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2011 Sustainability Report Contents > About This Report > RESILIENCE TOYOTa New ZealAND LTD 2011 SUSTAINABILITY REPORT Contents > About this report > CEO's MEssagE 01 This is Toyota New Zealand’s fourth biennial Sustainability Report, which communicates the economic, social and environmental impacts of its operations to abOut tOyOta 03 stakeholders. It covers the operations of Toyota, Lexus and Daihatsu for the period Our Vision & Values 04 1 April 2009 to 31 March 2011, but excludes the operations of Toyota Financial Services NZ (a separate company also owned by Toyota Motor Corporation Japan). Stakeholder Engagement 06 The company does not have any joint ventures, subsidiaries, leased facilities, or Material Issues 08 outsourced operations. Material Impacts & Challenges 09 The activities of Toyota dealers, which are independently operated under a franchise ECOnOMiC pErfOrManCE 10 agreement with Toyota New Zealand, are discussed in this report as they are an Economic Management & Results 11 integral part of the delivery and sustainability of Toyota’s business in New Zealand. However data shown in this report generally excludes dealer results (unless Regional Contributions 12 otherwise noted). Product Diversity 13 This report applies the Global Reporting Initiative (GRI) G3.1 framework Christchurch & Japan Earthquakes 14 (considered the world’s leading framework for corporate responsibility Fuel Prices 16 reporting) to a B+ level and has been assured by an external provider (see pages 50-52). National Fleet Sales 17 A full GRI index highlighting relevant Dealer Viability 18 gri prOfilE disClOsurE > disclosures and indicators, and where 1.1 Statement from the CEO EnvirOnMEntal pErfOrManCE 22 to find them, can be found on page 53. In addition, GRI content in this report is Environmental Management 2.1 Description of Risks & opportunities highlighted on relevant pages as shown. & Results 23 Q&A: Manager Marketing This report should be read in conjunction with the supplementary content & Environment 24 on the company’s website: http://www.toyota.co.nz/aboutus/sustainability/ Vehicle Recyclability 25 Dealer Practises 26 Unless otherwise stated, all data in this report relates to financial years ending Thames Facility 27 March 31. Some data from previous reports has been recalculated to enable accurate comparisons. Though the earthquake disasters in Canterbury and Japan occurred just The Emissions Trading Scheme 28 prior to the end of the reporting period, where their effects are known they have been Freight & Logistics 29 quantified as at the publication date. Carbon Neutrality 31 Plug-in Prius 32 Prius Eco-rally Success 33 About the cover > sOCial pErfOrManCE 34 The 2009 to 2011 period included some of the most challenging times in Toyota New Zealand’s history: a global Social Management & Results 35 resilieNce ToyoTa New ZealaNd lTd recession, brand-threatening quality issues, and natural 2011 susTaiNabiliTy reporT Product Safety 36 disasters which impacted on the Toyota family, customers Recalls 38 and the entire countries of New Zealand and Japan. Customers 40 toyota has chosen to call its fourth sustainability report Employees 42 ‘resilience’, inspired by those affected by the disasters Employee Satisfaction 44 and their ability to face the future with optimism despite Health & Safety 45 the significant challenges ahead. this spirit of resilience is inherent in toyota’s believe culture and values – the Community 46 company believes a better tomorrow starts today. assuranCE statEMEnt 50 Toyota is determined to grow from the recent challenges, gri indEx 52 and continue to lead into the future by delivering products and services which meet the company’s new global vision of making its customers smile (please see page 4 & 5 for more on Toyota’s Global Vision and local Believe philosophies). gri prOfilE disClOsurEs > For more information or to provide 2.1 Name of organisation 3.7 Limitations on the scope or boundary of the report feedback please contact: 2.9 Significant changes during the reporting period 3.8 Reporting on joint ventures and other entities 3.1 Reporting period 3.9 Data measurement techniques described Toyota New Zealand throughout the report 3.2 Date of most recent previous report Customer Dialogue Centre 3.10 Explanation of re-statements Phone: 0800 TOYOTA (0800 869 682) 3.3 Reporting cycle 3.11 Significant changes from previous 3.4 Contact point for the report Email: [email protected] reporting periods 3.6 Boundary of the report www.toyota.co.nz RESILIENCE > TOYota New ZealAND LIMITED 2011 SUSTAINABILITY REPORT 01 CEO's Message The past two years saw Toyota New Zealand deal with many issues challenging its sustainability – from coping with a global recession and product recalls, to devastating natural disasters. A focus on careful management saw Toyota end the period in the market leadership position it has held for more than 20 years, but with the knowledge that there are challenging times ahead. At the start of the reporting period in April One has to look at the recall issues in 2009, New Zealand was caught up in the two ways: a macro view of how the economic crisis which impacted on much of brand overall is perceived; and a micro the developed world. It was certainly a rude view of dealing with the issue, customer awakening after what was largely a debt- by customer. fuelled period of outstanding sales in 2005- Toyota New Zealand made a priority of 2007. The new vehicle market fell about keeping its customers and dealers informed 30 per cent in the global financial crisis. about the local effects of the recalls and As New Zealanders focused on debt associated issues, and dedicated technical reduction, Toyota New Zealand adjusted its resources to assist customers directly. profit and sales targets accordingly as the Independent consumer trust surveys ongoing financial viability of both Toyota after the recall crisis, as well as continued New Zealand and retail dealerships became market leadership in 2010, confirmed the a priority. The new car market rebounded, New Zealand public’s trust in Toyota had rising 15 per cent in the 2010 calendar not been dented. year, and the used import market rose by In the case of Toyota New Zealand's other alistair davis, CEO Of tOyOta NEw ZEalaNd 27 per cent in the same period, but this two new vehicle brands, the past two years was a much softer market than the motor have been difficult. gri prOfilE disClOsurE > industry had been used to. Lexus struggled for market share during 1.1 Statement from the CEO The huge amount of publicity around the period, with several of its key models quality issues and international product nearing the end of their seven-year model recalls emerged at the end of 2009 as life cycle; however there are exciting new gri pErfOrManCE indiCatOr > a significant challenge to the Toyota Lexus models in 2011 and 2012 which will sO5 Public policy positions and lobbying brand’s ongoing strength. There are provide strong impetus for the brand. always recalls in the motor industry, but the unprecedented publicity meant Daihatsu sales have dramatically the ‘unintended acceleration’ issue was reduced from a peak in the 2005/06 year. potentially the most damaging in The ongoing viability of the brand in Toyota’s history. New Zealand will be influenced by Toyota Motor Corporation’s global Even though an official US Government strategic priorities. report later found no evidence of faults being caused by the electronics in Toyota vehicles, it was impossible to have major international news organisations extensively reporting on this and not have some negative perception rub off on New Zealand consumers. 02 RESILIENCE > TOYOTA NEW ZEALAND LIMITED 2011 SUSTAINABILITY REPORT CEO's Message (CONTINUED) From an environmental standpoint, Toyota In many ways, all other issues paled New Zealand has made real progress in into insignificance when two major measuring the impacts from its entire earthquakes struck Christchurch, and business chain – with measurement of Japan was struck by a devastating emissions from importing vehicles and earthquake and tsunami. parts a key focus. These events happened towards the end We substantially increased environmental of the reporting period, but will have management within our dealer network, ongoing impacts on Toyota New Zealand’s launching the independently certified business – from problems with vehicle Enviro-Mark® programme with our dealers supply, which were over by August, as an ongoing initiative. Recyclability is through to the effects on New Zealand’s an environmental issue the motor industry economy caused by the Canterbury quakes. and the Government will need to focus We focus on this later in the report. more on. Toyota vehicles are more than The strategic focus of Toyota 95 per cent recyclable through innovative New Zealand’s economic, environment, design, yet only about 75 per cent can and social management is aimed at long- be recycled in New Zealand due to lack term sustainability, of both the company of facilities. and the nation. I am confident we have It will be interesting to see how big an the policies in place to ensure we meet influence on the transport sector and the coming challenges with the same New Zealand motorists the Emissions resilience and spirit we have shown Trading Scheme will be. In the mid to to date. long term, motorists here need to move to more efficient vehicles, and the ETS – which started to take effect in 2010 – should be used to move us towards that sustainability, rather than shield the true cost of emissions as it is currently. The start of the Plug-in Prius trial with alistair davis – CEO Massey University – part of Toyota Motor alistair davis and MassEy univErsity Corporation’s global research on this viCE-ChanCEllOr stEvE MaharEy with revolutionary vehicle – and the launch of a plug-in prius several new petrol-electric hybrids were further steps in Toyota’s focus on making gri pErfOrManCE indiCatOr hybrid technology a mainstream part of EC2 Financial implications of climate change New Zealand motoring.
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