We are pleased to present the tenth annual Toyota North America Environmental Report. Each year we provide a retrospective look at our performance on key environmental issues. This report describes the progress we made in fiscal year 2010 (FY2010) against goals and targets in our North American Environmental Action Plan (EAP). The EAP helps us focus and prioritize the actions we take to reduce the environmental impact of our products, as well as the operations we employ to build, distribute and sell them.

One of our top priorities this past year was to continue improving and demonstrating advanced vehicle technologies, which are essential to the evolution of the automobile. Automakers have been successfully using the same basic technology — the gasoline combustion engine — for over a century, allowing for unprecedented levels of mobility for society. This has not come without a price though, in terms of environmental impacts and increasing demand for limited resources. Toyota recognizes that society's mobility needs must be met without sacrificing environmental quality, and believes that technological innovation is the key to meeting this goal. Thirteen years ago we introduced the Prius, with our Hybrid Synergy Drive® system, to the global marketplace. We are now using this hybrid system as the foundation for the other advanced powertrain technologies we are developing: plug-in hybrids, fuel cell hybrids, and battery electric vehicles.

Our pursuit of these advanced vehicle technologies has helped us recognize the importance of the wider mobility system. As such, our strategy for sustainable mobility encompasses not only new technologies and products, but also the new energy sources that will power them, the design of the urban environment in which they will operate, and the many partnerships that are necessary to bring them to market. However, this strategy will not be successful if consumers are not ready to buy advanced vehicle technologies, and the infrastructure is not in place to support their use. This is why Toyota is working to align technology with the market to ensure successful introduction and adoption of these new vehicles.

To achieve the aims of our sustainable mobility strategy and make progress toward sustainability in our operations, we measure our performance against specific goals and targets in our EAP. While our environmental performance this past year was on track in many areas, we missed some targets due to factors such as the ongoing economic downturn. Economic conditions resulted in lower production volumes which made it more difficult to meet our vehicle-based targets. Despite this, we maintained our vision and continued to work with our customers, employees, shareholders, dealers, partners and local communities to accomplish our long-term goals.

Highlights of our FY2010 performance include the following:

  • Roll-out of our 2010 Prius Plug-in Hybrid Vehicle (PHV) demonstration program, with more than 150 vehicles being placed with program partners in the U.S. and Canada. Our aim is to educate and inform the public, and assess the technology's performance under a wide variety of conditions.
  • Improvement of fuel cell hybrid vehicle (FCHV) technology while achieving significant cost reductions. Recent modifications have resulted in an estimated range of 431 miles on a single fill. We plan to bring FCHVs to market in 2015.
  • Reduction in energy consumption at our assembly plants, including a project to eliminate centralized boiler systems and install equipment closer to the painting processes resulting in significantly less energy use.
  • Decreases in waste to landfill and an emphasis on reducing material use, which for the first time resulted in a greater reduction in the amount of raw material used than the amount of material recycled at our sales and distribution locations.
  • Additional Leadership in Energy and Environmental Design (LEED®) certifications for our buildings and promotion of green building practices with our dealers. Kendall Toyota in Eugene, Oregon, is the only LEED Platinum-certified dealership in the world, and the Stratford Toyota in Stratford, Ontario, is the first LEED Gold-certified dealership in Canada.
  • Further engagement with communities through Toyota's signature environmental philanthropic program, TogetherGreen™, in partnership with the National Audubon Society. To date, 72,400 participants have put in over 275,000 hours of habitat, water, and energy conservation efforts across the U.S.

Details for each of these examples and many more are included throughout this report as we describe our progress against targets and goals across five key areas:

  • Energy and Climate Change;
  • Recycling and Resource Management;
  • Air Quality;
  • Environmental Management; and
  • Cooperation with Society.

Within each area, we structure the discussion around our life-cycle view of vehicles: design, manufacturing, sales and distribution, use, and ultimately how the vehicle is recycled at end-of-life. We also provide context in terms of our overall vision for sustainable mobility.

We have highlighted targets in each chapter with supporting information to help our readers decide for themselves how well we have done in the past year. Toyota works to ensure that we are both accountable and transparent about our performance, and we welcome your feedback on the content of this report.

SCOPE OF THIS REPORT

The period covered in this North America Environmental Report is fiscal year 2010 (April 1, 2009 through March 31, 2010) and product model year 2010. This report covers the Toyota, Lexus and Scion brands in North America. If data are presented with different dates, this is clearly indicated. This report was published in November 2010.

We report on our progress against our FY2007-2011 Environmental Action Plan. We also provide information on our company's overall economic investment in North America. This report covers activities across the North American region — the United States, Canada and Mexico.

This report is available on the Web. A French version is provided on the Web only. We listened to your comments and suggestions about last year's report, and used them to improve this report. We would appreciate hearing from you again. You may participate in an online survey.

CONTACT TOYOTA MOTOR NORTH AMERICA, INC.
Environmental Report Manager
601 Lexington Ave, 49th Floor, New York, NY 10022
© 2010
www.toyota.com (USA)
www.toyota.ca (Canada)
www.toyota.com.mx (Mexico)