Table of Contents Message from the President Long-term Strategy At a Glance Initiatives for Financial Information Non-Automotive Business/Corporate History Sustainable Growth Information and Stock Information Initiatives for Sustainable Growth Corporate Philosophy Making Ever-better Cars (TNGA) Taking on the Future Toyota Environmental Challenge 2050 Aiming to Be the Best in Town Ever-Better Enriching Lives Cars of Communities Employees Corporate Governance Risk Management Compliance Stable Base of Business Initiatives for Sustainable Growth About Our Tree Icon Toyota Values Toyota is implementing Visionary represents our stable base of business that Toyota strives to implement a positive cycle of making ever-better cars that exceed customer expecta- Management based on the Toyota Global supports these efforts, and the tree’s roots tions, enriching lives of communities, being rewarded with the smiles of customers and communities Vision. We use the image of a tree to sym- are the Toyota Values. and thus reinforcing its stable base of business. Through this cycle, Toyota aims to grow sustainably in bolize this approach. The fruits of the tree The tree icon in the upper right corner of are our contributions to making ever-better each page of this section shows the con- concert with society. cars and the enrichment we bring to the nection of the content presented to Even as the business environment transforms and new challenges arise, Toyota will leverage the qualities, lives of communities, the tree’s trunk Toyota’s Visionary Management. honed over time, that make it unique as it shifts to a longer term strategic perspective in order to maintain More details and enhance this positive cycle. By doing so, we will provide value to society in the forms of safety and Toyota Global Vision, p. 22 peace of mind, environmental sustainability and Waku-doki (excitement and exhilaration that wows you). Business The Value Toyota Creates Environment Elimination of Freedom of traffic accident mobilitym for everyone Changes Strategic Shifts casualtiess Safety and Individual desires/ Electrifi cation Societal demands Peace of Mind Lifestyle changes Toyota Safety Sense (Collision Avoidance Support Package) Integrated Safety Environmental Management Concept problems Fruit Fruit Welcab Ever-Better Enriching Raising awareness of road safety and ecological driving Cars Lives of Urbanization Communities Personal mobility Information Automated driving Mobility Service Platform (MSPF) ITS Connect Trunk (road/car and car/car Ever-Better Cars communications) Human Support Enriching Lives of Robot Stable Base Communities of Business Environmental initiatives Supporting sports Technological innovation Environmental Passing down Toyota Production Sustainability expertise System (TPS) Waku-doki Intelligent (excitement and exhilaration technologies Vehicle that wows you) development Zero COCO2 emissiionns Roots Toyota Values Intelligence Recycling Renewable IoT The Five Main Principles of Toyoda energy MIRAI (FCV) Prius PHV Lexus Brininggingg The Guiding Principles at Toyota thehe exce citement The Toyota Way Net popositsitiveve ofo carsc rs to societyy theth worldw Robotics Working toward in harmonony a hydrogeh society with naturere Motor sports FC buses NewNew wonwonder and exhilarex aration 20 TOYOTA Annual Report 2017 Table of Contents Message from the President Long-term Strategy At a Glance Initiatives for Financial Information Non-Automotive Business/Corporate History Sustainable Growth Information and Stock Information Initiatives for Sustainable Growth Corporate Philosophy Making Ever-better Cars (TNGA) Taking on the Future Toyota Environmental Challenge 2050 Aiming to Be the Best in Town Ever-Better Enriching Lives Cars of Communities Employees Corporate Governance Risk Management Compliance Stable Base of Business Initiatives for Sustainable Growth Toyota Values emissions to help meet the Paris Agreement* goal of sound relationships with stakeholders through open, ensure compliance, carry out social contribution Toyota’s Approach to Sustainable Growth keeping global warming below 2°C, but to have a net fair communication in order to contribute to the sus- activities and address environmental problems. positive impact on the environment. tainable development of society and the planet. As In April 2015, this framework was revised to Toyota has taken the initiative in contributing to the our businesses develop, our communications with emphasize corporate value enhancement, an * The Paris Agreement, reached in December 2015, was negotiated at sustainable development of society and the planet the 21st yearly session of the Conference of the Parties (COP 21) to stakeholders also broaden and deepen. By working approach that makes CSR an integral part of man- through all its business activities. Cars have provided the United Nations Framework Convention on Climate Change, held always hand-in-hand with stakeholders and growing agement. This change was aimed at integrating the in Paris. The agreement set the long-term goal of limiting global freedom of movement but have also had a wide together, Toyota consistently provides the three specialized CSR-focused discussions that had until warming to well below 2°C compared with pre-industrial levels and range of other social and environmental consequenc- calls for net zero anthropogenic greenhouse gas emissions to be forms of value listed above. then been confi ned to the CSR Committee into es. Toyota bears this in mind and listens closely to reached during the second half of the 21st century. broader discussions of overall management and WEB Stakeholder Engagement customers and communities as it seeks to achieve (Sustainability Data Book 2017, p. 74) business activities. To this end, the functions of the harmony between individuals, society and the global Toyota is also utilizing its strengths to help solve CSR Committee were transferred to the Corporate environment through monozukuri (manufacturing). global social problems in line with the United Nations Toyota’s Implementation Framework Planning Meeting and Corporate Governance Looking more closely at, for example, our environ- Sustainable Development Goals (SDGs), promulgat- Toyota’s implementation framework for sustainable Meeting. The Corporate Planning Meeting, under the mental efforts, we are implementing initiatives under ed in January 2016. In addition to addressing climate development includes the Corporate Planning Shareholders’ Meeting and Board of Directors, takes the Toyota Environmental Challenge 2050 as a top- change (in line with SDG 13), Toyota is working to Meeting and the Corporate Governance Meeting, a wide range of social issues into account when con- priority management issue. Specifi cally, we are work- reduce traffi c accident injuries and deaths (SDG 3) which carry out their respective activities from a long- sidering growth and business strategy. The ing to help resolve major global environmental issues, and to promote sustainable community building and term, Company-wide perspective. Corporate Governance Meeting serves to oversee including climate change, water scarcity, resource improved mobility (SDG 11). Furthermore, Toyota Toyota established a CSR Committee in October business operations and makes decisions regarding depletion and biodiversity degradation. As part of places value on all stakeholders in the management 2007 to coordinate and implement CSR activities. the governance framework under which such strate- this, we are aiming to not only achieve net zero CO2 of its businesses and strives to maintain and develop With guidance from this committee, Toyota works to gies are implemented. Helping Solve Global Social Problems Together with Our Stakeholders Implementation Framework Local communities Global society Media National and local governments Shareholders’ Meeting NPOs/NGOs Economic organizations International Board of Directors organizations Industry Waku-doki organizations Environmental (excitement and Academic Sustainability exhilaration that communities Safety and Peace of Mind wows you) Employees Research Corporate Planning Meeting Corporate Governance Meeting institutions Chairman: Chairman: Business Shareholders Executive Vice President Shigeki Terashi Executive Vice President Shigeki Terashi partners Customers b Basic corporate policy aimed at con- b Overall management of corporate tributing to sustainable development ethics, compliance and governance b Sustainable growth strategies for b Identifi cation of and response to major corporate value enhancement risk management issues b Social contribution and identifi cation of b Planning and implementation of CSR and response to environmental and activities other social issues 21 TOYOTA Annual Report 2017 Table of Contents Message from the President Long-term Strategy At a Glance Initiatives for Financial Information Non-Automotive Business/Corporate History Sustainable Growth Information and Stock Information Initiatives for Sustainable Growth Corporate Philosophy Making Ever-better Cars (TNGA) Taking on the Future Toyota Environmental Challenge 2050 Aiming to Be the Best in Town Ever-Betetterer EnrichingEEnrEnric Lives Carss offC CommunitiesCCo Employees Corporate Governance Risk Management Compliance StableStablStabtabbleleeBe BaseBaBasese offB BusinessBuussisine Corporate Philosophy Toyota Values In all of its business activities, Toyota aims to contribute to the creation of a more affl uent society and earn the trust of stakeholders as a good corporate citizen.