Toyota European Sustainability Report 2009 Toyota’S European Network
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Toyota European Sustainability Report 2009 Toyota’s European network Supporting Facilities / Other Activities Vehicle Logistics Centres European Manufacturing Companies (EMCs) Parts Distribution Centres National Marketing & Sales Companies (NMSCs) About the report contents of Table Toyota Motor Europe (TME) published its first annual European Environmental Report in 2001 to enhance disclosure of information on the company’s environmental activities. In 2007, the remit widened to include information on the company’s activities in the area of sustainability. In this, the eigth annual report, the company intends to provide transparency on its economic, environmental and social commitments as well as policies, strategy and performance affecting its business and stakeholders during the 2008 financial year (April 2008 to March 2009). Selection of the material included in this report is made on the basis of stakeholder feedback plus extensive internal dialogue conducted through processes that form an integral part of the company’s daily operations. TME believes that this report covers a balanced and complete set of topics and shows commitment and results befitting a company operating in Europe. Go to the Toyota website Toyota the Go to TME welcomes all comments and opinions you might wish to share with us relating to issues covered in this report by sending an email to [email protected]. This report complements the Toyota Motor Corporation’s (TMC) global Sustainability Report 2009, which can be found at www.toyota.co.jp/en/environment/index.html. Data sources Financial data is obtained from the Group’s accounting system and has been calculated in accordance with the principles of TMC’s annual reporting procedures. Environmental data is collected annually from the production companies in accordance with fixed reporting procedures and in a standardised format across seven manufacturing sites. Methodology used is based on the Greenhouse Gas (GHG) protocol of the World Business Council for Sustainable Development (WBCSD) and the World Resources Institute (WRI). TME’s latest manufacturing site in Russia has not yet been included in the Key Performance data. The manufacturing site in Salvador Caetano, Portugal, is not included in this report because it is not under management control of TME. Environmental data for other sites, such as logistics centres and National Marketing and Sales Companies (NMSCs), is collected annually according to fixed reporting procedures and in a standardised format. With the exception of new operations in Kazakhstan, all affiliated and non-affiliated NMSCs fall within the scope of this report. If unavailable, the environmental data for logistics operations is estimated. Social performance data is collected through the formal information systems of the various divisions involved, including Customer Satisfaction, Quality, Safety, Purchasing, CSR, etc. The social performance of affiliated companies controlled by TME, such as the NMSCs, is also covered in this report. Ensuring reliability and accuracy contents of Table Many departments and data sources have provided input and information for this report. A great deal of time and effort has been placed on ensuring that information is accurate and of the highest quality. Financial data and key environmental performance data relating to production companies is reviewed externally as part of the TMC global Sustainability Report. Environmental data is subject to internal and external ISO14001 audits. Social performance data is continuously monitored via Toyota’s CSR Assessment. As a baseline, this report references the Sustainability Reporting Guidelines (G3) developed by the Global Reporting Initiative (GRI). Alongside other recognised reporting guidelines, TME has applied experience and expertise gained by reporting on environmental responsibility and sustainability annually for the past years. website Toyota the Go to Message from the President and CEO 1 “ 2009 is the year of Toyota. This may sound surprising given the current economic crisis but this statement reflects the ability and spirit of the company to solve problems – to successfully navigate through difficult times.” Tadashi Arashima President and CEO, Toyota Motor Europe (TME) Senior Managing Director, Toyota Motor Corporation (TMC) At the time of writing, Toyota in Europe has just launched its annual Green Month Campaign, which this year urges our employees to “act and adapt” in the fight against Climate Change. This statement is particularly poignant for the times that we live in, and indeed extends beyond the challenge of Climate Change. The last 18 months have been incredibly tough for automakers, and Toyota has not navigated through the rocky waters unscathed. We know that if we are to survive the storm, we cannot continue with “business as usual”. As a company, we have to act – yes, but more than anything we have to adapt. Thanks to some creative compromises, Toyota Motor Europe has not resorted to the harsh actions taken by other companies in recent times, like reducing head count through lay-offs or dismissals, for example. I believe – and certainly Toyota believes – that people are our greatest asset. Why? Because it is through our employees that today’s ideals will become tomorrow’s realities. This is why we are making every effort to provide stable employment to our permanent employees, because by investing in their development we can ensure that both they and the company benefit longer-term. Table of contents of Table We also need to be in the best possible position to react when the market rebounds, and we can only do this if we have the support of a highly-skilled workforce, each of whom must be motivated to see a fitter and stronger Toyota emerge from the crisis. 2009 has been a busy year for many reasons, and not least because of the launch of 16 new Toyota and Lexus models. Thanks to Toyota Optimal Drive and our improved full hybrid systems, each model comes equipped with advanced environmental technologies that improve the driving experience but also, importantly, bring down CO2. So much so, that we will beat the 140 g/km target in 2009. On the up side, national incentive schemes in many European markets are helping to push customers towards our increasingly CO2-competitive car range – a reflection that our new product line-up arrives at exactly the right time. More pleasing, however, is that our new models are showing early signs that Go to the Toyota website Toyota the Go to they’re indeed considered relevant and desirable by today’s drivers. Our efforts to drive down CO2 are not just reflected in the wave of new and increasingly eco-conscious products, like the Toyota iQ and new generation Prius, for instance. In collaboration with stakeholders 2 like the World Business Council for Sustainable Development (WBCSD), we are also monitoring progress towards a post-Kyoto agreement, for which we hope to see resolution by the end of this year. Our company’s commitment to the issue of widespread CO2 reduction is reflected in this issue’s special feature on Climate Change. And we are joined by independent expert, Björn Stigson, President of the WBCSD, who also shares his views. We have been hit with some tumultuous months, no doubt – but if you are to recall one important point about Toyota, it is that our desire to grow sustainably, in harmony with nature and society, has not been ‘dethroned’ or pushed aside by global market upheaval. Rather, it is our conviction that, in our journey towards sustainable development, we can and will continue to pave a green road to growth. Tadashi Arashima President and CEO, Toyota Motor Europe (TME) Senior Managing Director, Toyota Motor Corporation (TMC) Table of contents of Table Go to the Toyota website Toyota the Go to Executive summary 3 2008 was a challenging year for Toyota and the automotive industry. However, we are convinced that the fundamental environmental and social principles that we have introduced in the past years will help us to become even stronger and enable us to grow in harmony with society. In 2008 we continued to improve our environmental performance along the whole life-cycle. With the new Avensis, which was designed and developed in Europe, we have strengthened our European roots. With the iQ and new generation Prius we have introduced cars with CO2 emissions of just 99 and 89 g of CO2 per km respectively. In 2008 we achieved fleet average CO2 emissions of 145.3 g/km CO2 paving the way to achieve 140 g/km this year. The Environmental Declaration of the new Prius shows a CO2 reduction of 37% compared to a conventional diesel car and demonstrates the overall CO2 benefits of our full hybrid technology. Our production CO2 emissions have decreased from 339,000 tonnes in 2007 to 261,000 tonnes in 2008. Also the overall CO2 emissions of our logistics operations have been decreased from 236,481 tonnes in 2007 to 210,645 tonnes in 2008. Both achievements are partially due to reduced production and sales volumes but also because of our efforts to become more efficient following the Toyota Way philosophy. Although CO2 emissions of our National Marketing and Sales Companies increased from 12,585 tonnes to 13,585 tonnes we started to implement a sustainable retailer concept where all of our 3,000 retailers are requested to do an energy audit to identify energy reduction potentials. New efficiency standards have been introduced and new retailers in La Rochelle, Salzburg and Maribor are now designed to have the lowest environmental impact and to even become CO2 neutral. Ensuring stable employement is another key objective of Toyota. In 2008 we made every effort to ensure a sustainable workforce. We used 2008 to enhance the training of all employees in order to strengthen the fundamentals of the Toyota principles. contents of Table Despite the challenging economic climate, Toyota spent € 7.8 million in 2008 for social contributions in Europe in support of about 300 community projects.