Challenge, Commitment, Progress 2 0 0 7 T Oyo Ta N a ER
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2007 North America Environmental Report Challenge, Commitment, Progress 2 0 0 7 T OYO TA N A ER dear reader WE Are PLEASED TO PreSent the seventh annual Toyota has more vehicles than drivers. In the next 10 years, 64 million North America Environmental Report. This report describes our people will get their drivers’ license. As demand for our progress toward achieving the goals set forth in our FY2007‑2011 vehicles continues to grow, we plan to meet these needs Environmental Action Plan. with sustainable manufacturing practices and innovative environmental technologies. 2007 marks the 50th anniversary of Toyota doing business in North America, and we want to sincerely thank the customers Our enduring mission has been to contribute to society and and communities that have supported us over the years. 2007 the economy by producing high‑quality products and services. has been a major year for Toyota globally and in North America, This mission is supported by our values and our culture, especially in terms of environmental progress. Toyota reached which we call The Toyota Way. The Toyota Way serves as the a milestone this year of a million sales of our hybrid vehicles, foundation for our business activities and is the basis of our over half of which were sold here in North America. This approach to environmental issues. Based on our understanding is in part a reflection of a changing world — people around of long‑term global environmental issues, on an evaluation of the world are increasingly aware of our interdependence as a the environmental impacts of the full vehicle life cycle, and global community, and our dependence on the planet. From on feedback from experts within and outside Toyota, we have global challenges like climate change and energy diversity, to identified six areas that we consider to be most material to our opportunities for environmental and technology innovation, environmental footprint. These areas structure our FY2007‑2011 the public has become far more aware of environmental issues. Environmental Action Plan and this report: These challenges push us to continually improve our product • Energy and Climate Change design and manufacturing processes. • Recycling and Improved Resource Use In the coming years, social and environmental issues will be • Substances of Concern crucial to the auto sector. Currently, there are about three • Air Quality quarters of a billion cars worldwide. By 2050, there could be • Environmental Management over two billion cars on the planet if the industry continues • Cooperation With Society to produce cars at the current rate. Socially and economically, cars and trucks have become an indispensable part of modern We trust that you will find this report interesting and North American life. For example, the average U.S. household informative, and we look forward to your feedback. Yukitoshi Funo Jim Lentz Shigeru Hayakawa Josephine S. Cooper Chairman and Chief Executive Officer Executive Vice President President Group Vice President Toyota Motor Sales, U.S.A., Inc. Toyota Motor Sales, U.S.A., Inc. Toyota Motor North America, Inc. Chief Environmental Officer Toyota Motor North America, Inc. Seiichi Sudo Yasuhiko Ichihashi Ray Tanguay Yoichi Tomihara Stephen Beatty President and Chief Operating Officer President Executive Vice President President and Chief Executive Officer Managing Director Toyota Motor Engineering & Toyota Technical Center Toyota Motor Engineering & Toyota Canada Inc. Toyota Canada Inc. Manufacturing North America, Inc. Executive Vice President Manufacturing North America, Inc. Toyota Motor Engineering & Manufacturing North America, Inc. TABLE OF COntentS: > E N V ir O N M ent A L Vi S I O N & Acti O N ...................................................................................... 4 The Toyota Way ......................................................................................................................................... 5 Environmental Coordination ................................................................................................................. 5 Toyota’s Guiding Principles and Earth Charter .................................................................................. 6 Environmental Impacts at All Points of the Vehicle Life Cycle ....................................................... 6 Environmental Action Plan .................................................................................................................... 8 > E ner G Y & C L I MA te C H A N G E ........................................................................................................ 1 0 Toyota’s Approach to Energy and Climate Change ............................................................................ 11 Vehicle Fuel Efficiency .............................................................................................................................. 11 Vehicle Fuels Diversity ............................................................................................................................. 14 Advanced Vehicle Technologies ............................................................................................................. 16 Advanced Transportation Solutions ..................................................................................................... 19 Energy and Greenhouse Gases in Our Operations ............................................................................ 19 > R ec Y C L in G & I M P R OV E D R E SOU rce U S E ......................................................................... 2 2 Reducing Waste — The Toyota Production System ........................................................................... 23 Designing Vehicles Using Renewable Resources ................................................................................ 23 Waste Reduction and Recycling in Our Operations .......................................................................... 24 Water Consumption in Our Operations .............................................................................................. 27 > S U B S T A nce S O F C O ncern ............................................................................................................ 2 8 Reducing SOCs .......................................................................................................................................... 29 Reducing Cabin VOCs ............................................................................................................................. 29 > A I R Q U A L it Y .............................................................................................................................................. 0 Reducing Tailpipe Emissions .................................................................................................................. 31 Reducing VOC Emissions in Manufacturing ..................................................................................... 32 > E N V ir O N M ent A L M A N AG E M ent .............................................................................................. 4 Vehicle Life Cycle Assessment ................................................................................................................ 35 Environmental Management Systems .................................................................................................. 35 Environmental Management with Our Business Partners .............................................................. 37 > COOP er A ti O N with S O ciet Y .................................................................................................... 8 Environmental Philanthropy .................................................................................................................. 39 Communication With Stakeholders ..................................................................................................... 43 Contributions to a Recycling‑based Society ........................................................................................ 43 > CO R PO R A te P R O fi L E .......................................................................................................................... 4 4 Toyota’s North American Affiliates ....................................................................................................... 45 Toyota by the Numbers ............................................................................................................................ 46 ScOPE OF ThiS REPOrt: The period covered in this North America Environmental Report is fiscal year 2007 (April 1, 2006 through March 31, 2007) and product model year 2007. If data are presented with different dates, this is clearly indicated. This report was published in October 2007. This report is structured around our FY2007-2011 Environmental Action Plan. Issue-based reporting creates a new structure for this environmental report, which was previously organized around the life cycle process. We also provide information on our company’s overall economic investment in North America. The report covers activities across the North American region — the United States, Canada and Mexico. We launch this year a new Internet-based report. This report is also published in hard copy. French and Spanish versions are provided on the Web only. We listened to your comments and suggestions about last year’s report, and used them to improve this report. We would appreciate hearing from you again. A reader feedback