Environmental Aspects Production and Logistics Production In FY2004, Toyota achieved its reduction goals in CO2, completed the fouryear plan to implement measures to prevent soil and groundwater contamination by oil leakage, and took comprehensive risk management steps, including actions to achieve zero non-compliance and zero complaints. Furthermore, Toyota created its Fourth Toyota Environmental Action Plan, with the goal of becoming No. 1 in production environment efficiency by FY2010. Yasuhito Yamauchi Production Environment Committee Chairman Yasuhito Yamauchi joined Toyota in 1968 and has gained experience in a wide range of engineering, production engineering and production areas. He became a Managing Director in 1999, while also serving as the chairman of the Plant Production Environmental Subcommittee and the Overseas Production Environmental Subcommittee. He was appointed a Senior Managing Director in 2001 and has been the Chairman of the Production Environment Committee since 2003. In June 2005, he was appointed President of Aisin Seiki Co., Ltd. In the areas of production and logistics, Toyota continued to take action in FY2004 focusing on the prevention of global warming, reduction of substances of concern, reduction of waste, and conservation of resources, including water. Toyota was able to achieve most of its goals in these areas, through the steady, joint efforts of the production engineering divisions and plants. The achievement of these goals by Toyota Motor Corporation (TMC) alone is not sufficient; group companies subject to consolidation all over the world must take similar actions. Taking action to ensure legal compliance and completely eliminate complaints from the surrounding communities is also important. Toyota is committed to further enhancing its environmental initiatives through the participation of all employees, based on the powerful leadership of company executives at all of its business entities worldwide, including TMC. Organization Chart (Positions and areas of responsibility as of March 2005) Production Environment Committee Chairman: Senior Managing Director Yasuhito Yamauchi Established in 1963 Discusses and determines important issues for environmental preservation in procurement, production and logistics areas, and promotes comprehensive environmental protection measures Production Environment Technology Subcommittee Conducts technological development focusing on environmental measures at the pollution source of production equipment and plans measures for equipment Overseas Production Environmental Subcommittee Promotes transfer of environmental preservation technology to overseas businesses Plant Production Environmental Subcommittee Conducts environmental preservation at all plants and housing works Environmental Manager by Region (Plant General Manager) Environmental Preservation Secretariat by Plant Production Environment Logistics Subcommittee Promotes reductions in environmental impact caused by logistics 30 Volume of Resources Input and Volume of Substances Released In the production area, Toyota uses many types of resources and energy, and releases such things as CO2 and waste. The logistics area also releases CO2 during the course of transporting completed vehicles and parts. The figure on the top of the next page shows the volumes of resources and energy input and the volume of substances released in FY2004 in production and logistics processes. A total of 1.67 million tons of raw materials and supplementary materials, 34.5 x 106GJ of energy in the form of electricity and fuel, etc., and 14.3 million cubic meters of water, were used at Toyota. 1.54 million tons-CO2 of greenhouse gases and 11.84 million cubic meters of water were released into the atmosphere and waterways respectively. Of 546,000 tons of the total volume of waste generated and not processed by Toyota, 540,000 tons was reused as recyclable resources in the form of raw material for steel, and 6,000 tons was disposed of in landfills. In logistics, CO2 emissions during the transport of 3.5 billion ton-kilometers of completely built units and parts amounted to 285,000 tons-CO2. Production Environment Management FY2004 Goals • Promotion of measures to prevent soil and groundwater contamination • Expansion of best practices to prevent abnormalities1 and complaints that occurred at other plants Plant EMS Internal Audits In FY2004, Toyota conducted internal audits at eight of its plants and housing works, and the results satisfied ISO 14001 requirements. On-site follow-up audits conducted three to six months later verified Environmental & Social Report 2005 Volume of Resources Input and Volume of Substances Released into the Environment from 10 Production Plants and Logistics in FY2004 Gases emitted into the atmosphere Input Volume of greenhouse gases2 emitted (1,538.7 thousand tons-CO2) CO2: 1,535.5 thousand tons Gases other than CO2: 3,200 tons Volume of substances subject to PRTR (3,000 tons) CO2 emissions (285,000 tons-CO2) Gases emitted into the atmosphere Production Process Press Painting Welding Engines Casting and Forging Machine Processing Transmissions, etc. 1. GJ (giga joule) = 10 J 2. Greenhouse gas types Six types: CO2, CH4, N2O, HFC, PFC, SF6 3. Includes the ash generated from incinerators during recovery of thermal energy at Toyota Input Assembly 9 Thermal recovery Volume recovered as thermal energy by Toyota (8,600 tons) 1. Abnormalities: Legal non-compliance, accidents and “near-miss” accidents Production Engineering EMS Internal Audits Toyota conducted internal audits at its nine divisions related to production engineering responsible for facility planning, focusing on the status of (1) legal compliance (notice to authorities), (2) prevention (environmentally conscious designs), and (3) environmental performance improvement (production process improvements), all of which are goals of the Production Total transportation volume in Japan (3.5 billion ton-kilometers) Volume of wrapping and packaging materials (49,400 tons) Volume of waste generated and not processed by Toyota Total volume of waste generated (546,000 tons) Volume reused (540,000 tons) Final volume disposed of (6,000 tons)3 Volume of substances subject to PRTR (300 tons) Released into waterways Total amount of wastewater (11.84 million m3) Volume of substances subject to PRTR (14 tons) that all of the improvement requirements identified by the main audits had been satisfied. In FY2005, in an effort to not only satisfy but go beyond the ISO requirements, Toyota is switching to an auditing method that determines whether the PDCA cycle is effectively functioning in three key areas: (1) Legal compliance (zero abnormalities and complaints), (2) Prevention (risk minimization), and (3) Environmental performance improvement (No. 1 in the world, No. 1 in each region). The new audits will also continue to include as important auditing items “addressing issues raised in the past at each plant,” “comprehensive daily management of facilities to prevent soil and groundwater contamination,” and “propagation of the best practices of other plants to prevent abnormalities and complaints.” Environmental Aspects Logistics Total materials volume input (1.67 million tons) Amount of materials reused in automobile production processes of Toyota (390,000 tons) Total energy consumption (34.5 x 106GJ)1 Renewable energy consumption (Wind power generation: 258GJ) Water consumption (14.3 million m3) Volume of substances subject to PRTR (17,000 tons) Volume of substances subject to PRTR disposed of at landfills within business sites (5 tons) Engineering EMS. Follow-up audits verified that all of the improvement requirements identified by the main audits had been satisfied. In FY2005, Toyota plans to conduct audits to assess how firmly the improved systems have been established, with a particular focus on legal compliance and the elimination of environmental accidents. Collaboration between Plant EMS and Production Engineering EMS Plant EMS Zero abnormalities and complaints Risk minimization No. 1 in the world, No. 1 in each region Three Key Areas of Production Environment Legal compliance Notice to authorities Prevention Environmentally conscious designs Environmental performance improvements Production process improvements Production Engineering EMS Legal Compliance Activities Achieving Zero Abnormalities and Complaints In this area, Toyota continued to expand implementation of best practices to prevent 11 kinds of potential complaints and 77 actual cases of abnormalities, complaints or “near-miss” accidents2 identified during a four-year period (1999 - 2002). Examples of “near-miss” accidents included oil release into storm drains from oil-contaminated pallets left outdoors, oil leakage onto intra-facility roads from poorly maintained vehicles, and noise from loading operations. By the end of March 2005, use of the best practices was expanded to all departments that could benefit from the shared information. 2. Near-miss accidents: Potentially high-risk incidents that did not lead to actual accidents Identification of New Issues and Respective Responses When Toyota established clear internal standards for infrequent and non-constant noise and reevaluated the situation, it identified eight cases of concern, including parts-loading noise at the engine-shipping docks. Toyota will take the necessary measures to rectify the situation by the end of FY2005. Similarly, Toyota intends to examine enhancing its in-house offensive odors standards. 31 Environmental Aspects Production and Logistics Integrating Power Supply and Maintenance Allows Centralized Monitoring The Power Supply and Maintenance Center located at the Motomachi Plant (Toyota City) not only manages power for 12 plants, but also manages activities to prevent abnormalities and complaints through the use of monitoring cameras and special sound detection microphones. Several cameras are installed at wastewater treatment facilities, chemical storage locations and smokestacks, which have a high potential for environmental contamination, allowing monitoring of these sites on video displays. In some locations where plants are close to residential areas, microphones are installed, and if a noise level exceeding the standard is detected, the operation in question is immediately stopped. Central management of operations status at 12 plants Preventive Measures Reporting and Storing Devices Containing PCB In FY2004, Toyota reported to the government on its storage of the same number of transformers and condensers (5,247) that contain PCB (polychlorinated biphenyl) as in FY2002. Toyota continues to safely store these devices in accordance with the standards specified by law to prevent leakage and soil contamination. Soil and Groundwater-related Measures Toyota completed the soil remediation measures in FY2001 that it had been carrying out at six plants. In terms of groundwater contamination prevention, Toyota completed an effluent-prevention measure in 1997 which involved the digging of barrier-type wells and has continued groundwater remediation using pump and treat technology. Toyota reports levels of trichloroethylene to the government, as well as to local councils in the surrounding communities. 32 Trichloroethylene Measurement Values in FY2004 Environmental standard: 0.03 Unit mg/l Plant Levels in groundwater Honsha Less than 0.002 - 1.570 Motomachi Less than 0.002 - 1.080 Kamigo Less than 0.002 - 0.462 Takaoka Less than 0.002 - 0.748 Miyoshi Less than 0.002 - 0.454 Tsutsumi Less than 0.002 - 0.926 *Measurements are taken at all plants and housing business sites *Has not been detected in plants other than those listed (at the three housing business sites, measurements began in 1997) *The level has a range since each plant includes multiple measurement points Prevention of Soil and Groundwater Contamination by Oil Leakage Toyota implemented actions to prevent soil and groundwater contamination by oil leakage in accordance with a four-year plan that began in 2001. Toyota has adopted all of the actions of the plan, including dualwalled structures for underground pits, storage tanks and oil grooves as well as facilities for monitoring on a daily basis. In the future, prevention through daily monitoring will be strengthened. Toyota plans to firmly establish the practice of daily monitoring by checking its implementation status through Plant EMS audits. Actions to Prevent Soil and Groundwater Contamination Physical measures Visibility measures • Relocation to above ground • Dual-walled structure • Double-layer structure • Fluid level monitoring • Alarms Future actions Implementation of daily monitoring EMS internal audits Communication with Surrounding Communities Each of Toyota’s plants and housing works holds a community council meeting once a year to communicate Toyota’s environmental initiatives and engage in dialog with people in the surrounding communities. In FY2004, all plants and housing works held their community council meetings between October and December. At these meetings, Toyota explained its methods for managing chemical substances, reported on environmental conditions around the plants, and exchanged relevant opinions. Some local community members expressed their concern about hazardous substances in the event of an earthquake. Prevention of Global Warming FY2004 Goal Reduce total CO2 emissions volume per year to 1.57 million tons or less Toyota had established a goal of keeping the combined total CO2 emissions from its 10 plants to 1.57 million tons or less. Through the dedicated efforts made jointly by all of the plants, the actual emission was 1.54 million tons, enabling Toyota to meet the goal. Beginning in FY2005, Toyota plans to expand its goal to cover offices, research facilities, etc. in addition to plants, and promote energy conservation in these facilities as well. CO2 Reduction by Increased Efficiency and Streamlining of Power Supply Infrastructures To further improve its power efficiency and streamline its power supply infrastructures, Toyota believes it is important to (1) Increase energy conversion rates and reduce supply loss, and (2) Computerize the operation and inspection of power facilities. In order to achieve these goals, Toyota has been taking comprehensive steps. First, Toyota worked on computerization and reducing energy supply loss. Until recently, the running of power supply facilities used to depend on operators’ intuition and expertise gained from years of experience. However, because these operators focused too much on actions to handle sudden problems or abrupt load fluctuations, they tended to operate facilities at unnecessarily high levels. Additionally, because a wide variety of standards had been established to support the different operating modes of individual plants, effective overall operation was difficult. To resolve these issues, Toyota decided to carry out planned, efficient operations by setting a common operation standard and making energy load forecasts for the following day based on local weather forecast data and production plans. Toward this goal, Toyota developed the Power Supply Optimization System, which acts as the actual brain for controlling operations, and also took various measures such as introduction of the latest high-efficiency boilers and switching the fuel used from heavy oil to natural gas. Environmental & Social Report 2005 Company-wide Calorific Energy Use Ratio Company-wide CO2 Emissions (Energy Consumption) and CO2 Emissions per Sales Unit (including non-production areas) Kerosene 0.3% Natural gas 16.4% Electricity 61.8% (Tons/Billion Yen) Total CO2 emissions from production areas (energy consumption) 2.4 CO2 emissions per sales unit 2.2 2,0 400 2.12 0.13 1.99 1.93 0.17 1.8 291 1.76 1.6 1.85 1.84 0.17 0.17 1.68 1.67 1.80 1.78 0.18 0.19 1.62 244 224 1.4 300 1.59 200 210 200 194 ’02 ’03 ’04 0 ’90 ’00 ’01 0 Environmental Aspects A-type heavy oil 16.1% Total CO2 emissions from non-production areas (energy consumption) CO2 emissions per sales unit Butane gas 3.5% Coal 0.8% Total CO2 emissions (energy consumption) (Million Tons) Coke 1.1% (FY) Note 1: Data for housing works as well as that for non-production areas such as offices were added to the previously reported figure for the automobile production process Note 2: For facilities in non-production areas for which FY1990 or FY2000 emissions data is not available, the oldest subsequent data available is used for the graph Please see p. 82 for the CO2 conversion coefficient Purchase of Green Power Toyota concluded a Green Power Certification System agreement with Japan Natural Energy Company Limited. Based on this subcontracting agreement Toyota once again used two million kWh of windgenerated power in FY2004. Optimization of Air-conditioner Operation Control Toyota set the long-term goal of reducing CO2 emissions per airconditioner (kg CO2/unit) by half from the FY1995 level by FY2007. The two key premises for this are: (1) Reduction of energy requirements by establishing a technology to achieve optimum operation based on load forecast, and (2) Reduction of energy requirements at each plant by reevaluating the standards used for operation, control, management, and maintenance. First, Toyota optimized the operation standards, which used to rely on the intuition of operators. Then, Toyota evaluated various standards that could lead to the greatest energy savings, and created optimum standards through repeated trials and data analysis. Toyota also made many other meticulous improvements in areas such as the operation of secondary water supply pumps and the method of controlling the cooling water temperature, and as a result, successfully reduced CO2 emissions by 2,618 tons from the FY1995 level (by 44% in kg CO2/unit). Many Energy-conserving Designs Incorporated into the New Head Office Building Many techniques for reducing environmental impact were incorporated throughout the New Head Office Building, which was completed in February 2005. From the design stage, Toyota adopted 73 of the 110 environmentally sound methods designated by the Ministry of Land Infrastructure and Transport. Some of the major steps taken include load reduction, utilization of natural energy, effective use of energy, and use of ecological materials. For example, to reduce the load borne by window surfaces, the new building uses canopies to shut out the sunlight, as well as air barriers, low-e glass, and automatic control of blinds, substantially reducing the volume of CO2 emissions compared to conventional glass windows. Many other environmentally conscious steps have also been taken, including reduction of electricity requirements for lighting through the use of optical duct systems, use of floor-flow air conditioning systems, and natural ventilation utilizing the chimney effect, resulting in expected CO2 reductions of 40% over the entire lifecycle of the building compared to conventional buildings. Lighting using an optical ducts system for the employee cafeteria As a result, the new building achieved the Class S (the highest) ranking according to CASBEE,* which assesses the environmental quality and impact of buildings. *CASBEE: Comprehensive Assessment System for Building Environmental Efficiency 33 Production and Logistics Trend in Discharge Volumes of Substances Subject to PRTR at Production Plants Reducing Substances of Concern (Tons) 6,000 5,100 5,000 • Body painting process: Reduce VOC emissions to an average of 37g/m2 or less for all lines • Reduce yearly discharge volumes of toluene and xylene (substances subject to PRTR) to 2,500 tons or less Reducing VOC Emissions In FY2004, Toyota continued to promote the introduction of water-borne paints as a measure to reduce volatile organic compounds (VOC) emissions. Conversion to water-borne paints for the top coating (base coat) was completed at nearly all of the lines. Toyota also took additional actions, such as reducing paint solvent usage and increasing the recovery rate after use, and as a result, surpassed the goal for FY2004 (an average of 37g/m2 for all lines) by achieving 35g/m2. Trend in VOC Emissions Volume in Automobile Painting Process (Average of All Lines) (g/m2) Emissions volume 60 55 51 50 44 41 40 0 35 ’00 ’01 ’02 ’03 ’04 (FY) Reducing the Volume of Substances Subject to PRTR Of the substances subject to PRTR,1 toluene, xylene, ethylbenzene, and 1,3,5trimethylbenzene are found in Toyota’s production processes and account for 97% of the total volume. Toyota has been taking various steps to reduce the usage of substances subject to PRTR, including introducing water-borne paints, reducing purge solvent usage, and increasing recovery rates. As a result, the actual released volume of substances subject to PRTR was 3,000 tons in FY2004, which surpassed the original FY2005 goal (3,140 tons) one year early but fell short of the revised FY2004 goal (2,500 tons). In FY2005, Toyota is expanding the targets of reduction actions to include bodies, bumpers, and instrument panels, etc., and is determined to achieve the goal of only 2,000 tons for the year. 1. PRTR: Pollutant Release and Transfer Register Please see p. 85 for details on PRTR 34 Discharge volume FY2004 Goals 3,900 4,000 3,600 3,500 3,000 3,000 2,000 1,000 0 ’00 ’01 ’02 ’03 ’04 (FY) Recipient of the 2004 PRTR Awards Excellence Prize Toyota received the Excellence Prize in the 2004 PRTR Awards run by the Center for Environmental Information Science (CEIS). The contest is designed to encourage businesses to assess by themselves the environmental impact related to the release of chemical substances, promote sound management, and obtain the understanding of the general public. The Excellence Prize Toyota received in 2004 is given to business entities (corporations) that are proactively taking steps to manage chemical substances and communicate their risks. CEIS’ reason for giving the award to Toyota was as follows: “Toyota not only systematized its chemical substance management, but also established the Eco-Research Corporation2 to commercialize PRTR data collection work based on its own know-how, and has been actively helping other businesses that lack the necessary know-how. For these actions, Toyota should be highly commended.” 2. Eco-Research Corporation: A company that was established jointly by Toyota and Hitachi Group in March 2001 and helps other companies comply with the PRTR Law Initiatives to Conserve Resources FY2004 Goals • Reduce usage of primary raw materials by 11,000 tons or more • Limit usage of foundry sand to 21,500 tons or less • Limit usage of oils and fats to 11,100kl or less As for primary raw materials,3 Toyota implemented various measures to reduce resource loss, such as improving the yield in each production process, reducing the number of defective pieces, reducing the number of parts required, and reducing the required machining by integrating parts or redesigning parts shapes. Toyota also took steps to reduce its usage of foundry sand by, for example, expanding and consolidating the production of aluminum engine blocks. With regard to reducing the usage of oils and fats, Toyota implemented various routine measures such as eliminating where possible the need for oils in the first place by consolidating lines, preventing leakage through early detection and maintenance, and switching to reusable oils and fats. As a result, Toyota reduced its primary raw materials usage by 17,330 tons and used 11,100kl of oils and fats, thus achieving its FY2004 goals. However, the usage of foundry sand was 23,200 tons, which was 5,700 tons less than in FY2003 but fell short of the FY2004 goal. 3. Primary raw materials: iron, aluminum, etc. Changes in Reclamation Rate (%) 100 Reclamation rate Environmental Aspects 95 90 85 80 0 ’90 ’00 ’01 ’02 ’03 ’04 (FY) External recycling volume Reclamation = rate Volume of waste not processed by Toyota = Amount of recycling for a fee* + amount of recycling for free/ amount of money back recycling Volume of waste generated + amount of recycling for free/ amount of money back recycling 100 100 *Money back recycling is a case where the seller obtains a profit after accounting for transport and handling costs. Therefore, a case where no profit or payment is made after accounting for transport and handling costs is called recycling for free and a case where a payment must be made to the recycling business is called recycling for a fee. Reducing the Volume of Waste Generated FY2004 Goal • Reduce the volume of waste generated (excluding that recycled) to 12,000 tons or less (an 80% reduction from 1990) After achieving zero landfill waste4 from production plants in December 2000, Toyota achieved the same goal at its nonproduction bases in December 2003. The volume of landfill waste generated from both production plants and non-production bases in FY2004 was less than 1% of the FY1995 level, and the goal of zero landfill waste was met once again. Toyota significantly reduced the volume of waste generated in FY2004, including the portion that was recycled, through reduction measures at the source, such as reduction in the volume of industrial dust collected from casting processes and selling off scrap from grinding processes. Excluding the amount that was recycled, the volume of waste generated was 10,482 tons/year, achieving the FY2004 goal. 4. Zero landfill waste: A reduction in landfill waste generated directly by plants to less than 5% of the 1995 level Environmental & Social Report 2005 Breakdown of the Volume of Waste Generated in FY2004 (Excluding that Recycled) Overview of Waste Disposal (FY2004 Results) (Unit: Thousand Tons/Year) Coal: 11.4 RDF*: 12.9 (Excluding that recycled) 10,482 tons Incinerated at Environment Center 10.5 Combustible Paintrelated 33% 8.4 Amount reduced (Thermal recovery) 0.9 0.9 Hazardous dry cell batteries, hazardous dust, etc. Intermediary Incombustible processing by outside 0.03 subcontractor Plastic waste 21% Subcontractor 2.1 Volume of waste generated 143 Amount of recycling for a fee Volume of combustible waste Volume of landfill waste Volume of waste generated 120 80 81 86 79 66 31 22 0 80 69 40 18.2 13.5 10.5 ’03 ’04 1 ’90 ’00 ’01 Externally-controlled landfills 4.9 ’02 (FY) Reduction of CO2 Emissions Associated with Waste Disposal As part of Toyota’s efforts to promote recycling, in order to reduce the CO2 emissions associated with waste disposal, Toyota compared the volume of CO2 emitted from in-house inceneration with that from external recycling for each waste item, determining which method emitted the least CO2 for each item. As a result, Toyota was able to reduce the CO2 emissions associated with waste disposal in FY2004 by approximately 1,000 tons/year from the FY2003 level. In the future, rather than simply promoting the elimination of combustible waste, Toyota plans to pursue waste disposal methods with the least environmental impact. To handle combustible waste, Toyota has been utilizing fluidized bed boilers* and cogeneration systems, and was able to efficiently recover approximately 9,000kl/year of energy (in oil equivalent) in FY2004. *Fluidized bed boiler: Sand that is heated to high temperature is turned into a fluid state and swirled by injecting air through the boiler bed, and waste is then fed into the center. The boiler recovers the energy generated by the combustion of the waste and uses this energy to generate steam. Please see p. 85 for details on cogeneration systems Water Consumption/Air and Water Quality Data Water consumption remained basically the same as the previous year. In data accumulated by Toyota on air quality, emissions of SOx (sulfur oxides) continued to decrease. NOx (nitrogen oxide) emissions have been declining slightly because of a fuel switch from butane to natural gas. With regard to water quality data, nitrogen, phosphorus and COD whose aggregate levels in waterways are regulated, all continue to be at levels that are only 10 to 50% of those allowed by regulations. Trend in Water Consumption per Vehicle in Automobile Assembly Plants (m3/Vehicle) 6 Groundwater Tap water Industrial water 16 2.2 14 12 14.2 2.2 13.1 2.1 1.9 2.0 11.6 11.9 12.9 10 8 6 5.0 4.1 4.0 ’03 ’04 3 2 1 0 ’00 ’01 ’02 (FY) Trends in Volumes of Nitrogen and Phosphorus Emissions Included in Wastewater 3 18 5.4 4 Trend in Total Water Consumption at Vehicle Production Plants (Million m ) 20 5.4 5 (Tons) 100 Yearly emissions volumes 160 Nitrogen Phosphorus 95 83 83 80 71 59 60 40 4 2 0.2 0 ’00 0.7 0.9 ’01 ’02 0.4 0.5 ’03 ’04 20 10 (FY) 0 Trends in Emissions Volumes of Nitrogen Oxides and Sulfur Oxides NOx (Thousand m3 N) 500 NOx and SOx emissions volumes 160 Isolated landfills 0.002 Note: The details of non-combustible waste are not included because they are minuscule *RDF (Refuse Derived Fuel): Solid fuel derived from waste Volume of Waste Generated (Thousand Tons/Year) Harmless casting waste, etc. 423 426 SOx 448 300 184 174 157 148 6.3 6.9 6.1 6.8 ’00 ’01 ’02 ’03 ’04 (FY) Trend in Volume of COD Included in Wastewater 472 494 400 200 7.4 (Tons) 120 139 COD emissions volume Wastewater sludge 11% Toyota controlled landfills Ash from incinerator 5.8 Environmental Aspects Paper waste 11% Volume of Waste Generated Volume of waste generated Waste oil 7% (Excluding that recycled) Other 17% (Energy recovery through electricity generation) Fuel 110 107 104 100 96 89 90 86 100 0 ’00 ’01 ’02 ’03 ’04 (FY) 80 0 ’00 ’01 ’02 ’03 ’04 (FY) 35 Environmental Aspects Production and Logistics Vehicle Logistics Flow Logistics Ranges covered Within Japan Current The area of logistics involves transporting completed vehicles and vehicle parts throughout Japan and overseas. In FY2004, Toyota’s transport volume in Japan was approximately 3.5 billion ton-kilometers (tonnage times kilometers). Toyota promoted initiatives to achieve the action goals established by the Production Environment Logistics Subcommittee and proceeded with improvement activities. Customer Directly-shipped products Completed vehicle Procurement logistics Production parts logistics Completed vehicle In-house production plant Parts distributor in Japan Overseas distributor Parts center Service parts Production parts Logistics center (Packaging plant) Plant Imported parts Results of CO2 Reduction Actions Logistics for completed vehicles Logistics for production parts Logistics for production parts Logistics for completed vehicles Logistics for production parts Reduction of total transportation distance Logistics for production parts Topic Shift to a mode of transport with low CO2 emissions per unit Group Details Reduction in CO2 Shift to marine transport Switched the transport of engines to Kyushu from land to marine transport 2,400 tons/year Improvements in fuel efficiency Further promoted Eco Driving 3,700 tons/year Use of railway transport Expanded the use of railway transport for returning empty containers Improvements in loading rate Improved loading rate using newly designed jigs and platforms Improvements in packing rate Improved packing rate by loading multiple part types on the same pallet Improvements in loading rate Improved loading rate through deregulation of trailer height limits 2,000 tons/year Shared shipping Reduced number of voyages by sharing ship space with other companies 3,400 tons/year Improvements in loading rate Improved shipment packages for loading, etc. Other Use of Railway for Production Parts Transportation on a Trial Basis 200 tons/year 1,000 tons/year 400 tons/year 700 tons/year 15,200 tons/year Total 29,000 tons/year Please see p. 82 for CO2 conversion coefficients Since April 2005, in cooperation with Japan Freight Railway Company, Nippon Express Co., Ltd., and Toyota Transportation, Toyota has been using railway shipment, which results in less CO2 emissions than trucks, on a trial basis. In this trial usage, parts are shipped in 31-ft railway containers, utilizing the terminal stations closest to the parts centers in the Toyota district and a distant plant (Iwate Plant of Kanto Auto Works, Ltd.). 36 Docking port Procurement logistics Logistics center Best Practice 1 Supplier Completed vehicle Supplier • Reduce CO2 emissions to 268,000 tons or less (reduce CO2 emissions by 14,300 tons or more) Promotion of Modal Shift Toyota has been promoting a modal shift to marine transport and railway transport, which emit less CO2 per unit of operation. In FY2004, Toyota switched the shipment of engines bound for Kyushu to marine transport and also switched the shipment of empty shipping cargo containers from Kanto district to railway transport. In addition to these conventional approaches, Toyota also began using railways to ship production parts on a trial basis in order to expand the use of railway transport. Customer (assembly unit) FY2004 Goal In the area of logistics, Toyota’s initiatives to reduce total CO2 emissions during the transport of completed vehicles and parts include improving loading rates, sharing ship space with other companies to increase shipping efficiency, shifting to more efficient modes of transport, achieving a modal shift, and increasing fuel efficiency. As a result, CO2 emissions decreased by 29,000 tons in FY2004, achieving the reduction goal. However, an increase in the volume of production and a shift of production sites to distant locations (Kyushu and Tohoku districts) increased the total transportation volume and distance, resulting in a total CO2 emission volume of 285,000 tons. Overseas Japanese dealer Body manufacturer Shipping port CO2 Emissions Reduction Activities in Japan and their Results Promote enhancement of the management system Toyota’s Modal Shift Framework Parts plants in Toyota district NishiHamamatsu Station Morioka Cargo Terminal Station Iwate Plant of Kanto Auto Works, Ltd. The use of railway transportation is expected to reduce CO2 emissions by approximately 1,000 tons/year compared to truck transportation and by approximately 200 tons/year compared to marine transportation. Environmental & Social Report 2005 Reducing Packaging and Wrapping Materials FY2004 Goal • Reduce usage to 47,000 tons or less (reduce usage by 1,500 tons or more) To reduce the volume of packaging and wrapping materials, Toyota took actions such as reducing the material volume at the source, through cooperation between the logistics and design departments, and implementing pinpoint wrapping, which involves wrapping only those areas of parts that require protection to preserve their quality. As a result, Toyota achieved its reduction goal of 2,500 tons. However, the increase in logistics operations resulted in a total volume of 49,400 tons. Environmental Aspects Toward Global Expansion With the implementation of the Kyoto Protocol in February 2005, the necessity for cooperation between companies and their shipping service providers in reducing CO2 emissions is increasing. An example of such cooperation in Japan is the Green Logistics Partnership Conference in the transport sector. Toyota’s Logistics Division has been reducing CO2 emissions at an annual rate of 19,000 tons over the last three years (7% a year*). Based on these results, we plan to set an even higher goal in Japan and take innovative actions to achieve it. Additionally, we need to strengthen our initiatives from a global perspective and incorporate Toyota’s best practices from Japan at overseas sites. Toyota is committed to continuing to take the necessary actions and remaining the leader in logistics-related environmental initiatives as well, both in Japan and overseas. Takeshi Uchiyamada Chairman of Production Environment Logistics Subcommittee Executive Vice President since June 2005 *CO2 reduction rate: Calculated according to logistics volume based upon the production and sales plan In this improvement example, the logistics department participated at the packaging-shape planning stage, which led to modifying the package to a shape that is easier to transport. Toyota changed the delivery format for air conditioner condensers, which used to be delivered with six attachment hooks. These attachment hooks have now been removed, resulting in a switch to the delivery format of individual packaging boxes of reduced height. This improvement resulted in a 10% (0.6 tons/year) reduction in packaging material usage. Delivery format with attachment hooks Attachment hooks are stored in the gaps and the cushioning material thickness has been reduced Results of Reducing Packaging and Wrapping Materials Group Topic Logistics for production parts Improved Packaging Boxes for Air-conditioner Condensers Increasing the use of returnable containers Logistics for service parts Best Practice 2 Increasing the use of returnable containers Streamlining Details Reduction • Expanded use of returnable plastic boxes 500 tons/year • Change of packaging specifications • Conversion of individual packaging boxes for bumpers to returnable types • Size reduction in packaging boxes for navigation and audio systems 2,000 tons/year Total 2,500 tons/year Enhanced Environmental Management Global Developments In addition to continuing its supervisory actions in Japan, in FY2004 Toyota began assessing actual monthly emissions from logistics operations for both completed vehicles and service parts in North America, and for production parts, completed vehicles, and service parts in Europe. In the future, Toyota plans to expand the regions involved, and advance its goalbased management activities. Change in the Calculation Method for CO2 Emissions In order to correctly evaluate the results of these actions and calculate CO2 emissions volume, Toyota is reassessing the calculation method being used. Toyota is currently using the ton-kilometer method, which calculates CO2 emissions volume by multiplying the load volume by the distance driven and a CO2 conversion coefficient. By switching from this method to the fuel method, which calculates CO2 emissions based on the actual volume of fuel consumed, by the end of FY2005 Toyota plans to more accurately assess its CO2 emissions volume and promote further reduction. Activities at Logistics Centers (Zero Complaints from Local Communities) Toyota employees at the Kamigo Logistics Center, Inazawa Parts Center, Oguchi Parts Center, Tobishima Logistics Center, and Nagoya Wharf Center are all proactively taking the necessary preventive measures in terms of preserving water quality and limiting noise. Each site continually checks for oil leaks at truck parking lots to prevent oil leakage, monitors wastewater quality, and measures noise levels in the surrounding areas. As a result, in FY2004, there were no problems or complaints at any of the sites. 37