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In our 2009 Sustainability Report, we said that our company has part of our everyday commitment to excellence.
the ability and spirit to solve problems and to navigate through
the difficult times brought on by the global economic crisis. Since 2006, customer satisfaction as measured by Toyota
retailers has improved by 19% in sales and 13% in after sales.
Then, at the beginning of 2010, we were hit with another
crisis - product recalls. The recall crisis was unexpected given Looking to the future, the automotive industry can make
Toyota’s reputation for quality, durability and reliability - the a substantial contribution to the creation of a low-carbon
major characteristics of any Toyota car. society by improving fuel efficiency and developing and
introducing new technologies which reduce emissions and
Toyota Motor Corporation President Akio Toyoda suggested enable personal mobility. In FY09, according to JATO, our
going back to the basics and said “Let’s simply make better cars”. company’s average carbon dioxide emissions of cars sold
reduced by more than 10% from FY08 to 132.2 g/km (1).
For that purpose, Toyota Motor Corporation established a We will make continuous efforts to reduce C02 emissions
Special Committee for Global Quality. To represent Toyota of cars sold.
Motor Europe, I have been appointed Chief Quality Officer
and I am leading the European Quality Taskforce. Our technological leadership is further demonstrated by
the introduction of a fleet of 200 Plug-in Hybrid Vehicles
Our utmost priorities were fixing the problem, regaining that will be tested in 18 European countries. At the
customers’ trust, people’s respect and customer confidence same time, we are testing Fuel Cell Hybrid Vehicles in
in Toyota’s commitment to superior quality. The improvements Germany.
have been quicker than we initially anticipated.
Plug-in Hybrid technology will make an important
‘Customer First’ remains a landmark Toyota philosophy. contribution towards ensuring sustainable mobility. In our
Each member of our team in Europe aims to always deliver view, this hybrid technology is the best way of achieving
their best and our retailers are committed to providing the the major efficiency improvements needed and will pave
best overall customer experience. Customer satisfaction is the way towards a low-carbon future.
Didier Leroy
President, Toyota Motor Europe
10% reduction in the average CO2 emissions An Integrated Approach is needed to real-
of Toyota and Lexus vehicles sold in 2009 ise the vision to de-carbonise automotive
The company’s average CO2 emissions of cars sold has been transport
reduced by more than 10% from 2008 to 132.2 g/km (1). The car industry, fuel companies, suppliers, regulators,
Full hybrid sales were 55,476 units or 6.28% of our total sales. infrastructure providers, and users of vehicles must work
We will continue to further reduce emissions. together to make significant contributions to reducing green-
house gas emissions from road transport.
ost
ty at A ffordable C Reviewing all processes that have an impact on
est Qua li quality: from the vehicle product planning stage
High
to the After Sales service we provide to our
customers.
Trust & S
After Sales operation to better capture information
r
Custome and to provide faster and more effective solutions
to our customers.
The Toyota Quality System looks at quality throughout followed through by field reports, warranty issues and
the complete vehicle lifecycle. The system seeks to customer feedback for improvement.
ensure quality from the first stage of the vehicle’s
development, with the aim of identifying and preventing In terms of the recent product recalls, we are now
potential problems in future vehicles. analysing potential problem areas to ensure the quality,
durability and reliability of critical vehicle components.
Additionally, our customer concerns are stringently The aim is to eliminate any risk for our customers.
8
Advanced
Quality
n
P eventio
r
happening
problem from
1 Stop the
Outflow
n
Preventio
Quality
ent
Improvem
fore
e problem be
Recurrencn 2 Stop the
e custo e
m r
Preven ti o it reaches th
roblem
enerate the same p
4 Do not g
ction &
Early Deteolution
Early Res
kly
roblem quic
problem: solve the p
3 M inimize the
Table of contents
Message from the President 4
Executive Summary 5
Key Figures 6
Special Feature : Toyota’s Approach to Quality 7
Table of Contents 9
Environmental Performance 16
Introduction 17
Special Feature : Moving towards a Global Climate Agreement after Copenhagen 19
Special Feature : Integrated Approach needed for de-carbonising transport 21
Research and Development 23
Manufacturing 32
Logistics 36
Sales and Marketing 44
Lexus 52
After Sales 54
End-of-Life Vehicles and Sustainable Recycling 55
Social Performance 56
Toyota : a Good Corporate Citizen 57
Engaging with Customers 63
Engaging with Employees 67
Engaging with Business Partners 75
Engaging with the Community 78
Economic Performance 82
Market Context 83
Vehicle and Market Share in Europe 84
Production Volumes 84
Investments 84
Vision &Strategy
“ Our vision is to be a leading player in the European automotive industry by
taking a ‘Customer First’ approach to safety, quality and environment and
ensuring we meet and exceed the expectations of our customers, partners
and communities. This gives our company and employees direction. To
„
achieve the vision, formal planning, target-setting process and governance
structure makes us responsive when faced with major issues.
Didier Leroy
Customer First
Vision 2020
Vision 2020 explains the path to ‘ Becoming a Leading Player ’
in Europe by focusing on four key pillars.
ro pe
Player in greater Eu
To be a Leading
Succe ss
r to Glo bal Toyota
b e a Key Contributo
To ce
Self Relian provides
on Our vision
with Focus d an direct
the Europe employees.
ion
orate du ce
ntal Good Corp locally pro
for all To yo ta
Environme Citizen Models
Customer Lea dership
Delight
(1)
hoshin
Regional
European t business
reflects th
e cu rren
t-term Vision
and shor
condition to advanc
e
chal le ng es
realising
towards
From vision to action
n
our vision
. Europea
eg io n a l
R (1)
hoshin
The Toyota European Vision 2020, distributed to our employ- n and
y, functio r
ees in May 2010, will drive our targets, decision making and Compan h in o
l hos
action plans. The pyramid shows how this vision is cascaded divisiona p la n
busin e s s
throughout the organisation.
Member
We, as a team, embrace this challenge and will translate this s
objective
vision to become a leading player and a key contributor to
global Toyota. cts
vision refle
tion and di
pany, func hoshin and their
Each com na l
an Regio anning.
the Europe to their pl
rre nt ch allenges in
own cu
r
fining thei
utes by de
dual contrib rtaking activities
Each indivi de
ives and un
own object on.
ort the visi
that supp
(1)
H oshin is an objective and target-setting process that enables the vision to be translated into action.
Governance structure
Toyota European Sustainability Report 2010 I Vision & Strategy
About Toyota Motor Europe’s Board of Directors Senior executives of Toyota Motor Corporation, the sole
shareholder of Toyota Motor Europe, review the performance
The Board of Director of Toyota Motor Europe is composed
of directors and of the Board as a whole. Executives are
of 6 members, all of whom are executive directors. The
compensated according to industry rates and performance.
company has processes in place to ensure there are no
conflicts of interest. These processes are consistent with the
Governing committees
Company Code of Conduct and include the obligation to
disclose conflicts of interest. Our governing committees help set our strategic direction
and monitor progress in reaching our goals.
The directors of Toyota Motor Europe are selected based on One of the tasks of the committees is to lead our corporate
their qualifications, experience, performance and industry social and environmental responsibilities. Each committee
knowledge and are appointed by Toyota Motor Corporation. has cross-functional representation.
12
cutive
TME Exe e
Co m m itte
sident
Chair: Pre
Quality
e
ication Committe t
Commun mittee air: Presiden
o m Ch
Mobility Strategy C
Electric e-Preside
nt
mmittee Co itte t
m m e Chair: Vic
Audit Co utive siden
c Chair: Pre
mittee Chair: Exe dent
CSR Com ent Vice-Presi
ent Chair: Presid Senior
Environm
itte e
Comm
air: President
Ch
und for
Toyota F ard
o
Euro B dent
p e
air: Vice -Presi
Ch
Page
Priority Area 2009 Achievements in this 2010 Direction/Target
report
13
I. Reduce Energy and Climate Change Impact
Fully compliant with EU Directive on Continue full compliance with EU Directives and REACH.
Reduce and eliminate
end-of-life vehicles, and with the EU Ensure compliance with the new Classification,
substances of concern
Chemical Regulation REACH. Labelling, Packaging (CLP) regulation.
To be able to truly integrate CSR targets into our business, Using this measurement system, we identify kaizen (improvement)
we needed to develop a common understanding and projects and integrate them into our local planning cycles. The
measurement of what CSR Leadership means to our CSR Three Year Business Plan captures CSR targets and actions
company. We measure our CSR performance by conducting for the years to come, based on CSR Assessment results.
an annual CSR Assessment of our National Sales and
Marketing Companies, European Manufacturing Companies
and Head Office. The CSR assessment measures company
performance with respect to five stakeholders:
Customers
Shareholders
Employees
Community
Business Partners
14
By FY10, implement measures to reduce This action was not implemented as Focus on continuous two-way communi-
gender gap in employee recruitment there was a hiring freeze due to the cation, employee motivation and people
by 50%. global financial crisis. development.
By FY10 further realise multi-year action No additional measures were imple-
plan on work/life balance. mented.
Introduced measures to reduce working
hours in FY09 to maintain stable
employment.
Increase internal and external CSR Support was provided for focused Ensure integration in 100% of Toyota
communication. communication on social contributions companies based in Europe.
Ensure definition of European CSR Action and Code of Conduct. Support development of local CSR gover-
Plan which sets targets for National Mar- European CSR Action Plan was defined nance structures.
keting and Sales Companies (NMSCs). in line with Vision 2020.
Integrate CSR activities into business Integrated CSR activities into business
plans of affiliated companies. plans of 60% of Toyota Motor Europe
companies.
Special mobility
15
Strengthen programme in UK and other This programme was discontinued due Not applicable.
countries. to the global economic crisis.
Increase alignment of social contribu- The percentage of total social contribu- Rebuild local admiration and respect by:
tions with overall business strategy. tions with a strategic focus increased to Increasing the involvement of retailers in
Enhance visibility of social contributions 72%, with 44% of contributions funding our social contribution activities.
in Europe. environmental activities.
Setting enhanced targets for employee
Focus on environmental programmes. Enhanced visibility of our social contribu- involvement in manufacturing plants and
2. Enhanced and tions through Toyota Fund website and
Increase retailer involvement in CSR. Toyota Motor Europe offices.
efficient system of newsletter.
social contributions Increase employee involvement in CSR. Continued to develop flagship projects
that create social
Eco-Driving and Eco-Schools.
and business value
Retailer involvement piloted in five
countries.
3% of our manufacturing and Head
Office employees were involved in our
social contribution activities.
3. Key stakeholders Conduct European Key Stakeholder Third European Key Stakeholder Survey Set up and implement continuous CSR
understand Toyota Survey on a bi-annual basis. completed, with Toyota Motor Europe communication with stakeholders.
performance and Design and implement a proactive achieving the number one ranking for Provide communication and stakeholder
have a positive stakeholder engagement strategy. corporate citizenship. relations templates to retailers.
image of the Develop Key Performance Indicators KPIs for stakeholder relations developed.
company (KPIs) for stakeholder relations.
Not applicable, as this was not included Electrical Mobility Committee esta- Implement PHV Limited Lease projects in
in the FY08 plan. blished. 18 European countries.
4. Urban mobility
Launch of Plug-in Hybrid (PHV) Limited
Lease project in Strasbourg, France.
Environmental
Performance
“ Our Environmental Policy, which was revised in 2009, sets out our aim to
reach environmental leadership throughout the whole vehicle lifecycle.
We take a holistic and Integrated Approach to reducing energy and
„
emissions throughout the lifecycle of our products and services, from the
sourcing of the materials to recycling end-of-life vehicles.
Hiroyuki Ochiai
Toyota European Sustainability Report 2010 I Environmental Performance
Our Aim :
Low Carbon
Company
Hiroyuki Ochiai
Executive Vice-President, Toyota Motor Europe
Managing Officer, Toyota Motor Corporation 17
Co-Chairman of Environmental Committee,
sions
Toyota Motor Europe S Zero Emis
Toyota EM
Challenge
Kaizen
nbutsu
Genchi Ge
Respect
k
Teamwor
S)
stem (EM
ement Sy
ronmen tal Manag
4001 Envi Energy
Base line – ISO1
CO2
y
Emergenc Emissions
Green Mon
th Response
REACH
Campaign
Waste
Work
ental Instructio
ns Batteries
Environm
Management
Office / N
gistics / Head
D / Prod uction / Lo ce
rations –
R& Performan
pe
Toyota O mpl iance
System
Legal Co
agement
Risk Man
s
Awarenes
Addressing environmental issues is a management priority At the end of FY09, 91% of our operations were ISO14001
and we strive to address these issues in line with the Toyota certified. Our operations include all manufacturing sites, Parts
Way. In order to ensure environmental risk management Distribution Centres, Vehicle Logistics Centres and National
and compliance across all of our business activities, we Marketing and Sales Companies. In addition, more than 32%
have developed a consolidated Environmental Management of our retailer network is now certified to an EMS, with a
System (EMS), which sets specific requirements for each of number of markets achieving complete certification including
our various business activities. Adria, Poland and Denmark.
To implement our environmental management activities we
use the international environmental management standard Having a consolidated EMS enables us to reduce environ-
ISO14001. This standard outlines requirements for an mental impacts such as energy, waste and water and rai-
effective EMS based on the Plan, Do, Check, Act cycle. ses awareness across the organisation. The Green Month
campaign, held in June each year coinciding with the World
Plan : Establish an environmental policy, define environ- Environment Day, aims to raise environmental awareness
mental impacts and legal requirements and set objectives among our employees.
and targets The campaign uses the EMS as a platform to engage our
Do : Implement action plans, training and awareness employees in implementing specific environmental activities.
Check : Conduct audits to check the system is operating We held our first Green Month in 2004 at our Head Office in
according to the standard Brussels. Green Months are now held at more than 50 of
Act : Management review and recommendations for our sites in Europe. This activity has helped generate ideas to
improvement. further reduce our environmental impact.
Implementation of EMS 100%
anies
cturi ng Comp
n Manufa
Europea
93%
Toyota European Sustainability Report 2010 I Environmental Performance
ompan ies
g & Sales C
Marketin
National 100%
es
tr ibuti on Centr
Parts Dis
100%
entres
o gistics C
Vehicle L
100%
e
Techn ical Centr
Offices /
32%
Retailers
45 42
41
39
40
35 33
32 32
30
25
20
15
June July August
2008
2009
Toyota Spain implemented a Green Month campaign in when they are not needed. Switching off lights resulted in
2009, which included hosting an Eco-Driving workshop and an 8% reduction in energy usage during three months from
encouraging employees to switch off computers and lighting June-August 2009.
Sustainability throughout
Sustainable
recycling Sustainable
the lifecycle
product
5 development
“ The participation of some 120 world leaders at the towards creating a level-playing field for business.
December 2009 United Nations (UN) Climate Change Though the Copenhagen Conference outcome did
Conference in Copenhagen, Denmark confirmed that not live up to expectations, it has nonetheless taken
climate change is now seen throughout much of the us a step closer to a global deal, and the international
world as an issue justifying attention at the highest community is now busy building on it.
political level. But the outcome of the conference was a
disappointment for Europe, and many other countries, Firstly, it produced the Copenhagen Accord, with
particularly when measured against the high hopes which more than 120 countries have associated
that it would clear the way for reaching a legally-binding themselves to date. The Accord provides important
global climate agreement this year. A global agreement political guidance to the UN negotiations on detailed
is crucial if the world is to prevent climate change from texts that will form the future global agreement.
reaching dangerous levels later this century which Secondly, negotiations on the UN texts themselves
could endanger the lives of millions of people and cause advanced well in a number of areas.
massive damage that could wreck our economies.
But perhaps most importantly of all, the Copenhagen
Forward-thinking companies have recognised the Accord brought an unprecedented momentum to
massive business opportunity that building a low- the willingness of the vast majority of countries to
carbon global economy represents. But progress act, even in the absence of a global agreement. This
towards this goal is not advancing fast enough or with is a message that has been confirmed in our many
sufficient ambition to address the enormous challenge contacts with European partners since the European
we face. A global agreement will reduce the cost Commission set up its Directorate-General for Climate
of action, enable us to act faster and go some way Action in February 2010.
Toyota European Sustainability Report 2010 I Environmental Performance
The Copenhagen Accord’s endorsement of the goal seems likely that some other big players will not. Much
of keeping global warming below 2°C compared with will depend on whether the US Congress can pass
the temperature in pre-industrial times represents a domestic climate legislation. Without US action it is
major step forward. This is the ceiling that much of hard to imagine that China will be willing to bring its
the scientific community warns we must stay within domestic actions into an international framework.
if we are to have a 50/50 chance of stopping climate
change from reaching dangerous levels. In the meantime, countries are not waiting for a global
agreement to work together internationally. Several
The Accord does not set any reduction targets for partnerships have been launched for example on
greenhouse gas emissions in order to meet this deforestation, adaptation and mitigation policies to
objective. Instead it invites industrialised countries to help progress discussions on specific issues.
notify their emission reduction targets and developing
countries to submit the actions they plan to address There is broad international recognition that, rather
emissions. Altogether more than 75 nations, than go for a ‘big bang’ as we did in Copenhagen, the
accounting for more than 80% of global emissions, international community has to make steps towards
20 have done so to date. a global deal. In practice, this means the Cancún
conference needs to deliver an action-oriented set of
This too is significant progress - it is the first time in decisions that will provide a solid basis for reaching
history that industrialised and developing countries an international agreement at the conference in South
together have accepted that they share responsibility Africa at the end of 2011.
for keeping warming below 2°C. Perhaps the Accord’s
most concrete breakthrough is on the issue of finance In parallel with the international negotiations, the EU
to help developing countries adapt to climate change will push forward with de-carbonising our economy,
and develop their economies along a low-carbon and in particular the energy and transport sectors.
path.
The European Commission has put the achievement of
The industrialised world has committed to provide greener, more resource-efficient, low-carbon growth
nearly US $ 10 billion a year in new and additional at the heart of our vision for the EU’s development
resources over 2010, 2011 and 2012 to get these over the coming decade and beyond. Building a low-
efforts off to a fast start. Around US $ 2.4 billion a carbon society is not only essential for controlling
year, or almost a third of the total, will come from the climate change – it is also a huge opportunity to
European Union. For the medium to long term, the modernise and rejuvenate our economies and
rich world has pledged to mobilise US $ 100 billion a develop new, future-oriented sources of sustainable
year by 2020. growth and jobs.”
Michel Gardel
Vice-President, External
transport
“
and Environmental Affairs,
Toyota Motor Europe We are committed to creating a low-carbon
company which will contribute to a low-carbon
society. To do this we need to take an Integrated
Approach by working with key stakeholders, such
as car companies, the oil industry, policymakers
and road users, to improve eco-driving, road
infrastructure, traffic management, fuel efficiency
and vehicle technology. „
Michel Gardel
We would like to share three reports that have called for 2- European Environment Agency (EEA) report :
an Integrated Approach on de-carbonising transport Towards a resource efficient transport system (2)
and share our position.
In this report, Professor Jacqueline McGlade, Executive
1- European Commission report : A European Director of the EEA, says that a common vision for
strategy on clean and energy efficient sustainable transport and mobility is needed to reduce
vehicles (1) greenhouse gas emissions from transport.
European Commission President, José Manuel 3- McKinsey & Company : Roads toward a low-
Barroso, has made it clear that de-carbonising the carbon future: reducing CO2 emissions from
transport sector is a priority for the Commission. In passenger vehicles in the global road transport
this report, the Commission indicates it will “promote system (3)
additional measures that may help to decrease CO2
and pollution emissions from road transport – such This report states that automotive manufacturers cannot
as eco-driving, intelligent transport systems (ITS), solve the sector’s carbon abatement problem on their
including onboard technologies, infrastructure own. Suppliers, consumers, fuel and energy providers
measures and urban transport management”. and policymakers will all need to take action.
(1) European Commission (2010), A European strategy on clean and efficient vehicles – Communication.
(2) European Environment Agency (2010), Towards a resource efficient transport system, TERM 2009: Indicators tracking transport and environment in
the European Union.
(3) McKinsey & Company Inc (2009), Roads toward a low-carbon future: reducing CO2 emissions from passenger vehicles in the global road transport
system.
Our position
Toyota European Sustainability Report 2010 I Environmental Performance
The automotive industry agrees. At the World Econo- The letter states that “To find solutions to these
mic Forum in Davos, Switzerland, in January 2010, the challenges, we commit to a vision of de-carbonising
leaders of six major car manufacturers, including Toyota automotive transport.”
Motor Corporation President Akio Toyoda, signed a
letter to policymakers which identified four key challen- The leaders of the companies say that while technology
ges to the sustainability of automotive transport : is an important part of the solution, it alone cannot
achieve the changes required to address the threat of
Oil dependency : Automotive transport is 99% global climate change. We need to work together to
dependent on petroleum-derived fuel and 53% of the find solutions :
world’s annual oil consumption is used for transportation
(58% for the countries in the Organisation for Economic Governments need to implement consistent, long-
Co-operation and Development – OECD). term policies and incentives to assist in bringing
Contribution to climate change : Automotive trans- advanced technology vehicles to the market and
port accounts for 8% of CO2 emissions globally, but create the necessary infrastructure to facilitate
12% of CO2 emissions in OECD countries. Between widespread use of these technologies.
2006 and 2030, 80% of the increase of road transport Energy providers and utilities will need to provide
22 CO2 emissions is expected to come from non-OECD low-carbon fuels, such as hydrogen and electricity
countries. generated from clean renewable sources.
Strains of urbanisation : Urban areas, particularly in Consumers need better education to understand the
the developing world where the growth of vehicle use transport choices available.
is highest, urgently need to address both congestion
and air quality challenges. Research from Japan and Europe has already shown
Accessibility and affordability : For the solutions and that a combination of vehicle technology, low-carbon
technologies to address the first three challenges to be fuels, road infrastructure measures, and driving
effective, they need to be accessible and affordable to behaviour can significantly reduce the greenhouse gas
consumers in both the developed and developing world. emissions from road transport.
Our action
To implement significant greenhouse gas emission be indispensable if we are to make quick progress.
reductions, partnerships are needed. Building trust It seems to me that all stakeholders agree on the
and maintaining dialogue with all stakeholders will be principles of taking an Integrated Approach. What is
fundamental. The car industry, suppliers, regulators, missing is agreement on the content, and when and
fuel and infrastructure providers, and users of vehicles, how to implement the next steps. We commit with
can all make a significant contribution. An integrated other members of ACEA to spare no effort in seeking
approach, bringing together all stakeholders, will to secure that agreement.
User ed
e travell
•Distanc ty(1)
ali
low •Co-mod
Traffic F ts
Vehicle on p rove men
Technolo t
gy Low Carb Im
lo p men Fuel
D ev e
d Approach
Integrate
The European market is the most competitive in the world. Drivers can also choose the electric-only mode, which is
For example, in the C-segment (small family car), which silent and emissions-free for short distances.
includes our Auris model, at least four new models are
launched each year. We are researching regional market solutions in line with local
regulations and incentive programmes for reduced emissions.
Within the global Toyota research and development This includes adapting our powertrains and vehicles for lower-
organisation, I believe that we, at the European Technical emission fuels, such as liquified petroleum gas (up to 10%
Centre, have a vital role to play. We are the closest to the lower CO2 compared to petrol) and compressed natural gas
local market and can quickly respond to market needs, (up to 25% lower CO2 compared to petrol).
ranging from performance to environmental and safety
requirements, and at the same time, keeping our products In addition, we continuously research new breakthrough
competitive. technologies with our European partners to maintain our
environmental leadership position.
For example, in terms of responding to environmental
needs, the Toyota Auris family now includes the Auris Diesel engines are popular in Europe and much of the
Hybrid Synergy Drive® (HSD). The Auris HSD has CO2 development of diesel technology occurs in Europe. This type
emissions of just 89 g/km and switches between petrol and of technology will continue therefore to be a key area for our
electric engines to suit the driving needs of each motorist. research and development team (see page 24).
Diesel engine development in Europe
Toyota European Sustainability Report 2010 I Environmental Performance
24
Diesel engines consume less fuel and emit less CO2 per Our diesel development group is comprised of three teams of
kilometre than petrol engines. They are popular in the engineers and technicians that specialise in diesel technology.
European market where they are suited to European driving, The group focuses on the development of the 1ND diesel
which typically includes highway driving and long-distance engine, which is installed in Toyota’s iQ, Yaris, Urban Cruiser
driving over weekends and holidays. In other markets, such and Auris models.
as Japan and the US, the number of cars with diesel engines
is lower due to different driving conditions and emission The application team adapts the Engine Control Unit to
regulations. ensure the injection system and emission systems, catalyst
and diesel particulate filter, work together in precisely-
controlled timing. This is necessary to provide smooth and
powerful driving performance while emitting the lowest
possible CO2 and exhaust emissions.
The design team then works with our suppliers to source the
required parts for the engine compartment for each model.
Intensive testing during the development process ensures the
quality of the parts.
(1) CO2 emissions of Prius Plug-in Hybrid are measured according to the new official international regulation for plug-in hybrid electric powertrains, as
adopted by the United Nations Economic Commission for Europe.
Toyota Motor Corporation Executive Vice-President, provider EnBW Baden-Württemberg AG (which is part
Toyota European Sustainability Report 2010 I Environmental Performance
Takeshi Uchiyamada, said “Plug-in Hybrid technology of the EDF Group), is extending the programme to the
is key in our path towards sustainable mobility. Based German state of Baden-Württemberg by demonstrating
on Toyota’s full hybrid powertrain, PHV is the most ten PHVs and their dedicated charging infrastructure.
practical way of increasing the use of electricity for
personal transport today.” The Mayor of Strasbourg and Vice President of the City
and Urban Community of Strasbourg, Roland Ries, said:
The Chairman and CEO of EDF, Henri Proglio, said: “EDF “I am pleased to be able to host this unique experiment
is proud to engage in a great industrial adventure involving that will be taking place over the next three years. The
the expertise of a manufacturer, an energy provider and project shows how important it is nowadays to combine
public bodies.” EDF will evaluate different operational technological breakthroughs and innovative initiatives
options for the charging infrastructure of the vehicles. with sustainable development”. This project is part of
EDF, with the operational support of its subsidiary, ADEME’s Research Demonstrator Fund programme,
Electricité de Strasbourg (ES), will establish 150 charging which aims to test future technologies that reduce
points for the vehicles. In addition, German energy greenhouse gas emissions.
26 PHV in Belgium
Out of the 200 units that are being distributed to more 2010s. We are also studying the impact on electricity
than 18 European countries, five vehicles have been usage. Deficiencies in the energy market can then
allocated to Belgium. The five Belgian partners are Agoria- be raised with the authorities and the network
Vlaanderen, Colruyt, Telenet, the Federal Public Service operators.
for Mobility and Transportation, and the office of the Direc-
tor General for Climate Action, European Commission. We are also road testing two PHVs in our Head Office
and at our European Technical Centre. This includes
The partners will use the car for a period of three researching and monitoring the vehicles’ charging
years. Together with these partners, we are examining units. Currently the cars are charged by using a
how users adapt to PHV technology which will normal household plug. In the future, the charging
help facilitate increased market take-up and mass pole may be updated with the new EU-wide standard
commercialisation of this technology from the mid- plug, once it is available on the market.
Didier Stevens, Senior Manager, Environmental Affairs, using the recharging station at Toyota Motor
Europe’s office in Brussels
Our approach to global energy challenges
28 180
170
Toyota
160
150 140
140
CO2 g / km
130 120
120
110
100
90
80
Year 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20
Biofuels
We believe that biofuels can offer a sustainable and lower- 2- Biofuels must meet strict quality criteria to ensure the
carbon alternative, provided they meet certain criteria and fuel is fit for purpose and delivers expected performan-
are available in sufficient volume. Today, most biofuels used ce in the vehicle. Toyota supports the Committee of Euro-
in transport are made from agricultural feedstock and are pean Normalization’s work in drafting common fuel standards
referred to as first-generation biofuels. and calls for their introduction across EU member states.
Hydro-treated Vegetable Oil (HVO) is a promising low-carbon
Ethanol originates from sugar-based feedstock such as sugar biological alternative to diesel and is available on the market to-
cane, cereals or sugar beet, and is then blended into petrol. day. Made by a refinery-based process which converts vege-
Biodiesel originates from oil-seed based feedstock such as table oil to paraffin, HVO is a high-quality product that has the
rapeseed, and is then blended into diesel. potential to substantially reduce greenhouse gas emissions.
Regarding the use of biofuels, Toyota has three concerns: Toyota is also a member of the Alliance for Synthetic Fuels in
Europe that promotes the uses of synthetic fuels as a high-
1- B iofuels must be produced in a way that minimises quality alternative to diesel fuel. For more information please
CO 2 emissions and environmental impact. Toyota see www.synthetic-fuels.org/index_en.php
is involved in a number of initiatives to establish
criteria to guarantee that biofuels are produced in a 3- The production of biofuels should not compete with
sustainable way. food production. Toyota support second-generation
Toyota European Sustainability Report 2010 I Environmental Performance
biofuels, where the fuel comes from waste material from the All European Toyota and Lexus diesel models can run on diesel
forestry or agricultural industries, rather than from agricultural blended with up to 7% volume biodiesel (B7) in accordance
feedstock. Further, Toyota is involved in researching second- with the European diesel standard EN 590:2009.
generation biofuels made from wood or straw. These advan- Besides our support of biofuels, we are encouraging the
ced biofuels promise a number of benefits and could be used development of energy-efficient and low-carbon vehicles
in existing vehicles, with the potential of even greater green- by introducing cars that run on de-carbonised electricity
house gas emissions reductions. This technology, however, and hydrogen (see pages 45-47).
is still in its early stage of development and it may be several
years before these advanced biofuels become available on a
Multi-stakeholder engagement
commercial scale.
Advancing the best energy solution is not an easy task
For these reasons, we support low biofuel blends in Europe and the long-term impacts to the community and various
(E10 and B7) as a first step. We will support higher biofuel stakeholders must be considered. We have therefore started
blends in the future if they meet criteria on availability, to develop energy/fuel modelling capabilities and scenarios
sustainability, greenhouse gas performance and quality. that are tested and discussed with energy-related entities.
29
Most of the Toyota and Lexus petrol vehicles made for the We believe that engaging multiple stakeholders will be
European market after January 1998 can run on petrol essential in solving energy and environmental concerns. We
blended with up to 10% volume bioethanol (E10) (1). Since are therefore establishing links with energy industries, local
2008, all Toyota and Lexus petrol vehicles made for the authorities and the EU commission. The PHV project in
European market are compatible with E10. Strasbourg is an example of our approach (see pages 25-26).
(1) Detailed information on E10 compatibility of our vehicles can be found on our corporate website http://www.toyota.eu/pages/default.aspx.
Special feature
Toyota European Sustainability Report 2010 I Environmental Performance
Auris HSD-
Toyota’s first full
hybrid vehicle
made in Europe
30
Auris HSD
An eco car made in an eco factory, built by CO2 emissions in the vehicle lifecycle
eco-minded people
The diagram below shows the CO2 emissions per kilome-
Toyota Motor Europe celebrated a milestone in tre of the Auris HSD compared to the equivalent petrol and
2010 with the start of production of the Toyota Auris diesel models throughout the lifecycle - from material pro-
Hybrid Synergy Drive ® at our manufacturing plant in duction and vehicle production to driving, maintenance and
Burnaston, UK. This is Toyota’s first mass-produced disposal. The total CO2 emissions of the Auris HSD across
full hybrid vehicle to be manufactured in Europe. the lifecycle of the vehicle are 33% less than the Auris petrol
model and 25% less than the Auris diesel model.
Over and above the benefits of exceptional fuel
efficiency and low CO2 emissions inherent in Hybrid While the CO2 emissions related to the production
Synergy Drive®, the everyday usability, driving comfort phase are similar to the Auris petrol and diesel
and quietness of Toyota’s full hybrid powertrain vehicles, there is a substantial reduction of CO2
will offer the Auris HSD customer a smooth and emissions during the driving phase. The driving phase
sophisticated driving experience unique to the small of conventional engine types accounts for more than
family car (C-segment). 75% of the lifecycle CO2 emissions.
1.0
Contributes to the reduction of greenhouse gas
0.8
emissions throughout the vehicle lifecycle -25% -33%
Use of recycled plastic materials Petrol Vehicle Diesel Vehicle Hybrid Vehicle
More than 95% recoverability and 85% Material Production Driving Maintenance
Vehicle Production Disposal
recyclability
Toyota European Sustainability Report 2010 I Environmental Performance
Kilometres travelled and CO2 emissions
We have analysed the CO2 emissions of the Auris diesel vehicle) and 33% (compared to the equivalent
HSD when it is driven for 150,000 kilometres. Over petrol vehicle).
this distance, the Auris HSD shows a reduction in CO2 When driven more than 150,000 kilometres, the relative
emissions of between 25% (compared to the equivalent CO2 emissions savings of the vehicle will be even greater.
0.4
0.2
4,800
0.0
50,000 100,000 150,000
Distance (km)
Hybrid Vehicle Diesel Vehicle Petrol Vehicle
We remain committed to our FY10 environmental targets We performed well against these targets in FY09 and achieved
which were originally adopted as part of the Toyota Global record consolidated performance in our manufacturing facilities
Fourth Environmental Action Plan covering FY06-10, but in water, volatile organic compound usage and at-cost waste.
were revised to be more challenging in FY07, before the This is waste which has a net disposal cost, but excludes scrap,
global economic crisis. project and recycled waste for which revenue is gained.
Manufacturing volumes
FY09 marked the second year of decreased vehicle decrease reported in FY08. Combined unit (engine and
production volumes in Europe although the 7.8% reduction transmission) volumes over the same period decreased by
to 544,050 vehicles was significantly less than the 27.6% 8.4% to 1,108,694 units.
Reduction from
1993 to 2008 Engaging employees
Energy (kWh/vehicle) > 68% TMUK encourages its employees to reduce their
own environmental impacts through an Eco-points
Waste (kg/vehicle) > 60%
programme. As part of this programme, employees
Volatile Organic Compound
emissions (g/m 2 )
> 70% make a personal commitment and a group declaration
to reduce their impact on the environment.
Water (m 3/vehicle) > 70%
TMUK is striving to reduce its CO2 emissions by They also attend environmental events such as the eco-
reducing its energy usage and by using the most plant exposition and tours around the on-site lakes,
efficient energy sources. Initiatives include : wastewater treatment plant and the on-site recycling
facility. There are six points to collect in total and to
Introducing control technology at its paint shop achieve full eco-points, employees need to implement
booths, which are a major user of energy. an improvement activity to reduce packaging, material,
Solar energy is used in the visitor centre to heat water. energy or waste.
A wind energy feasibility study has been completed
at Deeside, Wales and is now proposed for Burnas-
ton. Further pilot projects are ongoing.
90 15,468
Tonnes
25,760
Tonnes
28,024
Tonnes
44,902
Tonnes
53,299
Tonnes
22%
80
36% 40%
70 TMUK Weld Pilot Group Eco-points presentation
61%
60 74%
50
40
30
20 In 2010 TMUK will become the first Toyota plant
10
0
in Europe to produce a full hybrid vehicle with
2004/5 2005/6 2006/7 2007/8 2008/9 2009/10 production of the Auris Hybrid Synergy Drive®
Fixed set Manual Manual Primer Booth Roll out of
point contro energy
manipulation
energy
manipulation
1 optimised
window
window
control to
(see pages 30-31).
plus Primer control remaining
Booth 1 trials booths
Manufacturing Key Performance Indicators
Toyota European Sustainability Report 2010 I Environmental Performance
As part of our vision to contribute to a sustainable society, we Currently, Toyota Motor Manufacturing UK at Burnaston
continue to examine technologies and solutions which can remains the only European Manufacturing Company included
complement our production processes and lessen our overall within Phase II of the EU-Emissions Trading Scheme for
environmental impact. This section details the environmental 2008-2012. We expect that for Phase III (2012-2020) at least
performance of our production plants. one more of our manufacturing plants will be included.
Energy 15
kWh/unit 10
FY10 target = 1,375 kWh/unit
1,800
1,536
5
1,600 1,495 1,442
1,332 1,356 0
1,400
1,200 FY 05 06 07 08 09
1,000
800
600
400
200 In FY08, we reported that since January 2008 all our
0 manufacturing facilities achieved zero waste to landfill. This
FY 05 06 07 08 09 was a target set in our Fourth Environmental Action Plan
in 2005. In FY09 one of our manufacturing plants needed
to dispose of a small quantity of asbestos to comply with
CO 2 emissions legislation. The figure would not be included due to rounding
methodologies, but we mention it for transparency.
Kg/unit
FY10 target = 425 kg/unit
500
443
450
443 417 420
Waste to landfill
386
400
kg/unit
350 FY10 target = 0 kg/unit
4 3.7240
300
250
200 3
150
100
2
50
0
FY 05 06 07 08 09 1
0.0875 0.0545 0.0008
0.0000
0
FY 05 06 07 08 09
25
19.9 18.9
Water usage 20
18.4
Water usage
m3/unit
FY10 target = 1.70 m3/unit 35
3
2.26 2.21
1.98
2.11
1.90
Environmental management
2 All seven of our European Manufacturing Companies
have Environmental Management Systems (EMS) that are
independently certified to the international environmental
1 management standard, ISO14001 (see page 18). In FY09
we continued to support our manufacturing facilities with
the ongoing implementation of Toyota Environmental
0 Management System which is complementary to ISO14001.
FY 05 06 07 08 09
Toyota EMS is built on three pillars :
Ensuring compliance
Minimising environmental risk
Our manufacturing company in France now harvests a significant Achieving number one performance.
proportion of its water needs from rainwater in addition to
recycling its wastewater using reverse osmosis treatment. As a This is the focus and guiding philosophy of Toyota’s
result of these activities, 30% of the plant’s water consumption environmental activities globally.
was met using sustainable sources in FY09.
Environmental leadership
Looking to FY10, achieving our target will be challenging as we
Our aim is to be at the forefront of environmental leadership
had expected significant technological investment at our Turkish
in the automotive industry. In FY09 our manufacturing plants
manufacturing plant, which is currently on hold due to the current
received the following external recognition :
economic climate. We will continue to look for ways of reducing
water usage across all our manufacturing facilities.
National
Toyota Motor Manufacturing UK (TMUK) received the Big
Volatile Organic Compound (VOC) emissions Tick Award for environmental leadership and climate change
Last year we were able to report that we achieved our FY10 reduction activity from business membership organisation,
target two years ahead of plan with the understanding we would Business in the Community, and the ‘Process Premier
continue to focus on Toyota’s guiding principle of kaizen (conti- Award’ from environmental not-for-profit organisation,
nuous improvement). This focus has led to us setting a new re- Business Commitment to the Environment.
cord in FY09 with a further 3% reduction in VOC emissions from
solvent-based paints and cleaners in the vehicle painting pro- Regional
cess. The average VOC emissions per square metre (m2) of vehi- Toyota Motor Manufacturing France (TMMF) received
cle body surface painted across our four vehicle assembly plants the ‘Energy Efficiency Award’ from the North of France
decreased from 18.9 grams in FY08 to 18.4 grams in FY09. In Industrial Society (SINF).
terms of absolute emissions (total tonnes), our improved perfor- TMUK received the ‘East Midlands Carbon Positive
mance combined with the decrease in production volume resul- Pioneer Award’ from business membership organisation,
ted in an 11% reduction in VOC emissions compared to FY08. Business in the Community.
Logistics
Our logistics operations are divided into three separate divisions :
Production and Logistics Control, Vehicle Logistics Group and Parts
Supply Chain Group.
arts
Service p s
e ss o ri e s logistic
tics and acc n
utio
Ve hicle logis The distrib rts
pa
port of of spare
gistics rt and ex to retaile
rs
n parts lo The impo
hed vehicl
es and accessor
ie s
Productio ion and
ct new finis g
and
The colle in
customis
n of parts al orders
distributio of individu
su pp liers to
from ts
an uf ac turing plan
m
Network restructuring progress in FY09
Production and
81 Cross
80 70 72 73 Dock
CZ
60
57 TMMF D SK
A
Estimation
40
CH H
20 Italian
F Suppliers
0
ITALIAN
FY 03 04 05 06 07 08 09 10 consolidation
point
I
Getting an engine part from an Italian supplier to our Polish
manufacturing plant
Before After
The situation today
Trucks equivalent/annum 34 34
In FY09 our Production and Logistics Control division achieved
Distance to final delivery (km) 4,600 2,500
its environmental performance target of reducing CO2 emissions
CO2 emissions (tonnes) 131 71 CO2 reduction :
by three kilograms per vehicle, from 99 kg to 96 kg. This reduction
60 tonnes / years
was a result of network restructuring and logistics planning.
Preparing for the future
Our Production and Logistics Control division is participating in si-
CO 2 Emission per Car multaneous engineering for new projects. The purpose of this work
is to minimise the impact of parts and packaging design on the ef-
2009:
140 96 kg Co2 / car ficiency, and eco-efficiency, of logistics. For the 2011 model sourc-
121 121
120 115
102 100 98 96
ing, we have optimised the bulkiest parts unit packaging. Regard-
102
CO2 / car emissions (kg / car)
100 99
100
96 94
ing the heating component it means we can transport 510 pieces
in one trailer instead of 272 pieces. This space optimisation has
80
resulted in fewer truck loads, saved 4,920 kilometres of travel per
60
day and will reduce CO2 emissions by 1,020 tonnes per year.
40
Heating component packaging kaizen
20 Original After kaizen proposal
272 Pces/Trailer 510 Pces/Trailer
0 unused space
FY 03 04 05 06 07 08 09 10
Result 5-year Target
Environmental management in our Vehicle consumption resulted in a 13% improvement compared to FY08.
Logistics Group One such example can be seen below from our facility in Sagunto.
In line with our Five Year Environmental Action Plan, the Vehicle
Total energy per vehicle handled
Logistics Group maintains the international environmental
kWh / vehicle
management standard ISO14001 throughout its European 4.0
FY10 target = 2.16 kWh/vehicle
operations. The group is also supporting the activities of the 3.29 3.34
3.5
pan-European Environmental Team, which is composed of
3.0
representatives from all hubs and meets on a regular basis. 2.29
2.5 2.16
In FY09 the team’s main objectives were to manage and
2.0
maintain environmental key performance indicators on energy
and waste for the vehicle logistics sites. 1.5
1.0
Energy 0.5
0.0
Despite one of the coldest winters on record and a decrease in
FY06 FY07 FY08 FY09
38 vehicles handled, energy usage per vehicle handled increased
by only 7%. Continued efforts to reduce the absolute energy
Special feature
Sagunto Vehicle Logistics Centre
Given the warm climate in Spain, an air-conditioning system was required in our Sagunto Vehicle Logistics Centre.
Air-conditioning systems tend to consume a significant amount of energy. Therefore, the team in Sagunto focused
on how they could reduce usage to an absolute minimum. This resulted in a 74% improvement in the energy
consumed per vehicle handled. The measures included :
10 7.9
6
3.3
4
0
FY08 FY09 FY09
Actual Target Actual
Ferdinand Krijnsen and Mercedes Navarro Puig
Waste
Last year we achieved zero (1) waste to landfill at our vehicle logistics returnable packaging. Additionally, efforts have been made to re-
centres in line with the target set in our Five Year Environmental duce the amount of non-recycled waste per vehicle handled, which
Action Plan. This was maintained in FY09 with only 1% of waste has resulted in a 54% reduction since FY06. This is primarily due
from vehicle hubs going to landfill. to the vehicle logistics centres introducing further waste streams to
In terms of the total waste produced per vehicle handled, we have recycle different types of materials and ensuring employees know
seen a steady decrease since FY06 partly due to increasing our how to correctly segregate the waste.
(1) Definition of zero waste is < 3% landfill
Toyota European Sustainability Report 2010 I Environmental Performance
Waste to landfill Total waste per vehicle pre-delivered
% kg
FY10 target = 1.77 kg
20 18% 2.0 1.77
1.69 1.65
18 1.8
16 1.6
FY10 target = 3%
14 1.4 1.21
12 1.2
10 1.0
8 0.8
6 0.6
4 2% 0.4
1% 1%
2 0.2
0 0.0
FY06 FY07 FY08 FY09 FY06 FY07 FY08 FY09
0.6
Our Vehicle Logistics Group continued to expand in FY09 0.49
39
0.5
and introduced new routes to supply Japan produced 0.39
Total CO2 emissions (tonnes) 29,919 38,174 46,429 52,062 48,434 44,175
CO2 emissions (kg/m3 transported) 15.49 15.82 15.30 16.18 15.31 15.14
CO2 emissions (kg/km transported) 0.489 0. 499 0. 516 0. 520 0. 491 0. 472
In FY09, our Parts Supply Chain Group divisions continued their changed with the distance by truck reduced by 52% resulting
efforts to further improve and reduce CO2 emissions. While the in a saving of 37.76 t CO2 emissions.
Warehouse Operations Division focused on improving case and 3- Implementation of a rail connection between Genk and
truck density by adapting internal picking, packing, modulating Verona for shipments to Italy and Greece, resulting in an
and loading processes, the Transportation Division concentrated annual saving of 257.53 t CO2 emissions.
on switching to environmentally friendly transportation modes.
Transport methods evolution (share of kilometer)
In 2009 a number of activities were completed including:
12% 82%
1- Changing the mode of transport for all of our shipments to Por-
10% 80%
% for Sea, Air and Rail transport
6% 76%
C0 2 emissions
4% 74%
1,000 t CO2 kg CO2/km
80 0.8 2% 72%
0.52
0.49
0% 70%
60 0.48 0.49 0.51
52.06
0.47 0.6
48.43 44.17 FY07 FY08 FY09
46.43
38.17 Sea Rail
40 0.4
29.92 Air Truck
20 0.2
We reduced airfreight volume by 14% from FY08 to FY09. This
was achieved by introducing measures such as consolidating
0 0
packaging and adapting the box size to the actual volume.
FY 04 05 06 07 08 09
The graph above shows the impact of changing the way we
t CO2 kg CO2/km
transport our parts, which helps us reduce CO2 emissions
wo other routes have been reviewed to reduce the distance
2- T from transportation. It also has helped increase operational
travelled by trucks. Firstly, routes to Ireland were sent by sea efficiencies and reduce costs. We will continue to review the
resulting in an 84% reduction in distance travelled by truck network to identify other ways we can reduce CO2 emission
a year, which equates to a saving of 19.76 t CO2 emissions. from transportation, and we will work with our logistics partners
Secondly, routes to the Finnish depot in Helsinki were also to invest in environmentally friendly trucks.
(1) The reported data includes all Toyota Motor Europe controlled parts accessories logistics.
Toyota European Sustainability Report 2010 I Environmental Performance
Environmental impact of facilities The increase for the second KPI is due to the number of ope-
rating hours reducing at a faster rate (10%) than the ener-
All 14 of our parts distribution centres are certified to the
gy reduction (7%). The decrease in energy is due to each
ISO14001 Environmental Management System. The key
site team maintaining the kaizen (continuous improvement)
environmental aspects we track are energy consumption
principles and making improvements wherever possible.
and waste management.
For example, Toyota Parts Centre Deutschland carried out
a re-lighting project which contributed to 5% reduction in
Energy consumption
energy consumption.
Despite one of the coldest winters on record and the
number of parts handled increasing, the total energy used
in FY09 by our parts distribution centre decreased by 7%
Waste management
since FY08. The Parts Supply Chain Group has two energy All parts distribution centres worked hard to achieve zero
related Key Performance Indicators (KPIs) to monitor : waste to landfill, which meets the target set in our Five
Year Environmental Action Plan.
1- total energy/1,000 pieces shipped
2- total energy/warehouse volume multiplied by the number 41
of operating hours Total waste per 1,000 pieces shipped
kg
FY10 target = 25.76 kg
Energy per 1,000 pieces shipped 40
33.09 33.55 33.65
kWh
FY10 target = 288.1 kWh 35
350 329.9
30
307.2 25.96
288.1 296.0
300 25
250 20
200 15
10
150
5
100
0
50
FY06 FY07 FY08 FY09
0
FY06 FY07 FY08 FY09
kWh 4.0
FY10 target = 0.0610 kWh FY10 target = 3.29 kg
0.07 3.5 3.02
0.0610 0.0563 0.0584
0.0558 2.75
3.0
0.06
2.5
0.05 1.78
2.0
0.04 1.5
0.03 1.0
0.5
0.02
0.0
0.01
FY06 FY07 FY08 FY09
0.00
FY06 FY07 FY08 FY09
We achieved a 10% reduction in energy consumption for Additionally the total waste produced per part shipped de-
the first KPI. However, for the second KPI there was a slight creased by 10% as a result of increased reuse of packaging
increase of 3.5% from FY08. However, we remain on target material at a number of depots. The amount of mixed waste
to achieve the FY10 target for both KPIs set out in the Five per part handled was 1.78 kg / 1,000 pieces shipped, which is
Year Environmental Action Plan. a 57% decrease since FY06.
Special feature
Toyota European Sustainability Report 2010 I Environmental Performance
r pack
42 il filter ove e
Reuse of o all parts to Ukrain
ack o n fo r s m
lter over p ca rt
Store oil fiady for reuse
one carton re
n used for
New cartoging small parts
way packa
In line with this aim, solar panels were installed on the TPCE has implemented the environmental manage-
roof of Toyota Parts Centre Europe (TPCE), in Diest, ment standard ISO14001 since 2001.
Belgium in FY09. Covering 80,000 m2, it is one of the
largest thin-film solar panel rooftop installations in Major improvements at TPCE include :
Belgium.
In the latest expansion of our building we incorporated
several new environmental initiatives such as using 43
rainwater for sanitary facilities.
In FY09 we organised two tree planting events and
3,000 trees were planted.
In terms of electricity consumption :
1- We purchase 100% green electricity.
2- W e have upgraded lighting, installed light and
movement sensors and raised awareness
through events such as the Green Month
campaign and through environmental training
for newcomers.
TPCE solar roof
These initiatives are expected to result in a significant
reduction in our energy consumption.
This installation will produce between 15 and 20% TPCE Electricity consumption - MWh
of the annual electricity requirements of the facility. Consumption
This will reduce TPCE’s energy costs as well as CO2 (MWh)
-3% -13% -19%
12,000
emissions associated with energy use. Forecast
10,000
-16%
The 80,000 m² roof, which was financed, built and 8,000 solar energy
Projects saving
operated by Blue Planet Solar NV, includes 12,800 6,000
(target -3%)
Our aim is to become the cleanest brand in Europe In terms of distribution, getting our vehicles to our customers
requires a network of hubs and retailers. For more information
We believe that we can achieve this aim by investing in innovative
on the environmental performance of our vehicle distribution
technologies, such as hybrid and Plug-in Hybrid, and reducing
( please see pages 38-39 ).
emissions associated with our vehicles and distribution.
Our commitment to European society is built on
Developing our hybrid line-up will create one of the main
a solid foundation
pathways to becoming the cleanest brand in Europe. In FY09
we launched the third-generation Prius. In FY10, we began Ensuring cus-
producing the first full hybrid vehicle in Europe - the Auris tomer safety by
Hybrid Synergy Drive® at our Burnaston plant in the UK. We providing clean
aim to have a hybrid version of every vehicle in our model and safe prod-
line-up by the 2020. ucts, while us-
ing advanced
Our CO2 performance is on the right track. We have made technologies to
significant progress in reducing the CO2 emissions associated ensure energy-
with our vehicles, and met the EU target of 140 g/km CO2 emis- efficient vehicles,
sions in 2009. We achieved 130.1 CO2 g/km (a reduction of ap- is key to the on-
proximately 10% from 2008, and about 20% from 2005). going success
of our company.
Toyota strategy to bring HSD / Hybrid Our passion for
to mainstream models excellence is
brought to all
2010 2015~2020 stages of our
operations - at
HSD mix design, manu-
>20%
Prius + facturing and
Auris HSD marketing. Our Bridie Tucker is a team member in the
HSD mix production area of our Burnaston, UK
towards 50% commitment to plant. She is featured in our Toyota Brand
campaign. ‘Your Toyota is My Toyota’
regaining cus-
Prius only
tomer confidence
in our products
is genuine, absolute and urgent. Combining this passion
Stage 1 Stage 2 Stage 3
and demonstrating our accountability is key to our vision to
grow in harmony with society.
Environmental leadership in our products
Today, Toyota’s early vision has been realised. The past few
years have seen a marked increase in the production of
environmentally friendly vehicles, and most manufacturers
are now developing hybrid technology.
Hybrid Synergy Drive® has been fundamental to the global In August 2009, the Prius was ranked as the most
success of the Prius. The Prius is now in its third generation. The environmentally friendly car for the fourth time since 2004 by
first generation was launched in 1997, the second generation in Verkehrsclub Deutschland, the German transport non-profit
2004 and the third generation in 2009. Since the first generation organisation. The third generation Prius has CO2 emissions of
Prius, improvements have continued to be made including 89 g / km, an industry first for a car of this size.
increasing the system’s power by 30% and decreasing fuel
consumption and CO2 emissions by about 25%.
FY09 review
Toyota has sold more than 2.6 million hybrid vehicles globally
(June 2010) since launching the world’s first mass-produced
hybrid. This vehicle was also the first commercial hybrid to
be introduced in Europe in 2000. Since that time, we have
sold more than 230,000 Toyota and Lexus hybrids.
For more information about the Auris HSD please see pages A total of 104 people won a Prius ( the number of winners
30-31. reflects the 104 g / km CO2 emissions of the second generation
Prius ) and in exchange, needed to dispose of their existing
older vehicle. Winners were not typical Prius buyers and the
competition helped increase awareness in Germany of the
benefits of the Prius to a wide audience.
Comfort
d ease
Comfort an ive
e concept of the dr
Avant-gard rship
ne
Pride of owtechnology
ful
and power
Relaxed re
su
driving plea
Reliability
,
Safe, secure
liabl e partner.
ption an d re
enance,
Low consum easure Easy maint ies
g driving pl
Enablin warrant
ising
while minim mage
da
ecological
Sustainable National Marketing
Toyota European Sustainability Report 2010 I Environmental Performance
IC
environmental activities among customers, retailers and in C
ER U
ecycle
AT
PHV/EV Prius Lif
VI
& S OD
Analysis
IO
their own operations.
PR
N
Achieve
CO2
120 g / km
mental
Environ rship
POS
Materials
A 360° approach has been developed which outlines the
T
Lead e
EN
NM
ental
contribution sales and marketing makes to our vision of achieving Environm kills Energy
BE
ge-S dit ELV & HV
Knowled kaizen Au
O
I R llection
HA
ix VI
environmental leadership. Grand Pr
OU
R E NV Battery co
Social
HSD/Toyo
ta
Contribut
ions Retailer
ets
Optimal
Drive CO2 Targ
s ental
The approach focuses on four key areas : products and service, Awarenes Environm
e-learning New Reta
ilers
Eco-Drive Sustainab
le
cour s
se
ISO14001
communication, retail environment and behaviour, and has & Hybrid
Drive
@ Retaile
rs Retailer
(SR)
48
led to the development of a range of environmental activities.
Two examples of these activities are given below from Toyota & KPI Plann
ing
ion Plan
ship Act
Sweden and Toyota Motor Hungary. ironmental Leader
360° Env
Special feature
Toyota Sweden
“ Our retailers have done fantastic work, better than
launches C O2 we hoped for. It is all about helping customers reflect
on questions such as ‘ Do I really need a big car ? ’
retailers
environment, ” says Ulf Winberg, President of Toyota
Sweden AB.
138
The “CO2 @ retailer scheme” was introduced in 2007 to 140 133.7
reduce the total average CO2 emissions from the new
130
cars that are sold. All retailers have individual targets
that are adjusted to their respective markets. 120
Renewable energy use and landfill rate Environmental performance at National Marketing
and Sales Companies (NMSCs)
60% 56% NMSCs in Europe continued to steadily improve their
50%
performance in energy consumption, waste management,
39%
water consumption and paper consumption in the reporting
40% 37%
period. To manage and control their environmental impacts, the
33%
10% 5%
7%
Each NMSC is responsible for operating their office and training
facilities. In FY09 a total of 11,747 tonnes of CO2 was produced by
0%
NMSC facilities, an increase from 11,009 tonnes of CO2 in 2008.
FY 06 07 08 09
Landfill rate
Renewable energy
This was mainly due to the addition of energy data from the new
facility in Russia. However, significant efforts have been made to
increase the amount of energy used from renewable resources.
About 33% of all energy needs for NMSCs is now drawn from
renewable sources, compared to 19% in FY08. Unfortunately,
waste going to landfill increased due to the new facility opening
in Russia, where current rates to landfill are high. This has had
an adverse impact on the NMSC’s total landfill rate. We are now
mitted:
of CO2 e investigating how to reduce the volume of waste to landfill.
Volume nnes
11,747 to
Input:
mption:
rgy consu
Total ene kWh Output:
60,225 ste
me of wa s
nergy: g& Total volu 5 tonne
ewable e Marketin d : 2,64
Total ren kW h National mpany generate
33%
Sales Co
ption:
r consum
Total Wate 57 m³
101,0
Sustainable retailers
Toyota European Sustainability Report 2010 I Environmental Performance
Energy audits
Existing retail outlets are subject to an energy kaizen
(improvement) audit. There are two parts to the audit.
Firstly a specialist engineer analyses a retailer’s actual use
of electricity and gas and benchmarks this against similar
size facilities to determine whether the retailer can reduce its
energy consumption. This can be done remotely based on
historic energy bills.
(1) This includes Bosnia and Herzegovina, Croatia, Montenegro, Serbia, Slovenia, and Kosovo.
Special feature
51
(1) Carbon neutral – according to the UK’s Department of Energy and Climate Change carbon neutrality guidance 30th September 2009.
(2) BREEAM – Building Research Establishment Environmental Assessment Method.
Toyota European Sustainability Report 2010 I Environmental Performance
Lexus
“ Lexus has pioneered key technologies that
offer a premium driving experience with category
leading environmental performance. In particular,
Lexus is building on its leading knowledge and
experience with full hybrid technology to increase
the proportion of cars sold with ‘Lexus Hybrid
Drive’, which provides a refined and rewarding drive
with category-leading environmental results. „
Andy Pfeiffenberger
Vice-President, Lexus,
Andy Pfeiffenberger
52 Toyota Motor Europe
320 V8
300 V8
6-cylinder
280
260 Petrol
Combined CO2 (g/km)
average
240 6-cylinder
220
Diesel
200 average
180
160
RX 450h
140
0 0.05 0.10 0.15 0.20 0.25 0.30 0.35
NOx (g/km)
CO 2 and NO x
Engine technology Lexus RX 450h versus competitors
-16% -16%
100 1
Both petrol and diesel fuels will continue to be the dominant -3%
80 -5% 0.8
sources of internal combustion engines in the immediate
term, and so Lexus is making major efforts to reduce the
60 0.6
environmental impact of powertrains using these fuels.
40 0.4
By re-examining the whole structure of the internal -4%
combustion engine, Lexus has developed technologies like 20 0.2
Electronic Variable Valve Timing with Intelligence, which
0 0
raises the efficiency of the combustion process meaning
A B A B A B A B A B
less fuel is used and D-4S, which features both direct and CO2 NOx NMHC PM SOx
port injection, improving performance and efficiency across Material Production Driving/Maintenance A RX 400h
Vehicle/Parts Production Recycling B RX 450h
the power band.
After Sales
“ Our After Sales business is made up of Authorised
Retailers and Repairers who are the primary contact point
for customers for parts and accessories, maintenance
and repairs. Despite the global economic downturn, our
After Sales business remained robust with parts sales
showing an all-time sales record and accessories sales on
target. After Sales contributes to Toyota’s environmental
leadership by maintaining the car’s performance through-
out its lifecycle while minimising environmental impact by,
Bas Kasteel for example, using remanufactured parts. „
Director, Customer Service,
Sales and Marketing, Bas Kasteel
Toyota Motor Europe
Remanufactured parts
By reusing components and thereby reducing the demand and in FY09 the volume of remanufactured parts increased
for raw materials, we are also saving the energy needed to by 10%. We recorded a core return rate of 90% and
convert those raw materials into finished products. managed a lead time from the retailer to the supplier of
We are expanding our range of remanufactured products less than a month.
Toyota European Sustainability Report 2010 I Environmental Performance
End-of-Life Vehicles
and Sustainable
Recycling
“ Earlier this year, the Environmental Committee
of the European Parliament met with the European
Commission to discuss the implementation status of the
Willy Tomboy EU Directive 2000/53/EC on end-of-life vehicles (ELV).
Director, Environmental Affairs, The implementation of this Directive by the member
Toyota Motor Europe
states has not always been smooth due to : 55
•T
he involvement of different government bodies
• Problems in making economic operators liable
• The insufficient number of qualified, certified dismant-
ling facilities
• Different methodologies used to comply with the
targets (a working group with representatives from
the car industry has been established to prepare
common guidelines). „
Willy Tomboy
Members of the European Automotive Manufacturers’ efficient recycling infrastructure, such as post-shredder
Association (ACEA) have identified some action points to technologies and energy recovery options, and not used
improve the results of the ELV Directive : for other purposes.
1- Harmonise legislation. National recycling definitions 4- Enforce landfill ban. This will help direct shredder
must follow the definition given by the waste framework and post-shredder material streams into recycling and
directive. There should be no constraint for acceptance energy recovery routes. If it is prohibited to dispose
of applications with regard to the definition of recycling of more than 5% in landfill there will be more pressure
throughout EU member states. to build up recycling and recovery infrastructure and
to increase the performance of the whole recycling
2- Harmonise and establish quota calculation systems. chain.
Use the fixed assumption approach proposed by ACEA
in all member states for parts of ELVs which are constant 5- Put pressure on non-authorised facilities. Member
like metals, oils and other fluids, tyres and non-metallic states have to fight against fraud. Non-authorised facilities
reuse. This provides a transparent and clear definition of increase the risk of not achieving set quotas. This creates
the recycling and the recovery quotas. Establish quota market distortion.
calculation systems using the expertise of the car industry
who can share the experience they have gained over the Our industry is increasingly concerned about the apparent
past decades. rise in illegal ELV treatment and illegal ELV export. Both
activities have negative environmental impact, and are
3- Use of existing infrastructure. Select the most detrimental to the authorised ELV treatment business.
professional and efficient operators for ELV collection Authorised facilities have stringent environmental standards
and treatment. Where fund or deposit systems are legally and are managed by national Environmental Protection
required, financial resources must be directed to the most Agencies.
Social
Performance
“ Our focus is on maintaining stable employment and employee morale.
We also focused on achieving our aim to be the number one company
for complete customer satisfaction, enhancing a culture of health
„
and safety and strengthening Toyota’s good corporate citizenship
performance.
Didier Leroy
Toyota European Sustainability Report 2010 I Social Performance
Toyota: a Good
Corporate Citizen
Didier Leroy
President and Chairman of CSR Committee,
Toyota Motor Europe 57
Managing Officer,
Toyota Motor Corporation
1- C
ustomer engagement 3- Business partner engagement
We seek to establish strong relationships with customers during We support our suppliers by providing training and shopfloor
and after the sale of a vehicle, from both a service and quality improvement clinics where we can share best practice. Various
perspective. All employees in the Toyota network are trained programmes are in place to ensure that our supply partners
in programmes to ensure a focus on “ Customer First ”, “ Envi- are fully integrated into our business and enjoy open two-way
ronmental Leadership ” and “ Good Corporate Citizenship” (see communication. (see pages 75 to 77).
pages 63 to 64).
4- Engaging with the community
2- E
mployee engagement We aim to build long-term relationships with the community.
Employees are one of our most important stakeholder groups. This is reflected in our initiatives and partnerships with non-pro-
To encourage dialogue, we carry out regular satisfaction sur- fit organisations and other stakeholders at the local level (see
veys at all European affiliates to identify areas for improvement pages 78 to 81).
in the management of human resources (see pages 71 to 72).
Managing our CSR performance
Toyota European Sustainability Report 2010 I Social Performance
The management of Corporate Social Responsibility (CSR) Our CSR process is based on internal (CSR Assessment) and
at Toyota Motor Europe is underpinned by a process which external performance measurements (European Key Stake-
emphasises continuous improvement (kaizen) in our CSR holder Survey). These measurements provide opportunities for
performance. improvements which contribute to mid and long-term growth.
rowth
Mid-term G
s
le Busines
Europe Favourab ment
yota CSR Activities in Environ rities,
al autho
To bodies, loc
Regulatory Os, Media
External NG
SR Image t
Internal Chancement Enhance
men
partner
rm anc e En Good Attractiveess partners
Perfo
ts Corporate Future busin
ployees
mmitmen
Future em
Toyota co Social Citizen
tions
contribu
20
CSR Vision 20 Affinity
Customer ent
58 Policy
To be Lead
ing player enhancem
Europe
CSR in greater
y contributors
Policy To be a Ke yota succes
to global To
Contribution lder
towards Self
reliance Stakeho tion
Sustainable Good nica
Development
Toyota
Environ-
mental
Corporate
with focus
on core Commu AWARENES
S
Customer Citizen models
Delight Leadership E
KNOWLEDG
LIKING
T
AT ION PRODUC
BRAND
CONSIDER POWER
ental
, environmance POWER
CE
Economic
PREFEREN
l perform
and socia Connect to a MARKET RE
PRESEN TATION
s in
consumer RVICE CAPACITY
EKSS ient and RETAIL & SE ip
more effic Ownersh
l) wa y
(externa effective TRADE-IN ce
essment Experien
CSR Assrnal)
(inte POWER AVAILABILIT
Y
SELLING
ility to BUY (OR
Improve ab erers RE-BUY)
nsid
convert co
to sale s
lue
e co rporate va
• Enhancol rs benefits
• Shareh stdeable growth
rs • su re
Shareholde En
• Disclosure
t
vironmen
y with the en
• Harmon ndly netw
ork
omotion
• Eco-frie nology pr
ental tech rships
• Environm
nmental pa
rt ne
Environmen
t • Enviroia e
Community • Compl hrnc hy &
• Philant utop
ion to Soci
ety
contrib
Toyota European Sustainability Report 2010 I Social Performance
CSR Assessment results 1- Be number one in Complete Customer Satisfaction
Our NMSCs have improved their position across Europe
Specifically in relation to our priorities for FY09 (be number
and score well on customer satisfaction in sales and after
one in Complete Customer Satisfaction, maintain employee
sales. In the recent recall campaigns, the NMSCs and
morale and motivation, enhance a culture of health and
the retailer network have shown exceptional dedication
safety and strengthen Toyota’s European good corporate
to serving our customers and maintaining customer trust
citizenship performance) the CSR Assessment FY09
and loyalty.
shows :
2- Maintain employee morale and motivation
On a standardised scale of ten, results are shown below for
Scores for ‘respect and employee satisfaction’ are up both
2007-2009 by company type.
in EMCs and NMSCs. This shows that the measures we
undertook to maintain stable employment and employee
motivation (see pages 67-74) were well received by the
employees.
National Marketing
and Sales Companies (NMSCs) 3- Enhance a culture of health and safety 59
This examines employees’ perception and operational
10 9.0 8.9
9.4 9.3 health and safety indicators. Especially in our European
8.6
9 8.4 8.5
8.2 Manufacturing Companies, health and safety is a
7.7 7.9
8 6.8
6.7 fundamental element in the yearly planning cycles and
7
6
in continuous improvement projects. The average score
5 for health and safety has improved significantly due to
4 focused activities in several plants and continued employee
3 awareness of the health and safety systems in place.
2
1
4- Strengthening good corporate citizenship performance
0
Overall corporate citizenship performance is measured by
CCI(1) Customer Respect & Health &
First Employee Safety the Corporate Citizenship Index (CCI). As shown in the
Satisfaction graphs, the score steadily increases over the years, due
FY07 FY08 FY09
to the sharing of best practice in our companies and a
growing awareness of CSR.
9
7.8
For the manufacturing plants (EMCs) : European projects
8 7.5 7.1 7.2 will be introduced to strengthen risk management, to
6.5 6.7 6.6
7
5.8 create awareness on CSR and Environment in the local
6
5
supplier base and to follow up on any Code of Conduct
4 cases.
3 For the sales and marketing companies (NMSCs) : Due to
2 the large spread of individual company scores, support will
1 be given to the countries with the lower scores. In addition
0
we will focus on helping increase retailers’ involvement in
(1)
CCI Respect & Health &
environmental and social contribution activities. Special
Employee Safety
FY07 FY09
Satisfaction attention will also be given on a European level to
FY08
strengthen the risk management processes.
(1)
CCI = Corporate Citizenship Index.
Measuring CSR performance – external stakeholders
Toyota European Sustainability Report 2010 I Social Performance
Innovation
3
Integrity
Business
Business
ce
Performan
Overall CC score compared to competitors in industry
2,0
1,5
1,0
0,5
0,0
-0,5
-1,0
-1,5
Environment Society Business Corporate
citizenship
FY 07 08 09 07 08 09 07 08 09 07 08 09
Toyota Worst scores Best scores
CSR Assessment results
FY 07 08 09 07 08 09 07 08 09 07 08 09 07 08 09 08 09
Toyota Worst scores Best scores
Toyota remains the leader in environmental performance due to the leading environmental technologies applied to
and has improved its score in four of six attributes. This is both its vehicles and operational processes.
61
FY 07 08 09 07 08 09 07 08 09 07 08 09 08 09 07 08 09 07 08 09 07 08 09 07 08 09
Toyota Worst scores Best scores
In general the perception of Toyota’s social performance has re- age on two of the nine attributes. It is our priority to address these
mained stable. However the company is performing below aver- attributes and overall improve our performance as a result.
FY 07 08 09 07 08 09 07 08 09 07 08 09 07 08 09
Toyota Worst scores Best scores
The score for Toyota’s business performance has increased. and quality are part of the Toyota Way and as such, form
The values of the business performance : safety, integrity the foundations of the company.
Special feature
Toyota European Sustainability Report 2010 I Social Performance
In Europe, we were determined to have the right The External Affairs team also spent many hours directly
information on which cars were going to be recalled. engaging with our stakeholders, primarily the media, but
Our primary obligation is to the customer and this also with the authorities when necessary. We were han-
meant that we had to give the correct information dling about 20 enquiries from journalists every day, in each
to the media to ensure the customers were well case explaining the latest developments. Media sentiment
informed. However, it takes time to get the information had quickly changed to being negative, so direct discus-
in a recall of this size. The accelerator pedal which sion and explanation was essential for us to get the facts
was potentially showing some ‘stickiness’ was used across. This was all the more important as we established
in a wide variety of models, and we needed to be sure new processes, to ensure customer satisfaction. You can
of the facts. Consequently, this took longer than we read more about these on pages 63-64.
would have liked, and left the customers with some
uncomfortable uncertainty.
Toyota European websites
In an effort to minimise that uncertainty, we News section = visits and share
maximised the use of online tools to communicate. '000s of visits % of all visits
50 25%
Special web pages were developed on toyota-
europe.com and on many of the National Marketing 40 20%
and Sales Companies websites. An online vehicle
30 15%
identification number checker was developed,
allowing customers to instantly check if their car 20 10%
was affected. This was in parallel to the letters that
10 5%
were issued to all of the affected owners. Traffic to
the news section of the Toyota European websites 0 0
peaked at approximately 40,000 per day at the /20
10 010 010 010 010 010 010 010 010 010 010 010 010 010 010 010 010 010 010
/2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2
/01 4/01 6/01 8/01 0/01 1/02 3/02 5/02 7/02 9/02 1/02 3/02 5/02 7/02 9/02 1/02 3/02 5/02 7/02
/2
22 2 2 2 3 0 0 0 0 0 1 1 1 1 1 2 2 2 2
beginning of February 2010, which were ten times Visits
Our ‘Customer First’ philosophy guides our interactions with The graphs below show our CCS position in European
our customers. By focusing on the total customer experience, countries for both sales and after sales, and overall
from the time of purchase and throughout ownership, we satisfaction levels for these groups.
seek to build a long-term relationship with customers.
20 30
25
15 24/29
20
Number of countries
Number of countries
14/20 21/29
13/20 19/29
12/26 12/19
10 15 17/29
10
5
5
0 0
FY 06 07 08 09 FY 06 07 08 09
Product recalls
In early 2010, for the first time in its history, Toyota globally To better understand the impact of the recalls on our
implemented a major recall for several of its models. We customers and their concerns, we also contacted
are fortunate to have a strong network of retailers around thousands of customers directly. Feedback from customers
Europe who helped us get information about the recall to suggested that the company handled the recalls in a
our customers. satisfactory way.
The role of the Customer Relation Team
Toyota European Sustainability Report 2010 I Social Performance
In keeping with the current nature of global issues, the media Wants to know
details of recall
was a key factor in determining how events unfolded. For 23%
13,696
14,000
……..
5,000
4,000
3,000
2,000
1,000
0
Fri. Tue. Sat. Wed. Sun. Thu. Mon. Fri. Tue. Sat. Wed. Sun. Thu.
29/01 02/02 06/02 10/02 14/02 18/02 22/02 26/02 02/03 06/03 10/03 14/03 18/03
Supporting road safety initiatives European New Car Assessment Programme (Euro NCAP)
We have a responsibility to raise safety tests
public awareness about road safety. Euro NCAP is an independent safety assessment programme
We have supported the Road backed by seven European governments, the European
Safety Performance Index (PIN) Commission and motoring and consumer organisations in
programme, run by the European every country in Europe.
Transport Safety Council, since
2006. PIN encourages EU Currently, Toyota and Lexus has vehicles that are among the
member states to improve road best overall performers in safety across the full range of Euro
65
safety and identifies key road NCAP tests. In FY09 Toyota vehicles achieved the top score
safety performance indicators. for four out of the five cars tested.
In September 2009, we took part Further information on these programs can be found at :
in the eSafety Challenge in PIN programme : www.etsc.eu/PIN.php
Italy and demonstrated eSafetyAware ! program : www.esafetychallenge.eu
the life-saving potential ASSESS program : www.assess-project.eu
of the Pre-Crash Safety Safety at Toyota Motor Europe : www.toyota.eu/safety
Eco-Driving
66
By making simple changes to everyday driving Eco-driving activities are also undertaken in other
behaviours, motorists can reduce their fuel countries such as :
consumption. This is the message that our retailers
are promoting to customers to raise awareness of Germany: Toyota Deutschland launched a country-
eco-driving. wide Eco-Driving programme with the national
motoring organisation, ADAC. The company has
In FY08, 55% of our retailer network implemented donated 50 Avensis cars, which are stationed at 15
eco-driving activities, such as giving customers eco- of ADAC’s safety driving centres and used to train
driving tips at showrooms or demonstrating eco- people in eco-driving techniques.
driving techniques during test drives. Denmark: In the run-up to the Copenhagen summit,
Toyota Danmark rolled out an extensive eco-driving
This year, with non-profit organisation Global test drive programme to its entire retailer network. It
Action Plan International, we launched eco-driving also held an Eco Roadshow.
workshops at showrooms. Under the guidance of
trained supervisors, participants learn new driving
techniques on Toyota simulators that recreate the
driving experience and test how far drivers can travel
on 0.1 litres of fuel.
Workforce statistics
We make a significant contribution to local economies Headcount at EMC
by directly employing 20,051 people in our Head Office
(Evere and Zaventem), our European distribution centre 20,000
(Toyota Parts Centre Europe), our European Manufacturing 3,600
3,000
2,500 Also includes temporary employment
343
2,000 268
Note : The employment data reflects the situation on 31st March at each financial year.
Toyota European Sustainability Report 2010 I Social Performance
68
Also includes temporary employment
National Marketing
1,336 (70%) 583 (30%) 1,919
and Sales Companies
Employees by age < 25 (%) 25-34 (%) 35-44 (%) 45-59 (%) >60 (%) Total
Head Office 9 (<1%) 951 (47%) 758 (37%) 292 (14%) 13 (1%) 2,023
European Manufacturing
906 (6%) 8,155 (53%) 5,002 (32%) 1,375 (9%) 26 (<1%) 15,464
Companies
National Marketing
15 (1%) 464 (24%) 714 (37%) 658 (34%) 68 (4%) 1,919
and Sales Companies
Total 967 (5%) 9,841 (49%) 6,694 (33%) 2,242 (12%) 107 (1%) 20,051
Toyota European Sustainability Report 2010 I Social Performance
Employees by length <1 year (%) 1-4 years (%) 5-9 years (%) 10-14 years (%) >15 years (%) Total
of service (1)
Head Office 20 (1%) 923 (46%) 631 (31%) 261 (13%) 188 (9%) 2,023
Total 20 (1%) 1,157 (43%) 856 (32%) 379 (14%) 256 (10%) 2,668
Employees by length of <1 year (%) 1- <3 years (%) 3-5 years (%) 6-10 years (%) 11-15 years (%) >15 years (%) Total
service (1)
European Manufacturing 69
74 (<1%) 2,014 (13%) 4,298 (28%) 7,029 (45%) 901 (6%) 1,148 (7%) 15,464
Companies
Total 91 (1%) 2,295 (13%) 4,633 (27%) 7,424 (43%) 1,219 (7%) 1,720 (10%) 17,383
(1) We calculate length of service using different categories for Head Office and TPCE, compared to EMCs and NMSCs.
Toyota European Sustainability Report 2010 I Social Performance
Other measures included : In FY09 our turnover rate was 4.00%, compared to
7.70% in FY08. These figures are for our Head Office
Our Head Office in Brussels introduced 16 unpaid days (Evere and Zaventem, Belgium). We do not currently
in FY09. report turnover for our other operations but plan to do
Toyota Deutschland (TDG), working with their works so in the mid-term future.
council, re-engineered their company operations based
on a benchmarking study that examined Toyota Motor
Europe, other National Marketing and Sales Companies
(NMSCs) and other automotive distributors. Employee Turnover
Other NMSCs introduced voluntary unpaid holidays and
implemented organisational changes to enable better 10%
flexibility to ensure long-term prosperity and employee 7.40 7.70
8%
stability.
6%
With improved market conditions towards the end of FY09, 4.00
conditions.
0%
FY07 FY08 FY09
To make the required structural changes for the long-term
recovery of the organisation, some of the measures were
retained, such as limiting the number of overtime hours.
Employee communication
In all the European countries in which we operate, we Communication Channels
adhere to European and national legislation and we have
established employee representative bodies to inform and
communicate within the framework of social dialogue. Where
required, Toyota Motor Europe has established collective Company
ement)
bargaining agreements covering all employees at a specified (Top manag
location. European and national consultations have helped Supervisors
to create and maintain awareness and motivated two-way
communication concerning the company’s business position,
surrounding environment and business challenges. d
Unions an
HR Employee
Under the severe business conditions caused by the economic atives
Represent
downturn, it was essential for us to provide open and timely
communications to our employees on critical business issues
and company decisions
/Union
Employees
Toyota European Sustainability Report 2010 I Social Performance
One of the ways we share information with our employees is globally. The purpose of the initiative is to ensure all Toyota
through the Toyota European Works Council, which is also employees around the world are provided with up-to-date
called the Toyota European Forum (TEF). The Forum consists of information about business operations. Communication
representatives from each country in Europe that Toyota has op- packs are prepared and sent to divisions, sales and marketing
erations in and includes representatives from National Market- affiliates and manufacturing companies. Communication
ing and Sales Companies (NMSCs), European Manufacturing sessions are held by local management with employees to
Companies (EMCs), the Head Office and senior management. share information and employees can request additional
Through TEF, employees receive regular updates on various information and give feedback at these sessions.
business issues for Toyota’s global and European operations.
Work-life balance
We have continued to introduce measures to ensure employees
Current utilisation of Time Credit Promotion
have a work-life balance. By identifying priorities in our day-to-day in Head Office per main functions
operations and optimising processes, we are helping employees
manage their workloads during a time when there are measures Manufacturing support
in place for no recruitment or overtime. Among other activities, 19%
in our Head Office in Brussels, reducing overtime hours has Sales - Marketing
43%
enabled employees to better manage the ratio between the time
spent at work and at home (work/life balance).
Corporate
28%
During a time of global economic change, it has been Office, more than 130 employees in 34 teams participated
important to maintain and enhance employee motivation. in this event, which was organised by the employees.
In FY09 employee events included the Ekiden (relay race) Local Ekiden were also held in Toyota companies around
Festival for employees and their families. At our Head Europe.
50 45.7
bl
so of
eW
l
(Per nse
ork
supervisors with a standardised approach to facilitate employee
Se
2
Give a
p
gn
m
the work and motivating the employee. In the Check and Act ni lete
As
si
to
r& Work
stages, the manager or supervisor evaluates the work and
discusses the employee’s personal growth and the next steps
Lea
d 3
needed to help them in their development.
This course takes junior management through all elements of the Members
Act efficiently
manage
motivate
(3)
Designed as a tool to enhance the management skills of newly- JKK
promoted managers, the course also serves as a refresher TBP
(2 )
(1) The training figures include Toyota Motor Europe’s Head Office and Technical Centre.
(2) TBP = Toyota Business Practices
(3) JKK = Jikotei Koteï Kanketsu
Health and Safety
28.56
30 27.77
This effort has already been recognised, with Toyota Motor
Freq rate
Manufacturing Poland (TMMP) winning a national award for 20
safety in the workplace – “ Pracodawca – Organizator pracy
bezpiecznej ” (Safe Work Organiser) in 2009. More than 400 10
organisations competed to win this award.
0
with the creation of a ‘Safety Promotion Committee,’ made 13 Parts Centres only
0.4
members with a forum to discuss safety.
2 Toyota Motor Industries Poland (TMIP)’s annual
0.5
2.6
safety month focused on the importance of employee
1
communication in identifying and reducing risks. To
74 1.6
encourage employee participation, TMIP even stopped
the production line.
0
FY05 FY06 FY07 FY08 FY09
Overview of line stop activity at TMIP
Single event
Ergonomic
on,
er feedback
Obtain memb alisation
re
Action plan a whole
as
Toyota Peugeot Citroën Automobile data integrated of The activity
mins) 6 months
stop (30 rs l, including
2nd line activity
from FY07 ba ck to membe intensive to al
Feedback wsletter
Fe ed ion of ne
explanat via W ee kly
ins) including n plan
Ergonomic injuries are reported separately from FY09, op (30 m
1st line st d to identify
tion
1 month ac ent actio
aske lopm
Members eir safety plan deve
previously they were integrated into these statistics. and list th points
ent
improvem
Formula: No. of LTI/ Work hours x 1,000,000
In November 2009 we established an Ergonomics Working
Group (EWG). The EWG complements existing ergonomics To date more than 80% of improvement points have been
activity within our manufacturing plants and provides an addressed and 70% of employees said they would like to
opportunity for specialists from all of our plants to share have this opportunity more often. A more permanent system
best practice. for employee safety suggestions is being developed.
EWG works jointly with our Safety Working Group, which
provides a platform for discussion on safety in Europe.
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We strengthened our risk assessment system for chemical
CT
The global economic crisis, as well as natural disasters, We believe that Toyota’s Guiding Principles and the Toyota
have all delivered challenges to suppliers of automotive Way in Purchasing provide us with a sound approach to
components. These challenges include supply disruption, business that will deliver sustainable business results for our
production interruption and logistics failures. suppliers and us as well.
We are not immune to the consequences of these macro The words of Toyota Motor Corporation founder, Kiichiro
events, and the past year has provided an opportunity to Toyoda, are still valid today: “Toyota and its suppliers work
fully test the strength of our purchasing policies and supplier together as one entity, not only in times of prosperity, but also
relationships. in times of adversity.”
A European cross-functional taskforce, led by the Purchasing information sharing when managing relationships with all
Risk Management team, ensures the continuation of business suppliers and other stakeholders in the business.
and production within the supply chain.
The following diagram outlines our process to protect the
Its effectiveness relies on the Toyota Way principles of business from any type of risk in the supply chain (financial,
transparency, clarity, honesty, mutual trust and speed of social or natural disasters).
Cure curs)
(if risk oc
Monitor
Predict ntingency
plan
Deploy Co m
proble
itoring (tra
cking) Solve the al
ugh Risk mon g e back to norm
ering thro y plan Ma na
Data gath ontingenc
ho lder ne twork Develop C
76 multi-stake
ssment
Risk Asse
G
E PLANNIN
PROACTIV
Andy Pfeiffenberger
Working Together
Our social contribution projects provide us with the opportunity BUSINESSEUROPE (Confederation of European Businesses):
to understand the expectations of our local stakeholders. We BusinessEurope is composed of 40 industrial and employers’
want to be a good corporate citizen at the most local level. federations. We participate in the Confederation’s working
groups on subjects such as climate change and research
In FY09, 20% of retailers and 3% of manufacturing and Head and development. For more information please see
Office employees were involved in local social contribution www.businesseurope.eu
projects.
CSR Europe: We are a member of CSR Europe, the
In addition to social contribution programmes, we interact with business organisation that promotes corporate social
stakeholders on corporate social responsibility as a member responsibility in Europe. For more information please see
of international associations and federations including: www.csreurope.org
ACEA: European Automobile Manufacturers’ Association. World Business Council for Sustainable Development: We
We are a member of the association and participate in the are actively involved in a number of WBCSD activities and
various expert groups dealing with issues of interest to the working groups, namely those on Energy and Climate and
European automotive sector. For more information please Mobility for Development. For more information please see
see www.acea.be www.wbcsd.org
Toyota Fund of Europe (TFfE)
0 0
Since 2005, the competition has generated 188 entries from
05 06 07 08 09
schools and has led to the funding and implementation of 59
Environment Technical Education Strategic focus environmental projects.
Road Safety Other
Toyota European Sustainability Report 2010 I Social Performance
In FY09, for the first time, Toyota retailers in Denmark and Toyota Slovakia Living Trails
Slovenia worked together with schools to develop and
Together with the Ekopolis Foundation, Toyota Slovakia
implement environmental projects in their local communities.
supports the ‘Living Trails’ initiative to improve tourist
The winner of the last cycle was the Odtü Gelistirme Vakfi
infrastructure and reforestation in the Low and High Tatras
Özel Ilkögretim Okulu Primary School in Ankara, Turkey. The
mountain parks. The 2009 project began in January with the
school received the award for the ‘I Take Responsibility’
launch of a competition to fund local initiatives to protect the
project, which encourages students to take responsibility for
natural and cultural heritage of the parks.
electricity use in their classrooms.
For more information please see www.eco-schools.org
As part of this project, seven tourist paths in the parks were
rehabilitated. The paths are located in five different Slovak
Reforestation activities by Toyota España
national parks. The activities undertaken ranged from
Toyota España held its second Reforestation Day in November cleaning trails after windstorms to improving their safety by
2009 (see pictures below). More than 10,000 people, including repairing surfaces, fixing safety chains, undertaking anti-
staff and customers from Toyota’s retail network, planted seed- erosion activities, improving trail markings and installing
lings in 61 locations across Spain. Around 160,000 oak tree information panels (see below).
80
seeds and 10,000 seedlings were planted on the day.
This is the second consecutive year that Toyota Slovakia
has supported this initiative. The company has received the
Via Bona Award in recognition of its environmental projects,
including the Greenways and Living Trails initiatives.
Our manufacturing plants intensified their contribution to the students about environmentally friendly vehicle engineering and to
local communities in FY09. Initiatives include: encourage the consideration of engineering as a future career.
TMUK Charitable Trust : Established in 2008 to distribute
funds to good causes, the Trust generated £201,403 in FY09
Toyota Motor Manufacturing UK (TMUK) from corporate and employee fundraising activities. Every
Technology Challenge : A nationwide competition to educate pound will be donated to support local projects.
Toyota European Sustainability Report 2010 I Social Performance
The campaign includes a regional drawing contest and
the distribution of 6,800 education packs and videos on
81
Toyota Motor Manufacturing Poland (TMMP)
Safe Driver Programme: TMMP has organised this programme TMMT volunteers supporting students to develop their ideas
Toyota Motor Manufacturing Turkey (TMMT) More information about these and more than 300 Toyo-
Road safety competition: TMMT continued its traffic ta social contribution projects in Europe can be found at
safety education campaign during Traffic Week 2009. www.toyotafund.eu
Economic
Performance
“ We need to put in place strategies and actions to adapt to ever-changing
market conditions. Flexibility in the development and production of our vehicles
in order to satisfy customer needs will become a significant area of competitive
advantage. Our top priority must be on rebuilding our customers’ trust.
„
Long-term trust is more important than short-term profits. We will pursue mutual
growth with our business partners based on mutual trust.
Ludo Vandervelden
Toyota European Sustainability Report 2010 I Economic Performance
Self Reliance
with Focus
on Core Models
Ludo Vandervelden
Senior Vice-President,
Accounting and Finance, 83
Business Services, Legal,
Toyota Motor Europe
Market Context
In FY09, the automotive market continued to expand in One of the reasons for this was a change in the market
China, India and other developing countries. In developed structure resulting from shifts in consumer demand to
countries, despite government efforts to stimulate demand, small family cars (C-segment) and for cars in the lowest
overall market conditions were difficult. price segments.
In FY09, our net revenues in Europe decreased by 22% However, our operating loss was €252 million in FY09
from FY08 to €16,390 million as a result of both reduced compared to €995 million in FY08. This was mainly due to
sales and vehicle unit production. cost reduction efforts in all areas.
The European car market decreased by 2.8 million units to The year-on-year decrease in Western Europe was contained
18.3 million units, falling below the FY02 level. at 2.6% by the introduction of programmes to provide
incentives to motorists to scrap old vehicles and replace
Vehicle Sales and Market Share them with new more energy-efficient vehicles. However,
'000s of vehicles 6 these programmes were not offered in Eastern Europe,
5.6%
1,300 5.4%
5.3%
where markets collapsed by 41.5%. Under these conditions,
4.5%
4.7%
4.9% 4.9%
5 Toyota’s 882’351 sales in Europe represented a decrease of
4.1%
1,100
1,233
3.6% 3.6% 4 229’670 units or 20.7% compared to CY08. Toyota’s market
1,125
3.1%
3.2%
share was 4.9% in CY09, which is 0.4% lower than in CY08.
1,112
900 2.8%
3
1,001
882
950
2
769
800
Our production volumes were adjusted to adapt to the
decrease in demand. As a result, our annual production 600
volumes reduced from 589,794 units in FY08 to 544,050
units in FY09. The reductions mainly affected production of 400
the Avensis and Auris vehicles.
200
This reflects the market trend towards small family car
vehicles. Government scrapping incentives programmes in
0
FY09 also benefitted cars in this segment.
FY 97 98 99 00 01 02 03 04 05 06 07 08 09
TMUK TMMT
Investments
TMMF TPCA
1000
The €548 million reduction is due to the absence of major
946
882 model changes in FY09 (investments for Avensis and Corolla
804 798
800 707 715
777 Verso model changes incurred in FY08) and because we
659 needed to prioritise investment projects in FY09.
600 539
In FY09, the production of a full hybrid version of the Auris in the UK-
400
based facility in Burnaston, Derbyshire was confirmed. Production
229
200 of Toyota’s first European-built full hybrid will commence at Toyota
Motor Manufacturing UK (TMUK) in mid-2010. Engines will be
0 produced at TMUK’s facility in Deeside, North Wales.
FY 00 01 02 03 04 05 06 07 08 09
In FY09, construction for the expansion of the testing facilities
of our research and development premises in Zaventem,
Source: TMC Annual Results Belgium began. Through this investment, we intend to
strengthen our capability to develop vehicles that meet the
expectations of our European customers.
Glossary of terms
Economic
4,82-84
Disclosures on management approach.
Economic Performance
Environmental 4,21-22
27-29,32
Disclosures on management approach. 44,54
Materials
EN1 Materials used by weight or volume. We do not have the data collection systems to collect this
information. We plan to do so in the mid-term future.
EN2 Percentage of materials used that are recycled input See EN1. 54
materials.
Toyota European Sustainability Report 2010 I Economic Performance
Energy
EN3 Direct energy consumption by primary energy source. 32,34-35
38, 41,43
EN4 Indirect energy consumption by primary source. 32,34-35
38, 41,
43
EN5 Energy saved due to conservation and efficiency 32,33,34
improvements. 37,38,40-
41,43
Water
88 EN8 Total water withdrawal by source. Most of the company’s water is sourced from municipal 6, 32, 49
water suppliers with the remainder sourced from rainwater
harvesting methods.
Biodiversity
EN11 Land in biodiversity habitats. We do not report on this indicator as it is not deemed
material as we do not have land in biodiverse habitats.
EN12 Impact on biodiversity rich areas. Not applicable - please see EN11 comment. 80
Emissions, Effluents and Waste
EN16 Direct and indirect greenhouse gas emissions. 6, 32, 34,
37, 39,
40, 48
EN17 Other indirect greenhouse gas emissions. We do not have the data collection systems to report on this
indicator fully. We plan to do so in the mid-term future. The
majority of our greenhouse gas emissions are covered by EN16.
EN18 Initiatives to reduce greenhouse gas emissions. 13,
18-20,
25-31,
33, 34,
37, 38-41
EN19 Emissions of ozone-depleting substances. Toyota Motor Europe sites do not use materials that contain
ozone-depleting substances, except for fire extinguishers, some
refrigerants and air conditioning units, therefore emissions of
these substances are minimal and not deemed significant.
EN20 NOx, SOx, and other significant air emissions. 32, 33,
35, 53
EN21 Total water discharge. Our water discharges are associated with our 32, 33, 35
manufacturing facilities. In FY09 the total amount of
wastewater was 689,261 m3 for our production sites.
Labour
69-74
Disclosures on management approach.
Employment
LA1 Workforce. 67-69
LA2 Employee turnover. 70
89
LA3 Benefits for full-time employees. 71-72
Labour/Management Relations
LA4 Percentage of employees covered by collective bargaining Percentages differ by our countries of operation. We 70-71
agreements. recognise the right of employees to freely associate and
adhere to all applicable laws on collective bargaining in
each country we operate in.
LA5 Minimum notice period for operational changes. Operational changes are determined in line with the local
legislature of the locations in which we operate and, in line with
which and as applicable, discussions with our social partners.
Occupational Health and Safety
LA7 Absentee rates and injuries. 6, 73-74
LA8 Programs for serious diseases. 74
Training and Education
LA10 Training per employee. 72
LA11 Career and skill development programmes. 72
Diversity and Equal Opportunity
LA13 Workforce by diversity. 67-69
LA14 Salary ratio by gender. In terms of pay between males and females, the company’s
pay policies are designed to promote equal pay for equal
contribution, capability and experience. There is no
difference between pay ratios by virtue of gender.
Society 56-57,
Disclosures on management approach. 78
Community
Avenue du Bourgetlaan 60
1140 Brussels, Belgium
www.toyota.eu/sustainability