Sustainability Data Book 2017 Sustainability Data Book 2017 Editorial Policy Sustainability Data Book (Former Sustainability Report) focuses on reporting the yearly activities of Toyota such as Toyota CSR management and individual initiatives. Information on CSR initiatives is divided into chapters, including Society, Environment and Governance. We have also made available the “Environmental Report 2017 - Toward Toyota Environmental Challenge 2050” excerpted from the Sustainability Data Book 2017. In the Annual Report, Toyota shares with its stakeholders the ways in which Toyota’s business is contributing to the sustainable development of society and the Earth on a comprehensive basis from a medium- to long-term perspective. Annual Report http://www.toyota-global.com/investors/ir_library/annual/ Securities Reports http://www.toyota.co.jp/jpn/investors/library/negotiable/ Sustainability Data Book 2017 http://www.toyota-global.com/sustainability/report/sr/ SEC Fillings http://www.toyota-global.com/investors/ir_library/sec/ Financial Results Environmental Report 2017 http://www.toyota-global.com/investors/financial_result/ —Toward Toyota Environmental Challenge 2050— http://www.toyota-global.com/sustainability/report/er/ Corporate Governance Reports http://www.toyota-global.com/investors/ir_library/cg/ • The Toyota website also provides information on corporate initiatives not included in the above reports. Sustainability http://www.toyota-global.com/sustainability/ Environment http://www.toyota-global.com/sustainability/environment/ Social Contribution Activities http://www.toyota-global.com/sustainability/social_contribution/ Period Covered Fiscal year 2016 (April 2016 to March 2017) Some of the initiatives in fiscal year 2017 are also included Toyota Motor Corporation (TMC)’s own initiatives and examples of those of its consolidated affiliates, etc., Scope of Report in Japan and overseas. Third Party Assurance Third Party Assurance in the Environment section denotes data confirmed through third-party assurance Reports are being issued in a total of 16 countries and regions (including Japan) in which Toyota Overseas Affiliates’ overseas consolidated affiliates and other companies operate. Reports The information disclosed globally by these reports covers about 88 percent of Toyota vehicles sold worldwide. Argentina Australia Brazil China Europe India Indonesia Malaysia * Issued in the UMW Holding Report New Zealand North America South Africa The Philippines Taiwan (Kuozui) Taiwan (Hotai) Thailand Vietnam 1 Sustainability Data Book 2017 Contents Overview of Toyota Motor Corporation 3 Corporate Principles 5 CSR Structure 8 Society Initiatives for Improving Traffic Safety 11 Customer First and Quality First Measures 18 Creating an Affluent Society 25 Social Contribution Activities 40 Respect for Human Rights 46 Collaboration with Business Partners 51 Employees 58 Stakeholder Engagement 74 Environment Toyota Environmental Challenge 2050 77 FY2016 Review of the Sixth Toyota Environmental Action Plan 79 Challenge 1 New Vehicle Zero CO2 Emissions Challenge 85 Challenge 2 Life Cycle Zero CO2 Emissions Challenge 90 Challenge 3 Plant Zero CO2 Emissions Challenge 94 Challenge 4 Challenge of Minimizing and Optimizing Water Usage 99 Challenge 5 Challenge of Establishing a Recycling-based Society and Systems 103 Challenge 6 Challenge of Establishing a Future Society in Harmony with Nature 108 Environmental Management 115 Environmental Data 123 Governance Corporate Governance 130 Risk Management 133 Compliance 138 CSR Achievement Data 140 ISO 26000 Comparison 142 2 Sustainability Data Book 2017 Overview of Toyota Motor Corporation Company Profile Non-automotive Business Company Name Toyota Motor Corporation Financial Services Toyota Financial Services provides financial services primarily for President and Representative Akio Toyoda vehicle loans and leasing in more than 30 countries and regions Director worldwide. Company Address Head Office 1 Toyota-cho, Toyota City, Housing Aichi Prefecture, Japan Consolidating the Toyota Group’s strengths, Toyota Home offers a Tokyo Head Office 1-4-18 Koraku, Bunkyo-ku, wide variety of housing related services to meet different customer Tokyo, Japan needs. Nagoya Office 4-7-1 Meieki, Nakamura-ku, Nagoya City, Aichi Prefecture, Japan Information Technology Services Date Founded August 28, 1937 Toyota is working on a variety of “connected” services that utilize IT, such as e-TOYOTA businesses and ITS-related businesses. Capital 635.4 billion yen (as of March 31, 2017) Main Business Activities Motor vehicle production and sales Other Business Toyota is also involved in marine businesses, as well as No. of Employees 364,445 (as of March 31, 2017) biotechnology and afforestation businesses (Consolidated) No. of Consolidated 597 (as of March 31, 2017) Subsidiaries No. of Affil. Accounted for 54 (as of March 31, 2017) under the Equity Method Global Perspective/Data by Region Europe 9 29 Asia Excluding Japan 3 North America 24 11 20 5 4 Japan 3 16 − 5 Other 9 No. of plants and manufacturing companies (as of February 28, 2017) 113 No. of distributors (as of December 31, 2016) 1 No. of R&D bases (as of March 31, 2017) * Both Toyota and Lexus brand bases No. of employees No. of vehicles produced Total vehicle sales 364,445 persons 8,975,509 units 8,970,860 units (As of March 31, 2017) (FY2016) (FY2016) Japan 58% 46% 25% North America 13% 23% 32% Europe 5% 7% 10% Asia 17% 19% 18% Other 6% 5% 15% 3 Sustainability Data Book 2017 Trends in Major Financial Results (on a Consolidated Basis) Net Revenues Operating Income Net Income (billion yen) (billion yen) (billion yen) 28,403.1 2,853.9 30,000 27,234.5 27,597.1 3,000 2,750.5 2,500 2,312.6 25,691.9 2,173.3 1,831.1 22,064.1 2,292.1 2,000 1,823.1 1,994.3 20,000 2,000 1,500 1,320.8 962.1 1,000 10,000 1,000 500 0 0 0 ’13 ’14 ’15 ’16 ’17(FY) ’13 ’14 ’15 ’16 ’17(FY) ’13 ’14 ’15 ’16 ’17(FY) • Shows the net income attributable to the shareholders of Toyota Motor Corporation R&D Expenses Capital Expenditures (billion yen) (billion yen) 1,200 1,500 1,055.6 1,004.5 1,037.5 1,292.5 1,177.4 1,211.8 1,000 910.5 1,200 807.4 1,000.7 800 900 852.7 600 600 400 200 300 0 0 ’13 ’14 ’15 ’16 ’17(FY) ’13 ’14 ’15 ’16 ’17(FY) • Capital expenditure excludes vehicles for leasing 4 Sustainability Data Book 2017 Corporate Principles Corporate Principles Toyota strives to be a good corporate citizen trusted by all stakeholders and to contribute to the creation of an affluent society through all its business operations. We would like to introduce the Corporate Principles which form the basis of our initiatives, values that enable the execution, and our mindset. Guiding Principles at Toyota Since its foundation to the present day, Toyota has handed down the “Five Main Principles of Toyoda (released in October 1935)” which embody the thinking of the founder of the Toyota Group, Sakichi Toyoda, and are the basis of the corporate management philosophy. In 1992, in response to changes in society and business structure, Toyota established the Guiding Principles (revised in April 1997) to clarify how Toyota is expected to be, based on the recognition that strong policies are important for finding the way to proceed, especially when the environment surrounding us is drastically changing. In 2011, Toyota adopted “Toyota Global Vision,” which is based on the Guiding Principles at Toyota. In order to achieve this vision, a medium- to long-term management plan is drafted and Toyota works toward achieving the goals specified in the plan. The Toyota Way 2001 and the Toyota Code of Conduct serve as an important guideline for the implementation of daily business operations. The Toyota Way 2001 clarifies the values and business methods that all Toyota employees around the world should embrace, and the Toyota Code of Conduct details the basic attitudes and mindset necessary for people to adhere to rules and act in good faith in their work at the company and private life in society. Guiding Principles at Toyota Five Main Principles of Toyoda 1. Honor the language and spirit of the law of every nation • Always be faithful to your duties, thereby contributing to and undertake open and fair business activities to be a the company and to the overall good. good corporate citizen of the world. • Always be studious and creative, striving to stay ahead 2. Respect the culture and customs of every nation of the times. and contribute to economic and social development • Always be practical and avoid frivolousness. through corporate activities in their respective • Always strive to build a homelike atmosphere at work communities. that is warm and friendly. 3. Dedicate our business to providing clean and • Always have respect for spiritual matters, and safe products and to enhancing the quality of life everywhere through all of our activities. remember to be grateful at all times. 4. Create and develop advanced technologies and provide outstanding products and services that fulfill the needs of customers worldwide. 5. Foster a corporate culture that enhances both Relationship with Philosophy, Policies and Regular Business Activities individual creativity and the value of teamwork, while honoring mutual trust and respect between labor and Guiding Principles at Toyota management. CSR Policy: Contribution towards Sustainable Development 6. Pursue growth through harmony with the global community via innovative management. Toyota Global Vision 7. Work with business partners in research and Medium- to long-term management plan manufacture to achieve stable, long-term growth and mutual benefits, while keeping ourselves open to new Annual directions: global corporate policy partnerships. Toyota Way 2001 Toyota Code of Conduct Regular business activities 5 Sustainability Data Book 2017 Corporate Principles Toyota Global Vision The Toyota Global Vision -announced in March 2011- reflects lessons We will strive to implement a positive cycle of making ever-better cars learned from financial losses as a result of the global economic crisis that exceed customer expectations, contributing to Enriching the of 2008 and recall issues.