Sixth Auto Body Environmental Action Plan (FY 2016 ‒ 2020) ◆FY 2106 action results Action items Primary action contents and results

①Promote development of next-generation vehicles EV: Marketed the ultra-compact COMS in July 2012 and have achieved total sales of that use electrical energy 5,579 vehicles (as of March 31, 2017). HV: Marketed the Alphard, Vellfire, Voxy, Noah, Esquire, and Estima, and sold 92,000 HV in 2016. Total sales have reached 1.729 million vehicles (March 31, 2017). Low-carbon society ②Develop and commercialize lightweight technology for Action: Development and commercialization of weight reduction technologies, and activities for weight improving vehicle fuel efficiency reduction in development projects Results: Achieved the development project weight targets. Achieved 100% of the weight targets for the new model Coaster.

③Further introduce and promote recycle design that • Efforts to achieve target dismantling time with 2 methods: manual dismantling and dismantling using considers effective resource use a nibbler → Achieved targets for all development vehicles. (Target disassembly times: Manual dismantling = Same or less than previous models, Nibbler method = 21 minutes or less for all models) • Selection of parts and adoption of parts in cosideration of using market waste plastics and other Recycling-oriente recycled materials shall be considered. d society Product environment ④Promote new businesses to invest in building a • Developed the TABWD* flame retardant injection molding material that uses fine wood fibers. recycle-oriented society Used in the wire harness protectors of the Alphard/Vellfire hybrid models and LC. *TABWD: Toyota Auto Body WooD Plastic

⑤Reduce life-cycle burden on the environment • In cooperation with Toyota, conducted a vehicle environmental assessment (ECO-VAS) of model through active planning toward Toyota ECO-VAS* change vehicles and new model vehicles. Management ECO-VAS: System for comprehensive evaluation of environmental impact from production through use and scrapping

⑥Reduce CO2 emissions from production activities • Energy conservation measures resulting from innovations in product specifications and manufacturing methods at model changes and process renovations. • Identification and implementation of energy-saving items based on energy conservation diagnosis

Low-carbon Region Item Reference year Target (FY 2020) FY 2016 result

society Global Per-vehicle CO2 emissions FY 2001 17% reduction 22% reduction

Toyota Per-vehicle CO2 emissions FY 2001 17% reduction 20% reduction Auto Body CO2 emissions FY 1990 10% reduction 6% reduction

⑦Reduce waste materials and make effective use of resources in production activities • Reduction of paint scraps, wastewater contamination, and other waste from production activities. Item Reference year Target (FY 2020) FY 2016 result Recycling-oriente Amount generated FY 2008 9% reduction 17% reduction d society Waste materials per vehicle

Production environment Waste materials: Waste materials recycled for charge, incinerated, or disposed of in landfill

⑧Reduce paint VOC* in production activities • Reduction in VOC by improving painting efficiency at painting process, reducing paint and cleaning thinner, and other improvements Society that lives (VOC: Volatile Organic Compounds) in harmony with Item Reference year Target (FY 2020) FY 2016 result nature Body painting Emissions per FY 1998 68% reduction 72% reduction VOC painted unit area

⑨Contribute to society through activities for • Expansion of forest-maintenance activities → 32 hectares of forest owned by were preservation of biodiversity thinned (965 trees) by the Toyota Auto Body Group (all 7 companies). Society that lives • Successfully trained 2 forest-maintenance leaders and took steps to make activities independent. in harmony with • Conducted environmental learning classes (July, August) using the biotope and other resources at nature Fure-Ai Park for local residents, students of nearby elementary schools and kindergartens, and employees, and utilized the park as a venue for instruction for environmental preservation with society Cooperation technologies and announcement of research results.

⑩Promote and enhance consolidated environmental • Conducted information sharing and activities for lateral application of improvements through regular management liaison meetings with overseas companies. • Conducted on-site investigations of the actual conditions of energy conservation activities, and promoted activities for reducing energy consumption when not operating. • Handling of new restricted chemical substances in each country: Expansion to old-model supply parts due to expansion of deca-BDE restrictions → Completed. • Handling of restricted chemical substances in vehicle PJT: No restricted substances in any models or registration in the IMDS was completed. • Support for management systems at overseas subsidiaries (Asia): Measures for expanding application in the Asia region Management ⑪Promote further coordinated environmental activities • Adopted thorough chemical substance management for reliable use of raw materials and auxiliary with suppliers materials that do not contain substances banned by Toyota. • Conducted activities to request observation of and ensure understanding of environmental preservation items by construction agents.

⑫Promote and achieve environment education • Conducted training for each level and environment e-learning (June). Environmental management

⑬Achieve active disclosure of environmental • Issued the CSR report (posted on the homepage on June 9). information and communication activities • Held community conferences: Fujimatsu, Inabe, Yoshiwara Plants. Production Environment Performance Results

■Reducing of Waste (kg/vehicle) 20 Amount of waste materials per vehicle We are promoting improved yields on the production 15.4 line as well as activities to effectively use resources, 14.3 ～～ 13.1 such as countermeasures to the source of emissions 12.9 12.8 12.8 and reducing use of packaging materials in logistics. 10 (1)Reduction of paint waste and wastewater sludge in production activities (2)Detailed separation and recycling of metal composite parts ～～ 0 '08 '12 '13 '14 '15 '16 (FY)

(g/ｍ2) ■VOC Reductions 100 VOC emissions per unit of body In order to maintain a clean atmospheric environment, we 100 painted surface area are promoting a reduction of VOC (Volatile Organic Compounds) in coordination with our suppliers of ～～ materials and parts. We are also grasping SOC use and assessing risks, as well as switching to substances that 50 32.5 burden the environment less or using less of such 30.3 26.3 27.5 27.7 substances.

(1)Improvement of paint adhesion efficiency and ～～ reduction of paint usage volume by making 0 the paint film thickness appropriate '98 '12 '13 '14 '15 '16 (FY) (2) Reduction of purge thinner usage volume and improvement of thinner recovery ratio

(Thousands ■Reduction of logistics CO2 emissions tons CO2) Logistics CO2 emissions 15 We are continuing to work for improved loading 9.9 efficiency in parts shipments between plants, reduced 10 numbers of shipments, shorter routes for internal part 5.9 6.1 6.1 5.7 5.6 transport, changing to electric lifts, and other improvements. 5

0 ～～ '01 '12 '13 '14 '15 '16 (FY)

■Reducing the amounts of packaging

materials used ｔ ( ) Amounts of packaging materials used Bumper packaging materials account for approximately 3 50% of all packaging materials used. We have 2.3 completed the change from cardboard to air bubble 2 sheets, and are continuing to work to reduce the 1.3 amounts of packaging materials that are used. 1.2 1.1 1.0 1.1 1 ～～ 0 '01 '12 '13 '14 '15 '16 (FY)