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Our Sustainability Context 4 | Toyota Sustainability Report 2020 Toyota Sustainability Report 2020 | 5 Our sustainability context The automotive industry is experiencing a pivotal transition, propelled by Aligning to UN Sustainable Development Goals a variety of disruptive forces. Demographic trends, increased congestion in The UN Sustainable Development Goals (SDGs), agreed by 193 countries in September 2015, set out the key cities, environmental and climate impacts, are influencing how consumers challenges for the global community to address in the coming decade. These challenges include issues related interact with vehicles. Market disruptors such as rideshare services are to poverty, inequality, climate change, environmental degradation, peace and justice. growing and provide consumers with a convenient alternative to vehicle Toyota Japan is working on initiatives that contribute to the sustainable development of a global society through ownership. Technological innovations are spurring competition to achieve all its business activities. Toyota Australia business activities are aligned to these initiatives. the most environmentally sustainable and connected mobility products. Throughout the report we highlight how Toyota Australia initiatives, directly and indirectly align with particular Toyota is committed to being a leader in not just responding to, but shaping SDGs. these trends towards a low-emission mobility future. Some of the trends shaping our future direction include: Through businesses Improving value by adopting our CASE framework. Connected, Autonomous/Automated, Shared and Electric. The sharing economy Many customers are looking to the ‘sharing economy’ for mobility solutions. In cities Safe and reliable Environment in particular, more options are becoming available for short-term vehicle use, or ridesharing. These alternatives appeal to customers as affordable options that reduce Zero deaths and injuries from Zero CO2 emissions the strains of vehicle ownership in built-up areas. traffic accidents Recycling/reuse of Comfortable and congestion- resources free travels Customer preferences Accessibility to means of Online purchasing is becoming increasingly popular, and this has been accelerated transportation for all by the impact of COVID-19. However, we find that most customers still want an in- Spread of cars serving also as person interaction when purchasing a vehicle. Our dealers are the touch point for our power sources customers, and our partners in providing ideal mobility solutions for our customers. Meanwhile, our customers now live in a world of constant connectivity through devices Use of hydrogen to promote and apps that are seamlessly integrated in vehicles. energy diversification Connected, autonomous vehicles By social contribution activities Vehicles with autonomous capabilities are developing rapidly and have the potential Aiming to become a reliable corporate citizen to increase safety on the roads. While not a current reality in our product range, connected, autonomous vehicles are a constant in our forward-thinking. Life cycle environmental impacts We recognise the need to address climate change and other pressing environmental challenges. We understand how vehicles contribute to these challenges. Therefore, Toyota is driven to apply our skills in design and innovation to reduce emissions and other impacts from vehicle production, use, and end of life. Enhancing environmental, social and corporate governance Large and unique fleet market Tackling human rights issues Around half of our sales are to government and business buyers. With sustainability Promoting diversity goals of their own, these customers are important partners in accelerating the take-up of innovative vehicle technologies. How we create value What we draw on What we do The value we create Designing the future Our vehicles’ emissions (and their production and KEY TRENDS disposal) contribute to climate change and other Technological innovation Social shifts environmental impacts. In line with the Toyota Environmental Challenge, we work constantly to minimise these impacts. Through innovation, partnership, advocacy and education, we are helping Pricing landscape Climate change to realise a future of Connected cars, Autonomous/ Automated driving, Sharing and Electric (‘CASE’). Ever better vehicles We deliver the vehicles Australians need, with more Our brand Toyotas on the road than any other vehicle. Our vehicles create Toyota fans for life, because of our SECURING OUR BRAND ability to develop and manufacture vehicles with FOR TOMORROW technological features that meet the needs of our customers. Our customers and their needs are Our customers Develop mobility solutions always our focus. Help create a zero carbon society ONE Toyota MAINTAINING OUR partners, Toyota BRAND TODAY Enriching communities affiliates and our Toyota Australia is embedded in the Australian dealer network Engage with and support the community community through trust in our vehicles, and wide- ranging engagement. We support grassroots to Our people, Develop our people elite sport; local communities and not-for-profits. culture and Delight our customers with the right product Our vehicles are also involved in congestion and capabilities in the right place at the right time traffic accidents, so we constantly work towards safer vehicles and a future of equal access to mobility. Our vehicles Building capabilities We build skills and careers. Our work on building capabilities internally is reflected in our community investment, with a focus on sharing our knowhow Governance Education & with Australian not-for-profits and small businesses advocacy through the Toyota Production System Support Centre (TSSC), and building the STEM skills that we will depend on in our future employees. Partnerships ENA K R&D, Innovation BLERS: HOW WE WOR Wide-reaching economic impacts Our business is at the heart of an ecosystem of dealers, suppliers and partners. Our vehicles keep thousands of Australian businesses on the road, with a low total cost of ownership. Our community investment contributes to the not-for-profit economy. We are helping to build the skills and technologies for the economy of the future. Toyota 2019/2020 Performance Designing the future Ever better vehicles Enriching communities Wide-reaching economic impacts 100,000+ 215,722 RAV4 $2.8 million 60 years 224 Australian hybrid vehicle sales Toyota vehicle sales CarsGuide 2019 Car of the Year Community contributions Toyota operations in Australia Toyota and Lexus dealerships (cumulative) 13,501 Car Service Building capabilities Gold Winner Toyota and Lexus dealer employees Reader’s Digest Quality Service Award 2020 1,722 Toyota employees 8.29 (headcount of full-time, part-time, Dealer satisfaction index employees and contractors) Toyota 17% Hybrid RAV4 82.6 78 $129 million Australian hybrid vehicle sales (%) Drive Car of the Year Net Promoter Score – sales Employee engagement score After-tax profit 10 vehicles Ranked #1 65 $1.2 billion Hydrogen fuel cell vehicle – Most trusted automotive company – Annual Trusted Brand Survey Employee enablement score Supplier spend Mirai demonstration model Stage 1 complete 29% 1,456 Female representation in workforce Number of suppliers Hydrogen Centre 1,156kW 21 Solar capacity – Australia wide Lost time injuries Toyota Sustainability Report 2020 | 11 Our approach to sustainability Since its foundation in 1937, globally, Toyota has strived to contribute Overview of sustainability at Toyota Australia to the sustainable development of society and the planet through its business operations. It’s a principle that we have continued since Toyota Australia started in 1963 and has helped to cement our position Toyota Global Vision as Australia’s leading automotive company. Motor vehicles greatly expand the freedom of mobility. However, Toyota will lead the future Through our commitment We will meet we recognise that they also have some less desirable impacts on mobility society, enriching to quality, endless challenging goals by our society and the environment. With this in mind, sustainability is lives around the world innovation, and respect engaging the talent and embedded throughout Toyota Australia’s approach, from our vision with the safest and most for the planet, we strive to passion of people who to our Company Hoshin. responsible ways of exceed expectations and be believe there is always a moving people. rewarded with a smile. better way. Toyota Guiding Principles Toyota Way Toyota Global CSR Policy Toyota 2050 Environmental Challenge Toyota Australia Vision Creating innovative mobility solutions for all Australians 2025 Direction Mid-term Company Hoshin TMCA Environmental Business Plan Action Plan 10 | Toyota Sustainability Report 2019 12 | Toyota Sustainability Report 2020 Toyota Sustainability Report 2020 | 13 Our Guiding Principles The Toyota Way Toyota Global Corporate Social Responsibility (CSR) • Expanding the positive customer experience and The decisions we make, the way we treat our We apply these principles to every aspect of our day-to- Policy offering mobility solutions employees and customers, and our involvement in local day work through our simple framework ‘The Toyota Way’: In 2005, TMC announced the ‘Contribution toward • Leveraging our brand strengths. communities are all informed by the Toyota Guiding Sustainable Development’, an interpretation of In order to translate our vision into action, we have Principles. These principles, which have been in place Continuous improvement
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