Sustainability Report 2020 Toyota Sustainability Report 2020 COVID-19 impacts Zero carbon transition This brochure provides an overview of Toyota Australia’s 2020 Sustainability Our first priority during COVID-19 has been the Operational Report, which can be found on our web site. It details how we create safety and wellbeing of everyone in the Toyota environmental impacts value, and our approach to the issues that matter to our business and our family. Our cross-functional crisis management Vehicle life cycle stakeholders, including the community and the environment. Visit and team met frequently to develop contingency download the full report from our website www.toyota.com.au/sustainability. plans and ensure business continuity. Community Toyota is confronting the uncertainty and investments and potential long-term economic impacts of the partnerships CEO statement pandemic. We are regularly assessing how the Customer engagement There is no doubt 2020 has been a challenging year, with the COVID-19 global needs of our customers and the automotive and satisfaction crisis having a significant impact on business, retail, our working lives, and sector may shift, and how we can maintain most importantly, to family and friends. We are navigating through uncharted and leverage our position as Australia’s trusted Dealer engagement waters, where the situation is fluid and little is certain. automotive brand. Indirect social and economic impacts Amidst the challenges of COVID-19, Toyota Australia has reached a significant Supply chain milestone this year, celebrating 60 years of operations. We have maintained Sustainability at Toyota sustainability our position as the top selling automotive company in Australia for the 17th consecutive year and we are transforming to become the most admired Sustainability has been a part of Toyota’s Mobility guiding principles since its foundation. Our mobility business. Automated driving and approach to sustainability is grounded in intelligent transport We have a leading role in the transition to a decarbonised future and we are the Toyota Way of continuous improvement systems committed to electrification, with our strategy built on hybrid vehicles and other and respect for people. Our governance of alternative powertrain technologies such as hydrogen powered fuel cells. sustainability is led by the Board and by an Sharing services executive-level Sustainability and Environment Data privacy and Whilst we currently find ourselves in uncharted territory, our focus remains on Committee. Our sustainability reporting is security our people. We are placing emphasis on our employee’s and dealer’s mental based on an annual assessment of our material Advocacy and lobbying health, along with supporting our customers as they face challenges as a topics, which considers a range of stakeholders result of COVID-19. and impacts throughout our value chain. Product safety and quality I am confident that through the strength of One Toyota that we will come out of We also assessed our impacts against the this storm stronger. COVID-19 will pass, and we will get through this together. United Nations Sustainable Development Goals (SDG’s) taking into account both our actual and potential ability to either create positive impacts or to mitigate negative impacts. Employee health, The resulting material topics are outlined to safety and wellbeing Matthew Callachor the right. Employee engagement President and CEO Toyota Australia Diversity and inclusion Employee planning and development Labour relations Our Performance

Designing the future Ever better vehicles Enriching communities Wide-reaching economic impacts 100,000+ 215,722 RAV4 $2.8 60 years 224 Australian hybrid vehicle Toyota vehicle sales CarsGuide 2019 Car of the Toyota operations in Toyota and Lexus sales (cumulative) Year million Australia dealerships Community contributions Car Building capabilities 13,501 Service Toyota and Lexus dealer Gold 1,722 employees Toyota employees Winner (headcount of full-time, part- time, employees and contractors) 8.23 Reader’s Digest Quality Dealer satisfaction index 17% Service Award 2020 82.6 $129 Australian hybrid Net Promoter Score – sales 78 vehicle sales (%) Toyota $1.2 Employee engagement score million Hybrid After-tax profit 10 Ranked billion RAV4 65 Supplier spend vehicles Drive Car of the Year #1 Employee enablement score $8.37 Hydrogen fuel cell vehicle – Most trusted automotive Mirai demonstration model company – Annual Trusted billion 1,456 Brand Survey Stage 1 29% Net sales Number of suppliers Female representation in complete workforce Hydrogen Centre

1,156kW 21 Solar capacity – Lost time injuries Australia wide Helping to create a zero- Developing mobility solutions Enriching communities We are working to establish a Global carbon society Program for Modern Slavery across Mobility plays a central role in the Toyota Australia has a long history of the Toyota brand. Toyota Australia is The automotive sector has an important lives of all Australians, enabling engaging with and supporting the currently preparing its first modern role to play in combating climate access to employment, education and communities in which we live, work, slavery statement in line with the change, which is a concern of our social opportunities which enhance and operate. We’re a part of Australian Modern Slavery Act 2018, which will be customers and other stakeholders. the wellbeing of individuals and society, and we work constantly to have submitted in December 2020. the economic growth of our nation. a positive impact on Australia’s people Since the introduction of the Prius Recognising the changing expectations and environment. We support local and hybrid, Toyota has been leading the of our customers, Toyota is transitioning international sport, STEM education, shift to lower emission vehicles. We from a traditional automotive company not-for-profit initiatives, matched-giving, Developing and supporting are driven by the Toyota Environmental to a mobility company, investing and disaster relief, and have a particular our people Challenge 2050 to reduce our vehicles’ significantly in innovation, partnerships commitment to the communities in A workforce that has the tools and emissions, from production, to use, and advocacy – on a mission to give all which we operate. opportunities to embrace their creativity through to end of life. In Australia, we Australians the freedom to move. and grow their skills will in turn drive are actively working to increase the We support a wide variety of activities innovation for our business. Diversity share of hybrid sales, while also looking Toyota is investing significantly in through three main channels, with in our people will also foster diverse ahead to other forms of electrification, innovation, programs and partnerships priority focus areas that reflect those of ways of thinking and enable us to including hydrogen vehicles. for ‘Connected, Autonomous/Automated, Toyota globally. Shared and Electrc’ technologies at connect with our customers in a more We are working to ensure that all our a global and local level. New Toyota meaningful way. vehicles comply with the new Federal Australia vehicles will soon be fitted with Wide-reaching economic Health, safety and wellbeing of our Chamber of Automotive Industries (FCAI) a localised embedded Telematics service, employees is a constant focus. We are industry-led CO2 Emissions Standard, which will be based on global connected impacts currently enhancing activities to improve which sets out reduction targets for 2030. vehicle architecture. This feature will The success of our business is mental health and wellbeing of our staff. focus on providing safety and security, interwoven with the success of our Toyota global is working on more We were pleased to introduce our first enhancing Toyota customer experience. dealers and suppliers, who play environmentally friendly vehicle designs, diversity and inclusion policy in 2019, an integral part of our value chain. that use raw materials with lower We have been actively trialling and to be recognised as an ‘Endorsed Our position as Australia’s leading emissions, designing vehicles with fewer Cooperative Intelligent Transport Systems Employer for Women’ by Work180. automotive brand means that we have parts, and are making greater use of (C-ITS) over the past two years, through a responsibility, and the capability, As well as investing in ongoing biomaterials from renewable sources trials held in collaboration with the to contribute to society through our training, our formal promotion and making our vehicles easier to dismantle Victorian and Queensland governments. business activities. Through respect for rotation program provides employees and recycle. people and continuous improvement, with exposure to diverse roles across our aim is to make a positive difference our business, which both develops through our direct and indirect impacts. employee’s skills and builds valuable cross-functional expertise. We work actively with our suppliers to ensure our supply chains are well managed in relation to environmental impacts and human rights issues. Delighting our customers Managing our environmental

We aim to delight our customers in all impacts aspects of their relationship with Toyota Toyota globally has ambitious goals and to create Toyota fans for life. We to reduce the impact of its products believe that engaged and satisfied and operations on the planet. We customers are fundamental to long- aim not only to mitigate our own term business sustainability, and we impacts on the environment, but to take a customer-centric approach to all use our knowledge and experience aspects of our business. to permanently improve the footprint of our industry through innovative Toyota Australia retains a strong hand technology and ambitious targets. in designing, selecting and customising vehicles that meet the unique needs of This year, for the first time, Toyota the Australian market. Australia completed an emissions value chain assessment to identify Scope 3 During the reporting period, Toyota emission sources (all indirect emissions and Lexus vehicles were involved in 14 of our organisation, including both recall campaigns due to potential faults. upstream and downstream). We continue to actively recall vehicles affected by faulty Takata airbags. The Toyota Australia contributes to reducing required rate for recalls to 31 March lifecycle impacts through our battery 2020 was 75%; our actual completion recycling program. Customers are rate for both Toyota and Lexus models rewarded with a rebate for each battery was 91%. returned to a dealership for recycling. 98 percent of our hybrid batteries are reclaimed. Almost every component of a Hybrid High Voltage (HV) battery can be recycled.