issues.This is confirmed by membership ofdifferent committees, such as theEnvironment Committee, HumanResources Committee and CorporateCompliance Committee.

Code of ethics

Toyota Australia’s Code of Ethics isdistributed to all employees. Employees,contractors and agents of ToyotaAustralia are expected to:

• obey the law

• be honest in word and deed

• respect community values

• be responsible

• perform their duties consistent with theCode of Ethics.

• use good judgement in avoiding anyaction that could create a conflictbetween personal, company andcommunity interests.

Balanced scorecard

Toyota Australia’s company-wide strategymanagement system is based on theKaplan & Norton Balanced Scorecard.This system translates long termcorporate goals into specific annualcommitments that then cascade to alldivisions, and departments. Performancemonitoring is assisted by the intranet-based Balanced Scorecard reportingsystem, using the Plan-Do-Check-Actcycle.



Stakeholderengagement Toyota Australia engages with a range ofstakeholders. The following is a list ofenvironment-specific interactions.

Toyota Australia is a member of:

• The PACIA Automotive Plastics SteeringCommittee

• The Australian Industry GroupEnvironment Working Group

• The ECO-Buy Business Advisory Group

• The Commonwealth GamesEnvironment Stakeholder Forum.

In addition to the above Toyota Australiahas also participated in the:

• Victorian EPA Greenhouse GasEmissions Reporting and DisclosurePilot

• Federal Government Energy EfficienciesOpportunities Pilot

• Australian Research Institute inEducation for Sustainability (ARIES),Industry Sustainability Project

• Victorian Planning and EnvironmentalLawyers Association Conference

• Australian Greenhouse OfficeGreenhouse Challenge Plus Conference

• 6th Asia Pacific Roundtable onSustainable Consumption andProduction

• 5th National Environment and EnergyConference.

Corporate Responsibility Index (CRI)

The Australian CRI is based on a UnitedKingdom reputation tool and administeredby the St James Ethics Centre inconsultation with Australian business.Participating companies use this tool tobetter understand how corporate socialresponsibility applies to their business.The CRI provides a benchmark forcompanies to compare their managementpractice across the four areas ofcommunity, environment, marketplace andworkplace, as well as their performanceacross a range of environmental andsocial impact areas.

Ernst and Young verifies and audits allsurvey responses. Results are published in‘The Age’ and ‘The Sydney MorningHerald’. In 2005 Toyota Australia movedfrom fourth to second position with ascore of 95.7%.

Toyota Australia’s ratings for 2004 were:

Corporate Strategy: Gold

Integration: Silver

Management practice: Gold

Performance and impact: Gold

Assurance and disclosure: Gold

Toyota Australia’s ratings for 2005 were:

Corporate Strategy: Gold

Integration: Gold

Management practice: Gold

Performance and impact: Gold

Assurance and disclosure: Gold

Toyota’s survey response and feedbackreport are published on:

Reputation Quotient

Toyota Australia participates in the RQsurvey conducted by Harris InteractiveAustralia. The RQ study is based onnational research and specificallymeasures a respondent’s perceptions inrelation to six measures: EmotionalAppeal, Products and Services, SocialResponsibility, Workplace Environment,Financial Performance, and Vision andLeadership

Toyota Australia has been ranked asnumber 1 in the 2005 RQ study releasedin August 2005. It is the first time that anautomotive company has achieved the topranking in the survey.

In 2005, Toyota Australia achieved topranking in the Products & Services andWorkplace Environment categories, andnumber two in all other categories.

The tables below provide 2005 rankingsand Toyota Australia’s results since 2000.

Toyota Australia’s Manager Environmental Policy,James Holgate (left), is congratulated by OriginEnergy’s Executive General Manager ofDevelopment Projects, Andrew Stock, on winningthe 2005 Banksia Award for BusinessEnvironmental Responsibility and Leadership.

Toyota Australia wins 2005 Banksia Award

This Award recognised ToyotaAustralia’s continuous improvement inits environmental performance.

Judges commended Toyota Australiafor broadening its environmentalstrategies beyond manufacturing toback office functions, suppliers anddealers, and to other parts of thedistribution chain.

The Banksia Awards have earned areputation for being the mostprestigious in recognition ofenvironmental excellence andinnovation in Australia for individuals,community groups, businesses andgovernment organisations.

Toyota Australia was also a finalist inthe Banksia Award for EnvironmentalLeadership in Media Communications.This recognised Conservation Connect,a key element of the Toyota CommunitySpirit partnership with ConservationVolunteers Australia.

2005 Results1. Toyota Australia2. Microsoft3. Sony4. Virgin Blue 5. Woolworths6. Holden7. Harvey Norman8. David Jones9. NRMA10. Coles Myer

Toyota Results 2000-05

Rank2005 12004 32003 32002 4/52001 3/42000 9

Toyota Australia is committed to ensuring all employeesare provided with opportunities to build positiverelationships both within and outside the workplace. Inthis photo are some of the 18 Melbourne-basedemployees who participated in the 2006 MelbourneCorporate BRW Triathlon.

http://www.toyota.com.au

http://www.toyota.com.au

9 Toyota Australia

e n v i r o n m e n te n v i r o n m e n t

03Guiding principles for contribution to sustainable development

The 4th Toyota Environmental Action Planis a statement of the activities that Toyotamust undertake in order to realise thecorporate objective it is striving to achieve:– to become a leader and driving force inglobal regeneration by implementing themost advanced environmental technologiesand processes.

This is in response to Toyota’s GuidingPrinciple No 6: To pursue growth inharmony with the global communitythrough innovative management. The plancontributes to sustainable development byreducing environmental impact throughoutall areas of business activities. This enablesenvironmental and economic sustainabilityand helps build close and co-operativerelationships with a wide spectrum ofindividuals and organisations involved inenvironmental preservation.

Toyota Australia Environmental Policy:

• Pollution prevention• Waste minimisation• Compliance with legislation• Continuous improvementThese four key aspects of ToyotaAustralia’s Environmental Policy guideevery stage of Toyota Australia’s activitiesin achieving the objectives of theEnvironment Plan.

Management and coordination ofToyota Australia’s Environment Plan

The Environmental Policy Department playsa key role in the development of strategy andinitiatives which are deployed to divisions. The Manufacturing Environment Group isresponsible for environmental managementat the Altona manufacturing site.

An Environmental Management SystemsCoordinator oversees the environmentalmanagement in the network of Toyota

Australia’s five parts distribution centres.

These activities are supported bymanagement environment committees inthe Manufacturing and Sales andMarketing operating arms and workplaceteams across manufacturing and non-manufacturing functions.

The management environment committeesreport to the Toyota Australia EnvironmentCommittee which is chaired by ToyotaAustralia President and CEO, Ted Okada.

*4th Action Plan items 9, 10, 12, 14, 18, 19, and 22 relate to issues that are not relevant to Australian operations.

Action items1. Reduce CO2 emissions2. Promote the development of technologies to achieve the fuel efficiency performance in each

country and region

3. Promote the development of clean energy vehicles, encourage their effective introduction andensure wider market acceptance

4. Develop technologies to respond to the diversification of energy and fuel sources

5. Promote initiatives to improve traffic flows using a variety of networking technologies

6. Reduce CO2 emissions in production and logistics activities

7. Promote effective use of resources to contribute to the realisation of a recycling-based society

8. Reduce water consumption

11. Promote management and further reductions in the use of substances of concern (SOC).Eliminate use of four SOCs (lead, mercury, cadmium and hexavalent chromium) globally

13. Reduce emissions to improve air quality in urban areas in all countries and regions

15. Strengthen consolidated environmental management

16. Further promotion of environmental management at business partners

17. Enhance environmental education

20. Contribute to the development of a recycling-based society

21. Improve disclosures of environmental information and two-way communications

2006 Targets• Five year CO2 reduction targets will be set for office sites• A complete review of environmental product and environmental brand strategies

will be undertaken

• Manufacturing will achieve a 10% reduction in CO2 emissions using 2001baseline data

• A complete inventory of logistics CO2 data will be undertaken and action plansfor CO2 reduction will be developed

• Manufacturing will achieve an 8% reduction in waste generated per unit from2005/06 baseline data

• Two returnable parts delivery modules will be introduced at the parts distributioncentres

• Five year waste reduction targets will be set for offices and parts distribution centres

• Manufacturing will achieve a 12% reduction in water consumption per unit from2005/06 baseline data

• Five year water consumption reduction targets will be set for offices and partsdistribution centres

• The installation of rainwater collection tanks at Sydney Parts Distribution Centreand Corporate Headquarters Company Fleet will be completed

• Processes and plans will be developed to eliminate four substances of concernfrom vehicles, service parts and accessories

• Manufacturing will achieve a 1% reduction per unit in volatile organic compoundmanufacturing emissions based on 2005/06 baseline data

• Manufacturing will maintain ISO14001 certification with zero non-compliance and zero complaints

• Plans for expansion of Environmental Management Systems to all ToyotaAustralia sites will be developed

• Sydney Parts Distribution Centre will be certified to ISO 14001

• 80% of major dealers will be compliant with the Dealer Environment Risk AuditProgram

• Implement an ECO-Buy action plan to increase the purchase of moreenvironmentally sensitive supplies

• Continue initiatives to achieve quantifiable improvements in staff awareness of,and involvement in, environmental activities

• Develop jointly with the Community Liaison Committee, a new EnvironmentalImprovement Plan for the manufacturing plant

• Toyota Community Spirit partnerships and employee volunteering activities will be maintained

• Produce the Toyota Australia Sustainability Report

1. Energy/Global Warming

2. Recycling of Resources

3. Substances of Concern

4. Atmospheric Quality

5. Environmental Management

2010 Targets• Manufacturing will achieve a 13% CO2 reduction per unit of

production compared with 2001 data • Logistics operations, parts distribution centres and offices, will

achieve reduction targets to be established following further analysis of current usage

• Manufacturing will achieve a 25% reduction in waste per unit ofproduction compared with 2005/06 data

• Parts distribution centres will achieve reduction targets to beestablished following further analysis of current processes.

• Offices will achieve zero waste to landfill

• Manufacturing will achieve a 25% reduction in water consumptionper unit of production based on 2005/06 data

• Reduction targets will be established for parts distribution centresand offices following further analysis of current usage

• Toyota Australia will eliminate the four SOC (lead, mercury, cadmiumand hexavalent chromium) from all vehicles, parts and accessoriessupplied to Australian and overseas markets

• Manufacturing will achieve a 5% volatile organic compound (VOC)reduction per unit of production compared with 2005/06 data Toyota Australia will strive to further reduce VOC emissions to 30g/m2

• Altona manufacturing site will maintain the EnvironmentalManagement System and achieve a target of zero complaints andzero non-compliances

• Complete a rollout of EMS across the remainder of the Company,including ISO 14001 certification where required

• All suppliers are asked to comply with Toyota Australia’s SupplierEnvironmental Policy

• Implement an ECO-Buy action plan to increase the purchase of moreenvironmentally sensitive supplies

• Assist all dealers to comply with Dealer Environmental Risk Auditrequirements and introduce coordinated reporting of environmentalperformance indicators across the network

• Continue initiatives to achieve quantifiable improvements in staffawareness of, and involvement in, environmental activities

• Develop jointly with the Community Liaison Committee, a newEnvironmental Improvement Plan for the manufacturing plant

• Toyota Community Spirit partnerships and employee volunteeringactivities will be maintained

• Improve disclosures of environmental information through regularreporting


Toyota’s 4th global environmental action plan* Toyota Australia 5 year environment plan

Global warming (CO2)Waste (packaging

materials, etc)Substances of concern

Parts and materials suppliers

Toyota dealerships

Recycling

Disposal

Toyota development

and design

Toyota production

Toyota logistics

Logistics

Procurement

Customer use

Global warming (CO2 HFC)released into the atmosphere

(HC, CO, NOx, etc.)

Re-use. Waste (shredder

residue, used parts including batteries)

Extraction of resources

Raw materials

Fuel Energy Water

Global warming (CO2)Substances released into

the atmosphere and discharged to waterways, noise, odour, waste etc.

Waste (waste oil, used parts, etc. resulting from maintenance)


Vehicle life-cycle Environmental awareness survey

e n v i r o n m e n t

03

11 Toyota Australia

In December 2005 a Toyota AustraliaEmployee Environmental AwarenessSurvey was conducted. Approximately810 employees responded to the survey.The survey was developed to measureenvironmental awareness and, over time,to determine success in improvingperformance.

From the results of the initial survey,priority is being given to achievingimprovements in staff awareness. Toyota Australia hopes to achieve 85% of staff reporting significant increases inawareness over the next year.

Q1 How would you rate your awareness of environmental issues facing the world today?

Q2 I have a good understandingof how my activity at Toyota can impact the environment.

Q3 Management are committed to implementing responsible environmental practices.

Q4 I'm aware of my role in ensuring Toyota's environmental obligations are met.

20%

40%

60%

80%

100%

Toyota Australia totalTarget

Q5 Do you think paper waste

is minimal in your area?

Q6 Everyone in the

office copies and prints double sidedand re-uses single

sided paper.

Q7 Has your environmental

awareness at work changed over

the last 12 months?

Percentage of respondentsrating a positive score of 4 or 5

on a 5 point scale.

03e n v i r o n m e n t


Corporate average carbon dioxideemissions

Previous reported average fuel consumptionfigures have been discontinued due tochanges in mandated test procedures. TheAustralian motor industry is now reportingcarbon dioxide vehicle emissions inaccordance with Australian Design Rule(ADR) 81/01. The graph below showssales weighted average of carbon dioxideemissions of all Toyota, Lexus andDaihatsu vehicles sold in each calendaryear. Industry averages have not yet beencompiled.

During 2005 the Australian motor industryagreed with the Federal Government to atarget of 222gCO2/km by 2010 for all lightvehicles.

Ethanol

During 2005, Toyota Australia, in concertwith other industry members, undertookfurther work to help improve consumerconfidence in the use of appropriateethanol blended petrol. In addition to the vehicles previouslypublicised as suitable for use with fuelwith up to 10% ethanol, additionalvehicles able to operate at up to 5%ethanol were identified. Also, agreementwas reached among manufacturers andthe Federal Government to provide vehiclelabelling on locally manufactured modelsto declare their suitability with fuelcontaining up to 10% ethanol.

Vehicle emissions

With the introduction of ADR 79/01, allmodels have been certified to the morestringent emissions standards, equivalentto international Euro 3 requirements. Inaddition, Toyota Prius, Corolla, RAV4,Tarago and Avensis models and LexusLS430, SC430, IS250 and RX350 were allcertified to Euro 4 or above.

Green Vehicle Guide

Toyota Australia continues to provideinformation to the Federal GovernmentDepartment of Transport and RegionalServices for the Green Vehicle Guide. For more information on the Green VehicleGuide please visit:

Participation in industry forums

As part of the Federal Chamber ofAutomotive Industry, Toyota Australia isinvolved with all relevant committees,including the Fuels Committee, and theTransport Emissions Liaison Group.Toyota Australia also participates in theGovernment Policy Advisory Committee,handling such issues as tyre stewardshipand the recycling of refrigerants.

Vehicle recyclability and reduction of harmful materials

Toyota continues to use materialidentification marking to enable partsseparation for recycling and uses the100% recyclable Toyota Olefin polymer forvarious parts including bumpers,dashboards and door trims.

Vehicle painting and coating processespotentially release harmful chemicals suchas trichloroethylene. Toyota continues tocontrol and reduce these by setting strictVOC emission reduction targets for allglobal manufacturing plants.

As the following information shows, thenew model Yaris and recently upgradedRAV4 are examples of expanding use oftechnologies to reduce the impact ofvehicle manufacture.

Yaris

In 2005 the new Yaris hatchback replacedthe Echo. It features an efficient, easy-to-dismantle structure which greatlyimproves the recyclability of this vehicle.This has been achieved by:

• Easy to dismantle marks are stamped toindicate where dismantling can best becommenced

• The front and rear door trim, deck sidetrim, back door trim, and the frontbumper are also stamped withdismantling marks

• Screw fastening points have beenreduced, and replaced with clipfastenings

• The structure has been engineered sothat no separating or sorting is required

• Recycled materials have been used inthe dash insulator, floor silencer anddeck box

• The main parts of the instrument panelare constructed with polypropylenematerials such as Toyota Super OlefinPolymer (TSOP)

• An alignment mark for the fuel removaldevice is provided on the bottom of thefuel tank. This ensures all fuel is safelyremoved during dismantling.

The use of VOCs in the vehicle paintingand coating processes has beencontrolled and reduced by using water-based paint for the top coat of the outerbody panel base paint. The undercoatconsists of an acrylic material that isapplied to the back surface of theunderbody floor, while the use of polyvinylchloride has been eliminated.

RAV4

TSOP and Toyota Plastic Olefin materialsare used throughout the interior andexterior of the new RAV4. Themanufacture of RAV4 also uses water-based paints. Polyvinyl chloride-freematerials are used for the roof mouldings,the surfaces of the tonneau cover, and thefloor tunnel silencer. The clutch lining hasbeen manufactured without the use oforganic solvents. The use of halogen-freeinsulation for the cabin wire harnesses andfor all protective materials also reducesenvironmental impact

Prius

The Australian Government has revised itsenvironmental rating of the Prius. Priuscurrently has top ranking in the GreenVehicle Guide and is the only car to gain afive-star environmental rating using regularunleaded petrol (ULP), as opposed tomore expensive premium unleaded(PULP). Sales of the Prius continue toincrease despite extremely short supplydue to high global demand. Sales in 2005were 1,423 vehicles, compared to 201vehicles in 2002.

Overall cumulative worldwide sales ofToyota (including Lexus) hybrid vehiclespassed the 600,000 mark at the end ofMarch 2006.

Camry

The Camry four cylinder achieves acertified fuel efficiency of 9.9 litres/100km(auto) and 8.9 litres/100km (manual).Some of the environmental features of theCamry are:

Variable valve Timing (VVT-i) Technology

By adjusting the overlap time between theexhaust valve closing and intake valveopening, the engine characteristics can bechanged to provide instant engine torqueacross the entire rev range. This givesboth powerful acceleration and superiorfuel economy. In addition, more completefuel burn at a higher combustiontemperature leads to fewer emissions.

Styling modifications

By embedding the radio aerial in the glassof the rear window and modifying stylingto optimise airflow over the bonnet, frontbumper, headlamps, roof and A-pillars, theCamry’s aerodynamic drag coefficient wasimproved from 0.30 to 0.29.

Reduced rolling resistance

The Camry is supplied with silica/carbon-based tyres initially developed by Toyotaand Dunlop to improve fuel efficiency anddurability, while maintaining safe levels ofgrip in wet and dry conditions.

250

200

150

100

50

0

CO

2 g/

km

2004 20102005

03Product


P r o d u c t 03e n v i r o n m e n t

P r o d u c t

The new Camry, released in August 2006 is the only four cylinder car manufactured in Australia.

http://www.greenvehicleguide.gov.au

http://www.greenvehicleguide.gov.au


The 4th Toyota Environmental Action Planincludes a commitment to further promoteenvironmental management to ourbusiness partners, through increasedcooperation with suppliers.

Key focus areas include:

• Management of Substances of Concern(SOC) contained in parts, raw materials,production facilities and other itemssupplied to Toyota Australia

• Voluntary initiatives by suppliers toimprove environmental performance.

Supplier Environment Policy

The three key requirements of suppliersare:

1. Environmental Management Systems(EMS):

Toyota Australia requests all first tiersuppliers who provide components, directraw materials (for use either on the vehicleor in accessories), indirect raw materials(supplied to Toyota Australia facilities, butnot to become part of the vehicle), andservices to develop an ISO14001 certifiedEMS.

2. Elimination of SOC:

Toyota Australia expects all first tiersuppliers providing components and/ordirect raw materials to eliminate thesubstances of environmental concerncontained in those components andmaterials. Toyota’s goal for all vehicles isto be SOC-free by the end of 2007.

3. Supplier Reporting:

Suppliers must maintain closecommunication with Toyota AustraliaPurchasing Division on status with respectto the Supplier Environment Policy.

SOC

The 4th Toyota Environmental Action Plangoal has been set to eliminate the use ofthe four SOC: lead, cadmium, mercuryand hexavalent chromium.

This decision was made in response toDirective 2000/53/EC of the EuropeanParliament to prevent waste from end-of-life vehicles. This directive stipulates thatvehicle manufacturers and materialmanufacturers in Europe must ensure thatcomponents of vehicles placed on themarket after 1 July 2003 do not containmercury, hexavalent chromium, cadmiumor lead.

Toyota Australia aims to eliminate thesefour substances from all vehicles, partsand accessories by the end of 2007. This voluntary objective exceeds allnational and state regulatory requirementsin Australia.


S u p p l y c h a i n & P u r c h a s i n g

Supplier Applicability

Key requirement: Supplier Category Applicability

1ST Tier O.E. Direct Indirect ServiceRaw Material Raw Material Suppliers

1. Implement EMS ✓ ✓ ✓ ✓

2. Eliminate SOC’S ✓ ✓ Select NotSuppliers Only Applicable

3. Communicate with TMCA ✓ ✓ ✓ ✓

Supply chain& Purchasing

The ECO-Buy green purchasingprogram

ECO-Buy is an initiative to increasepurchasing of environmentally sensitivesupplies. It is a joint initiative of theMunicipal Association of Victoria andEcoRecycle Victoria (now known asSustainability Victoria). ECO-Buy startedas a local government program and isnow being launched to business.

As a member of ECO-Buy Toyota Australiawill:

• Manage risks in the supply chain thatmay arise from using potentially harmfulor socially unacceptable products

• Minimise impact on the environment byintegrating environmental considerationsinto business operations

• Publicise practical and measurableenvironmental initiatives

• Become part of a network of councilsand businesses who will share knowledge,experiences and achievements.

2005 Supplier EnvironmentalExcellence Award

The annual Supplier EnvironmentalExcellence Achievement Award encouragesenvironmental improvement andinnovation in Toyota Australia’s supplychain. The winner of the 2005 AchievementAward for Environmental Excellence wasAutoliv Australia. This was announced atthe Supplier Conference in April 2005.

Toyota Australia waste managementservice provider

Toyota Australia Purchasing Divisionfinalised its tender process for wastemanagement services in 2005 withCollex the successful tenderer. Theservices agreement covers all Victorianoperations and includes the followingkey performance indicators:

• Achieve ISO14001, ISO9001,SafetyMAP and Waste Wiseaccreditation for Toyota Australia siteswithin 12 months

• Zero non-compliance with legal andstatutory requirements

• Zero non-compliance with all ToyotaAustralia site procedures

• Zero general waste to landfill by 2010

• Zero prescribed waste to landfill by 2010

• Active participation in Toyota Australiawaste management meetings, wasteaudits, Environment Improvement Plan,damaged material transfer, anddevelopment of objectives and findingsand prioritising of improvement plans asscheduled

• 2% annual reduction in volume of wasteproducts arriving at Toyota Australiasites

• Develop inventory of equipmentproducing CO2 emissions.

The services agreement requires weekly,monthly and quarterly waste reports thatinclude recommendations forimprovements. Also, annual waste reportsare required that detail environmentalimpacts of services provided to ToyotaAustralia.

SOC Heavy Limit ExemptionsMetals

Lead MAX • Car batteries1000 ppm • Solder

• Electroniccircuit boards

Mercury MAX • Discharge 1000 ppm lamps

• Instrumentpanel displays

Hexavalent MAX • NILChromium 1000 ppm

Cadmium MAX • Nickel cadmium100 ppm batteries

0303e n v i r o n m e n t

S u p p l y c h a i n & P u r c h a s i n g

Toyota Australia Senior Management with the 2005 Toyota Australia Supplier Award winners.Back row (left to right): Yoshiaki Numata, Ted Okada, Mitsuo Kinoshita (TMC Senior Managing Director), Shoji Baba, Mike Harvie, Rob Jakobi. Front row (left to right): Bob Franklin (Autoliv Australia), Ron Kirwan (Kirwan Group Services), Mark Dwyer (OzPress), Kan Ito (Australian Arrow), Brian Freeborn (Schefenacker Vision Systems), Manny Larre (Pilkington (Australia), Alan Stevens (PBR Automotive)

On Wednesday 2 November 2005, Toyota AustraliaPresident and CEO Ted Okada (front) committed thecompany to the ECO-Buy program as the foundingmember of ECO-Buy Business. Also present wereDeputy Premier of Victoria and Minister forEnvironment, Water and Victorian Communities, JohnThwaites, and Commonwealth Games EnvironmentAmbassador, Rob Gell (far right).

http://www.ecobuy.org.au/

http://www.ecobuy.org.au

http://www.greenhouse.gov.au/challenge/


During 2005 new manufacturing targetswere set based on directives from the 4thEnvironmental Action Plan. This has beendone in conjunction with preparation forintroduction of the new model Camry andAurion at the Altona manufacturing plant.

This project has required the investment ofmore than $400 million in new facilitiesand equipment.

The subsequent construction andcommissioning activities have resulted inadditional resource use at Altona. Theupgrade involved the relocation of severalprocesses from the Port Melbourne site.Toyota Australia commissioned a newbumper bar painting and moulding facility,a new unit parts assembly operation, anew fuel tank assembly and paintingoperation, a new main jig line in the weldshop and a new logistics centre.

As a result of this activity, the achievementof internal environmental targets for theAltona site represented a challenge for themanufacturing operations in 2005/06.Despite this, all additional processes havebeen introduced without any requiredincreases to existing licence limits for theAltona site.


M a n u f a c t u r i n g


M a n u f a c t u r i n g03 03Manufacturing

Environmental performance 2005-2006Energy

Overall energy use from stationary energysources per vehicle was 8.54GJ in 05/06versus 8.77GJ in 04/05. This representeda 2.6% reduction, but remained above theenergy target of 8.34 GJ/veh. While naturalgas supplies the majority of energy, electricityperformance lagged against the target.

Greenhouse gas emissions increased from168,590 tonnes CO2 equivalents in 04/05 to179,990 tonnes CO2 equivalents in 05/06 in-

line with a 7% increase in overall productionvolume. Details of Toyota Australia’sgreenhouse gas emissions can be foundas part of Toyota Australia’s submission tothe Australian Greenhouse Challenge:

In terms of gas reduction activities, it hasbeen possible to turn off one of the gasfired afterburners in the Paint Shop. Thisproject has saved 52,000 GJ per annumand was made possible through continuedimprovement in paint technology andefficiencies in line sequencing.

In terms of electricity usage, ToyotaAustralia has introduced several initiativesin 05/06 which will reduce consumption.The new unit parts and bumper resinplants have been equipped with ‘GoldwayEnersave’ units. These units manage tobalance out peaks in electricity demandand are expected to return an 8%improvement in electricity consumption inthese plants.

Waste

An emphasis on identifying recyclingopportunities has resulted in a reduction ofgeneral waste from 9.43 kg/veh to 9.06kg/veh. For example, it is now possible forToyota Australia to recycle its laminatedglass waste from the assembly process,diverting 11,000 kg of waste per annumfrom landfill.

There has been an increase in the yearlyresult for prescribed waste from 3.13 kg/vehto 3.45 kg /veh. The majority of thisincrease is due to prescribed waste at thePaint Shop. Improvements in wasteseparation have led to an increase in thenumber of chemical drums and linersbeing disposed. Installation of robots intothe primer spraybooth have howeversaved 23,000 kg of sludge disposal peryear. Overall, waste performance has improvedfrom 12.56 kg/veh to 12.51 kg/veh.

Toyota Australia continues to pursuerecycling and reuse opportunities for allwaste streams. During 2005/06, ToyotaAustralia managed to recycle or reuse 96%of all waste material flows and only 4% ofwaste had to be disposed to landfill.The majority of recycled material is thesteel off cuts which occur during thepressing of the complex shapes that makeup a vehicle body. Last year 24,000tonnes of steel was recycled by Simsmetal.

Other waste streams to benefit fromrecycling were:

• Aluminium dross and turnings - 1,800 tonnes

• Casting sand - 1,500 tonnes• Windscreen glass - 11 tonnes• Cardboard - 797 tonnes • Timber - 770 tonnes• Paper - 18 tonnes • Plastic - 83 tonnes.

Water

Water use at Toyota Australiahas declined marginally from3.88 m3/veh to 3.87m3/veh.There was extensive use ofwater as part of thecommissioning process forthe new unit parts andbumper resin facilities. Duringthe construction andcommissioning of theseplants, up to 700m3 permonth was used by thesesites to test the integrity ofthe processes and to runinitial production trials.

Volatile Organic Compounds (VOC)

VOC emissions from Paint Shop increasedslightly from 37.2 g/m2 to 37.6 g/m2. While reducing the amount of solvent usedis a positive outcome and reduces emissionsof VOCs, a side effect of this reduction hasbeen that the used solvent contains a higherconcentration of paint solids than before.This higher concentration has reducedsolvent recovery. Maintenanceimprovements during the Christmasshutdown resulted in an increase in solventrecovery and a consequent drop in VOCemissions.

Overall, recovered solventdropped from 126,000 litres in04/05 to 105,000 litres in 05/06.The recycled solvent preventedapproximately 80 tonnes ofVOCs from being emitted intothe atmosphere.

The installation of new articulatedrobots in the Paint Shop primerarea has contributed to areduction of VOC emissions,from 6.38 g/m2 to 5.48 g/m2,and also reduced paintconsumption by 17,700 litres.

2000

/01

2001

/02

2002

/03

2003

/04

2004

/05

2005

/06

7.5

7.0

6.5

6.0

5.5

5.0

Gas per vehicle

ActualTarget

GJ/

veh

2000

/01

2001

/02

2002

/03

2003

/04

2004

/05

2005

/06

1000

900

800

Electricity per vehicle

ActualTarget

kWh/

veh

2000

/01

2001

/02

2002

/03

2003

/04

2004

/05

2005

/06

20

15

10

5

General waste per vehicle

ActualTarget

kg/v

eh

2000

/01

2001

/02

2002

/03

2003

/04

2004

/05

2005

/06

4

3

2

Prescribed waste per vehicle

ActualTarget

kg/v

eh

2000

/01

2001

/02

2002

/03

2003

/04

2004

/05

2005

/06

6

5

4

3

Water per vehicle

ActualTarget

m3

/veh

2000

/01

2001

/02

2002

/03

2003

/04

2004

/05

2005

/06

70

60

50

40

30

VOC g/m² per vehicle

ActualTarget

g/m

²

http://www.greenhouse.gov.au/challenge


Environmental incidents

The Toyota Australia EnvironmentalManagement risk matrix ratesenvironmental incidents as high,significant, moderate, or low. ToyotaAustralia has a system for identifyingsolutions and countermeasures forincidents which have an environmentalimpact called Environmental ActionRequests (EAR).The total EARs for2005/06 were as follows:

High = 6

Significant = 3

Moderate = 14

Low = 3

There has been an increase in High andSignificant incidents since 04/05. The Highand Significant EARs in 05/06 can be splitinto two categories:

1. Spills to stormwater (3 High, 2 Significant)

2. High trade waste discharge (3 High, 1 Significant)

Toyota Australia experienced a number ofspills during the delivery of bulk chemicals.These events have led to an increasedfocus on contractor education to ensurethat all delivery drivers are familiar withToyota Australia’s equipment, proceduresand emergency response.

The incidents associated with high tradewaste discharge were linked to increasedmetal levels, and high pH levels in thetrade waste. These were identified by theongoing monitoring regime and addressedas required through:

• Improvements to the engine trade wastetreatment plant to allow mechanicalisolation

• Improved maintenance of polymerdosing lines in the Port Melbourne unitparts area

• A redesign of the phosphate press bundand transfer system to provide an earlieralarm and system shut down.

A small number of spills were also attributedto the malfunction of new equipmentduring commissioning of new facilities.

Accredited licence

To be an accredited licensee, the overridingrequirement is to demonstrate a high levelof environmental performance and anongoing capacity to maintain and improvethis performance. This is demonstratedthrough the following cornerstones:

• An Environmental Management System

• An Environmental Audit Program

• An Environment Improvement Plan.

Toyota Australia continues to operateunder its accredited licence. Theaccredited licence was fundamental in theapproval of recent plant improvementssuch as the unit parts and bumper resinoperations. Both of these developmentsoffer a net benefit to the environment asthey replace older and less efficientfacilities at the Port Melbourne site. Theywere approved by EPA Victoria under theconditions of the accredited licencewithout the need for a Works Approval.

Community Liaison Committee (CLC)

Toyota’s CLC meets every two months toreview progress on Toyota’s EnvironmentImprovement Plan. It comprisesrepresentatives from local government, theEPA, City West Water and the localcommunity.

During the next year, Toyota Australia andthe CLC will revise the EnvironmentImprovement Plan in line with therequirements of the accredited licence.For more information on the ToyotaAustralia Environment Improvement Planvisit:

Global ISO 14001 TEMS annualsurveillance audit

This audit was conducted by SAI Globaland held from 7 April to 14 April 2005 inselected shops/departments at the Altonasite. The findings highlighted minor

improvement opportunities. Toyota Australiamet or exceeded all required standards.

Toyota Environmental ManagementSystem (TEMS) Green Guide

This Green Guide is a practical manual onmanaging the TEMS system for newworkgroup members and/or experiencedWork Group leaders. The Guide is an aidto understanding environmental policy,aspects and impacts, controllingoperations, and learning how ToyotaAustralia manages its environmentalactivities. It is also a reference guide fordeveloping TEMS skills, auditing andoperational knowledge.

Toyota Australia and otherenvironmental reporting initiatives.

In addition to the Environment andCommunity Report, Toyota Australia reportspublicly on its environmental performancethrough a variety of methods.

These include reports to:• The National Pollutant Inventory

• The Australian Greenhouse Challenge Plus

• The State Environment Protection Policyon Air quality Management.

Manufacturing Environment Group andTEMS work groups

The Manufacturing Environment Groupcoordinates the TEMS and theenvironmental programs and initiatives inthe manufacturing operations. The groupsupports the seven shop floorenvironmental teams (TEMS work groups);Weld, Assembly, Paint, Press, Powertrain,Production Control, and Port Melbourne.

With the consolidation of manufacturingoperations from Port Melbourne to Altona,a new Bumper/Resin workgroup will beset up in the second half of 2006 togetherwith a Unit Parts workgroup.

There are regular cross-functionalworkshops where these groups addressenvironmental issues such as:

• Internal and external audits findings

• New environmental improvementprojects

• Training and awareness.

During 2005 the TEMS work groupsimplemented 16 documented environmentalimprovement projects, savingapproximately $775,000 for the year.

Environmental shop floor training andawareness

In 2005 Toyota Australia continued topresent an environmental unit as part ofthe curriculum of the Success inAutomotive Manufacturing (SAM) course itconducts for team member development.Over 90 employees from Altonamanufacturing and the Brisbane PartsDistribution Centre attended a practicaltraining session aimed at improving

awareness and understanding ofenvironmental issues.

A range of activities were also organisedat Altona to celebrate World EnvironmentDay, and National Tree Day.

2005 TEMS awards

Awards are given each year to bothgroups and individuals in recognition oftheir hard work and efforts to:

• Reduce costs through resource savingprojects

• TEMS maintenance and commitment.

The winners this year were:

Most Effective Work Group – Powertrain

Best Individual Effort – Phat Huynh (Body Shop)

Most Supportive Work Group Member -Manjit Sidhu and David Mifsud(Powertrain), Peter Holt (Assembly Shop),Phil Vella (Paint Shop)

Most Supportive Manager -Malcolm Tucker (Paint Shop)

Best Project for Water -Paul Maranelli (Paint Shop) – Sludge pooloptimisation saving 19,000 m3 and$28,000 per year.

Best Project for Waste -Clint Harrison (Production Engineering) –Primer robots introduction saving 17,700litres of paint, 23,000 kg of sludge and$390,000 per year.

Best Project for Energy -Matthew Allan & Malcolm Tucker (PaintShop) – Decommissioning of afterburners,saving 52,000GJ and $195,000 per year.

Bumper bar production

The new bumper bar, unit parts and fueltank operations replace existingoperations at the Port Melbourne siteand have enabled Toyota Australia toembark on air quality improvementinitiatives.

For example:

• The solvent-borne, hand paintedbumper bar process was replaced bya new waterborne robotic processthat is expected to reduce the amountof solvent and VOCs emitted from205 tonnes per annum (tpa) to 155 tpa.

• The new fuel tank paintingshowercoat process is a closed loopsystem, with a transfer efficiency ofalmost 100%, virtually eliminating theoverspray waste of the previous spraypainting process. This process isexpected to halve VOC emissionsfrom 14.35 tpa to 7.72 tpa.

03 03e n v i r o n m e n t




TEMS work group members at the 2005 Awards Ceremony

http://www.npi.gov.au

http://www.greenhouse.gov.au/challenge/

http://www.epa.vic.gov.au

http://www.environment.toyota.com.au/TWP/Upload/Media/299.pdf

http://www.environment.toyota.com.au/TWP/Upload/Media/299.pdf

http://www.npi.gov.au

http://www.greenhouse.gov.au/challenge

http://www.epa.vic.gov.au


Environmental impact and activities

As a result of Toyota Australia’scontinuous improvement philosophy(Kaizen), this report contains a newsection on the impact of export anddistribution activities.

The Export and Distribution Divisionconsists of three key areas: export,logistics and order systems. Departmentalactivities primarily cover vehicledistribution (via suppliers), and ordering.

Key suppliers are Patrick Autocare(processing and transport), Prixcar(processing), Toll (transport), TNT(transport), NYK (shipping), and K-Line(shipping). Currently, environmental data isonly being collected from one key logisticssupplier, Patrick Autocare.

The following table summarises the mainenvironmental impacts from Export andDistribution activities.


E x p o r t a n d D i s t r i b u t i o n


E x p o r t a n d D i s t r i b u t i o n03 03Export andDistribution

Area Activity Environmental aspects Impact

Export

Transit yard operations Emissions - vehicle handling, yard/ferry vehicle, truck loading

Altona Energy consumption - tunnel lighting, office operation Medium

Paper - Vehicle Survey Report (VSR), case marking, protective floor covers, key number

Transport of export vehicles Emissions - truck, vehicle unloading, vehicle handling

to wharf Paper – VSR paperwork High

Export wharf operations Emissions - truck unloading, vehicle handling

Energy consumption - site lighting, office operation Low

Shipping of export vehicles Emissions - vessel loading, vessel sailing

Energy consumption - site lighting, office operation High

Logistics

Transit yard operations Emissions - vehicle handling, yard/ferry vehicle, truck loading

Altona Energy consumption - tunnel lighting, office operation Medium

Paper - VSR, case marking, protective floor covers

Transport of vehicles to Emissions - truck, vehicle unloading, vehicle handling

dealers (local and interstate) Paper - VSR Very High

Processing facility operations Emissions - vehicle handling, forklift, yard/ferry vehicle

(VIC, NSW, QLD, NT and SA) Energy consumption - tools, lighting, hoists, office operation Medium

Paper - VSR, case marking, protective floor covers

Vehicle storage operations Emissions - vehicle handling, yard/ferry vehicle

(including vehicle repairs) Paper – Ready For Transport (RFT) reporting Medium

Order systems

Compliance plate Energy consumption - compliance plate printing machine Low

printing and distribution

All areas

Office administration Energy consumption - PCs, printers, lighting Medium

Paper - printing, stationary, publications

Action Year Result Benefit

Port Dealer Direct facilities - on wharf processing 2001 Eliminated transport from wharf to processing C02 emissionssite by creating on-wharf processing facilities.Eliminated over 60,000 truck transport loads since 2001

Improved trailer configuration 2003 Trailer capacity lifted from six passenger cars to seven C02 emissionscreated additional efficiency gains through less truck movements

Electronic Port Fitment Instruction (PFI) distribution 2003 Distribute all PFI documentation by email Paper usage

Electronic kanban email system for PFI parts 2003 Eliminated need to mail kanban cards for parts orders. Paper usageReplaced with email process

Introduction of Autotainer (Rail) transport on domestic 2003/04 26% of interstate deliveries are now handled by rail - C02 emissionsinterstate deliveries to dealers replacing 2,434 trucks loads.

Rail (approximately 21.7g C02/ton-km) v. Truck (approximately 177.3g C02/ton-km)

Improved Autotainer efficiency 2004 Double stacking of Autotainer boxes in South Australia C02 emissionshas resulted in greater Autotainer efficiency

Introduction of a paperless delivery system 2005 Eliminated four sheets of paper for every vehicle Paper usage– Electronic Proof of Delivery – in August 2005 transported. Since August 2005 implementation of

paper saving initiatives has saved 1,600 reams of paper per year.

Key environmental initiatives to date

Key environmental focus areas for 2006 The key focus for Toyota Australia is toestablish a complete inventory of logisticsC02 emissions. This will form thefoundation for a number of Kaizen

activities specifically focused on reducingenvironmental impact. This will be done according to thefollowing process:

Reporting:

In conjunction with suppliersdevelop C02 emissionsreporting

Awareness:

Raiseawarenessofenvironmentalimpact of operations

Partnership:

In conjunction with suppliersidentify key environmentinitiatives

Planning:

Develop annual EnvironmentPlan with key suppliers


Reducing the impact of oursales and marketing operations

Toyota Australia has 927 employeesbased in Woolooware Bay, Sydney whowork in the Sales and Marketing operating<None> Development, Domestic Sales,Customer Service, and Export andDistribution.

Dealer environment strategy Toyota Australia is broadeningenvironmental management programs toinclude dealers. As part of a regular self-auditing program called Toyota ServiceMarketing (TSM) dealers are required toanswer a series of environmentalquestions dealing with:

• A public commitment to environmentalimprovement

• Legislative compliance with environmentalregulations

• Resourcing for environmental initiativesand the appointment of anenvironmental representative

• Appropriate disposal of wastes and airconditioning gases.

In addition to this the following activitieswill be undertaken:

• Best practice case studies have beenprepared and will be distributed toprovide demonstrative assistance toother dealers

• The Dealer Environment Guidelines willbe promoted to dealers

• Bumper bar recycling will be expandedto as many dealerships as possible.

The Environmental Policy Department willcontinue to be a source of advice todealers through a web portal, and a seriesof dealer site visits.

EcoRecycle Materials Efficiency project

As part of a joint funding partnership withEcoRecycle Victoria (Sustainability Victoria),URS Australia was commissioned byToyota Australia in February 2005 toestablish materials efficiency indicators forselected parts and accessories. The reportprovided insights into the logistics of partsand accessories delivery and associatedwaste issues at Victorian dealerships.

Below is a summary of the findings:

• Overall, the materials efficiency of theparts and accessories investigated was75%. That is, 75% of the total materials(including packaging) delivered for partsand accessories ends up as saleableproduct, but the remainder enters thewaste stream

• Oil filters had the lowest materialsefficiency, but they generate a relativelysmall amount of waste

• Bull bars and air-conditioning units arethe two largest sources of packagingwaste, producing an estimated 220 tonnesand 105 tonnes respectively in a year

• Proportions of each waste typegenerated are roughly consistent acrossdealerships of differing sizes.

Based on these findings, the reportidentified opportunities to improvepackaging efficiency and reduce wastegeneration:

• By using more returnable packaging orstillages/skids

• By eliminating or recycling avoidablewaste streams, like polypropylenebumper covers and steel rims

• By encouraging the use of reusable seatcovers during servicing.

Bumper bar recycling from dealerships

The EcoRecycle Materials Efficiency projectconfirmed anecdotal data from DistrictSales Operation Managers and dealershipsthat the removal and disposal to landfill ofpolypropylene bumper covers to allow thefitting of bull bars was the cause ofsubstantial waste generation. Services forthe collecting and recycling of polypropylenebumper covers exist in Australia, providedmaterial types are known and they arerelatively free of contaminants. ToyotaAustralia, in partnership with NunawadingToyota and Sims Plastics, has commencedthe collection and recycling of bumperbars from this dealership. This trial will beexpanded to include other dealerships inmetropolitan Melbourne.

Parts distribution centresEnvironmental Management Systems

An Environmental Management System(EMS) Coordinator was appointed inFebruary 2006 to implement EMS into thefive national parts distribution centres. The Sydney Parts Distribution Centre willbe first to implement and certify an EMS,and the system will later expand to allcentres. The EMS will:

• Deliver awareness training for ongoingimplementation of environmentally soundwork practices in day to day operations

• Build on current environmental initiativessuch as colour-coded waste segregationand returnable modules.

Returnable Modules

The returnable modules project is a globalToyota initiative to reduce packagingwaste by implementing four returnablesteel modules which can carry all Toyotaparts and accessories. Australianimplementation is the third phase,following on from the United States andEurope. During 2005 the strategy forimplementation of returnable deliverymodules, including module styles andreturn routes, was confirmed. Thesemodules will allow a significant reductionin cardboard packaging and wastethroughout our supply chain. Initialimplementation of returnable modulesfrom Japan is to commence in April 2006and expanded to full rollout in March2007. In conjunction with full rollout,Toyota Australia also plans to implementdomestic returnable modules. This willfurther reduce cardboard packaging.

Waste Minimisation

A review of solid waste management datawill be completed for the Sydney PartsDistribution Centre and reduction targetsfor solid waste to landfill will beestablished and reported as part of theEnvironmental Management System.


S a l e s a n d M a r k e t i n g


S a l e s a n d M a r k e t i n g03 03Sales andMarketing

PulpmasterThe Australian designed and manufacturedPulpmaster 3000 converts all types offood waste into a pulp slurry, then pumpsit into a holding tank. Pulpmaster vacuumtankers extract the pulp from the tank andtransport it to a biogas-digester. Methanegas generated by the pulped food wasteis extracted and burned to produceelectricity and organic fertiliser pellets areproduced as a by-product.

Improving waste management processesand implementing the Pulpmaster hasresulted in some significant benefits:

• A reduction in the use of black plasticbin liners by 5,000 a year

• A saving of up to $14,700 a year indisposal costs with all foods, fats andcooking oils now being disposed ofthrough the Pulpmaster

• Co-mingled bins for plastic, glass andmetals, and the introduction of cardboardcages have reduced waste to landfill

• The pulp slurry taken from Pulpmaster isturned into renewable electricity at abiogas-digester and this power is soldinto the electricity grid for distribution toend users in the domestic, commercialand industrial sectors.

The Department of Environment,Conservation and Heritage has grantedToyota Australia $15,000 for the finalimplementation into the Woolooware Baysite. Plans are being developed toimplement this recycling system at ToyotaAustralia’s other catering facilities.

Prius trialled by Sydney taxi company

A Sydney taxi company is running a hybridpetrol-electric Toyota Prius in a bid toevaluate alternative fuel systems. LegionCabs, with the approval of the NSWGovernment, is conducting a two-yearstudy in a bid to assess more economicallysustainable fuel systems for the taxis oftomorrow. “We are researching how the hybridtechnology of the Prius stands upeconomically,” said John McPherson,general manager, Legion Cabs. “Vehiclechoice in the taxi industry is all about

minimising running costs and downtime. Ifthere’s an alternative to the traditionalvehicles that may benefit us, we’re obligedto investigate it. If everything adds up,there’s the possibility we could switch tohybrid technology.

The Prius has been excellent fuel-wise.We’re achieving fuel consumption of lessthan six litres per 100 kilometres,” said MrMcPherson. “Everybody thinks it’sfantastic. Our driver loves it because everypassenger is really interested and wants to

know more about the car. Another surprisehas been the storage capacity. For a carthat isn’t large externally, it canaccommodate a huge amount of luggage.This is obviously useful when picking uppassengers from the airport. It’s only veryearly into the trial, but I’ve not had onenegative comment about the Prius to date.”

During the two year trial period LegionCabs expects the vehicle to travel up to400,000 kilometres.

Bumper bar recycling atNunawading Toyota.


c o m m u n i t y i n v o l v e m e n t c o m m u n i t y i n v o l v e m e n t

04Objective

Establish volunteer referralservice to match volunteerswith conservation projects inlocal communities acrossAustralia

Recognise the skills gainedby volunteers when workingon CVA projects

Promote ConservationConnect and Certificate 1 inActive Volunteering to targetaudiences

Encourage dealerparticipation in partnershipactivities

Increase Toyota employeeawareness of the partnershipand activities

Activity

Develop and maintainConservation Connect – onlinematching service for volunteers

Develop and deliver Certificate1 in Active Volunteering to CVAvolunteers

Develop a Logbook to supportCertificate delivery. Update asrequired

Develop and implementcommunication plan and localmedia campaign

Develop and implement plan toincrease dealer awareness ofopportunities to participate inpartnership activities

Support dealers to participatein partnership activities

Seek and implementopportunities to communicatewith Toyota employees

Outcomes

In 2004 CVA and Toyota Australia launched the only online booking service forvolunteers, and since then the results have been impressive:

• 8,026 online registrations in 12 months

• 4,504 online bookings in 12 months

• More than 35,000 unique visitors to the CVA website a month with ConservationConnect the most popular page on the site

• 500 volunteers enrolled in the Certificate in Active Volunteering

• CVA commenced providing the Certificate in Active Volunteering in late 2004

• CVA continues to be the only volunteer involving organisation in Australia to offerthis qualification

• Logbook updated in April 2005. Currently reviewing logbook as part of annualreview process

• CVA has distributed the Conservation Connect flyer, poster and display to morethan 2,500 community organisations including schools, tertiary campuses,volunteer resource centres and local councils

• CVA had identified 93 local media opportunities and generated more than 61pieces of media coverage

• CVA and Toyota Australia highlighted as best practice partnership by the ‘OurCommunity Business Intelligence Report’, October 2005

• CVA provided InterCapital with more than 20 media opportunities and a mediaspokesperson resulting in coverage in the Saturday ‘Age’ and ‘The GeelongAdvertiser’

• Conservation Connect with CVA and Toyota Australia a finalist in the 2005 Banksia Awards

• CVA and Toyota Australia delivered paper on the Certificate in Active Volunteeringat the International Conference on Volunteering in Melbourne and at the CorporateSocial Responsibility Conference in Sydney in March 2006

• CVA and Toyota Australia highlighted as a best practice partnership by theDepartment of Victorian Communities

• Handbook for dealers prepared and distributed with letter from Toyota AustraliaPresident and CEO, Ted Okada

• 77 dealers have expressed interest in participating in partnership

• 42 of these dealers have actively participated in partnership activities such aspresentation of Certificate 1 to graduating volunteers or displaying ConservationConnect promotional materials

• Presentations to employees at Altona, Port Melbourne and Sydney onConservation Connect

• CVA display at Toyota World Environment Day activities at Altona, Port Melbourneand Woolooware Bay

• CVA display at Toyota Australia Family and Friends Open Day

• Articles about partnership published in Toyota Today

• Toyota Australia hosted capacity building workshops in Melbourne and Sydney

• Toyota Australia representatives presented on generating local media coverage toCVA staff workshops in each state between February to April 2006

• Toyota Australia staff involved in production of 2006 Conservation Calendar

• Toyota Australia staff involved in developing CVA Driver Safety Awards

• CVA expanded fleet of Toyota vehicles to more than 40

Partnership Outcomes

Toyota Community Spirit, acorporate citizenship program,develops partnerships thatshare Toyota Australia’s skills,networks, expertise and otherresources within thecommunity.

The program provides opportunities forToyota Australia to participate in the issuesand activities that benefit the Australiancommunity, and so build corporatereputation and relationships.

The program provides financial and in-kindsupport for national and state communitypartnerships and local communityprograms. These partnerships deliverbenefits to the community, and tocommunity partners, and to the Companyitself. The national program engagesemployees from Toyota Australia dealersas well as direct employees of ToyotaAustralia.

Partnership with ConservationVolunteers Australia

Conservation Volunteers Australia (CVA)and Toyota Community Spirit are workingtogether to connect more volunteers toenvironmental projects across the country.Toyota Australia provides promotionalsupport, technical skills, expertisewhenever possible, and financial support.

The partnership aims to increase thenumber of Australians participating in localenvironmental projects by makingvolunteering easy and accessible. It alsoaims to recognise the skills volunteers gainon CVA projects.

The partnership has two key elements:

1. Conservation Connect –

An on-line registration and booking facilityfor volunteers.

Volunteers can register for environmentalprojects online through the CVA websiteand then simply click on the ConservationConnect button to select the project intheir neighbourhood.

Conservation Connect enables volunteersto select from more than 2,000environmental projects Australia-wide andimmediately book their place. Volunteersreceive a booking confirmation andinstructions on where to meet and what tobring to their chosen project.

2. Certificate 1 in Active Volunteering –

A formal qualification that details thecompetencies volunteers achieve throughvolunteering on CVA projects.

Through thepartnership withToyota Australia,CVA is the firstorganisation inAustralia to offerCertificate 1 inActiveVolunteering toparticipants,therebyrecognising skillsand experiences.

Toyota Australia dealers are helping CVA to reach newvolunteers and recognise current volunteers in theirlocal communities. Some dealerships have alsoparticipated in events to recognise local graduates ofCertificate 1 in Active Volunteering.

http://www.conservationvolunteers.com.au

http://www.conservationvolunteers.com.au


04 04c o m m u n i t y i n v o l v e m e n t c o m m u n i t y i n v o l v e m e n t

Partnership with AustraliaBusiness Arts Foundation

Toyota Community Spirit and AbaF areworking together to foster newpartnerships between local artsorganisations and local businesses acrossAustralia.

The partnership focuses on two mainactivities:

1. A 12 month training program to assistlocal Councils foster partnershipsbetween local businesses and local artsorganisations, to encourage artsdonations.

2. Encouraging Toyota Australiaemployees to participate in AbaF’svolunteering programs: adviceBank andboardBank. AdviceBank provides probono volunteering opportunities witharts organisations nationally, whileboardBank connects volunteersinterested in gaining Board experiencewith arts organisations looking forBoard members.

In this partnership, Toyota Australia isproviding promotional support, technicalskills, expertise where possible, employeevolunteers and financial support.

Toyota Australia is also an AbaF Councillorcompany. The AbaF Council comprisessenior Australian business leaders at thePresident/CEO level, including the ToyotaAustralia President and CEO, Ted Okada.Councillors meet annually to discuss waysto encourage more support for the arts inAustralia, and to share ideas on ways inwhich their own companies are engagingwith, and gaining benefits from, their artspartnerships.

Dealer and employeeparticipation in AbaFpartnership

Toyota Australia is helping AbaF topromote the business benefits of artspartnerships to local businesses acrossAustralia.

For each local program, a Toyota Australiarepresentative speaks to arts andbusiness participants on the advantagesthat arts partnerships have delivered toToyota Australia. Dealers are participatingin the partnership by helping AbaF reachpotential business participants in theircommunities, by showcasing their ownlocal arts partnership programs, and byattending the business seminar to learnmore about the business benefits of artspartnerships.

Partnership with Phillip IslandNature Parks

In this partnership, Toyota Australia isproviding technical expertise wherepossible, employee volunteers, career rolemodels and funding.

The partnership comprises three areas:

1. Education:Coastal Ambassadors Program

This is an environmental educationprogram for secondary and primaryschools students.

The Coastal Ambassadors Programencourages Year 9 students to becomeambassadors of the ocean environment intheir local communities. Participants learnabout environmental issues, as well asleadership and teamwork, by workingalongside marine biologists and scientistsat the Phillip Island Nature Park.

Representatives from Toyota Australia’sEnvironmental Policy Department give apresentation to the students on howToyota Australia encourages improvedenvironmental performance in its productsand operations.

2. Conservation: Project Penguin Homes

This project allows Toyota Australiaemployees to work alongside seniorrangers and the research team to improvethe homes and habitat of Phillip IslandNature Park’s little penguin colony. Itinvolves building penguin homes fromtimber materials, installing them intoselected penguin habitat and assisting inthe re-vegetation of that area.

The penguin homes provide an improvedenvironment for the penguins to breed,hatch and raise their chicks adding asignificant benefit to the overall health ofthe penguin colony.

Toyota Australia employees haveparticipated in the project from 2003 to2005.

3. Research: Penguin tracking study

This three year research project will helpto determine factors affecting the longterm population levels of penguin colonies.It will be the first time such a study willhave been undertaken and will focus onfour separate penguin colonies living onthe Direction Islands off the east coast ofWilsons Promontory, Victoria. Usingsatellite technology, researchers will trackindividual penguins to gain data on theirforaging distances for food, and todetermine to what extent food zones andfood sources are a limiting factor inpenguin colony size.

Objective

To enable councils to developthe capacity to facilitatebusiness arts partnerships

To encourage and equip localarts organisations andbusinesses to developsuccessful partnerships

To increase awareness thatToyota Australia is the NationalPrincipal Partner of the ACCprogram

To demonstrate ToyotaAustralia’s commitment to the Arts

To strengthen Toyota’s statusas a Councillor company

To increase dealer participationin Toyota Community Spirit

Activity

Development andmanagement of the ArtsConnecting Communities(ACC) program

Target: ten councils

Deliver report to AbaFCouncillor Forum

Toyota Community Award

Undertake the program andencourage Toyota dealerparticipation

Outcomes

AbaF is currently working with 19 councils in New South Wales, Queensland,Victoria and Western Australia. Four councils have completed the program

AbaF Councillors’ report included coverage of Toyota Australia and the ACCprogram

Naming rights secured – Toyota Community Award presented by David Greenhalgh,Divisional Manager, Corporate Planning and Environment, Toyota Australia

Dealer handbook produced

Five dealers participating in program


Objective

To increase primary andsecondary studentsawareness of oceanenvironments in their localcommunities

To increase Toyota Australiaemployee awareness ofocean environments

Determine factors that affectlong term population levels ofpenguin colonies

Activity

Hold Coastal AmbassadorsCamps on Phillip Island

Provide employee volunteeringopportunities at Phillip IslandNature Parks

Track penguin movementsduring chick rearing and chickfeeding stages

Outcomes

Coastal Ambassador Camps were held from May 23-27 and November 7-11 in2005. A total of 90 secondary students attended these camps

A Toyota Australia representative gave three presentations to a total of 90 primarystudents taking part in the Coastal Club Program

On November 5-6, 242 Toyota staff and their families came to Phillip Island andconstructed and installed 110 penguin homes as well as planting 500 plants

Satellite devices were attached to 24 penguins from Phillip Island, 20 penguins fromRabbit Island, and 13 penguins from Kanowna Island. These devices have provedsuccessful in tracking penguin movements


Collingwood Community Cook Island Dance Groupat the launch of the AbaF and Toyota Australiapartnership.

In this third year, 242 Toyota Australia employees and their families volunteered to helpbuild 110 penguin boxes. The event runs over a weekend.

http://www.abaf.org.au

http://www.abaf.org.au


04 04c o m m u n i t y i n v o l v e m e n t c o m m u n i t y i n v o l v e m e n t

Support of majorcommunity events.Toyota Australia is committed to being a major corporate citizen by supportingand sponsoring an array of community-based groups and sportingorganisations.

Melbourne 2006Commonwealth Games

As an Official Partner, Toyota Australiaprovided up to 1,350 vehicles for use byathletes, Games officials and staff. Thelocally manufactured Camry was thesignature vehicle for the MelbourneGames fleet. Toyota Australia employeesalso supported the training of volunteerdrivers.

Toyota Australia was also a PresentingPartner of the Games Volunteer program,Environment program, hockey andbasketball.

Australian Football LeaguePremiership seasonToyota Australia has been the namingrights sponsor of the Australian FootballLeague since 2004. This sponsorship is inaddition to Toyota Australia’s sponsorshipof the Adelaide Camry Crows.

Lexus sponsors The Lexus Centre, theofficial home of the Collingwood FootballClub. The centre also houses the VictorianInstitute of Sport.

2006 Clean Up Fraser IslandToyota Australia again partnered withQueensland Parks and Wildlife Service(QPWS) and the Queensland 4x4Association to initiate the annual clean upof Fraser Island over the Australia Daylong weekend in 2006.

Volunteers collected nearly 40 cubic metresof rubbish, with nine cubic metres suitablefor recycling. The clean up effort alsofocussed on the awareness and removalof over 1,500 square metres of EasterCassia weed from the Happy Valley area.

National Tree Day, Sunday 31 July 2005

Toyota Australia celebrated its sixth yearas major sponsor of National Tree Day,with employees and dealers acrossAustralia participating.

The Altona manufacturing plant ran afamily tree planting day at Kororoit Creek(located in Melbourne’s west). More than200 people, including Toyota Australiaemployees, their families and the Friendsof Lower Kororoit Creek joined in andplanted over 1,500 trees.

167 Toyota Australia dealers activelyparticipated in National Tree Day events,hosting planting sites everywhere aroundthe country from Sydney to Alice Springsin the Northern Territory.

Overall one million trees were planted by320,000 volunteers at 3,800 different sites.

Australian Paralympic WinterTeam

As a major sponsor of the AustralianParalympic Team, Australian athletes gainopportunities to train and compete at aglobal level. The sponsorship also assistsin the development of young talent.

World Expo Aichi Japan 2005

The World Expo Aichi Japan 2005 tookplace from 25 March to 25 September2005. The Aichi prefecture in Japan is thehome of Toyota’s headquarters and mostof its car manufacturing plants. It is alsothe sister prefecture to the state ofVictoria. Toyota Australia was an officialpartner, along with the FederalGovernment, for Australia’s participation inthe Expo.

Both Toyota Motor Corporation andToyota Australia made significantcontributions to the Expo. As part of thiscontribution, from April to June 2005,Toyota Australia ran an EnvironmentImprovement Ideas competition. Tenprizes of a trip to Japan and Aichi Expowere awarded. Its purpose was to:

• Increase employees’ awareness ofenvironmental issues and the Expo

• Allow recognition of individuals’commitment to the environment

• Facilitate environmental improvementsand awareness through both thecompetition entries themselves and thesharing of these ideas.

World Expo Aichi Japan 2005 emphasisedthe close links binding humanity to naturein the 21st century through its theme ofNature’s Wisdom. The Expo gave visitorsa chance to experience first-hand theleading-edge technologies, new socialsystems and future lifestyles that mayprovide solutions to the many seriousissues now facing the world.

Partnership with Hobsons BayCity Council

Toyota Community Spirit was originallydeveloped and piloted during 2001 inpartnership with the City of Hobsons Bay,home of Toyota Australia’s manufacturingplant. The principles piloted in HobsonsBay now form the basis of this nationalprogram.

In July 2004, Toyota Australia announceda landmark strategic alliance agreementwith Hobsons Bay City Council. Thisdocument now provides the framework forthe ongoing development andimplementation of community-buildinginitiatives between Hobsons Bay andToyota Australia.

Community training workshops Toyota Australia is working in partnershipwith the Hobsons Bay City Council todeliver a series of training workshops thataddress the training needs and priorities oflocal groups.

Originally piloted in 2002, the workshopshave continued to be delivered during2003, 2004 and 2005 due to communitydemand. During 2005/06 trainingworkshops targeting the specific needs ofenvironmental groups and kindergartencommittees were delivered. An evaluationof the long term community benefits of theworkshops was undertaken during 2005.

Toyota Community Spirit gallery

The gallery, located in Toyota Australia’sCorporate Headquarters in PortMelbourne, provides exhibition space forartists, especially emerging artists from theCity of Hobsons Bay and the City of PortPhillip. The space is provided free ofcharge, no commission is charged onsales, and Toyota Australia provides alaunch and develops a catalogue for eachexhibition. To date, the gallery has shownworks by more than 100 artists. ToyotaAustralia is currently working withHobsons Bay City Council, the City of PortPhillip and the Contemporary Sculptors’Association on this project. The ToyotaCommunity Spirit gallery opening hoursare Thursday and Friday 1pm – 6pm, orby appointment with the Curator. During2005/06, five exhibitions were held:

• Neomillenium, an exhibition exploring thepath to the future: February to end May2005

• Urbantide, 20 emerging artists from thecommunities of Hobsons Bay, PortPhillip and beyond: June to end August2005

• Metaphysics, an exhibition of indoor andoutdoor sculpture exploring time, placeand the human condition: September toearly December 2005

• Natural Selection, an exhibition byToyota Australia employees from Altonaand Port Melbourne: December 2005 toFebruary 2006

• Post-Mod, an exploration in post-modernism: February to end May 2006.

Reverse Garbage and Junk Love

Junk Love is an art and design competitionrun by the not-for-profit cooperative,Reverse Garbage. It was created toprovide an opportunity for artists anddesigners working with reusable materialsto showcase their work, while promotingan awareness of waste avoidance andreuse issues. Many of the exhibitors are atthe cutting edge of contemporary art anddesign, although there is also a children’ssection. Almost 90 exhibits have beenshown in total, including clothing,sculpture, painting and jewellery.

In this partnership, Toyota Australiaprovides event management expertise,logistics support, administration andfunding.

Reverse Garbage collects more than8,000 cubic metres of industry off-cutsand waste every year to create a supply ofart materials. For 30 years, ReverseGarbage has provided teachers, artists,home renovators and the general publicwith high quality industrial discards, off-cuts and over-runs for creative communityuse.

After its public exhibition at the AddisonRoad gallery in Marrickville, a number ofthe Junk Love exhibition items wereselected for a separate exhibition atToyota Australia’s Sales and Marketingoffices in Woolooware Bay, Sydney.

Metaphysics was the first sculpture show at the Toyota Community Spirit gallery. Toyota Australia worked with the Contemporary Sculptors’ Association, Hobsons Bay CityCouncil and the City of Port Phillip on this exhibition. Pictured is Konstantin Dimopoulos and his work ‘Firebird’. A similar work by Dimopoulos has been commissioned forMelbourne Federation Square.

Toyota Australia’s marketing team with Toyota ambassadors: L-R (back row) Paralympian Michael Milton, Lee Kerrigan, Melinda Schneider, and Kerrie Anne Kennerley (front centre).

Scrap metal Emu sculpture, exhibited atWoolooware Bay, Sydney.

Assurance StatementURS Australia Pty Ltd (URS) was commissioned by Toyota Motor Corporation Australia Limited(Toyota Australia) to provide independent assurance of its Environment and Community Report2006 (the Report). URS is a leading engineering and environmental consultancy with approximately29,000 personnel in 300 offices around the world, including specialists in the assurance of publicenvironment and sustainability reports.

ScopeThe independent assurance was undertaken during April-June 2006. Based on the three principlesof the Assurance Standard, AA1000, namely materiality, completeness and responsiveness, and theURS Assurance Principles, the following elements were assessed:• Data accuracy via data trails, back to original records where possible;• Relevance of key statements made in the Report;• Robustness of data collation systems including the integrity of processes, mechanisms and

controls in place for data capture, transcription and report preparation. Personnel (office-basedand operational) were interviewed and records reviewed;

• Transparency of performance reporting, that is the extent to which the Report reflects what ishappening on the ground at Toyota Australia, via site inspection, interviews with relevantpersonnel and review of records. In addition, a senior manager was interviewed regarding hislevel of commitment, understanding and involvement in sustainability; and

• Responsiveness to stakeholder needs via review of data and statements relating to ToyotaAustralia’s partners (stakeholder groups), including interviews where needed.

URS IndependenceURS has not been involved in the design or compilation of the Report or decisions regarding itscontent (except by way of this assurance). URS, its parent companies and related companies havepreviously been engaged by Toyota Australia. The average value of work carried out by URSAustralia on behalf of Toyota Australia over the three year period to the date of the statement wasless than 1% of annual URS Corporation gross revenue, based on our 2005 reporting year.

OpinionOn the basis of this independent assurance, URS is of the opinion that the Report truthfully andfairly presents the performance of Toyota Australia with respect to sustainability for the reportingperiod. Toyota Australia recognises that work remains to be done to achieve a completesustainability report covering all material issues, however progress is being made. Data accuracyremains high and responsiveness to stakeholder needs again emerged as a strength in the Report.

FindingsInconsistencies were noted for a proportion of the data audited. These inconsistencies wereconveyed to, and corrected by, Toyota Australia’s Environmental Policy Department prior tofinalisation of the Report. In addition, where statements could not be verified with appropriateevidence, they were subsequently removed from the Report. URS will also provide a managementreport to Toyota Australia with more detail on the assurance findings.

The Report satisfies the principles of AA1000, in particular the Report is more complete than inprevious years, with new coverage of company philosophy, Corporate Responsibility Index (CRI),environmental performance, human resources and safety. The Report also demonstrates that ToyotaCommunity Spirit continues to deliver responsiveness via strong partnerships between stakeholdersand Toyota Australia. However, the following areas for improvement are highlighted:• Report development process – inconsistencies could be avoided by increased internal verification

checks and better involvement of featured departments in drafting the Report;• Data collation system – a framework outlining the source and responsibility for each data item

would improve the reporting process;• Coverage of sustainability issues – work remains to achieve completeness via coverage of all

material sustainability issues, in particular health & safety data; and• Reporting period – this Report represents a departure from calendar year to fiscal year reporting,

bringing specific challenges; greater clarity of the reporting period is expected in next year’sReport.

On behalf of the assurance team - 5 July 2006 - Melbourne, Australia

Jo Cain, Senior Principal - Sustainability Strategy, URS

Disclaimer. URS has prepared this statement for the use of Toyota Australia in accordance with generally acceptedpractices and standards at the time it was prepared. No other warranty, expressed or implied, is made to theprofessional advice included in this statement. To the extent allowed by law, URS will not be liable for any reliancewhich may be placed on this statement. Neither URS’s name nor the material submitted in this statement may beincluded in any prospectus or use in offering or representations in connection with the sale of securities orparticipation interest to the public without URS’s prior consent in writing.

[email protected]

s t a t e m e n t o f a s s u r a n c e

Toyota Australia is striving to continuouslyimprove its reporting and actively seeksfeedback from all stakeholders.

Feedback to the 2005 Environment andCommunity Report has been incorporatedin this report and we welcome furthercomments or suggestions.

To provide feedback please email:

This report is printed with vegetableinks on paper stock made from 100%pre and post-consumer recycled paper.No oxygen or chlorine gas was usedto bleach it. The printer, Print Bound Pty Ltd, isISO14001 certified.

Printed with

SOY INK

Documents

Toyota Australia - Environment and Community Report 2006 · Environment and Community Report 2006 2 1 Toyota Australia Message from the President Throughout 2005 and now into 2006,