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Toyota is committed to reducing environmental impacts from our operations, the buildings we occupy, and from the activities of our business partners. Our environmental management approach employs leading systems and standards to address all three of these areas.

We have established Environmental Management Systems (EMSs) at our facilities to support compliance, systematically identify areas for improvement, and enable performance measurement of goals and targets in our EAP. We also consider standards from the U.S. Green Building Council’s (USGBC) Leadership in Energy and Environmental Design (LEED®) program to make our training centers, office space and headquarters campuses more sustainable. Further, we develop “Eco-Plant Plans” for new, or expansions of existing assembly plants in North America. We also promote sustainable building practices, provide guidance and conduct training for our suppliers and dealers to support their environmental management efforts.

Our performance against targets for EMSs, sustainable buildings and our work with suppliers and dealers is described in this chapter.

ENVIRONMENTAL MANAGEMENT SYSTEMS

All of Toyota’s assembly plants and logistics sites, and even some of our office complexes have an EMS certified to the international standard ISO 14001. These EMSs are an essential part of our overall effort to maintain compliance with all applicable federal, state, provincial, territorial and local requirements, as well as our own internal requirements.

To achieve leading levels of environmental performance, we fully implement our EMSs, ensuring our employees understand the overall framework and the environmental issues and legal requirements the system covers. (Target 13.1) As a result, a number of our locations received awards last year in recognition of their environmental excellence.

Our manufacturing plant in Princeton, Indiana, received its sixth Governor’s Award for Environmental Excellence and the Evansville Chamber of Commerce Award for pollution prevention and source reduction based on carbon footprint reduction. The plant assessed the highest energy-consuming systems, identified opportunities to reduce energy consumption, improve performance, and minimized environmental impacts and costs. In addition, independent energy audits were carried out to assess the efficiency of the plant’s electricity and natural gas usage. The information gained from these audits allowed the plant to establish a formal Energy Reduction Program.

Toyota has further developed the WasteDox program, an online management system designed to assist our logistics sites and affiliates with waste stream handling, such as hazardous waste profiling, Resource Conservation and Recovery Act (RCRA) and non-RCRA services, and recyclable commodity management.

Two of Toyota’s logistics sites attained ISO 14001 recertification in the past year, and all of our other participating facilities passed their internal surveillance audits for their EMSs. This allowed us to maintain ISO 14001 certification/registration at all of our North American assembly plants and logistics sites. (Targets 13.2 and 13.3)

Compliance

Through diligence and hard work, our North American logistics sites achieved their twelfth consecutive year with no hazardous materials or dangerous goods violations, and their eighth year with no monetary fines.

In regard to our assembly plants, one received an agreed order for an air permitting issue in July 2009, and we are complying with that order. Toyota received no formal complaints or Notices of Violations (NOVs) during FY2010. (Target 13.4)

A number of companies, including Toyota, have been named as potentially responsible parties (PRPs) at the Portland Harbor Superfund Site in Portland, Oregon. The remediation of the Toyota Plaza site in Torrance, California, was finalized in FY2010.

Sustainable Buildings

Part of our overall sustainability effort is to look at our assembly plants, training centers, offices and headquarters campuses for opportunities to reduce our environmental footprint. We consider LEED certification guidelines for new construction and when we remodel our facilities. (Target 13.5) LEED is a point-based program administered by the USGBC that sets standards and certifies “green” buildings. These standards include aspects such as energy consumption, water consumption and the incorporation of low-impact building materials. We have a number of sites that have been through this rigorous program, and are now LEED certified. A few of our FY2010 accomplishments in this area are described below.

Photo of Toyota training facility
Our training facility in Rancho Cucamonga, California, is certified LEED Gold for Commercial Interiors. Aspects such as building energy efficiency, use of renewable energy, and recycled construction waste led to this designation.

Our Inland Empire Training Center in Rancho Cucamonga, California, was awarded LEED Commercial Interiors (CI) Gold certification in March 2010. This Training Center was designed to serve as a satellite location to the Toyota Los Angeles Region to provide professional training for advancing technology service technicians from local dealerships. Examples of environmental and energy efficiency aspects of the Inland Empire Training Center include: priority parking for carpool and low emissions vehicles; reflective roofing material that reduces HVAC energy use and minimizes the heat island effect; 90 percent of eligible equipment is U.S. EPA Energy Star rated; more than 95 percent of all construction waste was sorted, recycled and diverted from landfill while many original building components were reused; and 100 percent of the electricity for the first two years of operation is derived from renewable sources.

Toyota’s Phoenix Training Center in Arizona was awarded LEED CI Silver certification in September 2009. Through Toyota’s Process Green initiative, the Phoenix Training Center incorporated sustainable building design features and developed innovative environmental practices to achieve the LEED CI Silver certification. Similar to the Inland Empire Training Center, this facility uses highly reflective roofing materials to reduce HVAC energy use and minimize the heat island effect. Other practices include the utilization of green cleaning products certified by Green Seal® and purchased in bulk to reduce wasteful packaging. The center has also committed to purchasing 100 percent of the electricity from renewable resources to cover the first two years of operations.

Besides our training centers, Toyota has engaged in sustainable building practices at other locations. In March 2010, Toyota Technical Center’s (TTC) York Township, Michigan campus was recognized by the USGBC with a Gold LEED certification for its commitment to environmental stewardship. This campus joins Toyota Motor Sales’ South Campus in Torrance, California, that is LEED Gold certified, and Toyota’s Washington, DC, office that is LEED CI Silver certified.

The New York City office of Toyota Motor North America, Inc. committed to renovate an existing office space to LEED CI Gold level, and our USGBC certification is currently pending. A number of sustainable building design features and innovative waste minimization practices were incorporated into this project. Achievements included:

  • Reducing water consumption by 36 percent in the existing facility;
  • Lighting power was reduced by 17 percent by installing more energy efficient lighting fixtures;
  • Cooling demands were minimized by reducing peak loads by 30 percent. More than 90 percent of equipment in the office space is U.S. EPA Energy Star rated;
  • Launching a program to recycle glass, cardboard, metal and paper;
  • Diverting more than 75 percent of construction waste from landfills;
  • Reducing transport-related greenhouse gas emissions by using materials within 500 miles of the project site;
  • Sourcing materials with a high percentage of recycled content;
  • Using materials, paints, coatings, carpet and system furniture that emit lower levels of Volatile Organic Compounds (VOCs) and other contaminants; and
  • Implementing a green housekeeping program.

Photo of Toyota office in New York City
Toyota’s New York office conformed to LEED Gold standards. Designers used materials, paints, coatings, carpet and furniture that emit lower levels of VOCs and other contaminants.

Aside from LEED certification, we have a number of initiatives that are aimed at shrinking the environmental footprint of our buildings. Our Lexus Training Center in Dallas, Texas, has transitioned from purchasing electricity from the grid to purchasing 100 percent renewable wind power. This green power effort has offset the center’s annual electricity consumption, which typically totals 188,200 kilowatt-hours. In March 2010, Toyota Motor North America, Inc. teamed with Sterling Planet, a leading retail renewable energy provider, to offset 896,704 kilowatt-hours of conventional electricity over two years with Green-e® certified Renewable Energy Certificates (RECs). These RECs come from nationwide wind resources and will be effective during the two-year term, from March 1, 2010, through February 29, 2012.

Eco-Plant Planning

Prior to beginning construction on a new assembly plant, or a major expansion of an existing plant, Toyota develops an “Eco-Plant Plan” that helps us use best available technology to minimize the environmental impacts of our operations. Each plan includes operational performance targets for energy, emissions of VOCs, waste generation and water consumption. These plans consider best practices and are tailored to local conditions. After the plans have been developed and approved, we conduct audits during the construction phase of the plant and afterward to verify that the plan has been followed.

Over the past few years we have implemented existing plans which has helped to reduce our overall environmental footprint. (Target 13.6) Recently, the Eco-Plant Plan for our facility in Blue Springs, Mississippi, was approved and finalized.

ENVIRONMENTAL MANAGEMENT WITH OUR BUSINESS PARTNERS

We recognize that our environmental footprint extends up and down our value chain — not just within our own operations. This is why we work closely with our business partners, including suppliers and dealers, on environmental management issues.

Suppliers

Toyota understands that clear guidance is a helpful tool for managing environmental issues. Our Green Supplier Guidelines, initially released in 2000, provide useful technical information on a wide variety of environmental issues. Per our most recent five-year action plan, we updated these Guidelines in January 2007. (Target 14.1)

The Guidelines emphasize that we expect our suppliers to comply with applicable laws and regulations, and conform to social norms. They also recommend that suppliers go beyond legal and social requirements, undertaking activities that support Toyota’s environmental goals. Since 2007, we have been working to ensure that the Guidelines are available to new suppliers, and have taken steps to understand how our suppliers are reducing their environmental footprint. For example, in FY2010, NAPO and TLS added the Green Supplier Guidelines to supplier contracts and are requiring information from third-party carriers regarding environmental practices, such as measures to reduce fossil fuels. Typically these measures include optimizing idle time and instituting fuel-saving driving practices.

Dealership Support

In 2009, there were approximately 1,800 Toyota, Lexus and Scion dealerships in the U.S., Canada and Mexico. Often our dealers’ biggest environmental challenge is to understand and comply with all applicable regulations and standards. Toyota has provided dealers with resources and training programs to help them comprehensively manage their environmental footprint including applicable requirements. (Target 14.2)

An example of this is our C.L.E.A.N. (Community Leadership Environmental Assistance Network) Dealer website at www.cleandealer.com. We have continued to expand this website and, in FY2010, we added a portal to support dealer questions about packaging, handling and shipping hybrid vehicle batteries for recycling. Since last year, the C.L.E.A.N. Dealer website activity has increased by nearly 60 percent. We also launched a two article AWARE Newsletter series to promote energy efficiency, which also discussed federal and local rebates available to dealerships who take the initiative to “green” their facility.

Since its launch in October 2008, the Toyota Recycling and Environmental Awareness (TREA) program, an on-line voluntary nonhazardous recycling program for U.S. dealers, has seen over 24,000 hits. In addition, in 2009, 81 percent of U.S. Toyota dealerships reported participating in a recycling program that included at least one of the following: cardboard, office paper, soft plastics, scrap metal, or used beverage containers. We are continuing to expand the TREA website to incorporate other sustainable practices for CY2011.

Building Green Dealerships

We work with Toyota and Lexus dealerships to promote green building practices. Toyota’s Image USA II program has over 30 LEED Projects in different stages of development: complete and certified, under construction, in the design and permitting phase, or in the queue for potential LEED upgrades.

We met our goal of obtaining LEED certification at eight dealerships and a certified service center by FY2010. (Target 14.3) Six Toyota dealerships have completed construction and are LEED certified. The Kendall Toyota dealership in Eugene, Oregon, achieved LEED Platinum certification. This is the first auto dealer in history to achieve platinum certification. Lexus of Las Vegas in Las Vegas, Nevada, achieved LEED Existing Building (EB) Gold certification this year; while Lexus of St. Louis, Missouri, is on track to receive LEED Silver certification. Two additional Lexus dealerships are in the design and development phase and are on target for LEED certification. In addition, Lexus of Henderson in Henderson, Nevada, is in the construction phase of a new dealership facility and is on track for LEED Gold certification.

Close-up photo of Toyota dealership display
An interactive display at the Kendall Toyota dealership illustrates energy captured from  photovoltaics on the roof, which was part of the LEED initiatives.

The Kendall Toyota dealership in Eugene, Oregon, was awarded LEED New Construction (NC) Platinum certification, the highest level of certification, in January 2010 by the USGBC, making it the only LEED Platinum dealership in the world. Examples of environmental and energy efficiency efforts that earned Kendall Toyota the Platinum certification include the following:

  • Reducing project construction waste by 75 percent through waste management and on-site material used;
  • Capturing and recycling 60 percent of the rain water from the roof and directing it into cisterns, reducing the requirement of city potable water by 200,000 gallons;
  • Installing an on-site storm-water treatment system that spares the city eight million gallons of water to treat each year;
  • Covering most of the roof with photovoltaic panels, producing over 40 percent of the building’s energy needs;
  • Incorporating native plants that consume less water into the landscaping and implementing an irrigation system that works directly with the local weather systems, reducing water needs by more than 50 percent; and
  • Using postconsumer recycled products for 10-20 percent of the building’s finishes, including the tile flooring, rubber flooring, carpet, wood ceiling panels and countertops.

Sewell Lexus of Fort Worth, Texas was awarded LEED Gold certification by the USGBC in June 2009. This facility is the first Lexus sales facility to earn LEED certification. Some highlights of the building’s environmental and energy efficient features include: lavatory fixtures that reduce the use of potable water by 30%, storm water control system to collect rain water in cisterns that is re-used on the water-efficient landscaping (uses 50% less water), and a waste diversion program that recycles approximately 90% of all building waste.

Four additional Toyota dealerships are on track for LEED certification. Grossinger City Toyota (Chicago), James Toyota (Flemington, NJ), Jerry Durant Toyota (Granbury, TX), and Toyota of El Cajon (California) are tracking for Silver certification. Toyota of El Cajon also has a Certified Center that is tracking for Gold certification. All of these facilities used an interior Eco Palette provided by Toyota that included specifications for no VOC (Volatile Organic Chemicals) paints, sealants, and adhesives rather than the USGBC specification of low VOC elements. This allowed the dealers to earn bonus points from the USGBC for using this specification and Toyota was able to provide it to the dealers at no additional cost from their standard, comparable palette.

The Lexus of St. Louis dealership in St. Louis, Missouri, applied for LEED certification from the USGBC and is on track to achieve Silver. Examples of environmental and energy efficiency efforts undertaken at Lexus of St. Louis include minimizing the roof’s heat island effect, incorporating low emissions vehicle parking spaces, installing water efficient landscaping and reducing water use with low flow fixtures throughout the building. In addition, the car wash at the St. Louis dealership includes a water reclamation system.

Lexus of Henderson is building an eco-conscious new and used car dealership in the southeast valley of Las Vegas, Nevada. The 35 million dollar development is on track to receive LEED Gold certification from the USGBC, making it the nation’s first automotive dealership to be built from the ground-up to achieve this distinction.

Photo of front of Toyota dealership in Canada
Stratford Toyota is a leading edge showplace of energy and environmental design, and is the first LEED-certified building in the city of Stratford, Ontario.

LEED certification efforts are not limited to our U.S. partners. Stratford Toyota in Stratford, Ontario, achieved LEED Gold certification in June 2010, making it both the highest rated LEED automotive dealership and the first LEED Gold dealership in Canada. Its construction used over 28 percent recycled materials and 97 percent of the construction waste was diverted from landfills. The building also features energy-efficient lighting, in-floor heating, and highly insulated panels to reduce energy by 37 percent, compared to a typical building. A key feature, a storm-water cistern, reduces potable city water use by more than 99 percent.