DURING OUR 50 YEARS IN NORTH AMERICA, Toyota has tried to do more than just sell cars and trucks. We have strived to make a contribution to society through economic growth and job creation, philanthropic activities, and environmental stewardship. And, we have approached these societal initiatives by using The Toyota Way.
The Toyota Way provides us with a means for our mission and vision to be achieved. It provides a way of thinking and acting for employees around the world that can be applied in different societies where we do business. It is also the key to how we understand and act on environmental challenges. Readers will find examples throughout the report that show how our corporate philosophy is implemented at all points in our organization.
We use The Toyota Way to continuously improve our processes and products, to listen and build trust, and to respect and empower the individual and the team. There are two values that act as pillars to The Toyota Way, and five related practices. The two pillars are “continuous improvement” — we always work to improve; and “respect for people” — we value individuals and good teamwork. The five practices are evidenced in different sections of this report. They are:
- Challenge: To build a long-term vision and meet challenges with courage and creativity.
- Kaizen: To continuously improve our business operations, always striving for innovation and evolution.
- Genchi Genbutsu: To always go to the source to find the facts and make correct decisions; to build consensus and expeditiously achieve our goals.
- Respect: To respect others and the environment, to build trust, and to take responsibility.
- Teamwork: To stimulate personal and professional growth, maximize individual and team performance.
We welcome challenge because it forces us to rethink fundamentals and it prompts innovation and creativity. It also insists that we take a long-term view, do our research, and be bold and creative in seeking solutions. In environmental terms, examples of this can be seen in our development of eco-plant plans for new plants, and in our commitment to the development of hybrid technology.
Figure A (below) illustrates environmental coordination and management for Toyota in North America. Our North American Environmental Committee (NAEC) and its associated working groups serve to implement our corporate principles, establish strategy and policy in North America, and generally coordinate Toyota’s environmental activities in North America. The committee comprises the Chief Environmental Officer from each North American affiliate, as well as key executive coordinators from Toyota Motor Corporation in Japan. The committee’s working groups comprise environmental representatives from each North American affiliate. The NAEC oversees development of the consolidated Five-Year North American Environmental Action Plan and the publishing of this report. In addition, each of Toyota’s North American affiliates has established an individual environmental governance and management structure.
TOYOTA’S GUIDING PRINCIPLES AND EARTH CHARTER
Toyota’s seven Guiding Principles serve as the fundamental management policy for all our operations. The principles reflect Toyota’s commitment to providing clean, safe and innovative products, while respecting the environment and culture of the local communities in which we operate. The Guiding Principles have been updated to integrate two additional commitments: Our “Global Vision 2010” and our “Contribution to Sustainable Development” — a commitment at the highest level to environment, economy and society. These can be viewed at www.toyota.co.jp/en/vision/sustainability. Our Guiding Principles also form a foundation for Toyota’s Earth Charter (please see Figure B below).
ENVIRONMENTAL IMPACTS AT ALL POINTS
OF THE VEHICLE LIFE CYCLE
We think holistically about environmental impacts at each life cycle stage, across all aspects of our business. Automobile environmental impacts can range from climate change and dwindling natural resources to smog, noise and water pollution. If the automobile is to remain beneficial to societies and economies, we need to consider its impacts in development, production and logistics, use, and in disposal and recycling. Based on our understanding of the full vehicle environmental life cycle, and on feedback from experts within and outside Toyota, we have identified six environmental areas that we consider to be most material to our environmental footprint, and these structure this report (please see Figure C below).
Our five-year Environmental Action Plan is presented in Figure D below. The Action Plan is structured around six key environmental areas, with several goals that address our impacts. Each goal has one or more targets that were established to ensure progress toward the goal.
This report describes the progress we have made in the first year of this five-year Action Plan. The status of many of our targets is “In Progress”; we will continue to work toward the achievement of these targets over the next four years.
