CSR Report 2013 Since its establishment in 1948, the Toyota Tsusho Group has expanded its businesses from a global perspective to provide products and services under the banner of “Creation of Added Value.” Group companies worldwide are currently cooperating closely in undertaking operations encompassing production, processing, retail and services that respond to the conditions and needs of each region. The Toyota Tsusho Group will fully utilize its global networks, expertise in international collaboration and the strengths cultivated within the Toyota Group to strive toward a new image—one of a trading company capable of flexible thinking and making precise, well-tailored proposals.

Mobility 9

CSR Report 2013 17 Business activities and key CSR issues Markets Contents 19 Safety efforts People 24 Approach to the environment Environment 31 Human resource initiatives People 2 Corporate profile/ 5 Toyota Tsusho’s Editorial comments approach to CSR 37 Governance Society 41 Social contribution activities Society 3 A word from the president 7 CSR activities map 44 Third-party opinion 45 Trading network and key management indicators 9 Markets Making next-generation vehicles (PHV, EV) a daily mode of transport—Field Toyota Tsusho Corporation stakeholders tests nurture new markets and CSR

Recruiting and Reducing environmental invigorating Earth’s impact Life & Community Markets personnel Promoting environmental 11 Creating an Environment management employee-friendly Current generation Raising the quality of medical care in India work environment Future through hospital management generations People Markets Customers Employees Markets and Shareholders 13 their families Business partners Industry Developing lithium resources in Argentina Society to meet growing demand Conducting appropriate Local communities Sustainable growth relations with governments Civic communities Creating and Promoting social International providing value 15 Collaboration with CFAO Markets contribution activities communities Open and fair Cooperating with the transactions and Aiming to become Africa’s No. 1 alliance international community competition

1 Life & Community 11

CollaborationCollaboration withwith CFAOCFAO 1155 Photo Credits: Thomas Renaut

13 Earth & Resources

Corporate profile (as of March 31, 2013) The Toyota Tsusho Group views CSR not as a special undertaking, but rather considers it inseparable from Company name: Toyota Tsusho Corporation the management of all corporate activities. This year’s report includes Establishment: July 1, 1948 special features detailing our global efforts from the perspective of sustainability. In addition, the report introduces activities in which Paid-in capital: ¥64,936 million we engage through our business, such as “developing a culture of Common stock safety,” “creating value through personnel diversity,” “implementing issued: 354,056,516 shares environmental initiatives” and “undertaking social contribution.” Head office: Century Toyota Bldg. 9-8, Meieki 4-chome, Nakamura-ku, Nagoya 450-8575, Japan Reference guidelines Tokyo head office: 3-13, Konan 2-chome, Minato-ku, GRI Sustainability Reporting Guidelines (3.1 version) Tokyo 108-8208 Ministry of the Environment, Japan, Environmental Reporting Branches & sales Guidelines (2012 version) offices (Japan): 12 (Hokkaido, Tohoku, Niigata, Hamamatsu, ISO 26000 (A corporate social responsibility reference) Matsumoto, Mishima, Toyota, Osaka, Hokuriku, Hiroshima, Kyushu, Takamatsu) Branches & Scope of the report offices (overseas): 25 Toyota Tsusho Corporation’s main consolidated subsidiaries and Consolidated affiliates. However, some of the activities described herein are those companies: Japan: 110 Overseas: 505 of Toyota Tsusho Corporation only. Number of employees: 2,863 (non-consolidated) Reporting period 48,336 (consolidated) This report covers the period from April 1, 2012, to March 31, 2013 (although certain activities are included that fall outside this reporting period). Editorial comments

Editorial policy Date of publication July 2013 (previous publication: August 2012; next publication: While Toyota Tsusho Corporation had posted environmental reports July 2014) on its website since 2002, this information has been integrated into the CSR Report since 2005. The purpose of this report is to describe and report to our stakeholders worldwide Toyota Tsusho’s Representative responsible for publication activities aimed at the sustainable development of a global society. Jun Karube, President and CEO

2 A word from the President

Promoting sustainability for the global community by addressing social needs and concerns through value creation in our three business domains: Mobility, Life and Community, and Earth and Resources

Basic Stance Notable initiatives in the is an essential material for the storage batteries used in a of public-interest activities, as well as shaping our business past fiscal year vast array of equipment. And we are the first Japanese activities to maximize our contribution to social vitality. Enriching society and promoting sustainability company to secure a direct equity holding in lithium for the global community while increasing Tackling issues of concern to humankind development. We began work on a processing plant in Accompanying our globalization with a our corporate value through our three business sectors in December 2012, and we plan to begin full-scale stepped-up emphasis on fulfilling our Our corporate creed calls for us to generate value that accordance with our Global 2020 Vision commercial production there in the latter half of 2014. corporate social responsibility in regard to enhances the quality of life and to operate in a manner Activity in our Mobility business domain includes working to community vitality and environmental quality that honors individuality, that resonates with the secure broad acceptance for plug-in hybrid vehicles and Pursuing synergies through our strategic Fulfilling our corporate social responsibility is a community, and that preserves environmental quality. We pure-electric vehicles. Those vehicles have a big role to play in alliance with the large French trading mounting emphasis for us as our operations assume an regard management, in other words, as a function of reducing automotive output of greenhouse gases, and broader company CFAO increasingly global scope. Safety in and around the fulfilling our corporate social responsibility. In accordance market penetration will hinge partly on the availability of We acquired a controlling interest in the large French trading workplace is a core emphasis, and we convened our with that stance, we strive to promote sustainability for battery-charging facilities. So we have began participating company CFAO through share purchases from July to inaugural Global Safety Meeting. At that meeting, the global community while increasing our corporate directly in building networks of charging stations. We December 2012. CFAO specializes in Africa and has extensive safety supervisors from Toyota Tsusho operations in value. That means crafting a business model to serve secured an equity stake in May 2012 in the US company operations there in the automotive sector and in other Australia, Brazil, Thailand, and the United States evolving needs and expectations with new kinds of value. ChargePoint, Inc., which is the world’s largest operator sectors. Its business operations are especially strong in North gathered and agreed on ways to promote safety. The blueprint for our efforts is our Global 2020 Vision, of charging stations. In cooperation with ChargePoint, Africa and West Africa. Our African operations, particularly We adopted new guidelines for environmental adopted in April 2011. That vision provides for pursuing we subsequently installed pilot charging networks in in the automotive sector, is especially strong in East Africa protection, meanwhile, in the past fiscal year. Those sustainable growth by building a business portfolio Japan, Portugal, and Singapore. And we have initiated and Southern Africa. Together, the Toyota Tsusho and CFAO guidelines mandate preliminary environmental impact balanced equally among three business domains. We car-sharing services with electric vehicles in those nations vehicle distribution operations serve 53 of Africa’s 54 nations. assessments as part of the evaluation process for characterize those domains as Mobility (present and to study the networks’ viability. Also, CFAO possesses Africa’s largest pharmaceutical proposals for large investment projects. We conducted future automotive transport), Life and Community Hospital management is the subject of a promising new wholesale business network. We therefore envision environmental impact assessments for seven project (consumer goods and other goods and services for venture in our Life and Community business domain. We exciting opportunities for fostering synergies with CFAO proposals under the new guidelines during the fiscal year. enriching daily life), and Earth and Resources (natural established a hospital management company in India in in pharmaceuticals and medical care through our Life and resources and infrastructure development). April 2012 with Japan’s Secom Co., Ltd., and India’s Kirloskar Community business domain. Opportunities for nurturing All of us at Toyota Tsusho are more committed than ever to In April 2013, we augmented the Global 2020 Vision Group. Our plans call for opening a general hospital in India synergies with CFAO also abound in our Earth and honoring individuality, to resonating with the community, and with explicit guidelines for fulfilling our corporate in 2013—the first Japanese-Indian-owned hospital there Resources business domain. Especially promising are to preserving environmental quality. And we will continue social responsibility. Those guidelines include benchmarks for serving the medical needs of India’s growing opportunities for cultivating business in infrastructure working in that spirit to fulfill our corporate social responsibility. for each business domain, and they align the Global population. Our participation in the project will include by leveraging the Toyota Tsusho and CFAO business We invite your careful attention to our progress. 2020 Vision squarely with our corporate social providing medical equipment and insurance services, networks in other sectors. Our shared vision with CFAO for July 2013 responsibility agenda. drawing on our well-established strengths in those sectors. our strategic alliance calls for asserting leadership in In our Earth and Resources business domain, we community commitment, as well as in business. We are invested in an Argentine project in September 2012 for determined to contribute to sustainable growth Jun Karube extracting and purifying lithium. That rare earth element throughout Africa. That means engaging in a full spectrum President and CEO

3 4 A word from the President

Promoting sustainability for the global community by addressing social needs and concerns through value creation in our three business domains: Mobility, Life and Community, and Earth and Resources

Basic Stance Notable initiatives in the is an essential material for the storage batteries used in a of public-interest activities, as well as shaping our business past fiscal year vast array of equipment. And we are the first Japanese activities to maximize our contribution to social vitality. Enriching society and promoting sustainability company to secure a direct equity holding in lithium for the global community while increasing Tackling issues of concern to humankind development. We began work on a processing plant in Accompanying our globalization with a our corporate value through our three business sectors in December 2012, and we plan to begin full-scale stepped-up emphasis on fulfilling our Our corporate creed calls for us to generate value that accordance with our Global 2020 Vision commercial production there in the latter half of 2014. corporate social responsibility in regard to enhances the quality of life and to operate in a manner Activity in our Mobility business domain includes working to community vitality and environmental quality that honors individuality, that resonates with the secure broad acceptance for plug-in hybrid vehicles and Pursuing synergies through our strategic Fulfilling our corporate social responsibility is a community, and that preserves environmental quality. We pure-electric vehicles. Those vehicles have a big role to play in alliance with the large French trading mounting emphasis for us as our operations assume an regard management, in other words, as a function of reducing automotive output of greenhouse gases, and broader company CFAO increasingly global scope. Safety in and around the fulfilling our corporate social responsibility. In accordance market penetration will hinge partly on the availability of We acquired a controlling interest in the large French trading workplace is a core emphasis, and we convened our with that stance, we strive to promote sustainability for battery-charging facilities. So we have began participating company CFAO through share purchases from July to inaugural Global Safety Meeting. At that meeting, the global community while increasing our corporate directly in building networks of charging stations. We December 2012. CFAO specializes in Africa and has extensive safety supervisors from Toyota Tsusho operations in value. That means crafting a business model to serve secured an equity stake in May 2012 in the US company operations there in the automotive sector and in other Australia, Brazil, Thailand, and the United States evolving needs and expectations with new kinds of value. ChargePoint, Inc., which is the world’s largest operator sectors. Its business operations are especially strong in North gathered and agreed on ways to promote safety. The blueprint for our efforts is our Global 2020 Vision, of charging stations. In cooperation with ChargePoint, Africa and West Africa. Our African operations, particularly We adopted new guidelines for environmental adopted in April 2011. That vision provides for pursuing we subsequently installed pilot charging networks in in the automotive sector, meanwhile, is especially strong protection, meanwhile, in the past fiscal year. Those sustainable growth by building a business portfolio Japan, Portugal, and Singapore. And we have initiated in East Africa and Southern Africa. Together, the Toyota guidelines mandate preliminary environmental impact balanced equally among three business domains. We car-sharing services with electric vehicles in those nations Tsusho and CFAO vehicle distribution operations serve 53 assessments as part of the evaluation process for characterize those domains as Mobility (present and to study the networks’ viability. of Africa’s 54 nations. Also, CFAO possesses Africa’s largest proposals for large investment projects. We conducted future automotive transport), Life and Community Hospital management is the subject of a promising new pharmaceutical wholesale business network. We therefore environmental impact assessments for seven project (consumer goods and other goods and services for venture in our Life and Community business domain. We envision exciting opportunities for fostering synergies with proposals under the new guidelines during the fiscal year. enriching daily life), and Earth and Resources (natural established a hospital management company in India in CFAO in pharmaceuticals and medical care through our resources and infrastructure development). April 2012 with Japan’s Secom Co., Ltd., and India’s Kirloskar Life and Community business domain. Opportunities for All of us at Toyota Tsusho are more committed than ever to In April 2013, we augmented the Global 2020 Vision Group. Our plans call for opening a general hospital in India nurturing synergies with CFAO also abound in our Earth honoring individuality, to resonating with the community, and with explicit guidelines for fulfilling our corporate in 2013—the first Japanese-Indian-owned hospital there and Resources business domain. Especially promising are to preserving environmental quality. And we will continue social responsibility. Those guidelines include benchmarks for serving the medical needs of India’s growing opportunities for cultivating business in infrastructure by working in that spirit to fulfill our corporate social responsibility. for each business domain, and they align the Global population. Our participation in the project will include leveraging the Toyota Tsusho and CFAO business networks We invite your careful attention to our progress. 2020 Vision squarely with our corporate social providing medical equipment and insurance services, in other sectors. Our shared vision with CFAO for our July 2013 responsibility agenda. drawing on our well-established strengths in those sectors. strategic alliance calls for asserting leadership in In our Earth and Resources business domain, we community commitment, as well as in business. We are invested in an Argentine project in September 2012 for determined to contribute to sustainable growth Jun Karube extracting and purifying lithium. That rare earth element throughout Africa. That means engaging in a full spectrum President and CEO

3 4 Toyota Tsusho’s approach to CSR

Toyota Tsusho Corporation conducts CSR activities with the goal of realizing our Corporate Philosophy of “living and prospering together with people, society, and the Earth.” We have been striving for kaizen (continuous improvement) in our CSR activities, for example by establishing the Toyota Tsusho Supply Chain CSR Behavioral Guidelines in 2012.

Our CSR philosophy sets forth the group’ s unique values, beliefs and daily principles of conduct. On the basis of the Toyota Tsusho Group Way, all Our Behavioral Guidelines describe how Toyota Tsusho executives and employees pursue the aim of we will conduct CSR activities to realize creating value from the customer’ s perspective, based on three our Corporate Philosophy principles: “passion for business,” “On site, hands on, in touch,” Toyota Tsusho Corporation’s Corporate Philosophy sets and “teamwork.” forth the company’s raison d’être and the resolve with “G’ VALUE with you” is the Toyota Tsusho Group’ s flagship which it manages its operations. Our Behavioral Guidelines message, forming the basis for its initiatives as it strives to define a code of action for all executives and employees. Toyota realize its group philosophy. Tsusho’s basic management philosophy is based on a Fundamental Philosophy of unchanging ideals that should be passed on to future generations. Promotion structure Our Behavioral Guidelines describe how we will conduct CSR activities to realize our Corporate Philosophy. We aim to provide added value that will satisfy all our stakeholders Fundamental Philosophy In 2005, we reorganized the corporate ethics committee and named it the CSR Committee (chaired by the President and CEO), Corporate Living and prospering together with people, Philosophy society, and the Earth, we aim to be to serve as the central organization for promoting CSR throughout a value-generating corporation that contrib- the group. Organizations under the CSR Committee include utes to the creation of a prosperous society. the Specified Import & Export Control Committee, the Conference Behavioral As a good corporate citizen, we will: on the Global Environment, the Safety Management Improve- Guidelines ● Implement open and fair corporate activities, ment Committee, and the OS&H Promotion Committee, with each ● Fulfill our social responsibilities and conserve committee discussing and deliberating the various CSR themes. the global environment, Also, the ERM (Enterprise Risk Management) Department, ● Offer creativity and provide added value, and which is responsible for companywide integrated risk ● Respect people and create a responsive workplace striving to achieve job satisfaction. management, covers compliance, while the Social Contribu- tion Office is a specialized organization that actively drives our social contribution efforts. Based on this structure, we seek to conduct even more-active CSR efforts, resulting in The Toyota Tsusho Group’s philosophy system added value that will benefit all our stakeholders.

Our philosophy system codifies CSR promotion structure our actions into four tiers designed to realize our Fundamental Philosophy President & CEO Toyota Tsusho’s Group philosophy system comprises four tiers: CSR Committee “Fundamental Philosophy,” “Vision,” “Long-Term Business Plan and Membership ●President & CEO ●Executive Vice President Annual Plan,” and “The Toyota Tsusho Group Way.” 【Sales divisions】 At the apex of Toyota Tsusho’s philosophy system is its ●Chief Division officers General managers of divisional planning departments Fundamental Philosophy, which addresses such questions as ● 【Administrative division】 “What is the purpose of our corporate existence” and “What are ●Chief division officers ●Deputy chief division officers our objectives, and how will we achieve them?” Our Funda- ●General managers of related departments mental Philosophy comprises our Corporate Philosophy and Behavioral Guidelines. Import & export control Specified import & export control committee Our newly formulated vision addresses the question of how (Convenes once per year) we will realize our Fundamental Philosophy 10 years hence. Five-year long-term plans and annual plans provide specifics on Environmental preservation Conference on the global environment how we will achieve the targets described in the Vision. (Convenes once per year) Toyota Tsusho has formulated our new corporate vision, the Global 2020 Vision, to clarify our objectives for the 10-year Occupational safety and health Safety management improvement committee period commencing in fiscal 2011, which are to be shared (Convenes once per month) among all group employees throughout the world. This new OS&H promotion committee (Convenes once per year) vision presents our corporate ideal as striving to “maintain Compliance an unwavering sense of responsibility” and “garner our custom- ERM Department (Standing) ers’ trust,” and clarifies how Toyota Tsusho will pursue CSR initiatives even more proactively than in the past. Social contribution (Standing) To promote these initiatives, the Toyota Tsusho Group Way Social Contribution Office

5 Group Philosophy System and the GLOBAL 2020 VISION

● Global Development of our activities on the global stage “G’VALUE with you” is the Toyota Tsusho Group’s slogan for realizing our Corporate ● Glowing Sustaining a healthy, glowing morale with passion Philosophy. The letter “G” refers to the various important keywords under which the Toyota ● Generating Constantly generating new businesses Tsusho Group operates.

Four-tier structure of our philosophy system

Fundamental Philosophy Unchanging ideals that should be passed on to future generations Fundamental The Fundamental Philosophy is comprised of our Philosophy Corporate Philosophy and our Behavioral Guidelines.

Vision Goals and milestones that should be reached by 2020 while realizing the Fundamental Philosophy

Long-term business plan and annual plan Vision Business activity guidelines, policies, and specific action plans and targets that reflect shifts in the business environment. Flagship message

The Toyota Tsusho Group Way Long-term business plan This defines the values and principles of behavior and annual plan that should be shared by all Toyota Tsusho Group executives and regular employees alike in working to attain our Vision and realize our A passion Fundamental Philosophy. Teamwork for business On site Hands on In touch

The Toyota Tsusho Group Way

Toyota Tsusho’s Aims

The Ideal Image ● Maintain an unwavering sense of responsibility ● Generating new value as a creation-oriented company and Vision ● Leading the Toyota Group ● Securing our customers’ trust

Three business domains through which we can TRY-1 Life & Earth & achieve our ideal image and vision Community Resources A business domain A business that contributes domain that helps Non-automotive to further improvements solve global issues in living conditions Non-automotive Mobility A business domain that Automotive Automotive contributes to the evolution of next-generation automobiles

2010Achieve Automotive: 2015Portfolio comprising 2020 Non-automotive three business domains ratio of 50:50 in a 1:1:1 ratio

Breakthroughs Priorities in achieving the ideal image and vision and Co-creation ● Breakthrough: Breaking the shell and evolving ● Co-creation: Putting into motion a growth cycle towards our ideal image to help boost collective creation

6 CSR activities map

We created a CSR Activities Map in April 2013 to facilitate the strategic execution of social responsibility as a company In an age of wide-ranging social issues, the ways in which companies are expected to fulfill their social responsibility are diversifying. Toyota Tsusho Corporation has created a map to serve as a guideline for the strategic and effective promotion of its CSR activities.

Area ❷ Area ❸ Social Issue Resolution Model and Social Contribution / Local Contribution Model Businesses Charitable Business Model Life & Community Earth & Resources As a value-creating company By tackling the Earth’s key issues, Environment contributing to the establishment of including food, resources, and Toyota Tsusho Corporation, a prosperous society, we aim to create the natural environment, we aim to which aims for mutually and expand business that offers create new value and further expand supportive, mutually beneficial diverse value to people and society. business through initiatives unique to sustainability with the Earth, the Toyota Tsusho Group. collaborates with the Toyota Group to participate in various environmental protection activities and volunteer efforts A D B on a global scale.

G Welfare F E We support sporting events for people with disabilities, strengths are leveraged are strengths programs to nurture service dogs, and participate in a wide Area in which the company’s in which the company’s Area C variety of other programs to Mobility solve social issues, contributing to the creation of a richer society We contribute to the growth of the automobile business and contribute to through our continuous support. next-generation mobility by anticipating and taking advantage of change in areas where automobiles meet people and society. Education We provide scholarships for foreign exchange students, CSR baseline environmental education to Brazilian elementary school students, and take part in Area ❶ a wide variety of other education programs to help Corporate Responsibility Execution Model (CSR foundation) foster talented people who can succeed globally. Compliance Risk Management Information Disclosure We have established We strive to properly manage We strive to raise internal reporting lines, and various types of risk, relying the transparency of we provide training and primarily on the ERM management by disclosing seminars and take various Department responsible for a wide range of other measures to ensure risk management, and take information about the are conducted are that the entire company measures to further improve company and prioritizing

Area in which basic thoroughly complies with our risk management dialogue with various laws and regulations. capabilities. stakeholders. activities, as a company, activities, as a company,

Area ❶ Corporate Responsibility Execution Model (CSR foundation)

This Area defines CSR baseline activities that all companies are expected to execute as part of their social responsibility.

Compliance →P38 Risk Management →P39 Information Disclosure →P40

○ Operation and maintenance of internal ○ Risk management mainly through ○ Active disclosure on company website control systems ERM Committee ○ Information disclosure that is easy to understand ○ Thorough compliance with internal rules ○ Information security management and highly transparent for stakeholders ○ Thorough execution of fair competition ○ Promotion of environmental management ○ Financial results briefings and individual and trade ○ Promotion of workplace safety and health meetings for investors ○ Compliance training ○ Promotion of business continuity ○ Creation of corporate publications (CSR Report, ○ Supply chain CSR management management (BCM) Annual Report, business reports, etc.) ○ Respect for human rights ○ Non-discriminatory hiring policy

7 Area ❷ Social Issue Resolution Model and Local Contribution Model Business This Area defines activities that leverage the strengths of the company and help to solve various social issues, thereby contributing to the creation of prosperous local communities. Earth & Resources × A Life & Community C Mobility E Mobility Chemical & Electronics Division Global Production Parts & Metals Division Detergent manufacturing in Vietnam ● Logistics Division ● Plan to build rare-earth manufacturing ● Techno-park business plant in India Food & Agribusiness Division ● Lithium development in Argentina →Ｐ13 Grain accumulation business in Australia ● Automotive Division Establishment of Green Metals Japan Inc. Frozen vegetable manufacturing ● ● ● Business expansion in emerging Tohoku Plant business in Vietnam countries, including African countries and Papua New Guinea →Ｐ23 Global Production Parts & Consumer Products & Services Division Logistics Division ● Nursing care business in China Chemical & Electronics Division Insurance brokerage business in Vietnam ● Carbon fiber recycling business ● Traffic information service in Thailand Paper diaper collection ● ● Administrative Division and disposal business in Japan →Ｐ30 ● Medical clinic in Thai plant ● Start of verification tests for bio-hydrogen production from sewage sludge ● Medical business in India →Ｐ11 ● Consultant-type health management service in Japan Life & Community × F Mobility Earth & Resources Global Production Parts & B Logistics Division Machinery, Energy & Project Division ● Airport operation business in Laos ● Coalbed methane gas development Driver training in Thailand in Australia ● Cold warehousing business in China ● Coalbed methane gas ● development in Canada →Ｐ30 Chemical & Electronics Division ● Goreway power plant development business in Canada ● Support for mobility electrification in China and other Asian countries ● Oyster Creek power plant development →Ｐ9 business in U.S. ● Cogeneration power plant business ● Water treatment business in China Life & Community × G Earth & Resources Mobility ［Renewable Energy］ × Wind power generation business ● Life & Community × Chemical & Electronics Division ● Solar power generation business (U.S., etc.) D Earth & Resources ● Bio-polyethylene business ● Geothermal power plant business (Kenya) ● Lubricating oil manufacturing and Chemical & Electronics Division sales in Taiwan ［Iraq Yen Loan Assistance Projects］ Investment in iodine development and ● ● Lithium-ion batteries business ● New substation construction manufacturing project in Chile Repair of thermal power plant equipment ● ● Participation in Kitakyushu ● Hopper dredger supply Smart Community Creation Project →Ｐ30 ● Export of mobile substations Food & Agribusiness Division Administrative Division ● Bell pepper cooperative agricommerce ● Sewage sludge recycling business →Ｐ29 and industry project ● Research and sale of bio-fuel plant ● Mushroom business in China materials ● Bluefin tuna culture business

Area ❸ Social Contribution / Charitable Business Model This Area defines philanthropic activities beyond the scope of business aimed at contributing to society as a good corporate citizen.

Environment→Ｐ42 Welfare →Ｐ42 Education →Ｐ43

Preserving forests and their precious natural Donating pharmaceuticals in Africa, where Supporting youth development through sports environments supplies are insufficient

8 TRY-1 Mobility Mobility

Making next-generation vehicles (PHV, EV) a daily mode of transport—Field tests nurture new markets

Next-generation vehicles (PHV, EV) have been heralded as “eco-cars” which will make energy-efficiency and environmental protection a reality in the transportation industry. Consumers have doubts, however, over the short driving range and high prices compared with conventional automobiles. With the exception of consumers groups with a special interest in the environment, these eco-cars have yet to garner widespread support. The challenge remains to realize an environmentally consciousness mobile society. At Toyota Tsusho, we are creating markets and businesses to promote the expansion of next-generation vehicles.

Conducting field tests for the “COMS” micro EV In Japan, Singapore, and Europe

Promoting the electrification Promoting the deployment of light vehicles of charging infrastructure In China and Other Asian Nations In the United States and China

Collaborating with partners in the United States hours. In the U.S., stations that charge vehicles over several hours are and China to deploy a charging infrastructure emerging at corporate campuses and in shopping mall parking lots to meet the standard charging needs of owners. A charging infrastructure is critical to expanding the adoption of In China, the government is promoting EVs as an answer to next-generation vehicles. The U.S. government has announced a plan energy and environmental problems. China is contending with a number to increase PHV and EV ownership to 1 million vehicles by 2015 and is of social issues caused by conventional automobiles, including promoting the creation of a network of nationwide charging stations to soaring oil prices and urban air pollution from car exhaust. In response, make this happen. There are two main charging methods: a high-cost, the government has announced a plan to increase private and public quick-charging method which takes less than an hour to charge a ownership of PHVs and EVs to 5 million cars by 2020. vehicle, and a low-cost, standard charging method which takes several After monitoring the situation in various countries, Toyota Tsusho made an investment in ChargePoint, North America’s largest charging infrastructure company, as part of its efforts to promote the develop- Message from the Project Manager ment of low-cost standard charging equipment and services for corporate and private Establishing new business models to jump start vehicle owners. The the adoption of next-generation vehicle successful North American The invention of great technologies is meaningless without their wide initiatives will be transferred adoption by society. Some of the key challenges we now face with to China and other countries next-generation automobiles are establishing a charging infrastructure, through local business adapting mobility to fit the unique needs of different partners to spur progress communities, and envisioning new lifestyles in which in infrastructure and next-generation automobiles can be used. Without support the wider adoption solving all of these challenges, the expansion of of next-generation vehicles. next-generation automobiles will be limited. EV bus charging station operated by Chinese partner Potevio New Energy Co., Ltd. As an example, major car sharing services have generally shunned EVs because of the higher costs. In response, we are evaluating the lower-cost micro EV COMS in field tests to discover how Field tests in Japan, Singapore, EVs can be used in urban, suburban, tourist, and Europe for micro EV “COMS” and local community lifestyles. We’re confident that the creation of new business How can we make EVs easier to use? To lower the barriers to EV models through these feasibility tests will adoption among consumers, we have begun researching car-sharing be critical to the expansion of next- schemes in which people share the use of an EV. Feasibility studies generation automobiles. have begun in four regions around Japan at condominiums and Akio Hamada other places where members would typically use shared vehicles. General Manager, The studies feature the single-occupant micro EV “COMS” HEV (Next-Generation Mobility) Business Development Department produced by Toyota Auto Body Co., Ltd. The test vehicles are

9 Japan China To make EV use To resolve energy and easier car exhaust problems United States To promote a cheaper and more convenient charging infrastructure Europe Singapore For parcel delivery For moving across on narrow city roads large college campuses Asia For the electrification of light vehicles that serve as vital transportation for local citizens

shared by service members at designated sites and within fixed few gasoline stations. China and other Asian markets are regions. The feasibility concept assumes that members will be expected to accelerate the shift to electric mobility in order to travelling short distances for a low fee. Member feedback and reduce emissions of greenhouse gases and air pollutants, slash vehicle data are being collected to prepare for the launch of imports of fossil fuels, and generally use the switch from gasoline a commercial business in the future. The key to success will to electric power to raise the quality of life of their citizens. be finding price points and usage schemes that can enable a wide Toyota Tsusho is aiding the establishment of a sound range of consumers to easily use the EVs. electric mobility market and improving quality and functions In many Asian nations outside of Japan, the legal frameworks for by providing technical support for batteries, motors, and micro EVs have yet to be established, and EVs cannot yet operate on inverters—critical equipment for the electrification of public roads. Limited field tests are being conducted in Singapore, mobility. We have already developed an electric three- however, on roads within the National University of Singapore campus. wheeled vehicle prototype for the Thai market and begun In Europe, where the laws do allow micro EVs to operate, we have road tests to promote the expansion of safe and environmen- proposed COMS to a logistics company for small package deliveries. tally conscious three-wheeled electric vehicles. The micro EV uses size to its advantage on narrow European roadways often congested with parked cars. Since the postal industry has been proactive in taking Stakeholder comment environmental protection initiatives, we have targeted the industry as a gateway to Leading the charge for market introduction and are the adoption of electric now conducting feasibility vehicles tests with the Portugal postal service and other ChargePoint is world’s largest EV organizations. charging network. At ChargePoint Mr. Pasquale Field tests at the National University of Singapore we make it simple for cities, towns, Romano CEO, ChargePoint Inc. businesses and parking operators to offer electric vehicle charging services to their Supporting the electrification of mobility customers. ChargePoint is a unique mix of EV charging in China and other Asian nations stations from a variety of manufacturers and cloud based software systems supporting all the functions necessary to In China and other Asian nations, the motorcycle and light vehicle simplify EV charging. are still common forms of transportation. Throughout Asia, for We are currently exploring working together to expand example, there are some 10 million three-wheeled automotive taxis ChargePoint service to Asian regions with Toyota Tsusho operating. Some nations are now considering the introduction of Corporation who engage in a wide range of business electric three-wheeled vehicles. In China, there are already more activities on a global scale. than 130 million two-wheeled electric vehicles in operation, and small EVs have begun operating in rural areas where there are still

1010 Life & Community TRY-1 Life & Community

Raising the quality of medical care in India through hospital management Toyota Tsusho, the Secom Group (Japan) and the Kirloskar Group (India) jointly established Takshasila Hospitals Operating Private Limited in April 2012. The hospital management company will become the first Japanese-Indian venture to manage a hospital in India when it opens a general hospital in the IT hub of Bangalore, India’s fourth-largest city, by the end of 2013.

▼ Management structure of a hospital in Bangalore, India Aim to provide high quality services Kirloskar Group to cover local medical needs India Indian conglomerate with strong local connections Joint management Takshasila Hospitals Operating ★ Bangalore

Secom Group Toyota Tsusho Corporation Provider of advanced hospital Early entrant in the Indian support services in Japan automotive sector Sakra World Hospital

Growing middle-class medical needs doctors, nurses, and hospital beds are all well below international standards. The lack of an adequate medical infrastructure has Without full-fledged universal health care and less than 20% of its become a serious social problem in the country. population covered by private health insurance, India’s medical Additionally, as the standard of living increases, the number of industry is polarized between sophisticated private hospitals treating cases of diabetes and other lifestyle diseases is surging. To remedy the affluent and a portion of the middle-class, and state-run hospitals these problems, India will need to adopt medical services common treating large numbers of middle- and low-income patients. India’s in advanced countries, such as medical checkups, cancer screen- middle-class continues to expand as its economy grows, and a ing, and diabetes management programs developed in Japan. greater proportion of the population is seeking a higher standard of medical treatment at private hospitals. Though the health care system in India boasts a talented India’s population and transforming middle-class corps of doctors, many of them educated in the West, the number of (million persons) 1,400

1,200

Message from the Project Manager 1,000 Combining Japanese and Indian know-how to 800 provide a new level of medical services 600 41.9 % of Japanese companies enjoy a positive image in India, 400 the local population are middle class and Japan is generally viewed as a country with high 200 technology, sincere people, and a high level of medicine. Given this image, the local expectations of 0 Sakra World Hospital are very high. We have 2000 2008 2010 2015 2020 2025 (year) gathered together a hospital staff dedicated to forecast learning Japanese medical practices and combining Upper class（ household disposable income of 35,000 dollars or more） Middle class（ household disposable income between 5,000 to 35,000 dollars） the know-how of Japanese and Indian medical Lower class（ household disposable income of 5,000 dollars or less） industries to create a new level of medical services. (Source: prepared using Embassy of Japan in India website, “Reports on India’s Economy”) We look forward to collaborating with the Secom Group, with its long success in Japanese hospital support, and Japanese know-how applied to Indian the Kirloskar Group, our longtime partner hospital management in India, to provide high-quality medical With the aim of serving India’s medical needs, the three joint-venture services in India. partners are combining their know-how to establish Sakra World Hospital, a 300-bed general hospital in the IT and biosciences hub of Yasushiro Matsumoto Bangalore, India’s fourth-largest city and home to a large middle- General Manager Living and Healthcare Department class. The hospital will strive to offer high-quality services covering

11 a range of needs, from advanced treatments to lifestyle diseases, by Stakeholder comments improving the local medical infrastructure. The hospital will also tackle pressing issues in India’s medical practice, including treatment for victims of traffic accidents, which are on the rise, rehabilitation Highly reliable medicine services, perinatal care, and methods to lower hospital infection. for all of India Japanese medical industry know-how will be leveraged in all I’ve been involved with this project areas of hospital administration. The hospital will introduce “team from its inception, having been medicine,” in which doctors and nurses treat patients from equal attracted to the innovative concept Dr. Arjun Srivatsa positions, and invest in nurse training. This will be a critical element Director, Sakra World Hospital of creating an Indian-Japanese joint to improving the level of treatment, as nurses still suffer from a low venture to provide medical services based on world- social position in India. An exchange program has already been class safety processes. Our goal is to offer the highest begun in which Indian doctors and nurses are visiting Japan and level of medical services and quality so that our hospital skilled Japanese doctors are visiting India to raise the quality of can become a model for hospital expansion projects in team medicine and nursing by adopting best practices from Japan. the future. With its global vision, I look forward to Toyota Tsusho’s cooperation in disseminating information from Promoting medical equipment sales our hospital throughout India. and other related sectors

Though the hospital is focused on getting up and running by the end of 2013, in the future the joint-venture partners plan to promote Teaming with reliable related sectors, including the expansion of medical equipment partners to expand in India sales by Japanese manufacturers. Currently, India’s medical equipment market is dominated by U.S. In Japan, the Secom Group has and European manufacturers, largely because many Indian doctors teamed with 18 hospitals to provide have studied in the West, and Japanese manufacturers have yet high-quality medical services around Mr. Toshimasa to establish adequate logistics and maintenance systems in the country. In expanding overseas, Yashima CEO, Secom Medical System India. The joint venture is currently conducting feasibility one key issue was the selection of the studies on the establishment of joint management and logistics right partner companies. In this project, we found ideal organizations to prepare for Japanese equipment manufactures’ partners in Toyota Tsusho, a pioneer in Indian business full-scale entry into the Indian market. Additionally, the joint development, and the Kirloskar Group, with its extensive venture has begun an insurance business selling casualty and local connections. We are committed to providing other types of insurance to hospital employees, with a plan to patient-oriented medical services in India by leveraging expand to medical insurance in the future. our know-how in hospital administration in Japan. In the future, Toyota Tsusho will leverage its general trading company network to introduce Japanese medical equipment, insurance services, and other related businesses to India.

1212 Earth & Resources TRY-1 Earth & Resources

Developing lithium resources in Argentina For PHVs to meet growing demand and EVs Rechargeable lithium-ion batteries are used widely to power mobile devices. In recent years, lithium-ion batteries have also become a critical component for plug-in hybrid vehicles (PHVs) and electric vehicles (EVs). Toyota Tsusho is the first Japanese company to develop the raw material for these batteries—lithium. As a backup power source for households ▼Lithium Development Roadmap

2010 December 2012 Second half of 2014 Contributions to various Feasibility studies Commercial plant Start of full-scale fields in the form of construction begins production (plan) lithium-ion batteries

Annual production capacity of Toyota Tsusho 100% 17,500 tons of sales rights Equivalent to Japan’s total annual demand

Aiming to become a new supplier material are needed to ensure the development and wider adoption of such next-generation vehicles as PHVs and EVs. amid an oligopolistic market Toyota Tsusho responded to market needs by starting a basic Lithium is a rare metal used as a raw material for the positive feasibility study in 2008, after which it began mining capacity assess- electrode of lithium-ion batteries and for other industrial applications. ment surveys and infrastrcture surveys with the assistance of JOGMEC*. Currently, global lithium production is controlled by a total of four * An independent administrative corporation established by Japan’s Ministry of companies from South America and Australia. New suppliers of the Economy, Trade and Industry to ensure a stable and continual supply of resources and energy for Japanese society.

Message from the Project Manager Lithium Demand by Use Battery demand （thousand tons） 3.5 times higher We are striving to provide a stable, inexpensive 250 Forecast as supply of lithium and meet the expectations of ( compared to 2010 )

customers and government organizations. 200 The Salar de Olaroz project represents the first time a Japanese company has made a capital investment in the development of 150 lithium resources. Securing stable natural resources is a core part 100 of Japan’s national strategy. As such, we have received consistent support from the Japanese government, with the Japan 50 Oil, Gas and Metals National Corporation (JOGMEC)

taking part from the exploration phase and govern- 0 ment debt guarantees being pledged for the project. 2010 2011 2012 2013 2014 2015 2016 2017（year） There are high expectations that we can emerge as forecast a new supplier in the lithium market, which has Batteries Glass/Ceramics Lubricants Other traditionally been an oligopoly. The local community has also been very supportive of the project. In 2011, when mining approval A production capacity covering Japan’s became delayed after a change in entire domestic demand government, the community petitioned Toyota Tsusho focused on Argentina’s Salar de Olaroz after research- the government to move the project ing the available lithium resources worldwide. Salar de Olaroz’s water forward. We look forward to boasts a high lithium content and low level of impurities, and meeting the hopes and expecta- tions of the local community by the production and transport infrastructure necessary to harvest it is in making contributions to society place. In 2010, we began feasibility studies with the lake’s mining through this project. rights owners, Australian company Orocobre Limited. A pilot plant was built in 2011, followed by the establishment of a joint venture Atsushi Sugimoto and start of construction on a commercial plant in December 2012. General Manager, Metal Resources Department In the production process, we extract lithium directly from

13 ★ SalarSalar ddee OOlarozlaroz

ArgentinaArgentina ▼ Lime plant tanks under construction

Brine production well excavation ▼

the lake water. This requires fewer production steps and lower cost of lithium and promote the expanded use of low-cost, high- compared with extracting lithium from pulverized ore. The manufac- quality lithium-ion batteries, which can support the continued turing process adopts a secondary refinement step using an ion development of mobile devices and rising expectations for exchange resin to purify the extract into high-grade lithium. Fertilizers next-generation vehicles. are also being manufactured from the production by-product, potassium. In order to reduce the environmental impact, salt generated from concentrated brine accumulates in ponds and will be Stakeholder comment buried after the project’s completion. This environmental planning was one reason the project We have high expectations was accepted by the local in Toyota Tsusho’s marketing community. leveraging its global network Full-scale production is Orocobre Limited has had explora- scheduled to begin in tion and mining rights at Salar de the latter half of 2014. Mr. Richard P. Seville Olaroz since June 2006 and Managing Director Annual production capacity completed a Definitive Feasibility Orocobre Ltd. will be 17,500 tons, which is Study in April 2011. Together with partners Toyota Tsusho and equivalent to the current Groundbreaking ceremony JEMSE, it is now building the first major lithium brine project for the production plant annual demand in Japan. in 20 years. The project has the full support of the local indigenous inhabitants and 80% of the workforce is sourced Contributing to the local economy through from local indigenous communities. Orocobre was Argentine a public-private venture Mining Company of the year in 2012 partly because of its “benchmark” work in CSR. Orocobre’s Managing Since the local subsidiary began construction of a pilot plant Director stated that, “Orocobre was very pleased to partner in 2010, the project has provided employment for residents of with Toyota Tsusho on the Salar de Olaroz lithium project.” the nearby town of Olaroz Chico along with educational support It is very important to understand the market trend through the use of computers and other equipment. In addition, and to construct sales channels when you develop to we conducted an environmental assessment of the area’s water secure mineral resources like Li, which will be used for resources and proposed new methods of water purification using eco-cars (HEV, PHV and EV). In a difficult situation like the latest technology from Japan. In these and other ways, that, Toyota Tsusho is one of the companies who cannot the project is helping to improve the quality of life of the local only work with worldwide networks they have but also residents. JEMSE, the public mining development company for work strategically with the Japanese government. Such Jujuy Province, in which the plant is located, has taken an 8.5% marketing strategy with a positive approach is something stake in the project development company, reflecting our we value. We look forward Toyota Tsusho continuous input efforts to establish a relationship with the community based to supply our product from Olaroz to a Lithium Value Chain. on the principle of coexistence and co-prosperity. Toyota Tsusho will strive to become a leading global supplier

1414 Collaboration with CFAO, France’s biggest trading company Aiming to become Africa’s No. 1 alliance An alliance covering almost all African regions

On December 29, 2012, Toyota Tsusho Corporation made Generating synergy in 53 African nations a capital investment in CFAO S.A. (CFAO). CFAO is France’s CFAO does business primarily in northern and western largest trading company, and since its foundation, Africa, while Toyota Tsusho’s operations are rooted in eastern the company’s business has centered on Africa. and southern Africa. With complementary geographical Toyota Tsusho, meanwhile, has a 90-year history in coverage, the companies together sell automobiles in 53 Africa. As Africa strives for sustainable growth, CFAO of Africa’s 54 nations. and Toyota Tsusho are making contributions to CFAO is executing a “Three Pillar Strategy” comprised of the continent’s development through their CSR activities. Equipment, which includes the distribution and sale of automobiles and industrial machinery; Healthcare, which Overview of CFAO boasts Africa’s largest pharmaceutical wholesale network; and Consumer Goods, which promotes the sale of Establishment: 1887 Number of employees: beverages, stationery, and other goods. 11,400 (consolidated) CFAO’s strategy is compatible with Toyota Tsusho’s Revenues: 3.6 billion euros “Global 2020 Vision” and its three business domains of (year ended December 31, 2012) Head office: Paris, France Mobility, Life & Community, and Earth & Resources. The Representative: Alain Viry two companies have also taken a similar approach to Business description: business development by transferring the strengths of their Automobile import and export, pharmaceutical wholesale, etc. core automobile businesses into other business domains.

Photo Credits: Thomas Renaut

CFAOʼs social responsibility in Africa

CFAO’s contributions to Africa extend far beyond its A broad range of CSR activities business activities. In helping to address the many On the basis of its basic policy, CFAO is engaged in a range of social issues in Africa, CFAO is actively promoting CSR activities. a wide range of CSR initiatives in the areas of healthcare, In the field of healthcare, CFAO is taking measures to prevent education, NGO partnerships, and the environment. the spread of HIV/AIDS in Sub-Saharan Africa, which remains CFAO and Toyota Tsusho have many potential areas for seriously affected by the disease. The company has imple- collaborative CSR initiatives in the future. mented a specific program of education, prevention, testing, and treatment in all its Sub-Saharan subsidiaries in order to CFAO’s Basic Policy and approach eliminate the threat to its employees and their families. CFAO strives to make contributions to Africa not only through In the field of education, CFAO offers scholarship programs. its business activities, but also through CSR activities in Since 2001, the company has provided scholarships for the areas of healthcare, education, and other areas. the children of its employees, and in the 2012-2013 academic The company has established the following basic policy and year, about 580 children were able to attend secondary school four main CSR ambitions. using the program. Additionally, CFAO offers support for students desiring to continue their studies at African high schools and

●Basic Policy Dispatch of “Flying Doctors” Sustainable development is a particularly critical issue in Africa. to remote areas in various As an organization with historic roots on the continent, CFAO has African countries a duty to be exemplary, as well as specific responsibilities to Photo Credits: AMREF society and the environment. The group continually takes new steps for the befit of its employees and local communities in the countries where it operates.

●Four Main CSR Ambitions ・Acting as a model employer with a locally appropriate CSR policy ・Supporting economic and social progress in the local community by forging partnerships with nongovernmental organizations ・Minimizing the impact of its activities on the environment ・Ensuring that its employees buy in to the rules laid down in Supporting children’s schooling the Group’s Code of Business Conduct. through provision of scholarships

15 Business synergy and Equipment joint business expansion Mobility Selling brand goods Strong in Toyota-brand across Africa throughout Africa vehicle sales Photo Credits: Thomas Renaut

Life & Healthcare Toyota Community Tsusho Possessing Africa’s largest Handling of vaccines as pharmaceutical wholesale one aspect of ODA business network undertakings Photo Credits: Thomas Renaut

Business regions Consumer Earth & Goods Resources

Building a geothermal Possession of beverages power plant in Kenya for multiple global brands Photo Credits: Thomas Renaut

universities and obtain qualifications in such practical business “Alliance Vision” Promoted by Toyota Tsusho and CFAO fields as management and accounting. In the 2012-2013 academic year, about 80 students received this scholarship. No. 1 Alliance Group in Africa and Beyond Employee Satisfaction Environmental protection continues to be a major issue Business People CSR across Africa. CFAO has been monitoring its environmental Success Development Contribution impact since 2004. Waste management is a priority for “No. 1” “No. 1” “No. 1” the company. In 2012, a 3R program was begun with sustainable contribution to contribution to external partners in Madagascar, Cameroon, and Burkina growth & people sustainable profitable group development development Faso aimed at “reducing” the amount of waste generated, in Africa in Africa of Africa

“reusing” products, and “recycling” waste. Stakeholder Satisfaction CFAO supports non-governmental organizations (NGO) Strategic Alliance of CFAO / TTC based on the view that partnerships are critical to solving social problems in Africa. In 2012, the company provided approxi- mately 280,000 euros in support to NGOs, including for such Message from the project manager initiatives as AMREF-Flying Doctors, which seeks to improve CFAO’s future is inseparable from Africa, and the Group has public health and hygiene in remote parts of the continent. a long-term commitment to furthering the continent’s CFAO has also taken measures to bolster relations between development. Building up strong social and environ- NGOs and employees through the CFAO Solidarité program mental responsibility programs helps enhance begun in 2002. The program encourages employees to become our employer reputation and increases staff motivation. We ensure that our policy gears directly involved with the on-site operations of NGO grassroots around the Group’s strategic and operational activities. In 2012, the program funded 11 organizations aims. In the field of education, we work to with a total of approximately 100,000 euros. foster professional skills. In the field of healthcare, we are now expanding our HIV sensitization program to other diseases that Creating synergy in CSR afflict the continent, such as diabetes and There are many common goals in the philosophies and visions cardiovascular disease. of CFAO and Toyota Tsusho (see Page 5). The companies have In the domain of mobility, we are strengthening also adopted the ”Alliance Vision,” which includes the goal of our road safety awareness programs, an being No. 1 in contributions to the sustainable development area where we can leverage synergies of Africa. CFAO and Toyota Tsusho will forge closer relations with Toyota Tsusho. in the future to make collaborative CSR activities possible. Laurence Tovi Vice President, Communications & Corporate Social Responsibility

1616 Business activities and key CSR issue

Toyota Tsusho Corporation’s seven business divisions are Resource Manufacturing promoting CSR activities that reflect the unique aspects development and processing of their operations.

▼ Development of rare-earth ▼ Metal processing (steel resources sheet, steel bars, wire, steel pipe, aluminum, etc.)

Metals Division ▼ Molten aluminum production

▼ Tire and wheel assembly Global Production Parts & Logistics Division

▼ Automobile assembly

Automotive Division

▼ Energy procurement ▼ Facility design and (crude oil, coal, natural manufacture gas, etc.)

▼ Contracted drilling of marine gas fields

Machinery, Energy ▼ Renewable energy (wind, solar, biomass, etc.) ▼ Identification of infrastructure & Project Division projects (generators, etc.)

▼ Independent power producer (IPP) ▼ Environmental equipment installation

▼ Manufacturing of plastics compounds, ▼ Development of iodine, silica sand, and other processing of semifinished products

resources ▼ Manufacturing of inorganic chemicals, Chemical & Manufacturing of detergent raw materials ▼ Manufacturing of bio-polyester

▼ Electronics manufacturing service Electronics Division (consignment mounting of electronics components and production of semiconductors)

▼ Development of automotive embedded software and contents

▼ Agricultural cultivation ▼ Processing and management manufacture of foods

Food & ▼ Rice milling ▼ Aquaculture

Agribusiness ▼ Flour milling Division

▼ UseUse ofof fairfair tradetrade cottoncotton ▼ Textile processing

▼ Apparel manufacturing Consumer Products & Services Division

17 Logistics Sales Recycling Key CSR issues

● Safety ● Environment ● Governance

▼ Just-in-time logistics at ▼ Recovery and processing ● Investment project safety assessment: processing centers of scrap metal inside Promoting occupational safety and plants health management →Ｐ21

▼ Metal materials

procurement logistics ▼ End-of-life vehicle (ELV) ● Investment project environmental recycling assessment: Environmental management →Ｐ25 Toyota Tsusho ▼ Development of recycling ● Environmental pollution prevention: technologies Group’s Environmental Policy →Ｐ24

Thai traffic safety ▼ Consolidated ▼ Sales of automotive ● Traffic accident prevention: transportation for accessories and materials education and training center automotive production →Ｐ23

▼ Product planning and parts development for automotive parts

▼ Vehicle logistics

▼ Support for overseas expansion of automotive parts manufacturers, etc.

▼ Automobile sales ▼ Used vehicle procurement ▼ Automobile logistics ● Automobile dealers’ precise maintenance: (new and used vehicles) Service staff training

▼ Spare parts and →Ｐ23

accessory logistics ▼ After-sales service

▼ Sales finance

▼ Machinery and equipment ▼ Market identification for ▼ Water treatment ● Investment project safety assessment: (delivery, assembly, and industrial vehicles and Promoting occupational safety and ▼ Recycling of industrial maintenance) construction machinery waste and waste oil health management →Ｐ21

▼ Tankers for bunker fuel ● Investment project environmental assessment: Environmental management →Ｐ25

▼ Next-Generation Mobility application ▼ Operation of chemical tanks developmentproducts ● Compliance with chemical substance regulations:

▼ Quality management support Pollution prevention →Ｐ29

▼ Development of bio-products for electronics components, Operation of chemical semiconductors, etc. ▼ Development of nanotechnology materials substance management system →Ｐ29

▼ Procurement and distribution

▼ Mobile phone sales of electronics components and semiconductors ▼ Network system integration and support

▼ Music streaming and media services

▼ Grain terminals ▼ Development of sales ▼ Advanced composting ● Food safety and quality management: markets process Ensuring food safety

▼ Quality and safety →Ｐ22 management support ▼ Product development ● Appropriate product labeling: Ensuring food safety →Ｐ22 ● Food traceability: Ensuring food safety →Ｐ22 ▼ Rental center for nursing ▼ Product and business planning ▼ Recycled textile materials ● Environmental assessment: (insurance-related services, care products Environmental management →Ｐ25 textile products, lodging and

▼ Apparel logistics residential housing, medical ● Appropriate disposal of nursing care goods: (inspection, store facilities, related services, Paper diaper collection -by-store sorting) nursing care products, related system for nursing care facilities →Ｐ30 services) ● Elimination of forced and child labor in apparel

▼ Development of sales markets business: Plant inspections at contract manufacturers’ plants →Ｐ39

● Promoting occupational safety and health management →Ｐ20 ● Preventing global warming →Ｐ27 Common areas ● CSR management for the supply chain →Ｐ39

18 fiscal 2012, Group company Toyo Grain personnel from four Group companies in Occupational safety Terminals received a commendation for Thailand, the United States, Brazil, and and health management sharing case studies on its accidents and Australia convened to promote the “Safety afety efforts promoting an understanding of the incidents First” philosophy among overseas S Promotion structure with three other Group companies operating operations. Based on the Toyota Tsusho Group’s Policies on Safety and Health, the Group promotes occupational health and safety livestock feed grain silo businesses. We plan to continue holding the Global initiatives that are designed to ensure the continuity of operations by ensuring the safety of all people who work at We strive to share safety Additional activities in fiscal 2012 Safety Meeting in the fiscal year ending Toyota Tsusho Corporation and all those who are involved in its operations, including business partners and investees. information and raise safety included expanding the scope of plant March 31, 2014. We have also established the Food Safety Management Group so as to offer safe and reliable food, and are building a food consciousness, with the weekly safety assessment and risk assessment, safety management system. safety meeting and safety and adding “safety experience training management improvement hall” as a new course. committee at the core of our efforts. Toyota Tsusho Corporation holds weekly The Toyota Tsusho Group’s Policies on Safety and Health (Revised July 2011) safety meetings attended by safety-related personnel, primarily members of the “zero 1. Recognizing that good communications are paramount for ensuring safety and health, top management places a accident” teams in each division. high premium on dialogue with employees. Also, the safety management improvement committee, which extends laterally across A Global Safety Meeting the entire company and is attended by While strictly adhering to relevant safety and health laws and the internal workplace business rules and procedures 2. divisional executives (chief division officers of our customers, we have established our own standards, as we work to raise the level of our safety and health and directors in charge of “zero accident” Safety commendation management. promotion), meets monthly for the sharing Promoting occupational safety of information and the uplifting of safety Global Safety Meeting introduced and health management 3. We utilize occupational safety and health management systems and implement kaizen (continuous improvement) as consciousness among top executives. to bolster safety initiatives at we aim to continually raise safety and health levels. overseas Group companies Basic stance Zero accident team members We have established the Toyota Tsusho have been placed in all Promoting safety management 4. To promote safety and health activities at all companies throughout the Toyota Tsusho Group, we will establish the Group OS&H promotion committee to departments to promote safety that includes Group companies necessary organizations and structures and clarify the locations of responsibilities. promote occupational health and safety Under the supervision of the heads of activities at Toyota Tsusho Corporation and suppliers the sales divisions, zero-accident team and its Group companies in Japan. This Toyota Tsusho Corporation has regularly 5. To progress with the creation of comfortable and healthy workplaces, we will provide all employees with sufficient members at all sales departments take part committee is chaired by the general manager implemented accident and disaster and necessary education for ensuring their safety and health. in safety management activities within their of the Human Resources Department, with prevention activities and striven to instill a own sales departments, as well as in any the safety and health management general culture of safety since the establishment of Group companies that their departments supervisor, who is a Toyota Tsusho director, the Safety Management Office in 1985 are responsible for managing. They work to and the representative directors of 53 Group and the Safety & Global Environment uncover any issues, propose countermeasures companies in attendance. Management Department in 2001. We promote business with the aim of creating a corporate culture that and manage the progress of activities. Group companies outside Japan also We made efforts to increase visualization prevents accidents. Furthermore, we hold annual share the “Safety First” policy and of safety by establishing indicators based zero-accident team conventions to raise philosophy. Safety activities at overseas on evaluations through safety diagnoses, Toyota Tsusho Corporation believes that ensuring the United States, Brazil, and Australia convened to promote the safety awareness. Attendees report on their sites are promoted in accordance with the etc. As a result of such efforts, “Sincere, safety not only of our Group employees, but of every “Safety First” philosophy among overseas operations. Due to departments’ activities along with initiatives laws and regulations of each country. In Straightforward, Speedy” have taken hold at worker associated with us, is a fundamental corporate the high evaluations from participants in the meeting requiring improvement, while commendations fiscal 2012, we also began holding a each department, making possible more social responsibility. As we aim to deliver added value to and other relevant parties, we plan to continue holding are awarded for outstanding activities. In Global Safety Meeting. Safety-related open and accurate accident reports. our customers and push forward with global expansion, the Global Safety Meeting in the fiscal year ending March the Toyota Tsusho Group considers ensuring health and 31, 2014. safety a prerequisite for the sustainability of our business. Toyota Tsusho’s long-term vision, the Global 2020 Vision, Structure for promoting occupational health and safety We actively engage in safety efforts based on the three states that we want to be a company that “garners our pillars of “control structure,” “education and personnel customers’ trust.” By considering safety in every aspect of President & CEO development,” and “support for accident prevention.” our business, and ensuring the safety and health of each Safety management improvement committee CSR Committee (monthly) The Toyota Tsusho Group For example, we conduct preliminary discussions and site person with whom we are associated, we hope to be a • Attendees: Chief division officers and director in OS&H promotion committee checks for construction projects when we start up a new company that is respected and trusted by everyone, and charge of “zero accident” • Safety & health managers Safety and health management • Extends laterally and comprises division executives business, fulfilling our duty to take safety into consideration. that has a culture that encourages people to speak out in general supervisor (representative directors of Furthermore, when Toyota Tsusho is contributing 50%or the interest of accident prevention. I will continue working (director) Weekly safety meeting Group companies) more in a business investment, we conduct an examination with everyone in this fiscal year, moving forward with safety • Attendees: Chief division officers of related business • Companies attending: 52 Safety & health manager divisions and divisional members of “zero accident” teams of the planning through construction work to confirm that management so as to realize that ideal. (executive officer) • Share information on accidents and disasters, a safety management structure has been put in place. including measures to prevent recurrence Risk associated with traffic accidents has become Chief division officers prominent as our business grows in emerging economies such as Myanmar and Angola, and in response we are Safety and Global Environment Management working to reduce accidents and putting an effort into Department Related general managers encouraging safe driving that takes particular regional • Devising plans for monitoring safety Mikio Asano • Safety training • General manager of Human characteristics into consideration. Executive Vice President 217 “zero accident” • “Zero accident” team member convention Resources Department Safety and Health Management team members Cooperation • Plant safety diagnoses and safety tours • General manager of ERM In this context, we held a Global Safety Meeting at the General Supervisor Department at sales divisions • Meetings and guidance on measures to prevent accidents Nagoya Head Office in fiscal 2012 to establish and reinforce • Operation of practical safety workshop • General manager of Safety safety management structures at our overseas Group • Administrative office for the safety management and Global Environment Management Department companies. Safety-related personnel—including the Executive improvement committee, weekly safety committee and the Toyota Tsusho Group OS&H promotion committee (administrative office) Vice Presidents—from four Group companies in Thailand, the

19 20 fiscal 2012, Group company Toyo Grain personnel from four Group companies in Occupational safety Terminals received a commendation for Thailand, the United States, Brazil, and and health management sharing case studies on its accidents and Australia convened to promote the “Safety afety efforts promoting an understanding of the incidents First” philosophy among overseas S Promotion structure with three other Group companies operating operations. Based on the Toyota Tsusho Group’s Policies on Safety and Health, the Group promotes occupational health and safety livestock feed grain silo businesses. We plan to continue holding the Global initiatives that are designed to ensure the continuity of operations by ensuring the safety of all people who work at We strive to share safety Additional activities in fiscal 2012 Safety Meeting in the fiscal year ending Toyota Tsusho Corporation and all those who are involved in its operations, including business partners and investees. information and raise safety included expanding the scope of plant March 31, 2014. We have also established the Food Safety Management Group so as to offer safe and reliable food, and are building a food consciousness, with the weekly safety assessment and risk assessment, safety management system. safety meeting and safety and adding “safety experience training management improvement hall” as a new course. committee at the core of our efforts. Toyota Tsusho Corporation holds weekly The Toyota Tsusho Group’s Policies on Safety and Health (Revised July 2011) safety meetings attended by safety-related personnel, primarily members of the “zero 1. Recognizing that good communications are paramount for ensuring safety and health, top management places a accident” teams in each division. high premium on dialogue with employees. Also, the safety management improvement committee, which extends laterally across A Global Safety Meeting the entire company and is attended by While strictly adhering to relevant safety and health laws and the internal workplace business rules and procedures 2. divisional executives (chief division officers of our customers, we have established our own standards, as we work to raise the level of our safety and health and directors in charge of “zero accident” Safety commendation management. promotion), meets monthly for the sharing Promoting occupational safety of information and the uplifting of safety Global Safety Meeting introduced and health management 3. We utilize occupational safety and health management systems and implement kaizen (continuous improvement) as consciousness among top executives. to bolster safety initiatives at we aim to continually raise safety and health levels. overseas Group companies Basic stance Zero accident team members We have established the Toyota Tsusho have been placed in all Promoting safety management 4. To promote safety and health activities at all companies throughout the Toyota Tsusho Group, we will establish the Group OS&H promotion committee to departments to promote safety that includes Group companies necessary organizations and structures and clarify the locations of responsibilities. promote occupational health and safety Under the supervision of the heads of activities at Toyota Tsusho Corporation and suppliers the sales divisions, zero-accident team and its Group companies in Japan. This Toyota Tsusho Corporation has regularly 5. To progress with the creation of comfortable and healthy workplaces, we will provide all employees with sufficient members at all sales departments take part committee is chaired by the general manager implemented accident and disaster and necessary education for ensuring their safety and health. in safety management activities within their of the Human Resources Department, with prevention activities and striven to instill a own sales departments, as well as in any the safety and health management general culture of safety since the establishment of Group companies that their departments supervisor, who is a Toyota Tsusho director, the Safety Management Office in 1985 are responsible for managing. They work to and the representative directors of 53 Group and the Safety & Global Environment uncover any issues, propose countermeasures companies in attendance. Management Department in 2001. We promote business with the aim of creating a corporate culture that and manage the progress of activities. Group companies outside Japan also We made efforts to increase visualization prevents accidents. Furthermore, we hold annual share the “Safety First” policy and of safety by establishing indicators based zero-accident team conventions to raise philosophy. Safety activities at overseas on evaluations through safety diagnoses, Toyota Tsusho Corporation believes that ensuring the United States, Brazil, and Australia convened to promote the safety awareness. Attendees report on their sites are promoted in accordance with the etc. As a result of such efforts, “Sincere, safety not only of our Group employees, but of every “Safety First” philosophy among overseas operations. Due to departments’ activities along with initiatives laws and regulations of each country. In Straightforward, Speedy” have taken hold at worker associated with us, is a fundamental corporate the high evaluations from participants in the meeting requiring improvement, while commendations fiscal 2012, we also began holding a each department, making possible more social responsibility. As we aim to deliver added value to and other relevant parties, we plan to continue holding are awarded for outstanding activities. In Global Safety Meeting. Safety-related open and accurate accident reports. our customers and push forward with global expansion, the Global Safety Meeting in the fiscal year ending March the Toyota Tsusho Group considers ensuring health and 31, 2014. safety a prerequisite for the sustainability of our business. Toyota Tsusho’s long-term vision, the Global 2020 Vision, Structure for promoting occupational health and safety We actively engage in safety efforts based on the three states that we want to be a company that “garners our pillars of “control structure,” “education and personnel customers’ trust.” By considering safety in every aspect of President & CEO development,” and “support for accident prevention.” our business, and ensuring the safety and health of each Safety management improvement committee CSR Committee (monthly) The Toyota Tsusho Group For example, we conduct preliminary discussions and site person with whom we are associated, we hope to be a • Attendees: Chief division officers and director in OS&H promotion committee checks for construction projects when we start up a new company that is respected and trusted by everyone, and charge of “zero accident” • Safety & health managers Safety and health management • Extends laterally and comprises division executives business, fulfilling our duty to take safety into consideration. that has a culture that encourages people to speak out in general supervisor (representative directors of Furthermore, when Toyota Tsusho is contributing 50%or the interest of accident prevention. I will continue working (director) Weekly safety meeting Group companies) more in a business investment, we conduct an examination with everyone in this fiscal year, moving forward with safety • Attendees: Chief division officers of related business • Companies attending: 52 Safety & health manager divisions and divisional members of “zero accident” teams of the planning through construction work to confirm that management so as to realize that ideal. (executive officer) • Share information on accidents and disasters, a safety management structure has been put in place. including measures to prevent recurrence Risk associated with traffic accidents has become Chief division officers prominent as our business grows in emerging economies such as Myanmar and Angola, and in response we are Safety and Global Environment Management working to reduce accidents and putting an effort into Department Related general managers encouraging safe driving that takes particular regional • Devising plans for monitoring safety Mikio Asano • Safety training • General manager of Human characteristics into consideration. Executive Vice President 217 “zero accident” • “Zero accident” team member convention Resources Department Safety and Health Management team members Cooperation • Plant safety diagnoses and safety tours • General manager of ERM In this context, we held a Global Safety Meeting at the General Supervisor Department at sales divisions • Meetings and guidance on measures to prevent accidents Nagoya Head Office in fiscal 2012 to establish and reinforce • Operation of practical safety workshop • General manager of Safety safety management structures at our overseas Group • Administrative office for the safety management and Global Environment Management Department companies. Safety-related personnel—including the Executive improvement committee, weekly safety committee and the Toyota Tsusho Group OS&H promotion committee (administrative office) Vice Presidents—from four Group companies in Thailand, the

19 20 Safety efforts

In fiscal 2012, we set a goal of executing Suppliers these certifications (as of fiscal 2012). information about Toyota Tsusho a regulatory violation or other major problem, safety activities that earn the trust of our Safety training At our workplaces, we also assemble a Corporation’s safety initiatives, as well as we take measures to prevent the raw customers by acting with a firm awareness The Safety and Health Cooperation variety of safety training programs on DVD to disaster case studies and training content. materials or products from being shipped of safety and promoting speedy action. Council, with a membership of Training promote visual safety education. Four types The facility is open to employees of Toyota or distributed. Additionally, we make a around 550 suppliers, works to of DVDs are available: in the construction Tsusho and Group companies, and can be thorough investigation into the cause of Toyota Tsusho Corporation enhance safety maintenance. We are expanding rank-based category, training covers working at high freely used by customers and suppliers. the problem and consider and implement Through the cooperation of our safety training and cultivating elevations, slinging work and preventing Also, we used OSH-NET, an electronic measures to prevent reoccurrence so as Top-level management conducted approximately 550 suppliers, we have in-house safety training instructors. electric shock; in the delivery category, bulletin board set up in fiscal 2008, to offer to avert a food accident. safety inspections at the plants of formed the Safety and Health Cooperation We believe that human resource cultivation lashing and crane operations; in the employees health and safety information, In fiscal 2012, in accordance with our 22 Group companies in Japan and Council, an organization that seeks to is where safety management truly begins, production category, how to respond to such as materials on safety and health internal rules, we conducted regular 26 companies in seven countries prevent accidents. Upon the request of so in addition to Group employees, we abnormalities during operations; and the management, disaster case studies, the inspections of registered suppliers. In outside Japan. the supplier, we also visit supplier sites to also conduct safety training for suppliers. management category. We have distributed minutes of various meetings and addition to reconfirming the management Toyota Tsusho conducts plant inspections share our safety and health know-how. In line with our aim of increasing safety these DVDs to 337 business units in Japan information on safety and health, all in a systems of our suppliers, we also checked at our business sites in Japan and overseas, Suppliers are divided into two categories, awareness, the zero accident team and overseas. single, convenient location. In fiscal 2011, remedial action taken in response to whereby top-level management and the “construction” and “delivery,” with members who direct safety activities at sales OSH-NET was redesigned to add news issues identified in previous inspections. leaders of business divisions take the conferences or seminars held for each divisions are required to undergo training We have set up a practical safety updates and other features in order to We also established standards for the initiative in checking safety. We also category four times annually to share upon appointment as a safety manager. In workshop to enhance employee improve the site’s convenience and selection of inspection organizations when conduct “plant safety diagnoses,” which information related to safety management fiscal 2012, 161 people took part in this sensitivity to danger. functionality. consigning inspections to outside involve reviews of 10 items, including the and trends on the indication of non- training, raising the cumulative total to 1,000. To heighten employee sensitivity to danger, We strive to have all of our employees organizations as part of our efforts to raise management structure, the status of conformance. Directors and general Rank-based safety training is also in fiscal 2009 we established the Practical share and understand information about a the reliability of inspections even further. occupational health and safety committee managers from five divisions—Metals, provided to new employees, mid-level Safety workshop at the Toyota Steel Center. variety of safety and health efforts, and for activities, and the annual activity plan’s Global Production Parts & Logistics, employees, managers and executives, The workshop offers simulation of some the entire company to aim to improve Toyota Tsusho’s logistics centers implementation status. Furthermore, we Machinery, Energy & Project, Chemical & and we are expanding the scope of safety 40 different types of danger, including safety awareness. perform risk assessments in an effort to Electronics, and Consumer Products & training to include suppliers. squeezing and danger involving heavy * Abbreviation for “occupational safety and health” We have created our own prevent accidents from occurring. These Services—attend these conferences or We cultivate instructors who provide items, and in addition to attendance by manuals in conformity with the activities enable us to identify issues and seminars, with the Safety Promotion this safety training in-house so they can Toyota Tsusho and Group company demands of Japan’s Ministry of implement countermeasures. Group members serving as the secretariat. understand the circumstances within the employees the workshop is also open to Agriculture, Forestry and In fiscal 2012, top-level management In fiscal 2012, attendees presented case Toyota Tsusho Group and provide instruction business partners who take part in the Ensuring food safety Fisheries and Japan’s Ministry of inspected plants of 22 companies in studies on accidents and disasters at Group corresponding to actual workplace needs. Safety and Health Cooperation Council. (Food & Agribusiness Division initiatives) Health, Labor and Welfare for Japan and plants operated by a total of companies as a way of improving safety Training is provided by employees who have In fiscal 2012, approximately 800 thorough quality control. 26 companies in Vietnam, Argentina, management through information sharing. received RST Trainer certification as people used this facility. Supply chain The Produce & Foodstuffs Division maintains Colombia, China, the United Kingdom, instructors for occupational health and safety grain silos at four sites in Japan. We operate Turkey, and Russia. Investments by Japan’s Ministry of Health, Labour and We provide guidelines for careful these silos according to our own quality Plant diagnoses were carried out at Welfare and the Toyota Group’s instructor selection of superior suppliers control manuals that conform to Japan’s Group companies (22 in Japan and 26 Conducting safety reviews of certification for supervisory foreman and product management. Ministry of Agriculture, Forestry and Fisheries overseas), with thorough guidance on business investments at the education as “specialist instructors for all Food & Agribusiness Division has created guidelines and directives (on feedstuffs and safety management provided on-site. In planning stage Toyota personnel responsible for work a food safety management system with wheat) and Japan’s Ministry of Health, Labor addition, each Group company conducted When Toyota Tsusho is contributing 50% operations.” Currently, 54% of the employees the Food Safety Management Group at its and Welfare directives (on corn). We conduct risk assessments to look into measures to or more of the investment in a project assigned to Safety Management Group hold core, and strives to comply with laws and thorough cleaning and temperature controls identify sources of danger so as to prevent accompanied by construction, we conduct regulations. Our process of supplier at every stage, including pre-loading, accident occurrence. an examination of the planning through Principal training and number of people A practical safety workshop selection includes plant inspections in loading, storage and shipment. construction work cycle to confirm that a taking courses (FY2012) addition to the screening of records. Only Number of work-related accidents and safety management structure has been Number of suppliers that have cleared our supplier work stoppage rate* in FY2012 put in place. In fiscal 2012 alone, we Training topic Target people taking Dealings with business partners selection management standards are courses 53 Japanese and 168 Overseas Group companies conducted more than 50 such reviews. Shin-Ei Kinzoku Co., Ltd. (Anjo City, chosen for registration. Education and Number of Work The Safety Management Group of the New Aichi Prefecture), which is engaged in Guidelines for product management training for employees 150 persons work-related stoppage Safety and Global Environment Management new employees metal recycling, has been utilizing our based on our Supplier Management accidents rate Department strives to ensure that Practical Safety Workshop once a Standards are provided to registered 19 accidents Training upon Japan (including 5 work stoppages) 0.29 construction projects are completed appointment as 161 persons month, since a year ago, as one aspect suppliers, and strict management of each without any accidents or disasters in order a safety manager Mid-level of its safety training. To date, 50 process, from ingredient selection through Overseas 61 accidents 0.48 employees, (including 22 work stoppages) to fulfill our duty as a safety-conscious Training for managers members of its staff have undertaken product shipping, is required. Also, local Grain silo contractor. To this end, the group ensures personnel posted 29 persons this training. A representative stated, supplier inspections have been stipulated overseas “We have made comparisons with other Work stoppage rate at domestic Group that the five elements of the safe in an inspection manual based on our practical safety workshops, but chose Appropriate product labeling companies operating factories construction cycle are functioning Education for food safety management system rules, persons responsible 130 persons Toyota Tsusho, because we can select (FY2012) properly: implementation of training for for construction and in addition to requiring that registered We strive for appropriate labeling from among many options to have a new site visitors, implementation of work suppliers conduct regular inspections, and confirm the accuracy of Metals Energy Others Education for program tailored to our company’s persons responsible 475 persons direction and KY, safety patrols, safety People in when suppliers find on-site inspections to ingredient labeling and date Target companies 13 4 15 for work operations needs. We hope to continue to use the meetings and the 4S. charge be difficult, Toyota Tsusho conducts management. (including facilities for future employee training.” Employees 1,165 459 3,065 Training for at Group inspections through the Food & We strive for thoroughly appropriate high-elevation companies 559 persons Stoppage rate 0.84 2.48 0.00 workers Agribusiness Division. labeling so as to offer accurate information Five elements of the safe and suppliers) Providing information on safety For food products imported into Japan, and product security. We confirm in * An indicator of accident frequency. The calculation construction cycle Education on prevention of 560 persons due to risks of unanticipated residual advance that the ingredients actually in the is based on the number of accident-related Training for new site visitors electrical shock casualties per 1 million working hours. • We broadcast health and safety agrochemicals and animal drugs, we set product match the labeling, and we store • Implementation of work direction and KY information using the electronic Practical safety 835 persons our own internal rules for inspection and label records, including label samples and Work stoppage rate = • Safety patrols workshop bulletin board OSH*-NET. conduct inspections upon import in artwork, etc. Safety meetings Number of deaths and • Training for top-level We have set up the “zero accident” Room accordance with the rules. The Supplier Management Standards injuries due to accidents Executives 344 persons ×1,000,000 • 4S executives Total work hours at our headquarters, where we provide In the event that an inspection uncovers of the food safety management system

21 22 Safety efforts

In fiscal 2012, we set a goal of executing Suppliers these certifications (as of fiscal 2012). information about Toyota Tsusho a regulatory violation or other major problem, safety activities that earn the trust of our Safety training At our workplaces, we also assemble a Corporation’s safety initiatives, as well as we take measures to prevent the raw customers by acting with a firm awareness The Safety and Health Cooperation variety of safety training programs on DVD to disaster case studies and training content. materials or products from being shipped of safety and promoting speedy action. Council, with a membership of Training promote visual safety education. Four types The facility is open to employees of Toyota or distributed. Additionally, we make a around 550 suppliers, works to of DVDs are available: in the construction Tsusho and Group companies, and can be thorough investigation into the cause of Toyota Tsusho Corporation enhance safety maintenance. We are expanding rank-based category, training covers working at high freely used by customers and suppliers. the problem and consider and implement Through the cooperation of our safety training and cultivating elevations, slinging work and preventing Also, we used OSH-NET, an electronic measures to prevent reoccurrence so as Top-level management conducted approximately 550 suppliers, we have in-house safety training instructors. electric shock; in the delivery category, bulletin board set up in fiscal 2008, to offer to avert a food accident. safety inspections at the plants of formed the Safety and Health Cooperation We believe that human resource cultivation lashing and crane operations; in the employees health and safety information, In fiscal 2012, in accordance with our 22 Group companies in Japan and Council, an organization that seeks to is where safety management truly begins, production category, how to respond to such as materials on safety and health internal rules, we conducted regular 26 companies in seven countries prevent accidents. Upon the request of so in addition to Group employees, we abnormalities during operations; and the management, disaster case studies, the inspections of registered suppliers. In outside Japan. the supplier, we also visit supplier sites to also conduct safety training for suppliers. management category. We have distributed minutes of various meetings and addition to reconfirming the management Toyota Tsusho conducts plant inspections share our safety and health know-how. In line with our aim of increasing safety these DVDs to 337 business units in Japan information on safety and health, all in a systems of our suppliers, we also checked at our business sites in Japan and overseas, Suppliers are divided into two categories, awareness, the zero accident team and overseas. single, convenient location. In fiscal 2011, remedial action taken in response to whereby top-level management and the “construction” and “delivery,” with members who direct safety activities at sales OSH-NET was redesigned to add news issues identified in previous inspections. leaders of business divisions take the conferences or seminars held for each divisions are required to undergo training We have set up a practical safety updates and other features in order to We also established standards for the initiative in checking safety. We also category four times annually to share upon appointment as a safety manager. In workshop to enhance employee improve the site’s convenience and selection of inspection organizations when conduct “plant safety diagnoses,” which information related to safety management fiscal 2012, 161 people took part in this sensitivity to danger. functionality. consigning inspections to outside involve reviews of 10 items, including the and trends on the indication of non- training, raising the cumulative total to 1,000. To heighten employee sensitivity to danger, We strive to have all of our employees organizations as part of our efforts to raise management structure, the status of conformance. Directors and general Rank-based safety training is also in fiscal 2009 we established the Practical share and understand information about a the reliability of inspections even further. occupational health and safety committee managers from five divisions—Metals, provided to new employees, mid-level Safety workshop at the Toyota Steel Center. variety of safety and health efforts, and for activities, and the annual activity plan’s Global Production Parts & Logistics, employees, managers and executives, The workshop offers simulation of some the entire company to aim to improve Toyota Tsusho’s logistics centers implementation status. Furthermore, we Machinery, Energy & Project, Chemical & and we are expanding the scope of safety 40 different types of danger, including safety awareness. perform risk assessments in an effort to Electronics, and Consumer Products & training to include suppliers. squeezing and danger involving heavy * Abbreviation for “occupational safety and health” We have created our own prevent accidents from occurring. These Services—attend these conferences or We cultivate instructors who provide items, and in addition to attendance by manuals in conformity with the activities enable us to identify issues and seminars, with the Safety Promotion this safety training in-house so they can Toyota Tsusho and Group company demands of Japan’s Ministry of implement countermeasures. Group members serving as the secretariat. understand the circumstances within the employees the workshop is also open to Agriculture, Forestry and In fiscal 2012, top-level management In fiscal 2012, attendees presented case Toyota Tsusho Group and provide instruction business partners who take part in the Ensuring food safety Fisheries and Japan’s Ministry of inspected plants of 22 companies in studies on accidents and disasters at Group corresponding to actual workplace needs. Safety and Health Cooperation Council. (Food & Agribusiness Division initiatives) Health, Labor and Welfare for Japan and plants operated by a total of companies as a way of improving safety Training is provided by employees who have In fiscal 2012, approximately 800 thorough quality control. 26 companies in Vietnam, Argentina, management through information sharing. received RST Trainer certification as people used this facility. Supply chain The Food & Agribusiness Division maintains Colombia, China, the United Kingdom, instructors for occupational health and safety grain silos at four sites in Japan. We operate Turkey, and Russia. Investments by Japan’s Ministry of Health, Labour and We provide guidelines for careful these silos according to our own quality Plant diagnoses were carried out at Welfare and the Toyota Group’s instructor selection of superior suppliers control manuals that conform to Japan’s Group companies (22 in Japan and 26 Conducting safety reviews of certification for supervisory foreman and product management. Ministry of Agriculture, Forestry and Fisheries overseas), with thorough guidance on business investments at the education as “specialist instructors for all Food & Agribusiness Division has created guidelines and directives (on feedstuffs and safety management provided on-site. In planning stage Toyota personnel responsible for work a food safety management system with wheat) and Japan’s Ministry of Health, Labor addition, each Group company conducted When Toyota Tsusho is contributing 50% operations.” Currently, 54% of the employees the Food Safety Management Group at its and Welfare directives (on corn). We conduct risk assessments to look into measures to or more of the investment in a project assigned to Safety Management Group hold core, and strives to comply with laws and thorough cleaning and temperature controls identify sources of danger so as to prevent accompanied by construction, we conduct regulations. Our process of supplier at every stage, including pre-loading, accident occurrence. an examination of the planning through Principal training and number of people A practical safety workshop selection includes plant inspections in loading, storage and shipment. construction work cycle to confirm that a taking courses (FY2012) addition to the screening of records. Only Number of work-related accidents and safety management structure has been Number of suppliers that have cleared our supplier work stoppage rate* in FY2012 put in place. In fiscal 2012 alone, we Training topic Target people taking Dealings with business partners selection management standards are courses 53 Japanese and 168 Overseas Group companies conducted more than 50 such reviews. Shin-Ei Kinzoku Co., Ltd. (Anjo City, chosen for registration. Education and Number of Work The Safety Management Group of the New Aichi Prefecture), which is engaged in Guidelines for product management training for employees 150 persons work-related stoppage Safety and Global Environment Management new employees metal recycling, has been utilizing our based on our Supplier Management accidents rate Department strives to ensure that Practical Safety Workshop once a Standards are provided to registered 19 accidents Training upon Japan (including 5 work stoppages) 0.29 construction projects are completed appointment as 161 persons month, since a year ago, as one aspect suppliers, and strict management of each without any accidents or disasters in order a safety manager Mid-level of its safety training. To date, 50 process, from ingredient selection through Overseas 61 accidents 0.48 employees, (including 22 work stoppages) to fulfill our duty as a safety-conscious Training for managers members of its staff have undertaken product shipping, is required. Also, local Grain silo contractor. To this end, the group ensures personnel posted 29 persons this training. A representative stated, supplier inspections have been stipulated overseas “We have made comparisons with other Work stoppage rate at domestic Group that the five elements of the safe in an inspection manual based on our practical safety workshops, but chose Appropriate product labeling companies operating factories construction cycle are functioning Education for food safety management system rules, persons responsible 130 persons Toyota Tsusho, because we can select (FY2012) properly: implementation of training for for construction and in addition to requiring that registered We strive for appropriate labeling from among many options to have a new site visitors, implementation of work suppliers conduct regular inspections, and confirm the accuracy of Metals Energy Others Education for program tailored to our company’s persons responsible 475 persons direction and KY, safety patrols, safety People in when suppliers find on-site inspections to ingredient labeling and date Target companies 13 4 15 for work operations needs. We hope to continue to use the meetings and the 4S. charge be difficult, Toyota Tsusho conducts management. (including facilities for future employee training.” Employees 1,165 459 3,065 Training for at Group inspections through the Food & We strive for thoroughly appropriate high-elevation companies 559 persons Stoppage rate 0.84 2.48 0.00 workers Agribusiness Division. labeling so as to offer accurate information Five elements of the safe and suppliers) Providing information on safety For food products imported into Japan, and product security. We confirm in * An indicator of accident frequency. The calculation construction cycle Education on prevention of 560 persons due to risks of unanticipated residual advance that the ingredients actually in the is based on the number of accident-related Training for new site visitors electrical shock casualties per 1 million working hours. • We broadcast health and safety agrochemicals and animal drugs, we set product match the labeling, and we store • Implementation of work direction and KY information using the electronic Practical safety 835 persons our own internal rules for inspection and label records, including label samples and Work stoppage rate = • Safety patrols workshop bulletin board OSH*-NET. conduct inspections upon import in artwork, etc. Safety meetings Number of deaths and • Training for top-level We have set up the “zero accident” Room accordance with the rules. The Supplier Management Standards injuries due to accidents Executives 344 persons ×1,000,000 • 4S executives Total work hours at our headquarters, where we provide In the event that an inspection uncovers of the food safety management system

21 22 Safety efforts

stipulate rules regarding date management, confirm that our suppliers are conducting such as sell-by and use-by dates, and we proper date management. Approach to the environment Automotive Division initiatives Toyota Tsusho Corporation considers its approach to the environment to be inextricably linked with our Corporate Philosophy of “living and prospering together with people, society and the Earth.” In accordance with the Toyota Tsusho We make contributions to local traffic safety through maintenance staff training, driver education, Group’s Environmental Policy, all executives and employees share this understanding and perform their activities accordingly. and other activities, helping to fulfill our social responsibility as an automobile wholesaler and retailer. The Automotive Division operates automobile employees have taken a basic education and auto parts wholesale and retail operations certification course from Toyota Motor as Toyota Tsusho Group’s Environmental Policy in some 150 countries around the world as part of our efforts to certify employees and a representative for Toyota Motor Corporation bolster training. In Sri Lanka, we began and several other automobile manufacturers. holding driver training courses for the 1 As a responsible corporate citizen, we strive to reduce impact on the environment, conserve energy, recycle As part of our social responsibility, we are employees of our local distributors in 2011. resources and eliminate environmental pollution, while placing a high priority on not disturbing the global promoting a wide range of CSR activities in In 2012, more than 30 employees received environment in conducting business. these countries with the aim of improving classroom instruction on road laws and local traffic safety. practical training through the course. In 2 We promote environment-related businesses, such as the efficient use of waste and the preservation of natural Regular automobile maintenance is Trinidad and Tobago, we invite customers to resources, and contribute to the realization of a recycling-oriented economy and society in collaboration with our critical to the safe and secure operation of showrooms to receive seminars on driving Maintenance employees receiving training affiliates and business partners. automobiles. In Papua New Guinea, about etiquette and regular automobile (Papua New Guinea) 80% of our 300 service and maintenance maintenance. 3 We comply with all environmental requirements, including environmental laws and regulations and industry guidelines.

4 We participate in activities to reduce impact on the environment by establishing an environmental management Global Production Parts & Logistics Division initiatives system and implement kaizen (continuous improvement) of these activities through periodic review and the application of creative ideas. We have opened a driver training center in Thailand, one of the world’s few major auto producers, to contribute to local traffic safety by providing thorough training for truck drivers supporting our logistics operations. 5 We enhance environmental awareness among employees by providing environmental training and promoting a For the For the Toyota Tsusho Group, and an eco-driving course for practicing train drivers from other companies and thorough understanding of our environmental policy. Thailand is a crucial market. The country is fuel economy as part of its comprehensive regions. By gaining certification from the one of the world’s major producers of range of facilities designed to provide a Thai government and expanding its automobiles and a major auto exporter. diverse curriculum. functions to offer training programs to Toyota Tsusho Group company TTK The center offers courses for every drivers of other companies, the center aims Logistics (Thailand) Co., Ltd. boasts a team level of driver, from the inexperienced to to become a model for safe driver training of 1,700 drivers to execute its logistics trainers, and nurtures employees through facilities in emerging Asian countries. business and deliver the components that a planned curriculum. Japanese driving We promote kaizen in environmental management as a company with local auto parts makers need. safety know-how is adapted to the local responsibility for the global environment and for business sustainability. In 2011 TTK Asia Transport (Thailand) circumstances throughout the curriculum. For Co.,Ltd.-an affiliate company and one of the example, in consideration of the insufficient The various environmental issues cropping up in Japan and Additionally, we introduced an investment project largest truck transporters in Thailand-opened maintenance of Thai roadways, drivers overseas pose challenges that Toyota Tsusho must not seek environmental assessment system to manage environmental a training center in Chachoengsao Province learn how to safely navigate dangerous to avoid. Conducting business in an environment-conscious assessments prior to investment and ensure that our to provide traffic safety education for these road conditions encountered while driving. manner and responding to environmental challenges is our investments are environmentally conscious. drivers. The facility was designed in This type of hands-on, experience-based social responsibility and duty, and indeed we view it as our The Toyota Tsusho Group’s strong desire for the global accordance with the Thai Ministry of training is highly effective and is reflected in mission. By fulfilling this mission we can realize our environment can be summed up as “to fulfill our Transport’s overland transport vehicle the successful track records of drivers after Corporate Philosophy of “living and prospering together responsibility toward the global environment and training curriculum training course. The they’ve completed the courses. with people, society and the Earth, we aim to become a sustainable business so as to ensure that we pass on a center features a high-speed driving track In the future, the training center plans to Traffic safety education value-creating company that contributes to the creation of bountiful global environment for future generations.” Based a prosperous society.” on this approach, we are promoting environment-friendly To realize our Corporate Philosophy, we are building the business measures in the three business domains highlighted Toyota Tsusho Group environmental management system in the Toyota Tsusho Group’s Global 2020 Vision: based on the Toyota Tsusho Group Environmental Policy. In “next-generation mobility systems,” “better living addition to seeking to bring about a society in harmony environments,” and “solutions to global issues.” We will with nature, meaning one that is recycling-oriented as well continue to implement kaizen in environmental management. as low-carbon, we are also working to maintain full compliance with all environmental laws and regulations and to prevent pollution. Toyota Tsusho Corporation pursues global business activities in a wide range of fields. In Japan, we have utilized a system to quantitatively analyze environmental risk in our business activities and provide management-level visualization through environmental risk assessment and Mikio Asano Executive Vice President environmental plant assessment. In fiscal 2012, we began Environmental Management expanding this system to overseas subsidiaries. We will General Supervisor

TTK traffic safety education center in Chachoengsao Province, Thailand continue to promote this initiative in fiscal 2013 in order to strengthen global compliance with environmental regulations and prevent environmental pollution.

23 24 Safety efforts

stipulate rules regarding date management, confirm that our suppliers are conducting such as sell-by and use-by dates, and we proper date management. Approach to the environment Automotive Division initiatives Toyota Tsusho Corporation considers its approach to the environment to be inextricably linked with our Corporate Philosophy of “living and prospering together with people, society and the Earth.” In accordance with the Toyota Tsusho We make contributions to local traffic safety through maintenance staff training, driver education, Group’s Environmental Policy, all executives and employees share this understanding and perform their activities accordingly. and other activities, helping to fulfill our social responsibility as an automobile wholesaler and retailer. The Automotive Division operates automobile employees have taken a basic education and auto parts wholesale and retail operations certification course from Toyota Motor as Toyota Tsusho Group’s Environmental Policy in some 150 countries around the world as part of our efforts to certify employees and a representative for Toyota Motor Corporation bolster training. In Sri Lanka, we began and several other automobile manufacturers. holding driver training courses for the 1 As a responsible corporate citizen, we strive to reduce impact on the environment, conserve energy, recycle As part of our social responsibility, we are employees of our local distributors in 2011. resources and eliminate environmental pollution, while placing a high priority on not disturbing the global promoting a wide range of CSR activities in In 2012, more than 30 employees received environment in conducting business. these countries with the aim of improving classroom instruction on road laws and local traffic safety. practical training through the course. In 2 We promote environment-related businesses, such as the efficient use of waste and the preservation of natural Regular automobile maintenance is Trinidad and Tobago, we invite customers to resources, and contribute to the realization of a recycling-oriented economy and society in collaboration with our critical to the safe and secure operation of showrooms to receive seminars on driving Maintenance employees receiving training affiliates and business partners. automobiles. In Papua New Guinea, about etiquette and regular automobile (Papua New Guinea) 80% of our 300 service and maintenance maintenance. 3 We comply with all environmental requirements, including environmental laws and regulations and industry guidelines.

4 We participate in activities to reduce impact on the environment by establishing an environmental management Global Production Parts & Logistics Division initiatives system and implement kaizen (continuous improvement) of these activities through periodic review and the application of creative ideas. We have opened a driver training center in Thailand, one of the world’s few major auto producers, to contribute to local traffic safety by providing thorough training for truck drivers supporting our logistics operations. 5 We enhance environmental awareness among employees by providing environmental training and promoting a For the For the Toyota Tsusho Group, and an eco-driving course for practicing train drivers from other companies and thorough understanding of our environmental policy. Thailand is a crucial market. The country is fuel economy as part of its comprehensive regions. By gaining certification from the one of the world’s major producers of range of facilities designed to provide a Thai government and expanding its automobiles and a major auto exporter. diverse curriculum. functions to offer training programs to Toyota Tsusho Group company TTK The center offers courses for every drivers of other companies, the center aims Logistics (Thailand) Co., Ltd. boasts a team level of driver, from the inexperienced to to become a model for safe driver training of 1,700 drivers to execute its logistics trainers, and nurtures employees through facilities in emerging Asian countries. business and deliver the components that a planned curriculum. Japanese driving We promote kaizen in environmental management as a company with local auto parts makers need. safety know-how is adapted to the local responsibility for the global environment and for business sustainability. In 2011 TTK Asia Transport (Thailand) circumstances throughout the curriculum. For Co.,Ltd.-an affiliate company and one of the example, in consideration of the insufficient The various environmental issues cropping up in Japan and Additionally, we introduced an investment project largest truck transporters in Thailand-opened maintenance of Thai roadways, drivers overseas pose challenges that Toyota Tsusho must not seek environmental assessment system to manage environmental a training center in Chachoengsao Province learn how to safely navigate dangerous to avoid. Conducting business in an environment-conscious assessments prior to investment and ensure that our to provide traffic safety education for these road conditions encountered while driving. manner and responding to environmental challenges is our investments are environmentally conscious. drivers. The facility was designed in This type of hands-on, experience-based social responsibility and duty, and indeed we view it as our The Toyota Tsusho Group’s strong desire for the global accordance with the Thai Ministry of training is highly effective and is reflected in mission. By fulfilling this mission we can realize our environment can be summed up as “to fulfill our Transport’s overland transport vehicle the successful track records of drivers after Corporate Philosophy of “living and prospering together responsibility toward the global environment and training curriculum training course. The they’ve completed the courses. with people, society and the Earth, we aim to become a sustainable business so as to ensure that we pass on a center features a high-speed driving track In the future, the training center plans to Traffic safety education value-creating company that contributes to the creation of bountiful global environment for future generations.” Based a prosperous society.” on this approach, we are promoting environment-friendly To realize our Corporate Philosophy, we are building the business measures in the three business domains highlighted Toyota Tsusho Group environmental management system in the Toyota Tsusho Group’s Global 2020 Vision: based on the Toyota Tsusho Group Environmental Policy. In “next-generation mobility systems,” “better living addition to seeking to bring about a society in harmony environments,” and “solutions to global issues.” We will with nature, meaning one that is recycling-oriented as well continue to implement kaizen in environmental management. as low-carbon, we are also working to maintain full compliance with all environmental laws and regulations and to prevent pollution. Toyota Tsusho Corporation pursues global business activities in a wide range of fields. In Japan, we have utilized a system to quantitatively analyze environmental risk in our business activities and provide management-level visualization through environmental risk assessment and Mikio Asano Executive Vice President environmental plant assessment. In fiscal 2012, we began Environmental Management expanding this system to overseas subsidiaries. We will General Supervisor

TTK traffic safety education center in Chachoengsao Province, Thailand continue to promote this initiative in fiscal 2013 in order to strengthen global compliance with environmental regulations and prevent environmental pollution.

23 24 Approach to the environment

initiatives to prevent environmental measures in place to comply with in which the problem arose takes immediate Internal and third-party audits to drive our environmental management. Environmental accidents. Leaders of these initiatives environmental regulations and prevent steps to minimize risk and reports to related In fiscal 2012, we held seminars for our management were directed to continue promoting environmental pollution for investment departments within one hour. Next, the We verify our environmental ISO leaders (primary and secondary prevention measures. projects. direct causes are specified through management system through environmental leaders, managers of key Promotion structure In order to thoroughly share and promote In fiscal 2012, we carried out environmental analysis and preventative measures are internal and third-party audits. departments, and employees in charge of the fiscal 2013 directives announced by the assessments of 56 projects, of which 30 constructed, and the process continues To ensure that our environmental ISO administrative offices), with a total of We are stepping up our environmental management general projects required additional environmental until the effectiveness of those measures management system is operating 278 employees participating at the Nagoya environmental management supervisor throughout the Group, an protection equipment and monitoring is confirmed. The same process is applied effectively, we conduct internal audits as and Tokyo head offices. The seminars efforts, focusing on our conference environmental promotion meeting was held measures to gain approval. in the case of minor environmental well as third-party ISO 14001 audits covered environmental management on the global environment. in January 2013 and attended by employees From April 2012, we formally launched irregularities, which represent an exceeding through external auditing organizations. systems, environmental risk assessment, Toyota Tsusho’s environmental management in charge of the ISO administrative offices of the new investment project environmental of voluntary standards or occur within the The fiscal 2012 internal audit utilized the preventing reoccurrence of environmental efforts are centered on our annual a total of 56 Group companies. assessment system. This system provides industrial zone but do not conflict with results of the environmental risk assessment accidents, measures to eliminate oil leaks, conference on the global environment. The results of the second environmental advance assessments to ensure the laws or regulations. and focused on environmental regulation and other topics. Participants include the environmental risk assessment for domestic operations environmental consciousness of large-scale There were no environmental accidents management procedures, compliance We also invited outside instructors to management general supervisor, and the oil leak prevention initiatives were investment projects covering 30 types of in fiscal 2011 that resulted in non-compliance assessment, and emergency procedures. lead ISO 14001 internal auditor environmental management representative shared among the meeting participants. operations*2 with a particularly large impact with laws or regulations. Those accidents The fiscal 2012 ISO 14001 third-party development courses at our domestic and chief division officers, as well as on the environment. that did occur were reported across the audit was for recertification. The audit Group companies, with 18 employees environmental management representatives In fiscal 2012, seven projects were organization to other departments or focused on kaizen of the environmental participating in fiscal 2012. In fiscal 2013, of Group companies. This forms the assessed using this new system. Through Group companies as examples via the management system, environmental the course was held in April in Nagoya structural basis for our group-wide the continued operation of this system, we conference on the global environment or management of the entire supply chain, and Tokyo. We plan to continue these environmental management initiatives. will gather project data and create the company intranet, and we engaged in and environmental risk management courses in order to improve the skills of Our annual conference on the global databases as part of an effort to reduce emergency preventative measures. under worst-case scenarios. the Group’s internal auditors. environment is aimed at promoting the the environmental impact risk and prevent Neither the internal audit nor the enhancement of the Toyota Tsusho environmental problems. Establishment of an environmental third-party audit identified serious issues. Group’s environmental activities. *1 Air pollution, water contamination, soil management system The external audit organization granted Seminar results (FY2012) The conference is a venue for sharing contamination, noise, vibration, ground a three-year renewal of our ISO 14001 subsidence and offensive odors Toyota Tsusho Group examples of thorough incorporation of the We are encouraging ISO 14001 certification. (non-consolidated) companies *2 Based on Japan Bank for International certification at Group companies directives of the environmental management Conference on the global environment Cooperation guidelines general supervisor, who bears ultimate in Japan and overseas. Internal and third-party audit results ISO seminar responsibility for the environment for the Environmental assessments for Emergency response Toyota Tsusho Corporation is pursuing a (FY2012) Nagoya 97 persons 94 persons Toyota Tsusho Group overall, kaizen investment projects course of consolidated environmental Toyota Tsusho Group (2 times) regarding issues of environmental We have put in place emergency management on a global basis as a way (non-consolidated) companies We have started an investment communication procedures and Tokyo 38 persons 25 persons significance, and measures to prevent to promote our environmental preservation Internal recurrence of irregularities, complaints or project environmental set up a system to ensure efforts and prevent environmental and other audits 101 departments 56 companies Osaka 14 persons 10 persons close calls that have taken place at assessment system. reporting within one hour. risks from materializing. As a common Third-party 76 departments 56 companies audits Group companies. Toyota Tsusho carries out advance Toyota Tsusho Corporation has set up tool to help achieve this objective, we Total 278 persons At the conference held at the end of environmental assessments for investment emergency communication procedures in encourage group companies in Japan July 2012, the environmental management projects under its management to ensure preparation for emergencies, such as and overseas to acquire certification Developing environmental ISO 14001 internal auditor development course general supervisor explained the directives compliance with environmental regulations when environmental standards established under ISO 14001 international standards management personnel for continually improving the environmental and prevent pollution. The assessment by laws, regulations and ordinances or in for environmental management systems. Nagoya 2 persons 16 persons 1 We hold ISO seminars and performance of the Group. covers seven types of pollution* in respect agreement with the community are One company in Japan acquired this Total 18 persons Conference participants also reported to land and facilities, as well as industrial exceeded, or complaints from local certification in fiscal 2012. As a result, as ISO 14001 internal auditor on the second environmental risk waste, harmful chemical substances, and residents or governments are received. of March 31, 2013, we had received ISO development courses. assessment and the oil leak prevention flammable substances. Strict assessments This system is designed to ensure that 14001 certifications for 62 companies in Each year, Toyota Tsusho Corporation task force’s activities as part of the of these 10 items ensure that we have in the event of an accident, the department Japan and 155 overseas. conducts ISO seminars to cultivate personnel

Environmental management promotion structure Annual schedule of environmental activities

Board of directors Members April May June July August September October November December January February March Environmental management general supervisor 2012 2013 CSR committee Environmental management representative Environmental management representatives at Toyota Tsusho Environment Group companies (full-time representatives) ISO fundamentals training Seminars for leaders of ISO administrative offices Environmental management for new employees Audit & supervisory board members seminars President & CEO general supervisor (Executive Vice President) Chief division officers Training for newly appointed ISO leaders General managers of planning department of respective divisions General manager of Corporate Planning Department Environmental management Group Chief division officers General manager of General Administration Department meeting Conference on the global environment Environmental promotion representative (director in charge of conference Deputy chief division officers General manager of ERM Department Directors (Japan) Safety and Global Environment Management Department) General manager of Safety and Global Environment Management Department Internal Global Environment General manager of Regional Strategy & Coordination Department audits Management Group, Safety and General manager of Global Business Strategy Department Internal audit seminars Global Environment Management Department (Secretariat) Aims of our conference on the global environment Third-party Promoting improvements in environmental activities audit Conference on the global environment Ensure thorough deployment of top management directives Present cases that show examples of kaizen in critical Monthly environmental issues environmental Internal Encourage cool business attire in summer. Encourage warm business attire in winter. Branches Prevent recurrence of noncompliance (lateral deployment) awareness activities Divisions Group and offices Set room temperature to 28°C Set room temperature to 22°C companies

25 26 Approach to the environment assessment and the oil leak prevention measures in place to comply with in which the problem arose takes immediate Internal and third-party audits to drive our environmental management. Environmental task force’s activities as part of the environmental regulations and prevent steps to minimize risk and reports to related In fiscal 2012, we held seminars for our management initiatives to prevent environmental environmental pollution for investment departments within one hour. Next, the We verify our environmental ISO leaders (primary and secondary accidents. Leaders of these initiatives projects. direct causes are specified through management system through environmental leaders, managers of key Promotion structure were directed to continue promoting In fiscal 2012, we carried out environmental analysis and preventative measures are internal and third-party audits. departments, and employees in charge of prevention measures. assessments of 56 projects, of which 30 constructed, and the process continues To ensure that our environmental ISO administrative offices), with a total of We are stepping up our In order to thoroughly share and promote projects required additional environmental until the effectiveness of those measures management system is operating 278 employees participating at the Nagoya environmental management the fiscal 2013 directives announced by the protection equipment and monitoring is confirmed. The same process is applied effectively, we conduct internal audits as and Tokyo head offices. The seminars efforts, focusing on our conference environmental management general measures to gain approval. in the case of minor environmental well as third-party ISO 14001 audits covered environmental management on the global environment. supervisor throughout the Group, an From April 2012, we formally launched irregularities, which represent an exceeding through external auditing organizations. systems, environmental risk assessment, Toyota Tsusho’s environmental management environmental promotion meeting was held the new investment project environmental of voluntary standards or occur within the The fiscal 2012 internal audit utilized the preventing reoccurrence of environmental efforts are centered on our annual in January 2013 and attended by employees assessment system. This system provides industrial zone but do not conflict with results of the environmental risk assessment accidents, measures to eliminate oil leaks, conference on the global environment. in charge of the ISO administrative offices of advance assessments to ensure the laws or regulations. and focused on environmental regulation and other topics. Participants include the environmental a total of 56 Group companies. environmental consciousness of large-scale There were no environmental accidents management procedures, compliance We also invited outside instructors to management general supervisor, The results of the second environmental investment projects covering 30 types of in fiscal 2011 that resulted in non-compliance assessment, and emergency procedures. lead ISO 14001 internal auditor environmental management representative risk assessment for domestic operations operations*2 with a particularly large impact with laws or regulations. Those accidents The fiscal 2012 ISO 14001 third-party development courses at our domestic and chief division officers, as well as and the oil leak prevention initiatives were on the environment. that did occur were reported across the audit was for recertification. The audit Group companies, with 18 employees environmental management representatives shared among the meeting participants. In fiscal 2012, seven projects were organization to other departments or focused on kaizen of the environmental participating in fiscal 2012. In fiscal 2013, of Group companies. This forms the assessed using this new system. Through Group companies as examples via the management system, environmental the course was held in April in Nagoya structural basis for our group-wide the continued operation of this system, we conference on the global environment or management of the entire supply chain, and Tokyo. We plan to continue these environmental management initiatives. will gather project data and create the company intranet, and we engaged in and environmental risk management courses in order to improve the skills of Our annual conference on the global databases as part of an effort to reduce emergency preventative measures. under worst-case scenarios. the Group’s internal auditors. environment is aimed at promoting the the environmental impact risk and prevent Neither the internal audit nor the enhancement of the Toyota Tsusho environmental problems. Establishment of an environmental third-party audit identified serious issues. Group’s environmental activities. *1 Air pollution, water contamination, soil management system The external audit organization granted Seminar results (FY2012) The conference is a venue for sharing contamination, noise, vibration, ground a three-year renewal of our ISO 14001 subsidence and offensive odors Toyota Tsusho Group examples of thorough incorporation of the We are encouraging ISO 14001 certification. (non-consolidated) companies *2 Based on Japan Bank for International certification at Group companies directives of the environmental management Conference on the global environment Cooperation guidelines general supervisor, who bears ultimate in Japan and overseas. Internal and third-party audit results ISO seminar responsibility for the environment for the Environmental assessments for Emergency response Toyota Tsusho Corporation is pursuing a (FY2012) Nagoya 97 persons 94 persons Toyota Tsusho Group overall, kaizen investment projects course of consolidated environmental Toyota Tsusho Group (2 times) regarding issues of environmental We have put in place emergency management on a global basis as a way (non-consolidated) companies We have started an investment communication procedures and Tokyo 38 persons 25 persons significance, and measures to prevent to promote our environmental preservation Internal recurrence of irregularities, complaints or project environmental set up a system to ensure efforts and prevent environmental and other audits 101 departments 56 companies Osaka 14 persons 10 persons close calls that have taken place at assessment system. reporting within one hour. risks from materializing. As a common Third-party 76 departments 56 companies audits Group companies. Toyota Tsusho carries out advance Toyota Tsusho Corporation has set up tool to help achieve this objective, we Total 278 persons At the conference held at the end of environmental assessments for investment emergency communication procedures in encourage group companies in Japan July 2012, the environmental management projects under its management to ensure preparation for emergencies, such as and overseas to acquire certification Developing environmental ISO 14001 internal auditor development course general supervisor responsible for the compliance with environmental regulations when environmental standards established under ISO 14001 international standards management personnel overall environmental performance of the and prevent pollution. The assessment by laws, regulations and ordinances or in for environmental management systems. Nagoya 2 persons 16 persons 1 We hold ISO seminars and Toyota Tsusho Group explained the covers seven types of pollution* in respect agreement with the community are One company in Japan acquired this Total 18 persons directives for continually improving the to land and facilities, as well as industrial exceeded, or complaints from local certification in fiscal 2012. As a result, as ISO 14001 internal auditor environmental performance of the Group. waste, harmful chemical substances, and residents or governments are received. of March 31, 2013, we had received ISO development courses. Conference participants also reported flammable substances. Strict assessments This system is designed to ensure that 14001 certifications for 62 companies in Each year, Toyota Tsusho Corporation on the second environmental risk of these 10 items ensure that we have in the event of an accident, the department Japan and 155 overseas. conducts ISO seminars to cultivate personnel

Environmental management promotion structure Annual schedule of environmental activities

Board of directors Members April May June July August September October November December January February March Environmental management general supervisor 2012 2013 CSR committee Environmental management representative Environmental management representatives at Toyota Tsusho Environment Group companies (full-time representatives) ISO fundamentals training Seminars for leaders of ISO administrative offices Environmental management for new employees Audit & supervisory board members seminars President & CEO general supervisor (Executive Vice President) Chief division officers Training for newly appointed ISO leaders General managers of planning department of respective divisions General manager of Corporate Planning Department Environmental management Group Chief division officers General manager of General Administration Department meeting Conference on the global environment Environmental promotion representative (director in charge of conference Deputy chief division officers General manager of ERM Department Directors (Japan) Safety and Global Environment Management Department) General manager of Safety and Global Environment Management Department Internal Global Environment General manager of Regional Strategy & Coordination Department audits Management Group, Safety and General manager of Global Business Strategy Department Internal audit seminars Global Environment Management Department (Secretariat) Aims of our conference on the global environment Third-party Promoting improvements in environmental activities audit Conference on the global environment Ensure thorough deployment of top management directives Present cases that show examples of kaizen in critical Monthly environmental issues environmental Internal Encourage cool business attire in summer. Encourage warm business attire in winter. Branches Prevent recurrence of noncompliance (lateral deployment) awareness activities Divisions Group and offices Set room temperature to 28°C Set room temperature to 22°C companies

25 26 Approach to the environment

In fiscal 2012, Toyota Tsusho Corporation modal shift from trucks to rail or ship Preventing global Office CO2 emissions Reducing CO2 emissions at CO2 emissions formulated energy management standards transport, which emits less CO2. They are warming Toyota Tsusho, non-consolidated Group companies 15 Overseas Group companies and launched an energy-saving promotion (Facilities covered: all sites in Japan, electricity and utility gas) (Calculations cover: electricity) also increasing container loading ratios council. The council is responsible for 0 1,000 2,000 3,000 (t-CO2) We continue to reduce CO2 0 6,000 12,000 18,000 (t-CO2) and shortening distribution routes to make emissions through the CO2 emissions reductions at creating energy efficiency investment and truck transportation more efficient. offices and other facilities implementation plans at the start of the 2008 54.8 3,118 consolidation of manufacturing 2009 15,510 Measures such as these are designed to year and managing the plans to ensure facilities and lowering standby reduce CO2 emissions during product We have established energy steady progress. The council also set 2009 48.6 2,838 power consumption. 2010 14,146 transport and other aspects of logistics management standards to ensure specific energy management standards for We are taking various initiatives to reduce CO2 through cooperation with shippers. 2010 41.3 2,663 2011 2 15,945 progress on the reduction of 11 sites to bolster energy management. emissions at domestic Group companies, The portion of Toyota Tsusho’s sales electric power consumption. Moving forward, as a member of the Japan 2011 46.0 2,904 primarily their manufacturing operations. 2012 4 16,845 taken up by metals and other heavy items As a member of the Japan Foreign Trade Foreign Trade Council, we will continue to These include the consolidation of (FY) for distribution has increased, so CO2 Council, Inc.*, Toyota Tsusho Corporation manage CO2 emissions reductions and make 2012 45.7 2,866 manufacturing equipment, installation of 0 5 (%) emissions per sales unit from fiscal 2008 participates in a voluntary action plan progress toward the target of reducing (FY) skylights and LED lighting to reduce power through fiscal 2013 have worsened 9.5%. CO2 emissions 0 50 (t-CO2/1,000 m2) implemented by the council to achieve the emissions annually by 1% per unit of sales. consumption, reduction of standby power Improvement of emissions per unit of sales Nonetheless, those of Toyota Steel Center Kyoto Protocol’s greenhouse gas * Established in 1947 as a private-sector organization CO2 emissions consumption by turning off compressors have improved 4.6%. reduction targets. in the area of international trade. JFTC seeks to Emissions per unit of area when not in use, use of inverter controls, and In fiscal 2013, in order to meet the contribute to the development of Japanese trade, Reducing CO2 emissions As part of the voluntary action plan, we trading companies and the economy. consolidation of similar production equipment. during transport target of reducing emissions per unit of set an average annual consumption target Moving forward, we plan to introduce sales by 1% compared to the previous of around 2,854 tons for fiscal 2008 to CO2 emissions reduction initiatives at We are promoting the reduction year, we plan to take such measures as fiscal 2012. We made strides toward the Energy-Saving Promotion Council overseas Group companies as well. of CO2 emissions centered on concentrating the logistics of our target by reducing electric power and gas two companies that are processing centers and increasing the rate consumption at 26 offices in Japan. As part Energy management general supervisor Report “specified consigners”* under of installation of digital tachographs. Energy management (environmental management Japan’s Law Concerning the of an ongoing energy-saving program, all standards leaders Deputy general supervisor) * Companies that transport 30 million tons or more of Toyota Tsusho Corporation sites in Japan Rational Use of Energy. of cargo per year set their thermostats to 28°C in the summer Toyota Tsusho Corporation and Toyota and 22°C in the winter and encourage Chief Division Officer of Report Steel Center Co., Ltd., which are certified employees to adopt cool business attire Administrative Division as specified consigners under Japan’s in summer and warm business attire in Law Concerning the Rational Use of Using sustainable winter. Four Toyota Tsusho Group sites Skylights at Toyotsu-new Pack Energy, aim to reduce CO2 emissions 1% resources Environmental management Report have also installed solar power generation representatives per year on a unit sales basis. To achieve systems, while other sites have installed this, the two companies are promoting a Increasing waste recycling and sunshades to raise the efficiency of air lowering the landfill waste ratio conditioning systems. Energy-saving promotion council CO2 emissions during transport We have taken kaizen to new Toyota Tsusho, non-consolidated levels for waste recycling and 0 6,000 12,000 18,000 (t-CO2) lowering the landfill waste ratio. Toyota Tsusho Corporation promotes the Reducing CO2 emissions at the Metals Division 2008 13,400 CO2 emissions from the molten LED lighting at Toyotsu-new Pack 1.18 3Rs: reduce waste, reuse products and aluminum business recycle resources. We are reducing CO2 emissions in the molten aluminum business 2009 1.38 11,800 One Japanese and eight Overseas Group companies In fiscal 2012, we promoted the recycling through the installation of energy-saving equipment. 0 100,000 (t-CO2) 2010 of waste through kaizen activities, increasing The Metals Division is developing its molten In fiscal 2013, we plan to take further 1.58 14,232 2008 132,737 the number of waste separation bins, and aluminum business, in which it melts down measures to reduce CO2 emissions and meet 462.6 2011 1.62 15,178 through e-learning programs to raise aluminum materials and supplies aluminum the target of a 1% year-on-year reduction. 2009 127,455 awareness of ways to enhance waste in a molten state. Energy-saving equipment 422.8 * Burners that raise combustion efficiency by 2012 1.70 15,385 separation and recycling rates. As a result of has been introduced at our plants along reheating exhaust heat in the air, for use in (FY) combustion air. 2010 370.9 123,100 these activities, our recycling rate rose from with a variety of kaizen measures so as to 0 2.0 4.0 Geothermal power generation system at 79.6% in fiscal 2011 to 85.6% in fiscal 2012. reduce energy use. *1 (t-CO2/billion yen) 2011 366.9 111,794 Tianjin Fengtian Steel Process Co., Ltd. (China) CO2 emissions We have introduced regenerators* and In terms of the landfill waste ratio, which 2 Emissions per unit of sales represents the final amount of waste other highly energy efficient equipment at 2012* 338.2 137,485 MOST, a high-volume U.S. production (FY) CO2 emissions generated, the Toyota Tsusho Group 57 Japanese Group companies 2 lowered its landfill waste ratio from 0.43% subsidiary. By the end of fiscal 2012, three 0 400 (t-CO2/1,000 tons) CO emissions during transport regenerators had been installed at the (Calculations cover: electricity, utility gas) Toyota Steel Center in fiscal 2011 to 0.38% in fiscal 2012. This CO2 emissions (t-CO2) (t-CO2) company. 0 20,000 40,000 60,000 0 5,000 10,000 15,000 was achieved by recycling soot and dust Emissions per unit of production We also have switched to a into sub-base materials and expanding *1 With the exception of April through June due 2008 77.8 48,930 2008 604 12,500 manufacturing solvent that emits lower to the impact of the earthquake thermal recycling based on guidelines set amounts of fluoride, while promoting the by Japan’s Ministry of the Environment. *2 Excluding results in September, when business was 2009 90.1 45,964 2009 540 10,300 reuse of chips and cutting oil generated in significantly affected by the Senkaku Islands dispute. Additionally, from fiscal 2012, we have the manufacturing processes. 2010 82.8 47,551 2010 511 9,801 revised our waste paper disposal system. We introduced one regenerator at our Other major initiatives While in the past we paid disposal fees largest manufacturing site, PT Indonesia Reduced both fuel and electric power consumption by approximately 2011 89.7 53,075 2011 516 10,127 for waste paper, we now sell waste paper Smelting Technology (IST), in fiscal 2012, Toyotsu Smelting 20% (at Hokkaido Plant) by changing operating conditions and Technology (TST) eliminating processes. Reduced CO2 emissions by 109.9 tons by to disposal and recycling companies. leading to a 555.5-ton reduction in CO2 installing inverters in dust collection equipment (at Kanda Plant). 2012 91.7 57,812 2012 501 10,521 Group companies, meanwhile, are taking emissions. We plan to install a second (FY) (FY) Reduced annual CO2 emissions by 135.0 tons by installing inverters in measures to sell waste oil and batteries to regenerator in fiscal 2013 and expect the Tianjin Toyotsu Aluminium dust collection equipment 0 100 (t-CO2/million yen) 0 500 1,000 (t-CO2/tkm) disposal and recycling companies. plant’s CO2 emissions to decline by Smelting Technology (TAST) Reduced annual CO2 emissions by 44.6 tons by switching to a recuperative burner for ladle heating equipment CO2 emissions CO2 emissions We will continue to promote the 3Rs approximately 23% as a result. Emissions per unit of sales Emissions per unit of transport for waste throughout the Group by setting

27 28 Approach to the environment

In fiscal 2012, Toyota Tsusho Corporation modal shift from trucks to rail or ship Preventing global Office CO2 emissions Reducing CO2 emissions at CO2 emissions formulated energy management standards transport, which emits less CO2. They are warming Toyota Tsusho, non-consolidated Group companies 15 Overseas Group companies and launched an energy-saving promotion (Facilities covered: all sites in Japan, electricity and utility gas) (Calculations cover: electricity) also increasing container loading ratios council. The council is responsible for 0 1,000 2,000 3,000 (t-CO2) We continue to reduce CO2 0 6,000 12,000 18,000 (t-CO2) and shortening distribution routes to make emissions through the CO2 emissions reductions at creating energy efficiency investment and truck transportation more efficient. offices and other facilities implementation plans at the start of the 2008 54.8 3,118 consolidation of manufacturing 2009 15,510 Measures such as these are designed to year and managing the plans to ensure facilities and lowering standby reduce CO2 emissions during product We have established energy steady progress. The council also set 2009 48.6 2,838 power consumption. 2010 14,146 transport and other aspects of logistics management standards to ensure specific energy management standards for We are taking various initiatives to reduce CO2 through cooperation with shippers. 2010 41.3 2,663 2011 2 15,945 progress on the reduction of 11 sites to bolster energy management. emissions at domestic Group companies, The portion of Toyota Tsusho’s sales electric power consumption. Moving forward, as a member of the Japan 2011 46.0 2,904 primarily their manufacturing operations. 2012 4 16,845 taken up by metals and other heavy items As a member of the Japan Foreign Trade Foreign Trade Council, we will continue to These include the consolidation of (FY) for distribution has increased, so CO2 Council, Inc.*, Toyota Tsusho Corporation manage CO2 emissions reductions and make 2012 45.7 2,866 manufacturing equipment, installation of 0 5 (%) emissions per sales unit from fiscal 2008 participates in a voluntary action plan progress toward the target of reducing (FY) skylights and LED lighting to reduce power through fiscal 2013 have worsened 9.5%. CO2 emissions 0 50 (t-CO2/1,000 m2) implemented by the council to achieve the emissions annually by 1% per unit of sales. consumption, reduction of standby power Improvement of emissions per unit of sales Nonetheless, those of Toyota Steel Center Kyoto Protocol’s greenhouse gas * Established in 1947 as a private-sector organization CO2 emissions consumption by turning off compressors have improved 4.6%. reduction targets. in the area of international trade. JFTC seeks to Emissions per unit of area when not in use, use of inverter controls, and In fiscal 2013, in order to meet the contribute to the development of Japanese trade, Reducing CO2 emissions As part of the voluntary action plan, we trading companies and the economy. consolidation of similar production equipment. during transport target of reducing emissions per unit of set an average annual consumption target Moving forward, we plan to introduce sales by 1% compared to the previous of around 2,854 tons for fiscal 2008 to CO2 emissions reduction initiatives at We are promoting the reduction year, we plan to take such measures as fiscal 2012. We made strides toward the Energy-Saving Promotion Council overseas Group companies as well. of CO2 emissions centered on concentrating the logistics of our target by reducing electric power and gas two companies that are processing centers and increasing the rate consumption at 26 offices in Japan. As part Energy management general supervisor Report “specified consigners”* under of installation of digital tachographs. Energy management (environmental management Japan’s Law Concerning the of an ongoing energy-saving program, all standards leaders Deputy general supervisor) * Companies that transport 30 million tons or more of Toyota Tsusho Corporation sites in Japan Rational Use of Energy. of cargo per year set their thermostats to 28°C in the summer Toyota Tsusho Corporation and Toyota and 22°C in the winter and encourage Chief Division Officer of Report Steel Center Co., Ltd., which are certified employees to adopt cool business attire Administrative Division as specified consigners under Japan’s in summer and warm business attire in Law Concerning the Rational Use of Using sustainable winter. Four Toyota Tsusho Group sites Skylights at Toyotsu-new Pack Energy, aim to reduce CO2 emissions 1% resources Environmental management Report have also installed solar power generation representatives per year on a unit sales basis. To achieve systems, while other sites have installed this, the two companies are promoting a Increasing waste recycling and sunshades to raise the efficiency of air lowering the landfill waste ratio conditioning systems. Energy-saving promotion council CO2 emissions during transport We have taken kaizen to new Toyota Tsusho, non-consolidated levels for waste recycling and 0 6,000 12,000 18,000 (t-CO2) lowering the landfill waste ratio. Toyota Tsusho Corporation promotes the Reducing CO2 emissions at the Metals Division 2008 13,400 CO2 emissions from the molten LED lighting at Toyotsu-new Pack 1.18 3Rs: reduce waste, reuse products and aluminum business recycle resources. We are reducing CO2 emissions in the molten aluminum business 2009 1.38 11,800 One Japanese and eight Overseas Group companies In fiscal 2012, we promoted the recycling through the installation of energy-saving equipment. 0 100,000 (t-CO2) 2010 of waste through kaizen activities, increasing The Metals Division is developing its molten In fiscal 2013, we plan to take further 1.58 14,232 2008 132,737 the number of waste separation bins, and aluminum business, in which it melts down measures to reduce CO2 emissions and meet 462.6 2011 1.62 15,178 through e-learning programs to raise aluminum materials and supplies aluminum the target of a 1% year-on-year reduction. 2009 127,455 awareness of ways to enhance waste in a molten state. Energy-saving equipment 422.8 * Burners that raise combustion efficiency by 2012 1.70 15,385 separation and recycling rates. As a result of has been introduced at our plants along reheating exhaust heat in the air, for use in (FY) combustion air. 2010 370.9 123,100 these activities, our recycling rate rose from with a variety of kaizen measures so as to 0 2.0 4.0 Geothermal heat pump at Tianjin Fengtian Steel 79.6% in fiscal 2011 to 85.6% in fiscal 2012. reduce energy use. *1 (t-CO2/billion yen) 2011 366.9 111,794 Process Co., Ltd. (China) CO2 emissions We have introduced regenerators* and In terms of the landfill waste ratio, which 2 Emissions per unit of sales represents the final amount of waste other highly energy efficient equipment at 2012* 338.2 137,485 MOST, a high-volume U.S. production (FY) CO2 emissions generated, the Toyota Tsusho Group 57 Japanese Group companies 2 lowered its landfill waste ratio from 0.43% subsidiary. By the end of fiscal 2012, three 0 400 (t-CO2/1,000 tons) CO emissions during transport regenerators had been installed at the (Calculations cover: electricity, utility gas) Toyota Steel Center in fiscal 2011 to 0.38% in fiscal 2012. This CO2 emissions (t-CO2) (t-CO2) company. 0 20,000 40,000 60,000 0 5,000 10,000 15,000 was achieved by recycling soot and dust Emissions per unit of production We also have switched to a into sub-base materials and expanding *1 With the exception of April through June due 2008 77.8 48,930 2008 604 12,500 manufacturing solvent that emits lower to the impact of the earthquake thermal recycling based on guidelines set amounts of fluoride, while promoting the by Japan’s Ministry of the Environment. *2 Excluding results in September, when business was 2009 90.1 45,964 2009 540 10,300 reuse of chips and cutting oil generated in significantly affected by the Senkaku Islands dispute. Additionally, from fiscal 2012, we have the manufacturing processes. 2010 82.8 47,551 2010 511 9,801 revised our waste paper disposal system. We introduced one regenerator at our Other major initiatives While in the past we paid disposal fees largest manufacturing site, PT Indonesia Reduced both fuel and electric power consumption by approximately 2011 89.7 53,075 2011 516 10,127 for waste paper, we now sell waste paper Smelting Technology (IST), in fiscal 2012, Toyotsu Smelting 20% (at Hokkaido Plant) by changing operating conditions and Technology (TST) eliminating processes. Reduced CO2 emissions by 109.9 tons by to disposal and recycling companies. leading to a 555.5-ton reduction in CO2 installing inverters in dust collection equipment (at Kanda Plant). 2012 91.7 57,812 2012 501 10,521 Group companies, meanwhile, are taking emissions. We plan to install a second (FY) (FY) Reduced annual CO2 emissions by 135.0 tons by installing inverters in measures to sell waste oil and batteries to regenerator in fiscal 2013 and expect the Tianjin Toyotsu Aluminium dust collection equipment 0 100 (t-CO2/million yen) 0 500 1,000 (t-CO2/tkm) disposal and recycling companies. plant’s CO2 emissions to decline by Smelting Technology (TAST) Reduced annual CO2 emissions by 44.6 tons by switching to a recuperative burner for ladle heating equipment CO2 emissions CO2 emissions We will continue to promote the 3Rs approximately 23% as a result. Emissions per unit of sales Emissions per unit of transport for waste throughout the Group by setting

27 28 Approach to the environment

targets appropriate with the conditions at landfill waste. This has caused New energy development development and production projects. each company. Pollution prevention Environmental training and environmental problems in many regions environmental awareness of Japan, as landfill waste sites are We are contributing to the stable Using sustainable resources Reducing waste and promoting recycling Chemical management reaching capacity and greenhouse gases supply of new energy through the Toyota Tsusho, non-consolidated Boosting employee awareness are emitted during incineration. development of coalbed methane We are participating in a “smart (Range: Nagoya and Tokyo head offices) Chemical management in We collaborated to launch a sewage gas in Canada. community” development project 0 100 200 300 400 500 (tons) consideration of human health We are raising employees’ sludge recycling business as a way to Along with shale gas, coalbed methane in Japan’s Kitakyushu City. 0 1.40 and the environment in line with awareness of environmental issues alleviate this problem. The business gas is considered a promising new source “Smart stores” refer to next-generation 2010 381 0.28 112 494 the EU REACH*1 regulations. through e-learning systems and recycles sludge into a heat insulator for of natural gas. In April 2012, Toyota Tsusho commercial operations that use energy 0 219 0.34 77.0 Some of the substances used in industrial “environment month” campaigns. steel production and a biomass fuel after Corporation acquired a 32.5% interest in a efficient equipment, storage batteries, and 2011 0.12 56 275 79.5 15 226 0.34 processes pose a pollution risk or can Toyota Tsusho Corporation is also promoting drying and carbonization. Toyota Tsusho coalbed methane project from Encana other technologies to use energy efficiently. 2012 0.12 40 281 85.6 damage human health. At the Toyota initiatives to heighten the environmental and Nippon Zoki Pharmaceutical Co., Ltd. Corporation, Canada's largest natural gas To realize these stores, Toyota Tsusho Tsusho Group, we use and manage these awareness of general employees. joined the effort in 2012 by subscribing to producer, to participate in the development, joined Fuji Electric, Denso, FamilyMart, 0 0.2 0.4 60 80 (%) substances in compliance with the various In fiscal 2009 we launched intranet-based a third-party allocation of new shares in production and sale of coalbed methane gas. Takamiya, and Yamato Transport to

Valuable material sold rules established by the European Union. e-learning courses on ISO 14001 and Waste Biomass Co., Ltd., a subsidiary of At peak production, the project is conduct field tests of energy management Amount of material recycled For example, at plastics processing certifications for environmental specialists Sanko Co., Ltd., the largest industrial expected to produce the LNG equivalent systems in Japan’s Kitakyushu City from Incinerated waste Landfill waste plants and synthetic rubber processing (biological diversity and eco-verification). waste disposal and processing company of 1.02 million tons of gas a year. One of June 2012. Recycling ratio Landfill waste ratio plants manufacturing auto parts, we use These e-learning courses provide in Japan’s San’in region. We are leveraging the key features of the project is its low The tests are part of the “Kitakyushu plasticizers and flame retardants regulated employees with more opportunities to our trading functions to provide marketing environmental impact, as the mines do Smart Community Creation Project,” Reducing waste and promoting recycling by REACH. As part of our substance study the environment. and sales support for the business. not produce large amounts of which will test the new concepts in actual 49 Japanese Group companies (FY2012) management activities, we manage the As a member of our Toyota-wide We plan to expand the business to underground water in the development stores through December 2014. The 0 20,000 40,000 60,000 80,000 (tons) amounts of each of the regulated production environment conference, we other regions of Japan in the future to and production processes. results will contribute to leveling regional 1,816 substances and related compounds promote the “All-Toyota Global Environmental contribute to the reduction of greenhouse Toyota Tsusho will continue to support electric load and establishing energy 2,170 799 95.9 2010 1.23 59,888 64,673 contained in products. Also, we confirm Awareness Month” every June. gas emissions and the creation of jobs for the stable supply of energy through management systems that can support 2 1,401 whether or not SVHCs* are contained in In fiscal 2012, we promoted messages local communities. environmentally friendly natural gas the creation of a low-carbon society. 2,382 280 molded items, and use and manage from Toyota Group executives, displayed 2011 0.43 60,544 64,607 chemical substances in consideration of environment-themed posters in offices, 1,614 97.4 2,422 281 human health and the environment. and held screenings for environmental 2012 0.38 70,107 74,423 movies. (FY) 97.4 *1 Short for “registration, evaluation, authorization We plan to implement a wide range of 0 1.0 2.0 80 90 (%) and restriction of chemical substances” and an initiatives to raise the environmental EU law on the use, handling and purposes of Valuable material sold chemical substances. awareness of employees throughout the Amount of material recycled *2 Short for “substances of very high concern” of which company. Incinerated waste Landfill waste there is substantial concern about serious negative Recycling ratio Landfill waste ratio impact on the environment or human health.

Sewage sludge carbonization plant of Waste Coalbed methane gas wells (Alberta, Canada) Optimized control of store power usage through Biomass Co., Ltd. commenced full-scale operations cooperation of each company Chemical & Electronics Division initiatives from April 2013. We have started operation of a chemical substance total management system. In the Chemical & Electronics Division, we by the ICCM. officially started operation of a new chemical Additionally, the division enhanced its substance total management system in compliance structure in response to Consumer Products & Services Division initiatives April 2012. The system was developed in regulations in China and Taiwan, along with Screening of movie on environmental issues response to more stringent requirements for the revision of laws in Japan. To ensure that We have developed hygienic and environmentally conscious methods to collect and dispose of used the management of chemical substances these improved systems were implemented e-Learning course participants (FY) paper diapers from nursing care facilities. advocated by the International Conference as planned, the division held seminars for 2011 2012 The Consumer Products & Services Division serious problems with their disposal. a manifest sheet system to confirm that on Chemicals Management and the Strategic its employees to promote the importance provides a wide range of products and Hygienic disposal methods are required to each process prior to incineration has been ISO 14001 basics, Approach to International Chemicals of compliance and specific tasks required putting it into practice 3,266 3,776 services for the nursing care industry, from the prevent used paper diapers from becoming completed according to stated procedure. Management, a policy framework adopted under the systems. sales and rental of geriatric care equipment to a serious waste problem. In response, the The companies are now investigating Eco-verification 10,828 11,692 (Parts 1-17), biodiversity comprehensive solutions for nursing care Consumer Products & Services Division has ways to recycle paper diapers into paper Chemical substance management initiatives and plans providers. As a trading company, we strive to developed the “Clean Forever” service. This instead of incinerating them. FY2012 achievements FY2013 plans create high added-value services that solve service collects used paper diapers in social issues related to the nursing care specially designed, fully sealed containers and • Officially began operation of the chemical • In China, take measures to comply with substance total management system; established hazardous chemical registration and Environmental business industry. In developing our business, we have disposes of the diapers in a hygienic manner. a compliance verification structure management law a responsibility to consider the impact of our In Clean Forever, Group company Toyota • In China, took measures to comply with new • In South Korea, take measures to comply with development chemical substance environmental management K-REACH business on society and the environment in Chemical Engineering Co., Ltd. and other law and hazardous chemical safety management • Establish compliance structures at chemical fulfilling our social responsibility as a company specialist companies collaborate to strictly regulation sales subsidiaries providing services in areas closely linked to manage the collection and disposal processes. • In Taiwan, took measures to comply with toxic Waste recycling chemical management law and labor safety public needs. The diaper collection containers have been and health law We have started a business to The hygienic management and disposal specially designed to fully seal after collection • In Japan, strengthened inspections of imported of used paper diapers is an example of how and prevent the release of bad odors. The product components to comply with revised recycle sewage sludge in the Act on the Evaluation of Chemical Substances San’in region of Japan. Toyota Tsusho makes a positive impact. The container materials were also specially selected and Regulation of Their Manufacture, etc. use of paper diapers has grown at nursing to prevent the release of toxic gases during • Held seminars on division’s response to legal Sewage sludge generated through the “Multipail” fully sealable, specially designed revisions. processing of sewage is commonly care facilities in recent years, leading to incineration. The companies also introduced collection containers incinerated and the ash disposed of as

29 30 Approach to the environment targets appropriate with the conditions at landfill waste. This has caused New energy development development and production projects. each company. Pollution prevention Environmental training and environmental problems in many regions environmental awareness of Japan, as landfill waste sites are We are contributing to the stable Using sustainable resources Reducing waste and promoting recycling Chemical management reaching capacity and greenhouse gases supply of new energy through the Toyota Tsusho, non-consolidated Boosting employee awareness are emitted during incineration. development of coalbed methane We are participating in a “smart (Range: Nagoya and Tokyo head offices) Chemical management in We collaborated to launch a sewage gas in Canada. community” development project 0 100 200 300 400 500 (tons) consideration of human health We are raising employees’ sludge recycling business as a way to Along with shale gas, coalbed methane in Japan’s Kitakyushu City. 0 1.40 and the environment in line with awareness of environmental issues alleviate this problem. The business gas is considered a promising new source “Smart stores” refer to next-generation 2010 381 0.28 112 494 the EU REACH*1 regulations. through e-learning systems and recycles sludge into a heat insulator for of natural gas. In April 2012, Toyota Tsusho commercial operations that use energy 0 219 0.34 77.0 Some of the substances used in industrial “environment month” campaigns. steel production and a biomass fuel after Corporation acquired a 32.5% interest in a efficient equipment, storage batteries, and 2011 0.12 56 275 79.5 15 226 0.34 processes pose a pollution risk or can Toyota Tsusho Corporation is also promoting drying and carbonization. Toyota Tsusho coalbed methane project from Encana other technologies to use energy efficiently. 2012 0.12 40 281 85.6 damage human health. At the Toyota initiatives to heighten the environmental and Nippon Zoki Pharmaceutical Co., Ltd. Corporation, Canada's largest natural gas To realize these stores, Toyota Tsusho Tsusho Group, we use and manage these awareness of general employees. joined the effort in 2012 by subscribing to producer, to participate in the development, joined Fuji Electric, Denso, FamilyMart, 0 0.2 0.4 60 80 (%) substances in compliance with the various In fiscal 2009 we launched intranet-based a third-party allocation of new shares in production and sale of coalbed methane gas. Takamiya, and Yamato Transport to

Valuable material sold rules established by the European Union. e-learning courses on ISO 14001 and Waste Biomass Co., Ltd., a subsidiary of At peak production, the project is conduct field tests of energy management Amount of material recycled For example, at plastics processing certifications for environmental specialists Sanko Co., Ltd., the largest industrial expected to produce the LNG equivalent systems in Japan’s Kitakyushu City from Incinerated waste Landfill waste plants and synthetic rubber processing (biological diversity and eco-verification). waste disposal and processing company of 1.02 million tons of gas a year. One of June 2012. Recycling ratio Landfill waste ratio plants manufacturing auto parts, we use These e-learning courses provide in Japan’s San’in region. We are leveraging the key features of the project is its low The tests are part of the “Kitakyushu plasticizers and flame retardants regulated employees with more opportunities to our trading functions to provide marketing environmental impact, as the mines do Smart Community Creation Project,” Reducing waste and promoting recycling by REACH. As part of our substance study the environment. and sales support for the business. not produce large amounts of which will test the new concepts in actual 49 Japanese Group companies (FY2012) management activities, we manage the As a member of our Toyota-wide We plan to expand the business to underground water in the development stores through December 2014. The 0 20,000 40,000 60,000 80,000 (tons) amounts of each of the regulated production environment conference, we other regions of Japan in the future to and production processes. results will contribute to leveling regional 1,816 substances and related compounds promote the “All-Toyota Global Environmental contribute to the reduction of greenhouse Toyota Tsusho will continue to support electric load and establishing energy 2,170 799 95.9 2010 1.23 59,888 64,673 contained in products. Also, we confirm Awareness Month” every June. gas emissions and the creation of jobs for the stable supply of energy through management systems that can support 2 1,401 whether or not SVHCs* are contained in In fiscal 2012, we promoted messages local communities. environmentally friendly natural gas the creation of a low-carbon society. 2,382 280 molded items, and use and manage from Toyota Group executives, displayed 2011 0.43 60,544 64,607 chemical substances in consideration of environment-themed posters in offices, 1,614 97.4 2,422 281 human health and the environment. and held screenings for environmental 2012 0.38 70,107 74,423 movies. (FY) 97.4 *1 Short for “registration, evaluation, authorization We plan to implement a wide range of 0 1.0 2.0 80 90 (%) and restriction of chemical substances” and an initiatives to raise the environmental EU law on the use, handling and purposes of Valuable material sold chemical substances. awareness of employees throughout the Amount of material recycled *2 Short for “substances of very high concern” of which company. Incinerated waste Landfill waste there is substantial concern about serious negative Recycling ratio Landfill waste ratio impact on the environment or human health.

Sewage sludge carbonization plant of Waste Coalbed methane gas wells (Alberta, Canada) Optimized control of store power usage through Biomass Co., Ltd. commenced full-scale operations cooperation of each company Chemical & Electronics Division initiatives from April 2013. We have started operation of a chemical substance total management system. In the Chemical & Electronics Division, we by the ICCM. officially started operation of a new chemical Additionally, the division enhanced its substance total management system in compliance structure in response to Consumer Products & Services Division initiatives April 2012. The system was developed in regulations in China and Taiwan, along with Screening of movie on environmental issues response to more stringent requirements for the revision of laws in Japan. To ensure that We have developed hygienic and environmentally conscious methods to collect and dispose of used the management of chemical substances these improved systems were implemented e-Learning course participants (FY) paper diapers from nursing care facilities. advocated by the International Conference as planned, the division held seminars for 2011 2012 The Consumer Products & Services Division serious problems with their disposal. a manifest sheet system to confirm that on Chemicals Management and the Strategic its employees to promote the importance provides a wide range of products and Hygienic disposal methods are required to each process prior to incineration has been ISO 14001 basics, Approach to International Chemicals of compliance and specific tasks required putting it into practice 3,266 3,776 services for the nursing care industry, from the prevent used paper diapers from becoming completed according to stated procedure. Management, a policy framework adopted under the systems. sales and rental of geriatric care equipment to a serious waste problem. In response, the The companies are now investigating Eco-verification 10,828 11,692 (Parts 1-17), biodiversity comprehensive solutions for nursing care Consumer Products & Services Division has ways to recycle paper diapers into paper Chemical substance management initiatives and plans providers. As a trading company, we strive to developed the “Clean Forever” service. This instead of incinerating them. FY2012 achievements FY2013 plans create high added-value services that solve service collects used paper diapers in social issues related to the nursing care specially designed, fully sealed containers and • Officially began operation of the chemical • In China, take measures to comply with substance total management system; established hazardous chemical registration and Environmental business industry. In developing our business, we have disposes of the diapers in a hygienic manner. a compliance verification structure management law a responsibility to consider the impact of our In Clean Forever, Group company Toyota • In China, took measures to comply with new • In South Korea, take measures to comply with development chemical substance environmental management K-REACH business on society and the environment in Chemical Engineering Co., Ltd. and other law and hazardous chemical safety management • Establish compliance structures at chemical fulfilling our social responsibility as a company specialist companies collaborate to strictly regulation sales subsidiaries providing services in areas closely linked to manage the collection and disposal processes. • In Taiwan, took measures to comply with toxic Waste recycling chemical management law and labor safety public needs. The diaper collection containers have been and health law We have started a business to The hygienic management and disposal specially designed to fully seal after collection • In Japan, strengthened inspections of imported of used paper diapers is an example of how and prevent the release of bad odors. The product components to comply with revised recycle sewage sludge in the Act on the Evaluation of Chemical Substances San’in region of Japan. Toyota Tsusho makes a positive impact. The container materials were also specially selected and Regulation of Their Manufacture, etc. use of paper diapers has grown at nursing to prevent the release of toxic gases during • Held seminars on division’s response to legal Sewage sludge generated through the “Multipail” fully sealable, specially designed revisions. processing of sewage is commonly care facilities in recent years, leading to incineration. The companies also introduced collection containers incinerated and the ash disposed of as

29 30 Personnel systems Commendation systems Labor-management We take a variety of perspectives dialogue uman resource initiatives Basic stance into consideration in presenting H commendations to organizations Building good relations based While employee and corporate growth are a matter of course, Toyota Tsusho Corporation promotes CSR based on our We work to conduct employee and individuals in recognition of on dialogue Principles Concerning Employees so as to realize our Corporate Philosophy of “Living and prospering together with people, performance evaluations that are their contributions to realizing our society and the Earth, we aim to become a value-creating company that contributes to the creation of a prosperous society.” fair and performance-based. corporate vision. Discussions progressed on Toyota Tsusho Corporation considers “overall Every year, we present commendations to creating systems to better utilize optimization” a core value that relates to all organizations and individuals in Japan and the experience of re-employed human resources initiatives, including hiring, overseas in recognition of their efforts to employees. Principles concerning employees training, evaluation and rotation. To exist as realize our corporate vision. Approximately 70% of Toyota Tsusho an organization and provide greater value Division GV awards* are given to Corporation associates, or 2,519 people, We aim to realize our management strategies without being constrained by past experiences or preconceptions and based on the to stakeholders, Toyota Tsusho believes organizations with high levels of performance. belong to the Toyota Tsusho Labor Union. All watchwords “real source” and “On site, Hands on, In touch.” Accordingly, from the perspective of overall optimization, the Toyota Tsusho Group will employ, develop and advance employees who can cooperate and lead the way to an even better future. that in addition to boosting individual And from among those award winning employees in principle are union members.* performance, cooperation from multiple organizations, one is selected to receive Each year, labor union representatives meet Key points for promoting CSR from an employee perspective human and organization resources is the President Award. In fiscal 2012, the with executives in charge of human relations essential. President’s Awards recognized the approximately 10 times, convening the Point 1 Point 3 Toyota Tsusho Corporation strives to success of the East Africa TRY-1 project Personnel System Evaluation Committee Build an environment that allows employees to work with vitality. Develop human resources capable of responding flexibly, perform fair employee evaluations based led by the Automotive Division, and the to discuss personnel systems and other To enable a company and its employees to realize continuous growth, quickly and sincerely to changes in the environment. solely on performance and without bias to Kenya/Olkaria geothermal power plant aspects of a work-life balance. it is essential to create a workplace environment and systems that The management environment is evolving at a breathtaking pace. make employees’ work rewarding and fulfilling. With this in mind, we Even so, we will work to strengthen our business functions and gender, age or nationality. When evaluating project spearheaded by the Machinery, In fiscal 2012, in consideration of the are devising a number of measures to build such an environment and develop human resources capable of continually undertaking sincere performance levels each year, we require Energy & Project Division. revised Law Concerning Stabilization of systems. business activities. interviews between the employee and the Employment of Seniors, the Personnel evaluator. We also hold modification Principal commendation systems and System Evaluation Committee studied the Point 2 Point 4 FY2012 award recipients Create frameworks for promoting constant and autonomous Promote teamwork with an eye toward overall optimization meetings at various stages of the process establishment of a new system to better reforms and kaizen. as an organization. of performing evaluations to ensure that Name Target Recipient utilize the experience and talents of retired We regard a company’s responsibility as enabling employees to act While maintaining respect for individuals, we also recognize the limitations employee performance is assessed fairly Organizations employees who have been reemployed by with self-initiative, with an unceasing desire to pursue reforms and of acting individually and are thus determined to create an organization from multiple perspectives. Division GV achieving high 32 the company. In addition, the committee kaizen (continuous improvement). Toyota Tsusho is building systems that enables overall optimization. To do so, we believe it is essential Award levels of operating organizations Similarly, we work to ensure fair and performance made changes to the company housing and frameworks that promote such actions. to have a corporate culture that fosters mutual respect and ensures results-based systems of employee system to ensure fairness among employees. sufficient vertical, horizontal and diagonal communication. We are currently Division Organizations classification, compensation and rotation. generating a Furthermore, as in the previous year, creating a framework for such a corporate culture. Synergy Award high level of 8 projects (new) synergy Divisional Labor-Management Confabs were held to encourage the sharing of Challenge rotation Commendation People obtaining for Qualification company 165 persons division policies and issues among division We boost employee motivation Acquisition recommended We are aiming to create opportunities for fuller dialogue between upper-level qualifications executives and younger employees. toward their jobs by meeting their Individuals Toyota Tsusho Corporation held joint Commendation posting requests. volunteering to seminars with the Toyota Tsusho Labor Union management and employees so as to achieve our Global 2020 Vision. of Social make social 5 persons Toyota Tsusho Corporation has in place a Contribution contributions and made a financial contribution to the We at Toyota Tsusho Corporation make daily efforts based discussions between employees of Toyota Tsusho Corporation challenge rotation system, whereby the Individuals union’s year-end holiday party as a form of upon our Principles Concerning Employees to create a work and its group companies. company seeks to encourage high levels Excellent successful in support and cooperation. In fiscal 2012, as Kaizen making 32 persons environment in which all employees, including those of our Furthermore, in order to raise the crisis management skills of job motivation by meeting employees’ Proposal operational part of support for the reconstruction of the Awards affiliates, can work with vitality and feel highly motivated of Toyota Tsusho Corporation employees, in addition to the requested postings. kaizen Tohoku region, Toyota Tsusho Corporation so we can all realize kaizen (continuous improvement). Crisis Management Training provided during new overseas “Challenge rotation” is a system through and the Labor Union jointly supported the In fiscal 2012, we revised various systems and training assignment seminars, we newly added Regional Crisis (Application and selection processes which we give job-posting preference to for each award) establishment of specially designated programs to ensure that our employees and the Toyota Management Training and branch manager Crisis Management employees who have indicated a specific Division GV Award guidance classrooms and study halls in Tsusho Group can undertake initiatives as one to support Training. Improving the crisis management structure for has • desire to obtain specific postings. The Projects are nominated—through application Sumita, Iwate Prefecture for children living the achievement of the goals of the “Global 2020 Vision.” become an urgent organizational issue amid the company’s system is available to employees who have forms—and awarded within each division. in local temporary housings. At Toyota Tsusho Corporation, various changes were made plans to expand business to every region of the globe. been handling the same job for five years Eight are selected from among these for the * Employees of section chief grade or higher, as well to training programs in fiscal 2012. The existing Practical In fiscal 2013, we will strive to strengthen our crisis management or more and involves the presentation of a GV superiority prize, and the president himself as employees with line chief experience, do not Career Training for administrative staff was divided into two structure through the newly established Security Management qualify for union membership. specific plan (a plan for engaging in new selects the recipient of the president’s award. separate courses—short-term and long-term—with the purpose Group which will be reviewing the system fundamentally in business that the employee would like try in * Name derived from Toyota Tsusho Corporation’s of enhancing employees’ skills. In these courses, trainees detail, as well as expanding the crisis management boundaries which the work skills built up so far will be flagship message, “G’ VALUE with you.” discuss issues directly related to their department’s business. to the entire Toyota Tsusho Group and its employees. used, but conversely that will also provide •Division Synergy Award Human resource Their superiors will be taking part to help formulate detailed, Our business is formed by our people. We are making efforts Projects are nominated within each division— the acquisition of new perspectives and development practical solutions to the issues. This both facilitates the for our employees and our company to grow together, so that through application forms—out of which one horizons) for an employee’s desired posting. enhancement of practical career skills for individuals and we can continue contributing to society through our business. project per division is awarded. In fiscal 2012, 35 employees made encourages an exchange of opinions between the company •Commendation for Qualification Acquisition Basic stance and the employees on the company’s future direction. applications through this system, of which Recipients are selected from among automatic We are cultivating human In terms of Group-wide training, human resources 17 were assigned to different posts. submissions made as the result of filing qualification resources capable of implementing employees from each Group company convened at an acquisition forms. the Toyota Tsusho Group Way. information-sharing meeting to share and discuss ways of • Commendation for Social Contribution dealing with changes to laws and regulations and the status Kuniaki Yamagiwa Toyota Tsusho Corporation implements a Managing Director and Chief Officer Recipients are selected from among applications of training systems at each company. of the Administrative Division submitted by individuals directly to the Human diverse range of educational and training Additionally, portions of the Breakthrough Seminars for Resources Department. programs to develop personnel capable of management-level employees in Japan and Leadership • Excellent Kaizen Proposal Awards exemplifying the keywords of the Toyota Development Program (LDP) for employees outside Japan were The Kaizen Proposal Department awards Tsusho Group Way: “A passion for business,” held jointly to help lower corporate boundaries and stimulate “A”-ranking projects from each division. “On site, Hands on, In touch” and

31 32 Personnel systems Commendation systems Labor-management We take a variety of perspectives dialogue uman resource initiatives Basic stance into consideration in presenting H commendations to organizations Building good relations based While employee and corporate growth are a matter of course, Toyota Tsusho Corporation promotes CSR based on our We work to conduct employee and individuals in recognition of on dialogue Principles Concerning Employees so as to realize our Corporate Philosophy of “Living and prospering together with people, performance evaluations that are their contributions to realizing our society and the Earth, we aim to become a value-creating company that contributes to the creation of a prosperous society.” fair and performance-based. corporate vision. Discussions progressed on Toyota Tsusho Corporation considers “overall Every year, we present commendations to creating systems to better utilize optimization” a core value that relates to all organizations and individuals in Japan and the experience of re-employed human resources initiatives, including hiring, overseas in recognition of their efforts to employees. Principles concerning employees training, evaluation and rotation. To exist as realize our corporate vision. Approximately 70% of Toyota Tsusho an organization and provide greater value Division GV awards* are given to Corporation associates, or 2,519 people, We aim to realize our management strategies without being constrained by past experiences or preconceptions and based on the to stakeholders, Toyota Tsusho believes organizations with high levels of performance. belong to the Toyota Tsusho Labor Union. All watchwords “real source” and “On site, Hands on, In touch.” Accordingly, from the perspective of overall optimization, the Toyota Tsusho Group will employ, develop and advance employees who can cooperate and lead the way to an even better future. that in addition to boosting individual And from among those award winning employees in principle are union members.* performance, cooperation from multiple organizations, one is selected to receive Each year, labor union representatives meet Key points for promoting CSR from an employee perspective human and organization resources is the President Award. In fiscal 2012, the with executives in charge of human relations essential. President’s Awards recognized the approximately 10 times, convening the Point 1 Point 3 Toyota Tsusho Corporation strives to success of the East Africa TRY-1 project Personnel System Evaluation Committee Build an environment that allows employees to work with vitality. Develop human resources capable of responding flexibly, perform fair employee evaluations based led by the Automotive Division, and the to discuss personnel systems and other To enable a company and its employees to realize continuous growth, quickly and sincerely to changes in the environment. solely on performance and without bias to Kenya/Olkaria geothermal power plant aspects of a work-life balance. it is essential to create a workplace environment and systems that The management environment is evolving at a breathtaking pace. make employees’ work rewarding and fulfilling. With this in mind, we Even so, we will work to strengthen our business functions and gender, age or nationality. When evaluating project spearheaded by the Machinery, In fiscal 2012, in consideration of the are devising a number of measures to build such an environment and develop human resources capable of continually undertaking sincere performance levels each year, we require Energy & Project Division. revised Law Concerning Stabilization of systems. business activities. interviews between the employee and the Employment of Seniors, the Personnel evaluator. We also hold modification Principal commendation systems and System Evaluation Committee studied the Point 2 Point 4 FY2012 award recipients Create frameworks for promoting constant and autonomous Promote teamwork with an eye toward overall optimization meetings at various stages of the process establishment of a new system to better reforms and kaizen. as an organization. of performing evaluations to ensure that Name Target Recipient utilize the experience and talents of retired We regard a company’s responsibility as enabling employees to act While maintaining respect for individuals, we also recognize the limitations employee performance is assessed fairly Organizations employees who have been reemployed by with self-initiative, with an unceasing desire to pursue reforms and of acting individually and are thus determined to create an organization from multiple perspectives. Division GV achieving high 32 the company. In addition, the committee kaizen (continuous improvement). Toyota Tsusho is building systems that enables overall optimization. To do so, we believe it is essential Award levels of operating organizations Similarly, we work to ensure fair and performance made changes to the company housing and frameworks that promote such actions. to have a corporate culture that fosters mutual respect and ensures results-based systems of employee system to ensure fairness among employees. sufficient vertical, horizontal and diagonal communication. We are currently Division Organizations classification, compensation and rotation. generating a Furthermore, as in the previous year, creating a framework for such a corporate culture. Synergy Award high level of 8 projects (new) synergy Divisional Labor-Management Confabs were held to encourage the sharing of Challenge rotation Commendation People obtaining for Qualification company 165 persons division policies and issues among division We boost employee motivation Acquisition recommended We are aiming to create opportunities for fuller dialogue between upper-level qualifications executives and younger employees. toward their jobs by meeting their Individuals Toyota Tsusho Corporation held joint Commendation posting requests. volunteering to seminars with the Toyota Tsusho Labor Union management and employees so as to achieve our Global 2020 Vision. of Social make social 5 persons Toyota Tsusho Corporation has in place a Contribution contributions and made a financial contribution to the We at Toyota Tsusho Corporation make daily efforts based discussions between employees of Toyota Tsusho Corporation challenge rotation system, whereby the Individuals union’s year-end holiday party as a form of upon our Principles Concerning Employees to create a work and its group companies. company seeks to encourage high levels Excellent successful in support and cooperation. In fiscal 2012, as Kaizen making 32 persons environment in which all employees, including those of our Furthermore, in order to raise the crisis management skills of job motivation by meeting employees’ Proposal operational part of support for the reconstruction of the Awards affiliates, can work with vitality and feel highly motivated of Toyota Tsusho Corporation employees, in addition to the requested postings. kaizen Tohoku region, Toyota Tsusho Corporation so we can all realize kaizen (continuous improvement). Crisis Management Training provided during new overseas “Challenge rotation” is a system through and the Labor Union jointly supported the In fiscal 2012, we revised various systems and training assignment seminars, we newly added Regional Crisis (Application and selection processes which we give job-posting preference to for each award) establishment of specially designated programs to ensure that our employees and the Toyota Management Training and branch manager Crisis Management employees who have indicated a specific Division GV Award guidance classrooms and study halls in Tsusho Group can undertake initiatives as one to support Training. Improving the crisis management structure for has • desire to obtain specific postings. The Projects are nominated—through application Sumita, Iwate Prefecture for children living the achievement of the goals of the “Global 2020 Vision.” become an urgent organizational issue amid the company’s system is available to employees who have forms—and awarded within each division. in local temporary housings. At Toyota Tsusho Corporation, various changes were made plans to expand business to every region of the globe. been handling the same job for five years Eight are selected from among these for the * Employees of section chief grade or higher, as well to training programs in fiscal 2012. The existing Practical In fiscal 2013, we will strive to strengthen our crisis management or more and involves the presentation of a GV superiority prize, and the president himself as employees with line chief experience, do not Career Training for administrative staff was divided into two structure through the newly established Security Management qualify for union membership. specific plan (a plan for engaging in new selects the recipient of the president’s award. separate courses—short-term and long-term—with the purpose Group which will be reviewing the system fundamentally in business that the employee would like try in * Name derived from Toyota Tsusho Corporation’s of enhancing employees’ skills. In these courses, trainees detail, as well as expanding the crisis management boundaries which the work skills built up so far will be flagship message, “G’ VALUE with you.” discuss issues directly related to their department’s business. to the entire Toyota Tsusho Group and its employees. used, but conversely that will also provide •Division Synergy Award Human resource Their superiors will be taking part to help formulate detailed, Our business is formed by our people. We are making efforts Projects are nominated within each division— the acquisition of new perspectives and development practical solutions to the issues. This both facilitates the for our employees and our company to grow together, so that through application forms—out of which one horizons) for an employee’s desired posting. enhancement of practical career skills for individuals and we can continue contributing to society through our business. project per division is awarded. In fiscal 2012, 35 employees made encourages an exchange of opinions between the company •Commendation for Qualification Acquisition Basic stance and the employees on the company’s future direction. applications through this system, of which Recipients are selected from among automatic We are cultivating human In terms of Group-wide training, human resources 17 were assigned to different posts. submissions made as the result of filing qualification resources capable of implementing employees from each Group company convened at an acquisition forms. the Toyota Tsusho Group Way. information-sharing meeting to share and discuss ways of • Commendation for Social Contribution dealing with changes to laws and regulations and the status Kuniaki Yamagiwa Toyota Tsusho Corporation implements a Managing Director and Chief Officer Recipients are selected from among applications of training systems at each company. of the Administrative Division submitted by individuals directly to the Human diverse range of educational and training Additionally, portions of the Breakthrough Seminars for Resources Department. programs to develop personnel capable of management-level employees in Japan and Leadership • Excellent Kaizen Proposal Awards exemplifying the keywords of the Toyota Development Program (LDP) for employees outside Japan were The Kaizen Proposal Department awards Tsusho Group Way: “A passion for business,” held jointly to help lower corporate boundaries and stimulate “A”-ranking projects from each division. “On site, Hands on, In touch” and

31 32 Human resource initiatives

“teamwork” and to raise employee skill Training results (FY2012) We are building a self-education opportunities as well as enables participants have made the personnel systems at our or reporting has been made, and when levels. Furthermore, we focus on Toyota Tsusho, non-consolidated support system to match to experience local customs and cultures, primary business units consistent and required the person who filed is notified. personnel who can share information employee ambition while helping to vitalize career development introduced the Leadership Development In fiscal 2012, this desk handled two Category Course name Number of throughout the Company and cooperate attendees We are building a self-education support and the practice of job rotation. Program (LDP) for executive-level personnel. cases, which we resolved through cooperation from the perspective of overall optimization. Personnel in charge of specific tasks*1 system for employees by providing subsidies From fiscal 2012, working together with In fiscal 2012 there were 19 participants in from the company’s in-house counsel. Breakthrough Seminars 16 persons Long-term to cover course fees for correspondence the sales divisions, we made progress on a this program. At the same time, Toyota The consultation contact point is available Innovation Leader 22 persons program Cultivation Seminars courses and other external learning plan to have all employees be sent on an Tsusho Corporation offers training for to all Toyota Tsusho Group employees Education and training New business conception 32 persons Training for newly opportunities. We make this system overseas assignment by their seventh year employees prior to posting them irrespective of terms of employment. We work In addition to various training appointed department 15 persons well-known by posting information on an with the company. During fiscal 2013, with the overseas to make their transition to the to make sure that the system is well-known, general managers programs for career-track employees, electronic bulletin board and in education acquisition of major French trading company local business environment as smooth as and it is explained during new-employee Training for newly 60 persons new long-term training programs appointed group leaders system electronic brochures, and by CFAO, we plan to significantly expand the possible. training and newly appointed manager training. Practical training for newly 61 persons were implemented to enhance the appointed managers emailing eligible employees so as to number of assignees to France as part of the Toyota Tsusho Corporation’s Human skills of administrative employees. Training for newly 50 persons encourage more of them to take effort to nurture a truly global workforce. Resources Department dispatches its staff appointed L-staff Training and awareness activities To maximize overall organizational advantage of it. overseas to handle local human resource Training for newly 40 persons performance from the perspective of total appointed ST-staff We are developing a variety of educational People dispatched overseas for foreign requirements. The department is developing We conduct training and other Rank-based Training for existing T1 staff 26 persons optimization, we offer rank-based training training systems at our Toyota Tsusho Group language study and their study locations a framework that will enable it to handle initiatives to boost employees’ Training for newly 41 persons to employees from the time they enter the appointed T1 companies as well, and are working to Toyota Tsusho, non-consolidated personnel matters in English and Chinese. From human rights awareness. g company through their sixth year, as well Mid-grade accounting 60 persons improve the quality of human resources (FY) 2005, the department has welcomed human To increase employees’ awareness of human Strategy and 61 persons as to newly appointed executives. marketing development throughout the entire Toyota Countries to which resources staff from overseas subsidiaries on rights, we conduct training activities, centered employees are dispatched 2010 2011 2012 Career design/ability 93 persons In addition, we have established practical to involve others Tsusho Group. Argentina 1 0 1 temporary assignments in Japan. In fiscal on the Human Resources Department. knowledge courses for younger employees Problem-solving and 46 persons Egypt 1 0 0 2012, a human resources employee from Nearly all Toyota Tsusho employees take questioning and offer an array of training programs for All young employees are sent on Mexico 1 1 0 Poland completed a two-week assignment to the harassment training offered by the Human

Cafeteria-style trainin Cafeteria-style Beginning accounting 65 persons studying business skills, including Innovation Second year training 65 persons overseas assignments by their China 1 1 2 Japan in November 2012. The employee Resources Department. Business skills Leader Cultivation Seminars to cultivate the used M&A 25 persons seventh year with the company. Russia 0 1 0 supported a project to create an English In addition, the same training is conducted throughout the Brazil 0 1 1 start-up mentality for creating new businesses. company (open Logical writing 43 persons As a trading company, Toyota Tsusho version of a checklist to manage data on the at affiliated companies. For staff working overseas, we also offer recruitment) Writing emails in English 54 persons Corporation posts employees to overseas France 0 0 1 status of human resources systems at approximately 100 e-learning courses, OJT-related OJT leader training 99 persons assignments on a frequent basis. To further overseas subsidiaries. Fair hiring According to Pre-overseas 146 persons including business skill and leadership goal appointment training develop employees who can handle such We are promoting the cultivation development courses. Administrative staff*2 postings, we have put in place an Overseas of human resources overseas. Personnel in charge of hiring TRY-1 women’s program 8 persons In fiscal 2012, we introduced long-term Long-term Foreign Language Study system for In recent years, our overseas business ratio undergo human rights training and program Practical career NEO 23 persons training programs to boost the skills of training personnel in charge of specific tasks who has increased, and the need has grown to recruit in an unbiased manner. administrative employees. In fiscal 2013, we Training for 18 persons are in at least their second year of share our Corporate Philosophy, values and Toyota Tsusho Corporation’s hiring activities newly-appointed SG plan to offer joint programs for headquarters employment. Following one year of objectives globally. Accordingly, Toyota Tsusho avoid discrimination based on gender, age, Training for 30 persons Rank-based newly-appointed G1 employees and local associates at overseas training language study at an overseas university or Corporation is stepping up its efforts to train nationality or disability, and instead focus on Training for 90 persons subsidiaries in order to nurture employees newly-appointed G2 language education institution, employees personnel hired locally at overseas branches fairly determining whether an individual’s who can succeed on a global stage. Second year training 48 persons taking advantage of this system undergo and companies in the Toyota Tsusho Group abilities, skills, motivation and aptitude are NOTES approximately one year of practical training Way and Global 2020 Vision. LDP training consistent with the position Toyota Tsusho *1 Employees who may be relocated to different regions. Also called “career-track employees.” under the guidance of an expatriate We also work to develop manager-level seeks to fill. stationed at an overseas branch or trading employees at overseas business units. We To prevent discrimination and prejudice *2 Personnel who handle backup work for personnel in charge of specific tasks or routine subsidiary. in our recruiting, those in charge of hiring are tasks in a specific region. Also known as This system therefore functions as a Opinion of local Respect for human rights required to undergo training on human rights. “general employees.” program that offers language study associate of an overseas company Basic stance Training system chart (extract) Toyota Tsusho, non-consolidated Wanjohi We strive to ensure respect for Promoting fairness Long-term program According to goal Self-awareness Personnel Business skills used throughout the company Kangangi (business creation/ By rank (internationalization/ OJT-related Spirit development human rights, based on our qualifications operational reforms) (Necessary)(Open enrollment) management personnel cultivation) development support Toyota Kenya Ltd.

t Behavioral Guidelines. SK Training for Basic stance

newly appointed r

department g A desire to expand knowledge Toyota Tsusho Corporation’s Behavioral ) Evaluator m K Break- General Managers

training training on methods and practices of We have in place a variety of

training Guidelines state that we will “respect people, managers through fo Training group leaders group n newly appointed newly

Training for newly Mental health Practical training Practical L Seminars g for newly appointed newly for systems to meet our goal of being appointed L staff developmen Career Japanese management and create an active workplace worth working Training for newly in.” an organization that empowers ST syste development I joined Toyota Kenya in March 2012. As appointed ST staff personnel Co-creation ) r

M&A the general manager for the Hino Motors In keeping with this principal, we prohibit many people with different abilities.

Training for newly e T1 appointed T1 staff T1 training Problem solving department, I’m in charge of promoting discrimination on the basis of gender, age, Toyota Tsusho Corporation has established g MAST (current GL) g

as an organization sales of Hino commercial vehicles in Kenya. nationality or disability and encourage respect the Diversity Promotion Office, which

Cafeteria-style training s (problem occurrence resolution ·Mid-grade accounting to manufacturing business entity New business conceptio I had an opportunity to take part in the for human rights. spearheads our effort to create a workplace T2 Pre-overseas appointment trainin s Training for personnel to be dispatched Innovation Leader ·Strategy and marketing Cultivation Semina MBA support system (unpaid leave system ·Career design/ The Toyota Tsusho Group Way training

test Leadership Development Program, where that welcomes diversity, under the concept ability to involve others study system (GMAP) course Personnel in charge of specific tasks Evaluee training Problem-solving and questioning Recruiter trainin I learned about strategy, leadership, project of “establishing an organization that allows Business skill Logical writing Consultation office Overseas foreign languag

T3 OJT leader trainin Practical knowledge Second year training Writing emails in English trainin adoption/implementation Career management and other topics. I also took everybody to fully utilize their capabilities

SG Training for newly appointed SG staff part in a program to visit Ecuador and We have set up a consultation without discrimination on the basis of gender s Panama to witness firsthand successful Correspon- contact point to deal with or age and to create new value.” m G1 Training for newly appointed G1 staff dence course Personal Seminar (venue for dialogue with officers) case studies and learn how to deal with Overseas foreign language work training (China, Spain) harassment. Our approach includes expanding our Business school, language, correspondence course support G2 training training G2 progra complicated dealer issues. In the future, Toyota Tsusho Corporation has set up a systems to support a work-life balance, NEO practical career training

TRY-1 women’ I’d like to systematically study Japanese Practical knowledge Writing emails in English Administrative staff G3 Second year training contact point for consultation on and provide training for female employees to management methods and cultural reporting of sexual harassment, power develop their careers, promote the employment Intro- New employee introductory training traditions. t duction New employee follow-up training harassment, discriminatory language, and of people with disabilities, rehire retired

Join Trading business Informal correspondence course, other human rights matters. Investigations workers, and promote diversity in a host of decision third -grade bookkeeping test TOEIC test in Kenya are launched if necessary after consultation other ways.

33 34 Human resource initiatives

“teamwork” and to raise employee skill Training results (FY2012) We are building a self-education opportunities as well as enables participants have made the personnel systems at our or reporting has been made, and when levels. Furthermore, we focus on Toyota Tsusho, non-consolidated support system to match to experience local customs and cultures, primary business units consistent and required the person who filed is notified. personnel who can share information employee ambition while helping to vitalize career development introduced the Leadership Development In fiscal 2012, this desk handled two Category Course name Number of throughout the Company and cooperate attendees We are building a self-education support and the practice of job rotation. Program (LDP) for executive-level personnel. cases, which we resolved through cooperation from the perspective of overall optimization. Personnel in charge of specific tasks*1 system for employees by providing subsidies From fiscal 2012, working together with In fiscal 2012 there were 19 participants in from the company’s in-house counsel. Breakthrough Seminars 16 persons Long-term to cover course fees for correspondence the sales divisions, we made progress on a this program. At the same time, Toyota The consultation contact point is available Innovation Leader 22 persons program Cultivation Seminars courses and other external learning plan to have all employees be sent on an Tsusho Corporation offers training for to all Toyota Tsusho Group employees Education and training New business conception 32 persons Training for newly opportunities. We make this system overseas assignment by their seventh year employees prior to posting them irrespective of terms of employment. We work In addition to various training appointed department 15 persons well-known by posting information on an with the company. During fiscal 2013, with the overseas to make their transition to the to make sure that the system is well-known, general managers programs for career-track employees, electronic bulletin board and in education acquisition of major French trading company local business environment as smooth as and it is explained during new-employee Training for newly 60 persons new long-term training programs appointed group leaders system electronic brochures, and by CFAO, we plan to significantly expand the possible. training and newly appointed manager training. Practical training for newly 61 persons were implemented to enhance the appointed managers emailing eligible employees so as to number of assignees to France as part of the Toyota Tsusho Corporation’s Human skills of administrative employees. Training for newly 50 persons encourage more of them to take effort to nurture a truly global workforce. Resources Department dispatches its staff appointed L-staff Training and awareness activities To maximize overall organizational advantage of it. overseas to handle local human resource Training for newly 40 persons performance from the perspective of total appointed ST-staff We are developing a variety of educational People dispatched overseas for foreign requirements. The department is developing We conduct training and other Rank-based Training for existing T1 staff 26 persons optimization, we offer rank-based training training systems at our Toyota Tsusho Group language study and their study locations a framework that will enable it to handle initiatives to boost employees’ Training for newly 41 persons to employees from the time they enter the appointed T1 companies as well, and are working to Toyota Tsusho, non-consolidated personnel matters in English and Chinese. From human rights awareness. g company through their sixth year, as well Mid-grade accounting 60 persons improve the quality of human resources (FY) 2005, the department has welcomed human To increase employees’ awareness of human Strategy and 61 persons as to newly appointed executives. marketing development throughout the entire Toyota Countries to which resources staff from overseas subsidiaries on rights, we conduct training activities, centered employees are dispatched 2010 2011 2012 Career design/ability 93 persons In addition, we have established practical to involve others Tsusho Group. Argentina 1 0 1 temporary assignments in Japan. In fiscal on the Human Resources Department. knowledge courses for younger employees Problem-solving and 46 persons Egypt 1 0 0 2012, a human resources employee from Nearly all Toyota Tsusho employees take questioning and offer an array of training programs for All young employees are sent on Mexico 1 1 0 Poland completed a two-week assignment to the harassment training offered by the Human

Cafeteria-style trainin Cafeteria-style Beginning accounting 65 persons studying business skills, including Innovation Second year training 65 persons overseas assignments by their China 1 1 2 Japan in November 2012. The employee Resources Department. Business skills Leader Cultivation Seminars to cultivate the used M&A 25 persons seventh year with the company. Russia 0 1 0 supported a project to create an English In addition, the same training is conducted throughout the Brazil 0 1 1 start-up mentality for creating new businesses. company (open Logical writing 43 persons As a trading company, Toyota Tsusho version of a checklist to manage data on the at affiliated companies. For staff working overseas, we also offer recruitment) Writing emails in English 54 persons Corporation posts employees to overseas France 0 0 1 status of human resources systems at approximately 100 e-learning courses, OJT-related OJT leader training 99 persons assignments on a frequent basis. To further overseas subsidiaries. Fair hiring According to Pre-overseas 146 persons including business skill and leadership goal appointment training develop employees who can handle such We are promoting the cultivation development courses. Administrative staff*2 postings, we have put in place an Overseas of human resources overseas. Personnel in charge of hiring TRY-1 women’s program 8 persons In fiscal 2012, we introduced long-term Long-term Foreign Language Study system for In recent years, our overseas business ratio undergo human rights training and program Practical career NEO 23 persons training programs to boost the skills of training personnel in charge of specific tasks who has increased, and the need has grown to recruit in an unbiased manner. administrative employees. In fiscal 2013, we Training for 18 persons are in at least their second year of share our Corporate Philosophy, values and Toyota Tsusho Corporation’s hiring activities newly-appointed SG plan to offer joint programs for headquarters employment. Following one year of objectives globally. Accordingly, Toyota Tsusho avoid discrimination based on gender, age, Training for 30 persons Rank-based newly-appointed G1 employees and local associates at overseas training language study at an overseas university or Corporation is stepping up its efforts to train nationality or disability, and instead focus on Training for 90 persons subsidiaries in order to nurture employees newly-appointed G2 language education institution, employees personnel hired locally at overseas branches fairly determining whether an individual’s who can succeed on a global stage. Second year training 48 persons taking advantage of this system undergo and companies in the Toyota Tsusho Group abilities, skills, motivation and aptitude are NOTES approximately one year of practical training Way and Global 2020 Vision. LDP training consistent with the position Toyota Tsusho *1 Employees who may be relocated to different regions. Also called “career-track employees.” under the guidance of an expatriate We also work to develop manager-level seeks to fill. stationed at an overseas branch or trading employees at overseas business units. We To prevent discrimination and prejudice *2 Personnel who handle backup work for personnel in charge of specific tasks or routine subsidiary. in our recruiting, those in charge of hiring are tasks in a specific region. Also known as This system therefore functions as a Opinion of local Respect for human rights required to undergo training on human rights. “general employees.” program that offers language study associate of an overseas company Basic stance Training system chart (extract) Toyota Tsusho, non-consolidated Wanjohi We strive to ensure respect for Promoting fairness Long-term program According to goal Self-awareness Personnel Business skills used throughout the company Kangangi (business creation/ By rank (internationalization/ OJT-related Spirit development human rights, based on our qualifications operational reforms) (Necessary)(Open enrollment) management personnel cultivation) development support Toyota Kenya Ltd. t Behavioral Guidelines. SK Training for Basic stance newly appointed r department g A desire to expand knowledge Toyota Tsusho Corporation’s Behavioral ) Evaluator m K Break- General Managers training training on methods and practices of We have in place a variety of

training Guidelines state that we will “respect people, managers through fo Training group leaders group n newly appointed newly

Training for newly Mental health Practical training Practical L Seminars g for newly appointed newly for systems to meet our goal of being appointed L staff developmen Career Japanese management and create an active workplace worth working Training for newly in.” an organization that empowers ST syste development I joined Toyota Kenya in March 2012. As appointed ST staff personnel Co-creation ) r

M&A the general manager for the Hino Motors In keeping with this principal, we prohibit many people with different abilities.

Training for newly e T1 appointed T1 staff T1 training Problem solving department, I’m in charge of promoting discrimination on the basis of gender, age, Toyota Tsusho Corporation has established g MAST (current GL) g as an organization sales of Hino commercial vehicles in Kenya. nationality or disability and encourage respect the Diversity Promotion Office, which

Cafeteria-style training s (problem occurrence resolution ·Mid-grade accounting to manufacturing business entity New business conceptio I had an opportunity to take part in the for human rights. spearheads our effort to create a workplace T2 Pre-overseas appointment trainin s Training for personnel to be dispatched Innovation Leader ·Strategy and marketing Cultivation Semina MBA support system (unpaid leave system ·Career design/ The Toyota Tsusho Group Way training test Leadership Development Program, where that welcomes diversity, under the concept ability to involve others study system (GMAP) course Personnel in charge of specific tasks Evaluee training Problem-solving and questioning Recruiter trainin I learned about strategy, leadership, project of “establishing an organization that allows Business skill Logical writing Consultation office Overseas foreign languag

T3 OJT leader trainin Practical knowledge Second year training Writing emails in English trainin adoption/implementation Career management and other topics. I also took everybody to fully utilize their capabilities

SG Training for newly appointed SG staff part in a program to visit Ecuador and We have set up a consultation without discrimination on the basis of gender s Panama to witness firsthand successful Correspon- contact point to deal with or age and to create new value.” m G1 Training for newly appointed G1 staff dence course Personal Seminar (venue for dialogue with officers) case studies and learn how to deal with Overseas foreign language work training (China, Spain) harassment. Our approach includes expanding our Business school, language, correspondence course support G2 training training G2 progra complicated dealer issues. In the future, Toyota Tsusho Corporation has set up a systems to support a work-life balance, NEO practical career training

TRY-1 women’ I’d like to systematically study Japanese Practical knowledge Writing emails in English Administrative staff G3 Second year training contact point for consultation on and provide training for female employees to management methods and cultural reporting of sexual harassment, power develop their careers, promote the employment Intro- New employee introductory training traditions. t duction New employee follow-up training harassment, discriminatory language, and of people with disabilities, rehire retired

Join Trading business Informal correspondence course, other human rights matters. Investigations workers, and promote diversity in a host of decision third -grade bookkeeping test TOEIC test in Kenya are launched if necessary after consultation other ways.

33 34 Human resource initiatives

Encouraging female employees Work-life balance childcare leave and a system of reduced employee parents of young children, are prior to being rehired. Our system for rehiring Monthly Paid Leave Campaign to encourage working hours. regularly posted on our company intranet, retired workers is flexible and meets diverse employees to take paid leave. Our practical career training for We have systems in place to help We also hold family participation events and so is information about a variety of requests such as reduced working hours. In fiscal 2012, labor coordinators from administrative staff has been employees balance work and life. such as “Welcome to Toyota Tsusho,” as support systems that promote our employees’ each division met quarterly to discuss overtime renewed. Toyota Tsusho Corporation is expanding well as others that support the efforts of work-life balance. results and ways of reducing overtime. The Toyota Tsusho Corporation has a number a variety of systems to help employees employees who are raising children. These Health and safety information was also shared between labor of initiatives in place to promote increased balance work and outside life, such as sorts of activities, as well as interviews with Ratio of female employees with children management and management at Safety and Health roles for female employees Toyota Tsusho, non-consolidated Committee meetings. 0 5 10 15 (%) In fiscal 2012, we revamped the Number of employees by sex Indicates the number of people who take Routine health checks and practical career training program for female Toyota Tsusho, non-consolidated childcare leave. mental health activities Trends in taking of paid holidays 0 2,000 4,000 6,000 (persons) 2008 12.9 administrative staff by creating two separate Toyota Tsusho, non-consolidated Toyota Tsusho, non-consolidated (FY) courses: a short-term intensive course (which 0 10 20 30 40 (persons) We help employees maintain their 2009 14.0 2010 2011 2012 can be taken after two or more years at the 2008 661 2,459 3,120 21.2 physical and mental health 2008 29 2 31 company) and a long-term course (selective) 2010 through routine health checks 2009 728 2,539 3,267 22.3 12.7 35.81% 38.94% 39.45% for those aiming to advance their careers. 2009 23 23 and stress tests. This training is aimed at cultivating female 0 2011 19.1 We provide annual health examinations 2010 950 2,549 3,499 27.2 2010 41 4 45 employees who can take the perspective of for all employees, annual comprehensive Seminar prior to overseas assignment 2012 the group or organization in setting their own 2011 1,029 2,556 3,585 28.0 16.6 examinations for employees age 30 and 2011 42 42 (FY) goals and test their hypotheses. 0 higher, and health examinations for employees Regional crisis management training We also participate in the Chubu 2012 1,062 2,628 3,690 28.8 2012 40 41 prior to and following overseas assignment. has been newly established to Diversity Net* seminar which is held once (FY) (FY) 1 Employing people with disabilities In addition, to prevent the onset of mental prepare for overseas emergencies. or twice annually to promote participation 0 10 20 (%) Female employees Male employees health conditions, employees fill out “mental Toyota Tsusho Corporation offers training in joint seminars for various industries and Female employees Male employees We aim to provide a workplace health checkup” surveys and undergo stress for employees and their families prior to create a network of female professionals. Ratio of female employees where able-bodied people and checks. We provide extensive health overseas assignments in order to increase In addition, we take measures to support * Including Toyota Tsusho employees dispatched to other companies people with disabilities can work management for employees on their first awareness of the importance of personal the career continuity of female employees. together in a pleasant environment. overseas assignment. All employees safety, health management and other issues For example, a human resources coordinator Opinion of a user of the work-life balance system We strive to make our facilities barrier-free, assigned to overseas subsidiaries must related to living overseas. Toyota Tsusho will arrange talks between a female employee I can take my child to the pediatrician during the for example by installing elevators and toilets take part in a mental health checkup Corporation has created an “Overseas who has taken childcare leave and her week, which really helps out. for the use of the physically challenged and three months following the start of the Crisis Management Manual” which is superiors one month prior to that employee placing Braille instructions in passageways first assignment. distributed to branch managers of returning to work, to make possible a smooth My first daughter was born in 2010, and I took a six-month leave of and other locations. We have also established In fiscal 2012, mental health coordinators overseas sites to help them prepare for return. (Such talks are also arranged for absence for her birth and early childcare. Currently, I’m enrolled in the Toyotsu Office Service Corporation as were newly assigned in each division. This emergency situations. male employees returning from childcare the shortened-hour childcare leave system and leave work at 4pm I Aiko a special subsidiary* under the Disabled new system enables coordinators at the In fiscal 2012, in addition to employee leave.) typically pick up my daughter and do housework, but the system also Negishi People Employment Promotion Act, to work site to respond promptly, enabling training prior to overseas assignments (held allows me to visit the pediatrician in the evening if my child becomes ill. * A volunteer organization established through an Automotive Division encourage the hiring of people with early detection of problems and providing four times for a total of 137 participants), That really helps out. I’d like to see the system used by more employees Automotive Business alliance of companies in Japan’s Chubu (central) Innovation Department disabilities. In fiscal 2012, we began assistance to employees. Coordinators we newly held regional crisis management region to encourage corporate cultures that and have a positive influence on society as a whole, establishing allowing employees with visual disabilities assemble for meetings chaired by industrial training (for contingencies in Central & South recognize and respect diversity among human Toyota Tsusho as a leading company in terms of work-life balance. resources by sharing information and initiatives. to use seeing-eye dogs at work sites. physicians to share information. America and Africa) four times (for a total Toyota Tsusho is one of the lead companies. Additionally, we have established in-house of 57 participants) in order to bolster crisis massage facilities that we call the “Health management for regions requiring special Keeper System” which hires sight-impaired responses to deal with dangerous environments. Overview of systems to help achieve a work–life balance by supporting childbirth and child care Toyota Tsusho, non-consolidated nationally certified Amma massage We also newly established a crisis practitioners. This provides workplaces for management training program for branch Pregnancy Childbirth Child Care people with disabilities while enhancing our managers (for a total of 10 participants). Two Three Elementary welfare offerings. Outside lecturers discussed methods to Approx. 8.5 months after pregnancy Approx. two months after birth years years school student * A subsidiary that, subject to certain requirements, determine whether or not to evacuate from Leave of absence Childcare leave is considered jointly as a single operating location a country and important considerations when for the purposes of calculating the parent company’s working in dangerous countries. Annual paid vacation Annual paid vacation percentage of employees with disabilities Vacation Vacation to prevent harm during pregnancy Pre-partum Child nursing care vacation (five days per year, through elementary school) vacation Rehiring retired workers Mental health guidebook (six weeks) Post-partum Reduced working Flextime system vacation System of shortened working hours for child rearing If multiple-child hours, etc. (eight weeks) We offer systems that meet pregnancy, Time management 14 weeks Limited overtime Limited overtime work Limited overtime work diverse needs. work No late-night work (10pm to 5am) permitted No late-night work (10pm to 5am) permitted Toyota Tsusho Corporation has set 60 as We work to prevent health damage its mandatory retirement age. However, in caused by long working hours. Subject to evaluation if working four months or Evaluation more during evaluation period (April to end-March) fiscal 2006 we set up a system for rehiring To prevent employees from damaging their former employees who wish to work after health due to long working hours, Toyota Promotion May be promoted May be promoted retirement. Tsusho Corporation has introduced a work Under this system, employees who wish monitoring system to ascertain the working Provided Not provided Salary Including pro-rated bonus Does not include pro-rated bonus to be rehired take a one-month vacation hours of all employees. Under this system, the working hours of all employees are Various Childcare support site, “wiwiw” (from six months prior to start of maternity leave to six months after returning to work) Record of rehiring retired workers checked on a bimonthly basis. If an services WELBOX baby-sitter coupons, day-care center coupons Toyota Tsusho, non-consolidated (FY) employee has worked more than the

Consultation, Maternity leave Interview Interview prior Interview three 2008 2009 2010 2011 2012 standard hours, the Human Resources and return-to prior to to returning months after Interview, etc. work interviews maternity leave to work returning to work Department consults directly with the 20 19 12 15 10 employee’s superior to improve the situation. Available only to women Available to men and women Additionally, in fiscal 2010 we introduced the

35 36 Human resource initiatives

Encouraging female employees Work-life balance childcare leave and a system of reduced employee parents of young children, are prior to being rehired. Our system for rehiring Monthly Paid Leave Campaign to encourage working hours. regularly posted on our company intranet, retired workers is flexible and meets diverse employees to take paid leave. Our practical career training for We have systems in place to help We also hold family participation events and so is information about a variety of requests such as reduced working hours. In fiscal 2012, labor coordinators from administrative staff has been employees balance work and life. such as “Welcome to Toyota Tsusho,” as support systems that promote our employees’ each division met quarterly to discuss overtime renewed. Toyota Tsusho Corporation is expanding well as others that support the efforts of work-life balance. results and ways of reducing overtime. The Toyota Tsusho Corporation has a number a variety of systems to help employees employees who are raising children. These Health and safety information was also shared between labor of initiatives in place to promote increased balance work and outside life, such as sorts of activities, as well as interviews with Ratio of female employees with children management and management at Safety and Health roles for female employees Toyota Tsusho, non-consolidated Committee meetings. 0 5 10 15 (%) In fiscal 2012, we revamped the Number of employees by sex Indicates the number of people who take Routine health checks and practical career training program for female Toyota Tsusho, non-consolidated childcare leave. mental health activities Trends in taking of paid holidays 0 2,000 4,000 6,000 (persons) 2008 12.9 administrative staff by creating two separate Toyota Tsusho, non-consolidated Toyota Tsusho, non-consolidated (FY) courses: a short-term intensive course (which 0 10 20 30 40 (persons) We help employees maintain their 2009 14.0 2010 2011 2012 can be taken after two or more years at the 2008 661 2,459 3,120 21.2 physical and mental health 2008 29 2 31 company) and a long-term course (selective) 2010 through routine health checks 2009 728 2,539 3,267 22.3 12.7 35.81% 38.94% 39.45% for those aiming to advance their careers. 2009 23 23 and stress tests. This training is aimed at cultivating female 0 2011 19.1 We provide annual health examinations 2010 950 2,549 3,499 27.2 2010 41 4 45 employees who can take the perspective of for all employees, annual comprehensive Seminar prior to overseas assignment 2012 the group or organization in setting their own 2011 1,029 2,556 3,585 28.0 16.6 examinations for employees age 30 and 2011 42 42 (FY) goals and test their hypotheses. 0 higher, and health examinations for employees Regional crisis management training We also participate in the Chubu 2012 1,062 2,628 3,690 28.8 2012 40 41 prior to and following overseas assignment. has been newly established to Diversity Net* seminar which is held once (FY) (FY) 1 Employing people with disabilities In addition, to prevent the onset of mental prepare for overseas emergencies. or twice annually to promote participation 0 10 20 (%) Female employees Male employees health conditions, employees fill out “mental Toyota Tsusho Corporation offers training in joint seminars for various industries and Female employees Male employees We aim to provide a workplace health checkup” surveys and undergo stress for employees and their families prior to create a network of female professionals. Ratio of female employees where able-bodied people and checks. We provide extensive health overseas assignments in order to increase In addition, we take measures to support * Including Toyota Tsusho employees dispatched to other companies people with disabilities can work management for employees on their first awareness of the importance of personal the career continuity of female employees. together in a pleasant environment. overseas assignment. All employees safety, health management and other issues For example, a human resources coordinator Opinion of a user of the work-life balance system We strive to make our facilities barrier-free, assigned to overseas subsidiaries must related to living overseas. Toyota Tsusho will arrange talks between a female employee I can take my child to the pediatrician during the for example by installing elevators and toilets take part in a mental health checkup Corporation has created an “Overseas who has taken childcare leave and her week, which really helps out. for the use of the physically challenged and three months following the start of the Crisis Management Manual” which is superiors one month prior to that employee placing Braille instructions in passageways first assignment. distributed to branch managers of returning to work, to make possible a smooth My first daughter was born in 2010, and I took a six-month leave of and other locations. We have also established In fiscal 2012, mental health coordinators overseas sites to help them prepare for return. (Such talks are also arranged for absence for her birth and early childcare. Currently, I’m enrolled in the Toyotsu Office Service Corporation as were newly assigned in each division. This emergency situations. male employees returning from childcare the shortened-hour childcare leave system and leave work at 4pm I Aiko a special subsidiary* under the Disabled new system enables coordinators at the In fiscal 2012, in addition to employee leave.) typically pick up my daughter and do housework, but the system also Negishi People Employment Promotion Act, to work site to respond promptly, enabling training prior to overseas assignments (held allows me to visit the pediatrician in the evening if my child becomes ill. * A volunteer organization established through an Automotive Division encourage the hiring of people with early detection of problems and providing four times for a total of 137 participants), That really helps out. I’d like to see the system used by more employees Automotive Business alliance of companies in Japan’s Chubu (central) Innovation Department disabilities. In fiscal 2012, we began assistance to employees. Coordinators we newly held regional crisis management region to encourage corporate cultures that and have a positive influence on society as a whole, establishing allowing employees with visual disabilities assemble for meetings chaired by industrial training (for contingencies in Central & South recognize and respect diversity among human Toyota Tsusho as a leading company in terms of work-life balance. resources by sharing information and initiatives. to use seeing-eye dogs at work sites. physicians to share information. America and Africa) four times (for a total Toyota Tsusho is one of the lead companies. Additionally, we have established in-house of 57 participants) in order to bolster crisis massage facilities that we call the “Health management for regions requiring special Keeper System” which hires sight-impaired responses to deal with dangerous environments. Overview of systems to help achieve a work–life balance by supporting childbirth and child care Toyota Tsusho, non-consolidated nationally certified Amma massage We also newly established a crisis practitioners. This provides workplaces for management training program for branch Pregnancy Childbirth Child Care people with disabilities while enhancing our managers (for a total of 10 participants). Two Three Elementary welfare offerings. Outside lecturers discussed methods to Approx. 8.5 months after pregnancy Approx. two months after birth years years school student * A subsidiary that, subject to certain requirements, determine whether or not to evacuate from Leave of absence Childcare leave is considered jointly as a single operating location a country and important considerations when for the purposes of calculating the parent company’s working in dangerous countries. Annual paid vacation Annual paid vacation percentage of employees with disabilities Vacation Vacation to prevent harm during pregnancy Pre-partum Child nursing care vacation (five days per year, through elementary school) vacation Rehiring retired workers Mental health guidebook (six weeks) Post-partum Reduced working Flextime system vacation System of shortened working hours for child rearing If multiple-child hours, etc. (eight weeks) We offer systems that meet pregnancy, Time management 14 weeks Limited overtime Limited overtime work Limited overtime work diverse needs. work No late-night work (10pm to 5am) permitted No late-night work (10pm to 5am) permitted Toyota Tsusho Corporation has set 60 as We work to prevent health damage its mandatory retirement age. However, in caused by long working hours. Subject to evaluation if working four months or Evaluation more during evaluation period (April to end-March) fiscal 2006 we set up a system for rehiring To prevent employees from damaging their former employees who wish to work after health due to long working hours, Toyota Promotion May be promoted May be promoted retirement. Tsusho Corporation has introduced a work Under this system, employees who wish monitoring system to ascertain the working Provided Not provided Salary Including pro-rated bonus Does not include pro-rated bonus to be rehired take a one-month vacation hours of all employees. Under this system, the working hours of all employees are Various Childcare support site, “wiwiw” (from six months prior to start of maternity leave to six months after returning to work) Record of rehiring retired workers checked on a bimonthly basis. If an services WELBOX baby-sitter coupons, day-care center coupons Toyota Tsusho, non-consolidated (FY) employee has worked more than the

Consultation, Maternity leave Interview Interview prior Interview three 2008 2009 2010 2011 2012 standard hours, the Human Resources and return-to prior to to returning months after Interview, etc. work interviews maternity leave to work returning to work Department consults directly with the 20 19 12 15 10 employee’s superior to improve the situation. Available only to women Available to men and women Additionally, in fiscal 2010 we introduced the

35 36 Additionally, while avoiding undue names of filers and other details are kept Compliance interference with the execution of strictly confidential, and we prohibit any operations of Group companies, Toyota disadvantage accruing to filers in terms of overnance Compliance system Tsusho Corporation follows and maintains position, rank, compensation or others. G control over important matters pertaining Moreover, the ERM Department general Toyota Tsusho Corporation is actively pursuing increased management efficiency, transparency, thorough compliance We have established a CSR to the financial status and essential manager provides feedback on progress and a healthy financial position on a base composed of our audit & supervisory board member system and the committee that is chaired by the operational issues of its subsidiaries. after a filing has been made. executive officer system. President & CEO. When necessary, directors and audit & Six reports or consultations were filed Toyota Tsusho Corporation implements a supervisory board members are dispatched in fiscal 2012, and all were dealt with variety of measures to ensure that to subsidiaries to perform oversight and appropriately. Promotion structure including seven sales divisions and the executives and employees carry out their auditing of business operations. Toyota Corporate governance Administrative Division. duties in accordance with laws and Tsusho also conducts internal audits We pursue initiatives to eliminate The Operating Committee In April 2006, Toyota Tsusho streamlined regulations and the Articles of Incorporation. through the ERM Department. anti-social forces. Basic stance consolidates corporate its board of directors and introduced an We have established the CSR Internal audit subjects are selected on Our Nagoya and Tokyo head offices and management to accelerate the executive officer system to bolster committee, chaired by the President and a risk basis, with an audit cycle of our Osaka branch are members of local We pursue initiatives on the basis dissemination of information. management efficiency and improve the CEO, which deliberates and formulates approximately three to five years. In fiscal countermeasures associations, through of our Corporate Philosophy. Toyota Tsusho Corporation has been conduct of business. Dedicated executive plans related to compliance, safety and 2012, six departments at Toyota Tsusho which we follow instructions from police Our initiatives are designed to fulfill the formed as a company with a board of officers are in place for each division to the environment, labor and personnel, (non-consolidated) were audited, along authorities and share information about Toyota Tsusho Group’s Corporate corporate auditors, and five audit & assist management efforts of chief division social contribution and other topics. with one overseas office and 13 Japanese anti-social forces. Philosophy. In other words, by “living supervisory board members are elected officers. In this way, the Board of Directors The ERM Department, which is and overseas Group companies. Furthermore, we respond to any unlawful and prospering together with people, at the general shareholders meeting. keeps abreast of both overall Company responsible for company-wide integrated Follow-up audits are made to confirm demands via collaboration with the police, society and the Earth, we aim to be a Three outside audit & supervisory board management and the execution of duties risk management, carries out the evaluation, the kaizen (continuous improvement) of other relevant institutions and legal counsel. value-generating company that contributes members are employed to perform audits associated with the divisions under their management, checking and monitoring of issues discovered through audits. to the creation of a prosperous society.” To from a third-party perspective. The audit & charge, intermediating between the two business execution in business processes. Compliance training realize this philosophy, the Company is supervisory board members are responsible functions. Other duties of the ERM Department We have established internal and actively pursuing increased management for monitoring the appropriateness of Directors and executive officers attend include ensuring the reliability of financial external reporting lines. We conduct training and hold efficiency, transparency, thorough accounting methods and results of audits meetings of the Operating Committee, reporting, operating internal reporting All employees, including temporary staff seminars for Group companies in compliance and a sound financial position. by an independent auditor, exchanging ensuring that information is rapidly systems and taking charge of internal audits. members and contract employees, have Japan and overseas. In addition, we consider ways to information and ideas regarding crucial disseminated and shared. In fiscal 2012, there were 13 reports in access to internal (ERM Department) and In an effort to ensure thorough compliance, promote a broader understanding of the accounting topics, improving quality and Additionally, Toyota Tsusho has Japan and 18 reports overseas of suspected external (law offices) reporting lines for Toyota Tsusho Corporation created its Toyota Tsusho Group by further enhancing efficiency in auditing by promoting established corporate management compliance violations, but in each case reporting and consultation on items Code of Ethics Guidelines in fiscal 1998. public relations and investor relations. cooperation with an independent auditing committees to enable directors and the proper response was made through concerning business ethics. We use our As of fiscal 2012, the guide has been firm, as well as enhancing corporate executive officers to discuss measures to discussions between the respective intranet and compliance training sessions revised 10 times. We have published governance. resolve management issues from a department and the Administrative Division. to make employees aware of these lines. revisions to the guide online, and in fiscal Toyota Tsusho conducts consolidated company-wide perspective, and consult In accordance with the Whistleblower 2012, we also distributed printed versions management through a divisional the Board of Directors as necessary. We are applying corporate Protection Act, we take sufficient care to to executive officers, full-time corporate framework, with divisions responsible for governance to all Group companies. protect persons who file such reports. The auditors, and general managers of Toyota related Group companies. At present, this To ensure the appropriateness of business Tsusho Corporation, along with the structure comprises eight divisions, activities, we hold domestic affiliate Reports made through internal governance coordination meetings (nine reporting system companies attend the Nagoya meeting, 0 5 10 15 (Reports) and 12 companies attend the Tokyo Corporate governance structure (As of April 2013) meeting) and domestic Group company 2009 4 credit management coordination staff General Meeting of Shareholders 2010 11 Election / Dismissal Election / Dismissal meetings (20 companies attend the Nagoya Election / Dismissal meeting, and 10 companies attend the 2011 3 Board of Directors Tokyo meeting). These meetings serve as Audit / Report Report an opportunity to share Group policies Election / Dismissal / Oversight Election / Dismissal / Oversight 2012 6 among the companies. (FY) Compliance training scene

President Executive Board & CEO Members’ Meeting Executive Committees Principal compliance training conducted (FY2012) CSR Committee Operating Committee Target Content Activities in FY2012 Audit & Audit Independent Supervisory Corporate Management audit Legal seminars for officers Toyota Tsusho Corporation officers General compliance 31 people Board ERM Committee Committees Independent Compliance seminar for New employees of Toyota Tsusho Member / Corporation General compliance 128 people Audit & Auditors new employees ERM Conference Command / Oversight Supervisory Subcontract Law, handling Board Cooperation Company-wide integrated risk management 954 people Training on specific themes Toyota Tsusho Corporation employees third-country monetary payments, (including internal audits) the basics of intellectual property (total of 20 times) Executive Officers rights, etc. Cooperation e-Learning Toyota Tsusho Corporation employees Subcontract Law 3,093 people Sales Divisions Administration Division Seminar for people in charge People in charge of human resources • Responding to personnel issues 185 people of human resources at affiliated at principal Group companies in Japan • Response to the Labor Standards Act (total of 4 times) Checking / Support Group Companies (Japan, overseas) companies in Japan • Application of Off-JT Seminar involving trips to Employees of principal Group Subcontract Law 2 companies Report affiliated companies in Japan companies in Japan Japanese Group company New directors of principal Group General compliance 109 people in 60 companies Cooperation director training companies in Japan

37 38 Additionally, while avoiding undue names of filers and other details are kept Compliance interference with the execution of strictly confidential, and we prohibit any operations of Group companies, Toyota disadvantage accruing to filers in terms of overnance Compliance system Tsusho Corporation follows and maintains position, rank, compensation or others. G control over important matters pertaining Moreover, the ERM Department general Toyota Tsusho Corporation is actively pursuing increased management efficiency, transparency, thorough compliance We have established a CSR to the financial status and essential manager provides feedback on progress and a healthy financial position on a base composed of our audit & supervisory board member system and the committee that is chaired by the operational issues of its subsidiaries. after a filing has been made. executive officer system. President & CEO. When necessary, directors and audit & Six reports or consultations were filed Toyota Tsusho Corporation implements a supervisory board members are dispatched in fiscal 2012, and all were dealt with variety of measures to ensure that to subsidiaries to perform oversight and appropriately. Promotion structure including seven sales divisions and the executives and employees carry out their auditing of business operations. Toyota Corporate governance Administrative Division. duties in accordance with laws and Tsusho also conducts internal audits We pursue initiatives to eliminate The Operating Committee In April 2006, Toyota Tsusho streamlined regulations and the Articles of Incorporation. through the ERM Department. anti-social forces. Basic stance consolidates corporate its board of directors and introduced an We have established the CSR Internal audit subjects are selected on Our Nagoya and Tokyo head offices and management to accelerate the executive officer system to bolster committee, chaired by the President and a risk basis, with an audit cycle of our Osaka branch are members of local We pursue initiatives on the basis dissemination of information. management efficiency and improve the CEO, which deliberates and formulates approximately three to five years. In fiscal countermeasures associations, through of our Corporate Philosophy. Toyota Tsusho Corporation has been conduct of business. Dedicated executive plans related to compliance, safety and 2012, six departments at Toyota Tsusho which we follow instructions from police Our initiatives are designed to fulfill the formed as a company with a board of officers are in place for each division to the environment, labor and personnel, (non-consolidated) were audited, along authorities and share information about Toyota Tsusho Group’s Corporate corporate auditors, and five audit & assist management efforts of chief division social contribution and other topics. with one overseas office and 13 Japanese anti-social forces. Philosophy. In other words, by “living supervisory board members are elected officers. In this way, the Board of Directors The ERM Department, which is and overseas Group companies. Furthermore, we respond to any unlawful and prospering together with people, at the general shareholders meeting. keeps abreast of both overall Company responsible for company-wide integrated Follow-up audits are made to confirm demands via collaboration with the police, society and the Earth, we aim to be a Three outside audit & supervisory board management and the execution of duties risk management, carries out the evaluation, the kaizen (continuous improvement) of other relevant institutions and legal counsel. value-generating company that contributes members are employed to perform audits associated with the divisions under their management, checking and monitoring of issues discovered through audits. to the creation of a prosperous society.” To from a third-party perspective. The audit & charge, intermediating between the two business execution in business processes. Compliance training realize this philosophy, the Company is supervisory board members are responsible functions. Other duties of the ERM Department We have established internal and actively pursuing increased management for monitoring the appropriateness of Directors and executive officers attend include ensuring the reliability of financial external reporting lines. We conduct training and hold efficiency, transparency, thorough accounting methods and results of audits meetings of the Operating Committee, reporting, operating internal reporting All employees, including temporary staff seminars for Group companies in compliance and a sound financial position. by an independent auditor, exchanging ensuring that information is rapidly systems and taking charge of internal audits. members and contract employees, have Japan and overseas. In addition, we consider ways to information and ideas regarding crucial disseminated and shared. In fiscal 2012, there were 13 reports in access to internal (ERM Department) and In an effort to ensure thorough compliance, promote a broader understanding of the accounting topics, improving quality and Additionally, Toyota Tsusho has Japan and 18 reports overseas of suspected external (law offices) reporting lines for Toyota Tsusho Corporation created its Toyota Tsusho Group by further enhancing efficiency in auditing by promoting established corporate management compliance violations, but in each case reporting and consultation on items Code of Ethics Guidelines in fiscal 1998. public relations and investor relations. cooperation with an independent auditing committees to enable directors and the proper response was made through concerning business ethics. We use our As of fiscal 2012, the guide has been firm, as well as enhancing corporate executive officers to discuss measures to discussions between the respective intranet and compliance training sessions revised 10 times. We have published governance. resolve management issues from a department and the Administrative Division. to make employees aware of these lines. revisions to the guide online, and in fiscal Toyota Tsusho conducts consolidated company-wide perspective, and consult In accordance with the Whistleblower 2012, we also distributed printed versions management through a divisional the Board of Directors as necessary. We are applying corporate Protection Act, we take sufficient care to to executive officers, full-time corporate framework, with divisions responsible for governance to all Group companies. protect persons who file such reports. The auditors, and general managers of Toyota related Group companies. At present, this To ensure the appropriateness of business Tsusho Corporation, along with the structure comprises eight divisions, activities, we hold domestic affiliate Reports made through internal governance coordination meetings (nine reporting system companies attend the Nagoya meeting, 0 5 10 15 (Reports) and 12 companies attend the Tokyo Corporate governance structure (As of April 2013) meeting) and domestic Group company 2009 4 credit management coordination staff General Meeting of Shareholders 2010 11 Election / Dismissal Election / Dismissal meetings (20 companies attend the Nagoya Election / Dismissal meeting, and 10 companies attend the 2011 3 Board of Directors Tokyo meeting). These meetings serve as Audit / Report Report an opportunity to share Group policies Election / Dismissal / Oversight Election / Dismissal / Oversight 2012 6 among the companies. (FY) Compliance training scene

President Executive Board & CEO Members’ Meeting Executive Committees Principal compliance training conducted (FY2012) CSR Committee Operating Committee Target Content Activities in FY2012 Audit & Audit Independent Supervisory Corporate Management audit Legal seminars for officers Toyota Tsusho Corporation officers General compliance 31 people Board ERM Committee Committees Independent Compliance seminar for New employees of Toyota Tsusho Member / Corporation General compliance 128 people Audit & Auditors new employees ERM Conference Command / Oversight Supervisory Subcontract Law, handling Board Cooperation Company-wide integrated risk management 954 people Training on specific themes Toyota Tsusho Corporation employees third-country monetary payments, (including internal audits) the basics of intellectual property (total of 20 times) Executive Officers rights, etc. Cooperation e-Learning Toyota Tsusho Corporation employees Subcontract Law 3,093 people Sales Divisions Administration Division Seminar for people in charge People in charge of human resources • Responding to personnel issues 185 people of human resources at affiliated at principal Group companies in Japan • Response to the Labor Standards Act (total of 4 times) Checking / Support Group Companies (Japan, overseas) companies in Japan • Application of Off-JT Seminar involving trips to Employees of principal Group Subcontract Law 2 companies Report affiliated companies in Japan companies in Japan Japanese Group company New directors of principal Group General compliance 109 people in 60 companies Cooperation director training companies in Japan

37 38 Governance

President and CEO of Group companies growth with our suppliers by sharing an information sharing by publishing articles Information security website a point of bilateral communication, stakeholders who are unable to attend the in Japan. awareness of CSR and promoting in the in-house magazine and making providing points of contact for stakeholders meeting, we provide on-demand viewing A portable version of the guide was coordinated CSR efforts. We request that information available during various We are revising information to request materials or submit inquiries. through our website following the meeting. also revised and distributed to all of Toyota our suppliers adhere to these guidelines. meetings. Through these initiatives, we management rules to strength From December 2012, we have made We send out our shareholder meeting Tsusho Corporation’s executive officers, In fiscal 2012, we promoted suppliers’ will strengthen and promote CSR security in and outside Japan. a management message on CSR from our convocation notice three weeks prior to full-time corporate auditors, and employees, compliance with the guidelines through management across the supply chain. Toyota Tsusho Corporation has drafted President and CEO accessible from the the meeting to facilitate the exercise of along with the executive officers and coordinated efforts with the managers of Document Regulations and Handling homepage of our website in order to voting rights by shareholders. We also employees of Group companies in Japan. Group companies in Japan. The guidelines Protocols for Management and Storage clarify our position on CSR. We also strove participate in platforms for the exercise of We also hold various types of training have been published on an intranet site of Documents and implements other to enhance information on related topics voting rights to enable institutional investors and seminars to ensure compliance and accessible by Group companies in order Risk management measures such as designating departments and promptly publish new material. in and outside Japan to smoothly exercise specific codes of conduct in employees’ to infuse them throughout the Group. in charge of storage and the storage their rights. everyday operations. In fiscal 2013, we plan to enhance Risk management period. We are also dedicated to proper Additionally, from fiscal 2011, we began In fiscal 2012 we held seminars for management of confidential information posting notes appended to financial new employees and officers at affiliated We are promoting appropriate and have formulated the “Regulations for statements on our website to conserve companies in Japan. Toyota Tsusho Supply Chain ascertainment and management Confidential Information and Personal paper. CSR Behavioral Guidelines according to the nature of risks. Information.” We also conduct various CSR management for We ask our suppliers to abide by the As a basic approach, we have categorized training programs to improve employee following Guidelines: (Established April 1, risk into “risk requiring serious response” awareness of information security. the supply chain 2012) and “continuous flow risk.” Risk requiring In fiscal 2012, we revised rules for We have established the Toyota • Respect the human rights of employees serious response was handled on a handling confidential information and Tsusho Supply Chain CSR and refrain from inhumane treatment corporate basis, with specific measures personal information, followed by seminars of others. Behavioral Guidelines and are discussed at the quarterly ERM at all domestic sites to explain the changes requesting that suppliers comply • Prohibit forced labor, child labor, and insufficiently compensated labor. Conference. With regard to continuous to approximately 2,300 employees. Direct access to a CSR message from our with them. • Strive to furnish a safe, hygienic, and flow risk, we took measures to prevent Additionally, in order to bolster the entire President and CEO on the website’s homepage The Toyota Tsusho Group is building a healthy work environment. oversights and omissions, primarily for Group’s information security, we held a diverse global value chain and procuring • Refrain from discrimination in hiring. issues remaining from the previous fiscal total of 12 security enhancement meetings IR activities 91st General Meeting of Shareholders materials and goods from countries • Comply with all related laws and year. In addition, we handled this type of in and outside Japan. A total of 142 Group around the world. Forced labor and child international rules, conduct fair trading risk not only on a corporate basis, but in companies (53 in Japan, 89 overseas) We held a production facility tour labor are concerns in some of those and thoroughly prevent corruption. coordination with affiliates. participated in the meetings. in Thailand. countries, so we believe it necessary to • Ensure the quality and safety of goods Due to the urgent nature of risk We also established information security Toyota Tsusho Corporation promotes and services. promote CSR management across the requiring serious response, we placed a consultation desks in Japan and overseas, disclosure and dialogue by holding financial • Strive to maintain a sound global supply chain in conducting our business. environment. priority on the formulation of business and instituted concrete measures to results briefings as well as individual We have established the Toyota Tsusho continuity plans (BCP) to respond to major enhance information security throughout meetings with institutional shareholders, • Promptly and appropriately disclose Supply Chain CSR Behavioral Guidelines information concerning the above. disasters and revisions to information the entire group. including those located overseas. in order to achieve mutual sustainable security management rules. In regard to In fiscal 2013, we will promote kaizen We aimed to increase opportunities for continuous flow risk, Toyota Tsusho throughout the Group in accordance with direct dialogue with investors in fiscal 2012, Corporation completed the establishment the information security levels of each and in addition to holding about 150 of systems for legal compliance and the Group company in order to firmly establish separate conferences for all investors, we Consumer Products & Services Division initiatives conclusion of contracts, and responsibility the April revision of the rules for handling also held small meetings when necessary. for completion of these tasks is now confidential information and personal In March, we also held a production We are strengthening management of our supply chain to shifting to affiliated companies. information, and as a way to promote facility tour in Thailand to enable eliminate forced labor and child labor in the apparel business. Response to serious risk as described revisions to the confidential information shareholders to better understand our The Consumer Products & Services At garment factories in which we have above is discussed at the ERM Conference. handling rules of Group companies in and functions and role. Division’s apparel business procures a capital stake, we confirm the ages of This ensures that discussions are outside Japan. In addition, videos of the financial goods from garment factories and other job applicants by requesting personal substantive and risk management is We will continue to implement kaizen of results briefings have been posted online facilities making up its supply chain, and identification. Additionally, prior to beginning executed more efficiently, while involving our information security in accordance in Japanese and in English, with two of the there is a risk that such facilities rely on business relations with new suppliers, we all areas of the company in the discussions. with the ongoing digitalization of society four annual briefings taking the form of forced or child labor. Our customers and demand that the suppliers confirm the In regard to special risks faced by each by revising our rules and education teleconferences. We have been working to society as a whole are demanding the ages of their employees so as to eliminate division and continuous flow risk, each programs as well as making other provide a broad array of investors with a elimination of the use of such labor. Toyota forced and child labor. division utilizes ERM coordination meetings improvements. deeper understanding of Toyota Tsusho. Tsusho recognizes this as an important At the present time, we are not aware to have detailed discussions on response The opinions that we gain from investors CSR issue and is striving to strengthen its of any issues with forced labor or child measures. through dialogue are immediately provided countermeasures. labor within our supply chain. Information disclosure to our executives as feedback, where they Post-revision risk categories help us in forming management policies. (communication with stakeholders) Risk requiring serious response • Business investment risk General Meeting of Shareholders Website • Management resource allocation risk We avoid holding our General • Labor risk CSR information is accessible via Meeting of Shareholders on days Continuous flow risk a link at the top of our website. when there is a large concentration • Contract risk Toyota Tsusho Corporation’s website of other shareholder meetings. • Country risk provides substantial information, including To allow as many shareholders as possible • Legal compliance/law and regulation basic corporate information and information to attend our General Meeting of response risk on business activities, finances and Shareholders, we avoid holding this At TVVC, our Vietnamese subsidiary, the President Uniform sewing line at Vietnamese subsidiary • Risk of improper behavior by employees and CEO makes personal inspections of the plant TVVC employment opportunities. meeting on days when there is a large and provides direct instruction to worksite leaders. • Information security risk In addition to disclosing information concentration of other shareholder • Disaster risk about the Company, we work to make the meetings. For shareholders and other

39 40 Governance

President and CEO of Group companies growth with our suppliers by sharing an information sharing by publishing articles Information security website a point of bilateral communication, stakeholders who are unable to attend the in Japan. awareness of CSR and promoting in the in-house magazine and making providing points of contact for stakeholders meeting, we provide on-demand viewing A portable version of the guide was coordinated CSR efforts. We request that information available during various We are revising information to request materials or submit inquiries. through our website following the meeting. also revised and distributed to all of Toyota our suppliers adhere to these guidelines. meetings. Through these initiatives, we management rules to strength From December 2012, we have made We send out our shareholder meeting Tsusho Corporation’s executive officers, In fiscal 2012, we promoted suppliers’ will strengthen and promote CSR security in and outside Japan. a management message on CSR from our convocation notice three weeks prior to full-time corporate auditors, and employees, compliance with the guidelines through management across the supply chain. Toyota Tsusho Corporation has drafted President and CEO accessible from the the meeting to facilitate the exercise of along with the executive officers and coordinated efforts with the managers of Document Regulations and Handling homepage of our website in order to voting rights by shareholders. We also employees of Group companies in Japan. Group companies in Japan. The guidelines Protocols for Management and Storage clarify our position on CSR. We also strove participate in platforms for the exercise of We also hold various types of training have been published on an intranet site of Documents and implements other to enhance information on related topics voting rights to enable institutional investors and seminars to ensure compliance and accessible by Group companies in order Risk management measures such as designating departments and promptly publish new material. in and outside Japan to smoothly exercise specific codes of conduct in employees’ to infuse them throughout the Group. in charge of storage and the storage their rights. everyday operations. In fiscal 2013, we plan to enhance Risk management period. We are also dedicated to proper Additionally, from fiscal 2011, we began In fiscal 2012 we held seminars for management of confidential information posting notes appended to financial new employees and officers at affiliated We are promoting appropriate and have formulated the “Regulations for statements on our website to conserve companies in Japan. Toyota Tsusho Supply Chain ascertainment and management Confidential Information and Personal paper. CSR Behavioral Guidelines according to the nature of risks. Information.” We also conduct various CSR management for We ask our suppliers to abide by the As a basic approach, we have categorized training programs to improve employee following Guidelines: (Established April 1, risk into “risk requiring serious response” awareness of information security. the supply chain 2012) and “continuous flow risk.” Risk requiring In fiscal 2012, we revised rules for We have established the Toyota • Respect the human rights of employees serious response was handled on a handling confidential information and Tsusho Supply Chain CSR and refrain from inhumane treatment corporate basis, with specific measures personal information, followed by seminars of others. Behavioral Guidelines and are discussed at the quarterly ERM at all domestic sites to explain the changes requesting that suppliers comply • Prohibit forced labor, child labor, and insufficiently compensated labor. Conference. With regard to continuous to approximately 2,300 employees. Direct access to a CSR message from our with them. • Strive to furnish a safe, hygienic, and flow risk, we took measures to prevent Additionally, in order to bolster the entire President and CEO on the website’s homepage The Toyota Tsusho Group is building a healthy work environment. oversights and omissions, primarily for Group’s information security, we held a diverse global value chain and procuring • Refrain from discrimination in hiring. issues remaining from the previous fiscal total of 12 security enhancement meetings IR activities 91st General Meeting of Shareholders materials and goods from countries • Comply with all related laws and year. In addition, we handled this type of in and outside Japan. A total of 142 Group around the world. Forced labor and child international rules, conduct fair trading risk not only on a corporate basis, but in companies (53 in Japan, 89 overseas) We held a production facility tour labor are concerns in some of those and thoroughly prevent corruption. coordination with affiliates. participated in the meetings. in Thailand. countries, so we believe it necessary to • Ensure the quality and safety of goods Due to the urgent nature of risk We also established information security Toyota Tsusho Corporation promotes and services. promote CSR management across the requiring serious response, we placed a consultation desks in Japan and overseas, disclosure and dialogue by holding financial • Strive to maintain a sound global supply chain in conducting our business. environment. priority on the formulation of business and instituted concrete measures to results briefings as well as individual We have established the Toyota Tsusho continuity plans (BCP) to respond to major enhance information security throughout meetings with institutional shareholders, • Promptly and appropriately disclose Supply Chain CSR Behavioral Guidelines information concerning the above. disasters and revisions to information the entire group. including those located overseas. in order to achieve mutual sustainable security management rules. In regard to In fiscal 2013, we will promote kaizen We aimed to increase opportunities for continuous flow risk, Toyota Tsusho throughout the Group in accordance with direct dialogue with investors in fiscal 2012, Corporation completed the establishment the information security levels of each and in addition to holding about 150 of systems for legal compliance and the Group company in order to firmly establish separate conferences for all investors, we Consumer Products & Services Division initiatives conclusion of contracts, and responsibility the April revision of the rules for handling also held small meetings when necessary. for completion of these tasks is now confidential information and personal In March, we also held a production We are strengthening management of our supply chain to shifting to affiliated companies. information, and as a way to promote facility tour in Thailand to enable eliminate forced labor and child labor in the apparel business. Response to serious risk as described revisions to the confidential information shareholders to better understand our The Consumer Products & Services At garment factories in which we have above is discussed at the ERM Conference. handling rules of Group companies in and functions and role. Division’s apparel business procures a capital stake, we confirm the ages of This ensures that discussions are outside Japan. In addition, videos of the financial goods from garment factories and other job applicants by requesting personal substantive and risk management is We will continue to implement kaizen of results briefings have been posted online facilities making up its supply chain, and identification. Additionally, prior to beginning executed more efficiently, while involving our information security in accordance in Japanese and in English, with two of the there is a risk that such facilities rely on business relations with new suppliers, we all areas of the company in the discussions. with the ongoing digitalization of society four annual briefings taking the form of forced or child labor. Our customers and demand that the suppliers confirm the In regard to special risks faced by each by revising our rules and education teleconferences. We have been working to society as a whole are demanding the ages of their employees so as to eliminate division and continuous flow risk, each programs as well as making other provide a broad array of investors with a elimination of the use of such labor. Toyota forced and child labor. division utilizes ERM coordination meetings improvements. deeper understanding of Toyota Tsusho. Tsusho recognizes this as an important At the present time, we are not aware to have detailed discussions on response The opinions that we gain from investors CSR issue and is striving to strengthen its of any issues with forced labor or child measures. through dialogue are immediately provided countermeasures. labor within our supply chain. Information disclosure to our executives as feedback, where they Post-revision risk categories help us in forming management policies. (communication with stakeholders) Risk requiring serious response • Business investment risk General Meeting of Shareholders Website • Management resource allocation risk We avoid holding our General • Labor risk CSR information is accessible via Meeting of Shareholders on days Continuous flow risk a link at the top of our website. when there is a large concentration • Contract risk Toyota Tsusho Corporation’s website of other shareholder meetings. • Country risk provides substantial information, including To allow as many shareholders as possible • Legal compliance/law and regulation basic corporate information and information to attend our General Meeting of response risk on business activities, finances and Shareholders, we avoid holding this At TVVC, our Vietnamese subsidiary, the President Uniform sewing line at Vietnamese subsidiary • Risk of improper behavior by employees and CEO makes personal inspections of the plant TVVC employment opportunities. meeting on days when there is a large and provides direct instruction to worksite leaders. • Information security risk In addition to disclosing information concentration of other shareholder • Disaster risk about the Company, we work to make the meetings. For shareholders and other

39 40 ocial contribution activities Environment S 60 volunteers join in Mt. Fuji Annual participation in All-Toyota Working to protect water Reforestation Project Forestry Maintenance Program resources through environmental We pursue activities along three key themes—education (people), the environment (Earth) and welfare (society)—in Since fiscal 2008, Toyota Tsusho has Organized jointly by Toyota City and the education in Brazil accordance with our Corporate Philosophy of “living and prospering together with people, society and the Earth." participated in the Mt. Fuji Reforestation Toyota Group, employees took part in Oleos Menu Industria e Comercio Ltda., a Project, organized by OISCA-international. volunteer activities for an ongoing wholly owned Brazilian subsidiary that The project aims to reforest some 100 ha tree-thinning project at Kise Forest in Toyota produces cottonseed oil, has established Basic Policy for Social Contribution Activities of public forest in the village of Narusawa City aimed at rejuvenating decaying forest. an “Environment Week” around the annual in Yamanashi Prefecture, where a In 2012, the event was held in May and World Environment Day. During this week, As a good corporate citizen, Toyota Tsusho Corporation aims to “live and significant number of trees have been lost October. Volunteers received a lecture on the company invites local elementary school prospering together with people, society and the Earth," and to contribute The to disease and pests. Yamanashi the state of Japan’s forests from a forestry children and teaches them about tree Earth to the creation of a prosperous society. Prefecture and private-sector companies expert before taking part in the tree-thinning planting and the environment. have joined to spearhead the project. work. Family participants expressed their The Frutal River adjoining the plant area Promotion of Activities In fiscal 2012, some 60 employees and appreciation for the opportunity, commenting is a critical water resource for local residents. Environ- family members from Toyota Tsusho and that volunteer work was valuable environmental Children therefore learned about the Toyota Tsusho positions people (education), the Earth (environment) and ment its affiliates took part in the project, placing education for their children. importance of water resources and planted society (welfare) as key themes in light of its Corporate Philosophy, and netting around new saplings to protect them trees along the river to help with the vigorously promotes social contribution activities around the world to help from deer. reforestation of the area. realize a more prosperous society. Welfare Education In terms of specific activities, we select and implement substantive and effective programs that strike a balance among the following three Society People approaches of “by company,” “by officer and employee” and “by business activity.” Toyota Tsusho also encourages officers and employees, supporting their participating in these activities, while the Company as a whole voluntarily participates in activities in an autonomous manner aimed at realizing the creation of a prosperous society and at fulfilling our social responsibilities. Three key themes

60 employees and family members take part in the Sunshine fills the Kise Forest after the tree-thinning Menu employees pose with children who took part project. work. in tree-planting.

Results of social contribution activities in FY2012 ( - details on the following page) *1 An NPO working to increase awareness of Sector Activity details microfinance (small unsecured loans for the poor). • Mt. Fuji and Aokigahara Jukai (Sea of Trees) Cleanup *2 A system whereby ¥20 is donated to school • Mt. Fuji Reforestation Project for forestry preservation meal expenses in developing countries each Welfare time meals are ordered from a fixed healthy • Volunteers participated in All-Toyota Forestry Maintenance Program (tree-thinning in Kise Forest, Toyota City) menu. Run by the TABLE FOR TWO Environment International NPO. Disaster-prevention event held Campaign to delivery picture Donating pharmaceuticals to the • Cottonseed oil company in Brazil organizes reforestation program and environmental education for local elementary school children *3 Employees were encouraged to take part in at All-Toyota Big Holiday books to children in Asia Malawian government volunteer activities. As a result, approximately Support for microfinance courses for university students through the PlaNet Finance NPO*1 A shouting contest was held at the All-Toyota Since 2007, Toyota Tsusho has taken part Toyota Tsusho Africa (Pty) Ltd. donated • 470 members from the Toyota Tsusho Group • Continuous support for the TABLE FOR TWO (TFT) program*2 at both our Nagoya and participated in the following activities: Big Holiday event hosted by the 14 in the Campaign to Deliver Picture Books pharmaceuticals to Malawi’s Ministry of Tokyo head offices • Wheelchair Twin Basketball Kariya Tournament companies of the Toyota Group as part of organized by the Shanti Volunteer Association Health in collaboration with Toyota Malawi • Support for the Japan Service Dog Association • 2012 Service Dog Festival the disaster-response and prevention (SVA). The campaign translates Japanese Ltd., a wholly owned subsidiary of Toyota • Donations by the Osaka Produce & Foodstuffs Dept. of the Kyushu Food Group of food • All-Toyota Forestry Maintenance Program inventory slated for disposal due to poor packaging, etc. to various welfare facilities (Spring/Autumn) activities. The contest was intended to picture books into Asian languages using Tsusho and Toyota distributor. Infectious through the NPO Second Harvest Japan. • Great East Japan Earthquake Disaster Region encourage people to shout for help in the translated stickers and donates the books diseases, pneumonia, and other illnesses Volunteers (Toyota Group initiative) Social welfare • Sponsored Tokai Wheelchair Twin Basketball Kariya Tournament and volunteers event of an earthquake or other natural to children in developing Asian countries. are prevalent among Malawian children, managed tournament • Campaign to Delivery Picture Books • Mt. Fuji Reforestation Project disaster, such as an earthquake in the In fiscal 2012, 246 employee volunteers and a chronic shortage of foreign currency Held disaster-prevention event at All-Toyota Big Holiday • • Nagoya City Handicap marathon Tonankai or Nankai ocean regions off the from 13 offices participated. As of the end has made it difficult for the government to • Continuous support by Toyota Tsusho (Africa) Pty. Ltd. (TTAF), our South Africa • Tajimi Wine Festival subsidiary, for agricultural development projects • Osaka Marathon Cleanup Campaign coast of central and southern Japan. of fiscal 2012, a total of 1,779 picture procure needed pharmaceuticals. • South African subsidiary TTAF donated pharmaceuticals to the Malawi government • Osaka Marathon Visitors also learned how to whistle SOS books had been donated under the program. Malawian President Joyce Banda • Acorn seedling program for disaster region and use other objects around them to call Recipients of the Toyota Tsusho Corporation attended the ceremony to accept the • Supported foreign students in Japan through Toyota Tsusho Corporation reconstruction International Student Scholarship • Nagoya/Aichi Marathon festival for help. The activities both entertained the International Student Scholarship also took donations and praised the initiative. • Conducted seminar for teachers. Five teachers from Machida City primary schools visitors and helped to raise their awareness part, sharing news of their home countries participated in a seminar on general trading company business, our business activities, Education personnel, and other matters, and were given a tour of the port and customs facilities. of disaster response and preparedness. with the volunteers. • Social contributions made through the Fighting Eagles, Toyota Tsusho’s basketball team • Singapore subsidiary TTAP organized work experience program for local children Volunteer • Employees encouraged to participate in volunteer activities*3 • Employees participated in the Disaster Area Recovery Support by Toyota Group (Rikuzentakata City and Ofunato City) • Educational support with specially designated guidance classrooms and study rooms provided for children living in temporary housing (Sumita Town, Iwate Prefecture) Great East • Fairs held to promote products made at vocational facilities in disaster-stricken Japan regions (Nagoya Head Office) Earthquake recovery • Opening of area for in-house sales at our Tokyo Head Office of food products from support Fukushima A participant has her voice measured in decibels Employees place translated stickers on picture books. Company representatives receive a commemorative Volunteers participated in program to raise acorn seedlings for disaster region reconstruction • during a shouting contest. gift from President Banda. • Donation campaign raised approximately ¥1.5 million in relief provided through Japan Platform

41 42 ocial contribution activities Environment S 60 volunteers join in Mt. Fuji Annual participation in All-Toyota Working to protect water Reforestation Project Forestry Maintenance Program resources through environmental We pursue activities along three key themes—education (people), the environment (Earth) and welfare (society)—in Since fiscal 2008, Toyota Tsusho has Organized jointly by Toyota City and the education in Brazil accordance with our Corporate Philosophy of “living and prospering together with people, society and the Earth." participated in the Mt. Fuji Reforestation Toyota Group, employees took part in Oleos Menu Industria e Comercio Ltda., a Project, organized by OISCA-international. volunteer activities for an ongoing wholly owned Brazilian subsidiary that The project aims to reforest some 100 ha tree-thinning project at Kise Forest in Toyota produces cottonseed oil, has established Basic Policy for Social Contribution Activities of public forest in the village of Narusawa City aimed at rejuvenating decaying forest. an “Environment Week” around the annual in Yamanashi Prefecture, where a In 2012, the event was held in May and World Environment Day. During this week, As a good corporate citizen, Toyota Tsusho Corporation aims to “live and significant number of trees have been lost October. Volunteers received a lecture on the company invites local elementary school prospering together with people, society and the Earth," and to contribute The to disease and pests. Yamanashi the state of Japan’s forests from a forestry children and teaches them about tree Earth to the creation of a prosperous society. Prefecture and private-sector companies expert before taking part in the tree-thinning planting and the environment. have joined to spearhead the project. work. Family participants expressed their The Frutal River adjoining the plant area Promotion of Activities In fiscal 2012, some 60 employees and appreciation for the opportunity, commenting is a critical water resource for local residents. Environ- family members from Toyota Tsusho and that volunteer work was valuable environmental Children therefore learned about the Toyota Tsusho positions people (education), the Earth (environment) and ment its affiliates took part in the project, placing education for their children. importance of water resources and planted society (welfare) as key themes in light of its Corporate Philosophy, and netting around new saplings to protect them trees along the river to help with the vigorously promotes social contribution activities around the world to help from deer. reforestation of the area. realize a more prosperous society. Welfare Education In terms of specific activities, we select and implement substantive and effective programs that strike a balance among the following three Society People approaches of “by company,” “by officer and employee” and “by business activity.” Toyota Tsusho also encourages officers and employees, supporting their participating in these activities, while the Company as a whole voluntarily participates in activities in an autonomous manner aimed at realizing the creation of a prosperous society and at fulfilling our social responsibilities. Three key themes

60 employees and family members take part in the Sunshine fills the Kise Forest after the tree-thinning Menu employees pose with children who took part project. work. in tree-planting.

Results of social contribution activities in FY2012 ( - details on the following page) *1 An NPO working to increase awareness of Sector Activity details microfinance (small unsecured loans for the poor). • Mt. Fuji and Aokigahara Jukai (Sea of Trees) Cleanup *2 A system whereby ¥20 is donated to school • Mt. Fuji Reforestation Project for forestry preservation meal expenses in developing countries each Welfare time meals are ordered from a fixed healthy • Volunteers participated in All-Toyota Forestry Maintenance Program (tree-thinning in Kise Forest, Toyota City) menu. Run by the TABLE FOR TWO Environment International NPO. Disaster-prevention event held Campaign to delivery picture Donating pharmaceuticals to the • Cottonseed oil company in Brazil organizes reforestation program and environmental education for local elementary school children *3 Employees were encouraged to take part in at All-Toyota Big Holiday books to children in Asia Malawian government volunteer activities. As a result, approximately Support for microfinance courses for university students through the PlaNet Finance NPO*1 A shouting contest was held at the All-Toyota Since 2007, Toyota Tsusho has taken part Toyota Tsusho Africa (Pty) Ltd. donated • 470 members from the Toyota Tsusho Group • Continuous support for the TABLE FOR TWO (TFT) program*2 at both our Nagoya and participated in the following activities: Big Holiday event hosted by the 14 in the Campaign to Deliver Picture Books pharmaceuticals to Malawi’s Ministry of Tokyo head offices • Wheelchair Twin Basketball Kariya Tournament companies of the Toyota Group as part of organized by the Shanti Volunteer Association Health in collaboration with Toyota Malawi • Support for the Japan Service Dog Association • 2012 Service Dog Festival the disaster-response and prevention (SVA). The campaign translates Japanese Ltd., a wholly owned subsidiary of Toyota • Donations by the Osaka Produce & Foodstuffs Dept. of the Kyushu Food Group of food • All-Toyota Forestry Maintenance Program inventory slated for disposal due to poor packaging, etc. to various welfare facilities (Spring/Autumn) activities. The contest was intended to picture books into Asian languages using Tsusho and Toyota distributor. Infectious through the NPO Second Harvest Japan. • Great East Japan Earthquake Disaster Region encourage people to shout for help in the translated stickers and donates the books diseases, pneumonia, and other illnesses Volunteers (Toyota Group initiative) Social welfare • Sponsored Tokai Wheelchair Twin Basketball Kariya Tournament and volunteers event of an earthquake or other natural to children in developing Asian countries. are prevalent among Malawian children, managed tournament • Campaign to Delivery Picture Books • Mt. Fuji Reforestation Project disaster, such as an earthquake in the In fiscal 2012, 246 employee volunteers and a chronic shortage of foreign currency Held disaster-prevention event at All-Toyota Big Holiday • • Nagoya City Handicap marathon Tonankai or Nankai ocean regions off the from 13 offices participated. As of the end has made it difficult for the government to • Continuous support by Toyota Tsusho (Africa) Pty. Ltd. (TTAF), our South Africa • Tajimi Wine Festival subsidiary, for agricultural development projects • Osaka Marathon Cleanup Campaign coast of central and southern Japan. of fiscal 2012, a total of 1,779 picture procure needed pharmaceuticals. • South African subsidiary TTAF donated pharmaceuticals to the Malawi government • Osaka Marathon Visitors also learned how to whistle SOS books had been donated under the program. Malawian President Joyce Banda • Acorn seedling program for disaster region and use other objects around them to call Recipients of the Toyota Tsusho Corporation attended the ceremony to accept the • Supported foreign students in Japan through Toyota Tsusho Corporation reconstruction International Student Scholarship • Nagoya/Aichi Marathon festival for help. The activities both entertained the International Student Scholarship also took donations and praised the initiative. • Conducted seminar for teachers. Five teachers from Machida City primary schools visitors and helped to raise their awareness part, sharing news of their home countries participated in a seminar on general trading company business, our business activities, Education personnel, and other matters, and were given a tour of the port and customs facilities. of disaster response and preparedness. with the volunteers. • Social contributions made through the Fighting Eagles, Toyota Tsusho’s basketball team • Singapore subsidiary TTAP organized work experience program for local children Volunteer • Employees encouraged to participate in volunteer activities*3 • Employees participated in the Disaster Area Recovery Support by Toyota Group (Rikuzentakata City and Ofunato City) • Educational support with specially designated guidance classrooms and study rooms provided for children living in temporary housing (Sumita Town, Iwate Prefecture) Great East • Fairs held to promote products made at vocational facilities in disaster-stricken Japan regions (Nagoya Head Office) Earthquake recovery • Opening of area for in-house sales at our Tokyo Head Office of food products from support Fukushima A participant has her voice measured in decibels Employees place translated stickers on picture books. Company representatives receive a commemorative Volunteers participated in program to raise acorn seedlings for disaster region reconstruction • during a shouting contest. gift from President Banda. • Donation campaign raised approximately ¥1.5 million in relief provided through Japan Platform

41 42 Social contribution activities

Third-party opinion Education

Supporting foreign students in Japan Basketball clinics for elementary Work experience event for Since fiscal 2011, we have provided and junior high school students Singapore children scholarships to foreign students in Japan The Fighting Eagles, Toyota Tsusho’s Toyota Tsusho Asia Pacific Pte. Ltd.(TTAP), through Japan Educational Exchanges and basketball team, holds basketball clinics our Singapore subsidiary, invited 22 children Services. Under the program, university for elementary and junior high school from the Singapore Children’s Society to students receive two-year scholarships for students. The clinics are welcomed by take part in the work experience event TT Mr. Hiroji Tanaka their junior and senior years. In fiscal 2012, local communities for promoting not only Kids. The event simulated a real work day Professor Emeritus, Tokyo College of Transport Studies the second year of the program, 14 better basketball skills, but education, for the children to nurture their curiosity and Director and Senior Researcher, Business Ethics Research Center students from 13 universities and fitness, and local exchanges. In fiscal interest in professions. representing eight countries were selected. 2012, the team coached more than 1,300 TTAP also donated a year’s worth of milk, Profile Graduated from Chuo University Faculty of Law, Section 2, and the Faculty of Economics. Following This brings the current scholarship recipients children on 21 occasions. sporting goods, and monetary donations a career at the Bank of Japan and other organizations, held professorships at Nihon University, to 28, including those who began receiving Toyota Tsusho has also held the Toyota from employees. Waseda University Graduate School, and then Rikkyo University Graduate School from 2002 to scholarships in the first year of the program. Tsusho Cup, an invitational tournament for 2006. President and professor of Tokyo College of Transport Studies from 2006 to 2013. A former member of the Ministry of Economy, Trade and Industry’s Japanese National Committee for ISO We also hold various events for the elementary and junior high school basketball Working Group on Social Responsibility and other committees. Has authored numerous books. students, including training to learn about teams, a total of 15 times, giving many general trading companies and their business, players a chance to test their skills. invitations to take part in volunteer activities with Toyota Tsusho Corporation’s CSR Report 2013 clearly Third, each of the company’s seven operating divisions employees, and student exchange events. explains the status and results of CSR initiatives the is pursuing CSR activities in their wide-ranging global company is taking throughout its organization to contribute business, and these activities are explained using local to the solving of social problems in its three main business photographs and comments from the stakeholders. The areas of Mobility (advancement of automobiles), Life & promotion of occupational safety and health management, Community (enhancement of living environments), and reduction of CO2 emissions, elimination of forced and Earth & Resources (solving environmental problems). child labor, and fair business relations with suppliers are Toyota Tsusho has published a CSR Report annually described in detail from each of the global business since 2005, and in this year’s edition, the appropriate use sites. of graphs and images and the wealth of information Fourth, Toyota Tsusho is pursuing synergy in Africa with make this an excellent report for facilitating stakeholders’ CFAO, the French trading company in which it has made a Scholarship students take part in training at Toyota Commemorative photo with elementary and junior high Children and TTAP employees enjoy the event understanding of its CSR activities. capital investment. The companies have created the Tsusho Corporation’s Tokyo Head Office. school students participating in the basketball clinic. together. ”Alliance Vision” and plan to jointly take a leadership role in Commending Toyota Tsusho for its superior efforts business success, human resources development, and First, in the management message from the President and social contributions on the African continent. The message CEO, the company’s philosophy and vision are clearly from the coordinator for this project expressed the passion Great East Japan Earthquake recovery support stated along with the main goals for fiscal 2012. the companies have for contributing to the sustainable Management has made an admirable commitment that growth of Africa. Volunteering for Disaster Area Educational support for children Fairs promote reconstruction of serves as the standard for the company’s CSR activities. Recovery Support by Toyota Group in temporary housing in Sumita, disaster region Among the praiseworthy activities are the contributions to Expectations on future initiatives The Toyota Group is providing ongoing Iwate Prefecture The Nagoya and Tokyo head offices held solving social problems through the three business domains Through the development of its global business, Toyota support for the reconstruction of the disaster- Toyota Tsusho and the Toyota Tsusho Labor fairs in December 2012 to promote the making up Toyota Tsusho’s “Global 2020 Vision,” the Tsusho has undertaken important CSR issues and has struck regions through volunteer solicitation Union are jointly supporting specially sale of products from the disaster region. promotion of synergy in Africa through the alliance with established a track record of success. In the “Human programs 15 Toyota Group companies. designated guidance classrooms and study The fair at the Nagoya Head Office French trading company CFAO, and the strengthening of resource initiatives” section of the report, the company In 2012, 10 groups of volunteers were rooms built by the town of Sumita in Iwate featured food and sundries made at facilities CSR activities for both society and the environment in explains four points that are appropriate for promoting dispatched between May and November, Prefecture for children living in temporary for people with disabilities in Miyagi, conjunction with the globalization of business. In this way, CSR in human resources. The detailed discussion of the each group taking part in support activities housing in the town. The programs help Fukushima, and Iwate prefectures. The Tokyo Toyota Tsusho has made a resolute declaration of its respect for human rights, the promotion of diversity and for five days. The groups used the town of children who have relocated to Sumita from Head Office fair featured food products from commitment to creating and providing value beneficial to other points, however, focus mainly on domestic operations Sumita in Iwate Prefecture as their base and disaster areas recover emotionally and the cities of Kitakata and Iwaki in Fukushima solving social issues and thereby contributing to the and there is a lack of detailed discussion from a global focused their activities on the neighboring provide environments where the children Prefecture. The Nagoya fair also sold wine sustainable development of global society. perspective. For developing business in Africa in particular, cities of Rikuzentakata and Ofunato. can concentrate on their studies. This made at facilities for people with disabilities Second, Toyota Tsusho has created a CSR Activities I would like to see Toyota Tsusho refer to the central Eight volunteers from Toyota Tsusho initiative is expected to continue as long as in Aichi Prefecture. Map to strategically promote CSR and enable the guidance on human rights in ISO 26000 and take more joined the program. The volunteers received The fairs attracted a combined crowd of families are living in the temporary housing. visualization of CSR activities. The company has action to ensure respect for human rights, avoidance of prior training to gather current information about 500 employees. categorized its CSR initiatives into three areas: assistance for human rights violations, and ways to on the disaster regions and prepare Corporate Responsibility Execution Model (CSR foundation) address discrimination and the socially disadvantaged. themselves mentally for the experience. in Area 1; Social Issue Resolution Model and Local In the area of stakeholder dialogue, Toyota Tsusho Contribution Model Business in Area 2; and Social provides information through relevant articles, discloses Contribution (Philanthropic) Model in Area 3. The activities information on its website and holds meetings with taken in the three business domains of Mobility, Life & investors, while pursuing other initiatives. Going forward, Community, and Earth & Resources represent the Area 2 I would like to see the company hold stakeholder meetings Social Issue Resolution Model and Local Contribution and find ways to reflect the feedback internally while also Model Business leveraging the company’s strengths, and publishing the results in the CSR Report. This would overall this makes its very easy for stakeholders to grasp increase stakeholder trust in the company and further the scope of activities. strengthen CSR activities. Volunteers remove muck from a ditch in a residential The mayor of Sumita (second from the left) receives Food and sundries are sold at an employee cafeteria. area of Rikuzentakata. donations.

43 44 Social contribution activities

Third-party opinion Education

Supporting foreign students in Japan Basketball clinics for elementary Work experience event for Since fiscal 2011, we have provided and junior high school students Singapore children scholarships to foreign students in Japan The Fighting Eagles, Toyota Tsusho’s Toyota Tsusho Asia Pacific Pte. Ltd.(TTAP), through Japan Educational Exchanges and basketball team, holds basketball clinics our Singapore subsidiary, invited 22 children Services. Under the program, university for elementary and junior high school from the Singapore Children’s Society to students receive two-year scholarships for students. The clinics are welcomed by take part in the work experience event TT Mr. Hiroji Tanaka their junior and senior years. In fiscal 2012, local communities for promoting not only Kids. The event simulated a real work day Professor Emeritus, Tokyo College of Transport Studies the second year of the program, 14 better basketball skills, but education, for the children to nurture their curiosity and Director and Senior Researcher, Business Ethics Research Center students from 13 universities and fitness, and local exchanges. In fiscal interest in professions. representing eight countries were selected. 2012, the team coached more than 1,300 TTAP also donated a year’s worth of milk, Profile Graduated from Chuo University Faculty of Law, Section 2, and the Faculty of Economics. Following This brings the current scholarship recipients children on 21 occasions. sporting goods, and monetary donations a career at the Bank of Japan and other organizations, held professorships at Nihon University, to 28, including those who began receiving Toyota Tsusho has also held the Toyota from employees. Waseda University Graduate School, and then Rikkyo University Graduate School from 2002 to scholarships in the first year of the program. Tsusho Cup, an invitational tournament for 2006. President and professor of Tokyo College of Transport Studies from 2006 to 2013. A former member of the Ministry of Economy, Trade and Industry’s Japanese National Committee for ISO We also hold various events for the elementary and junior high school basketball Working Group on Social Responsibility and other committees. Has authored numerous books. students, including training to learn about teams, a total of 15 times, giving many general trading companies and their business, players a chance to test their skills. invitations to take part in volunteer activities with Toyota Tsusho Corporation’s CSR Report 2013 clearly Third, each of the company’s seven operating divisions employees, and student exchange events. explains the status and results of CSR initiatives the is pursuing CSR activities in their wide-ranging global company is taking throughout its organization to contribute business, and these activities are explained using local to the solving of social problems in its three main business photographs and comments from the stakeholders. The areas of Mobility (advancement of automobiles), Life & promotion of occupational safety and health management, Community (enhancement of living environments), and reduction of CO2 emissions, elimination of forced and Earth & Resources (solving environmental problems). child labor, and fair business relations with suppliers are Toyota Tsusho has published a CSR Report annually described in detail from each of the global business since 2005, and in this year’s edition, the appropriate use sites. of graphs and images and the wealth of information Fourth, Toyota Tsusho is pursuing synergy in Africa with make this an excellent report for facilitating stakeholders’ CFAO, the French trading company in which it has made a Scholarship students take part in training at Toyota Commemorative photo with elementary and junior high Children and TTAP employees enjoy the event understanding of its CSR activities. capital investment. The companies have created the Tsusho Corporation’s Tokyo Head Office. school students participating in the basketball clinic. together. ”Alliance Vision” and plan to jointly take a leadership role in Commending Toyota Tsusho for its superior efforts business success, human resources development, and First, in the management message from the President and social contributions on the African continent. The message CEO, the company’s philosophy and vision are clearly from the coordinator for this project expressed the passion Great East Japan Earthquake recovery support stated along with the main goals for fiscal 2012. the companies have for contributing to the sustainable Management has made an admirable commitment that growth of Africa. Volunteering for Disaster Area Educational support for children Fairs promote reconstruction of serves as the standard for the company’s CSR activities. Recovery Support by Toyota Group in temporary housing in Sumita, disaster region Among the praiseworthy activities are the contributions to Expectations on future initiatives The Toyota Group is providing ongoing Iwate Prefecture The Nagoya and Tokyo head offices held solving social problems through the three business domains Through the development of its global business, Toyota support for the reconstruction of the disaster- Toyota Tsusho and the Toyota Tsusho Labor fairs in December 2012 to promote the making up Toyota Tsusho’s “Global 2020 Vision,” the Tsusho has undertaken important CSR issues and has struck regions through volunteer solicitation Union are jointly supporting specially sale of products from the disaster region. promotion of synergy in Africa through the alliance with established a track record of success. In the “Human programs 15 Toyota Group companies. designated guidance classrooms and study The fair at the Nagoya Head Office French trading company CFAO, and the strengthening of resource initiatives” section of the report, the company In 2012, 10 groups of volunteers were rooms built by the town of Sumita in Iwate featured food and sundries made at facilities CSR activities for both society and the environment in explains four points that are appropriate for promoting dispatched between May and November, Prefecture for children living in temporary for people with disabilities in Miyagi, conjunction with the globalization of business. In this way, CSR in human resources. The detailed discussion of the each group taking part in support activities housing in the town. The programs help Fukushima, and Iwate prefectures. The Tokyo Toyota Tsusho has made a resolute declaration of its respect for human rights, the promotion of diversity and for five days. The groups used the town of children who have relocated to Sumita from Head Office fair featured food products from commitment to creating and providing value beneficial to other points, however, focus mainly on domestic operations Sumita in Iwate Prefecture as their base and disaster areas recover emotionally and the cities of Kitakata and Iwaki in Fukushima solving social issues and thereby contributing to the and there is a lack of detailed discussion from a global focused their activities on the neighboring provide environments where the children Prefecture. The Nagoya fair also sold wine sustainable development of global society. perspective. For developing business in Africa in particular, cities of Rikuzentakata and Ofunato. can concentrate on their studies. This made at facilities for people with disabilities Second, Toyota Tsusho has created a CSR Activities I would like to see Toyota Tsusho refer to the central Eight volunteers from Toyota Tsusho initiative is expected to continue as long as in Aichi Prefecture. Map to strategically promote CSR and enable the guidance on human rights in ISO 26000 and take more joined the program. The volunteers received The fairs attracted a combined crowd of families are living in the temporary housing. visualization of CSR activities. The company has action to ensure respect for human rights, avoidance of prior training to gather current information about 500 employees. categorized its CSR initiatives into three areas: assistance for human rights violations, and ways to on the disaster regions and prepare Corporate Responsibility Execution Model (CSR foundation) address discrimination and the socially disadvantaged. themselves mentally for the experience. in Area 1; Social Issue Resolution Model and Local In the area of stakeholder dialogue, Toyota Tsusho Contribution Model Business in Area 2; and Social provides information through relevant articles, discloses Contribution (Philanthropic) Model in Area 3. The activities information on its website and holds meetings with taken in the three business domains of Mobility, Life & investors, while pursuing other initiatives. Going forward, Community, and Earth & Resources represent the Area 2 I would like to see the company hold stakeholder meetings Social Issue Resolution Model and Local Contribution and find ways to reflect the feedback internally while also Model Business leveraging the company’s strengths, and publishing the results in the CSR Report. This would overall this makes its very easy for stakeholders to grasp increase stakeholder trust in the company and further the scope of activities. strengthen CSR activities. Volunteers remove muck from a ditch in a residential The mayor of Sumita (second from the left) receives Food and sundries are sold at an employee cafeteria. area of Rikuzentakata. donations.

43 44 130730_1720_ishikawa

Trading network and key management indicators

Trading network of Toyota Tsusho and overseas subsidiaries Japan Asia and Oceania North America Europe Other areas

Subsidiaries and affiliates by segment (as of March 2013) Net sales Operating income

Japan Asia and Oceania North America Europe Other areas Total (¥ billion) (¥ billion) 8,000 150 Metals Division 19 44 14 8 6 91 Global Production Parts & Logistics Division 3 28 13 4 2 50 6,286.9 6,304.3 115.8 6,000 5,743.6 5,916.7 Automotive Division 4 85 0 40 115 244 5,102.2 100 92.4 91.0 85.2 Machinery, Energy & Project Division 52 53 78 28 5 216 4,000 Chemical & Electronics Division 24 67 9 28 34 162 55.5 Food & Agribusiness Division 17 15 4 2 2 40 50 2,000 Consumer Products & Services Division* 29 34 3 0 3 69 Administrative Division and local subsidiaries 3 22 16 14 9 64 0 0 Total 151 348 137 124 176 936 2008 2009 2010 2011 2012 (FY) 2008 2009 2010 2011 2012 (FY)

Segment sales Regional sales Net income Number of employees Non-consolidated Consolidated Food & Agribusiness Consumer Products & Services* Europe Other areas (¥ billion) (persons) 80 50,000 48,336 290.2（4.6%） 278.1（4.4%） 327.9（5.2%） 176.1（2.8%） 66.2 67.4 North America 40,000 Metals 60 503.6（8.0%） 33,845 Chemicals & 1,694.1（26.9%） 29,832 31,081 47.1 30,000 27,909 Electronics 2012 2012 40.2 40 1,324.8（21.0%） Total Global Production Total Parts & 27.3 20,000 6,304.3 Logistics 6,304.3 (¥ billion) (¥ billion) 20 678.5（10.8%） 10,000 Machinery, Energy & 2,530 2,548 2,745 2,850 2,863 Project Automotive Asia and Oceania Japan 0 0 1,253.4（19.9%） 781.9（12.4%） 1,475.9（23.4%） 3,820.6（60.6%） 2008 2009 2010 2011 2012 (FY) 2008 2009 2010 2011 2012 (FY)

* On April 1, 2013, the Japanese name of the Consumer Products & Services Division was changed, however the English name remains unchanged. 45 46

P45 P46 130726_0933_ishikawa

Trading network and key management indicators

Trading network of Toyota Tsusho and overseas subsidiaries Japan Asia and Oceania North America Europe Other areas

Subsidiaries and affiliates by segment (as of March 2013) Net sales Operating income

Japan Asia and Oceania North America Europe Other areas Total (¥ billion) (¥ billion) 8,000 150 Metals Division 19 44 14 8 6 91 Global Production Parts & Logistics Division 3 28 13 4 2 50 6,286.9 6,304.3 115.8 6,000 5,743.6 5,916.7 Automotive Division 4 85 0 40 115 244 5,102.2 100 92.4 91.0 85.2 Machinery, Energy & Project Division 52 53 78 28 5 216 4,000 Chemical & Electronics Division 24 67 9 28 34 162 55.5 Produce & Foodstuffs Division 17 15 4 2 2 40 50 2,000 Consumer Products & Services Division* 29 34 3 0 3 69 Administrative Division and local subsidiaries 3 22 16 14 9 64 0 0 Total 151 348 137 124 176 936 2008 2009 2010 2011 2012 (FY) 2008 2009 2010 2011 2012 (FY)

Segment sales Regional sales Net income Number of employees Non-consolidated Consolidated Produce & Foodstuffs Consumer Products & Services* Europe Other areas (¥ billion) (persons) 80 50,000 48,336 290.2（4.6%） 278.1（4.4%） 327.9（5.2%） 176.1（2.8%） 66.2 67.4 North America 40,000 Metals 60 503.6（8.0%） 33,845 Chemicals & 1,694.1（26.9%） 29,832 31,081 47.1 30,000 27,909 Electronics 2012 2012 40.2 40 1,324.8（21.0%） Total Global Production Total Parts & 27.3 20,000 6,304.3 Logistics 6,304.3 (¥ billion) (¥ billion) 20 678.5（10.8%） 10,000 Machinery, Energy & 2,530 2,548 2,745 2,850 2,863 Project Automotive Asia and Oceania Japan 0 0 1,253.4（19.9%） 781.9（12.4%） 1,475.9（23.4%） 3,820.6（60.6%） 2008 2009 2010 2011 2012 (FY) 2008 2009 2010 2011 2012 (FY)

* On April 1, 2013, the Japanese name of the Consumer Products, & Services Division was changed, however the English name remains unchanged. 45 46

P45 P46 Century Toyota Bldg. 9-8, Meieki 4-chome, Nakamura-ku, Nagoya 450-8575, Japan www.toyota-tsusho.com/english/