TOYOTA'S GUIDING PRINCIPLES put communities and the environment at the heart of what we do. We aim for growth that is in harmony with the environment throughout all areas of our business. We strive to build close and cooperative relationships with a wide spectrum of individuals and organizations involved in environmental preservation. Wherever we do business, we actively promote and participate in philanthropic activities, both individually and with partners, that help strengthen communities and enrich society. Cooperating with society means contributing to sustainable development efforts through environmental philanthropy and research support, communicating our environmental plans and activities to our stakeholders, and contributing to a recycling-based society by supporting recycling efforts both internally and with our business partners. Our targets in these areas are described in this chapter.

CONTRIBUTIONS TO SUSTAINABLE DEVELOPMENT EFFORTS

Our corporate philanthropy focuses our environmental commitment to the community in two principal areas: environmental education and environmental stewardship. We partner with nonprofit and community organizations, schools, universities and other businesses to support programs that help make our world a better place. (Target 15.1)  We believe in supporting programs with long-term sustainable results. Our contributions take many forms, including vehicle donations, funding, consulting and volunteer time.

In Canada , more than 25% of our philanthropy in 2007 was focused on environmental programs. (Target 15.2)

Environmental Education

We aim to provide greater opportunity for students and teachers at all levels, as well as to further the development of environmental literacy. A number of our environmental education programs are described here.

Support for the Donald Bren School of Environmental Science and Management

Toyota is supporting the Donald Bren School of Environmental Science and Management at the University of California in Santa Barbara with a $400,000 grant to provide student fellowships and internships, and a professor-in-residence program, all in the interest of forwarding environmental research, teaching and education. The gift reflects Toyota's commitment to providing the best education and training for the environmental leaders and teachers of tomorrow, and its desire to apply cutting edge research performed at leading academic institutions to the environmental issues that face Toyota today. The professor-in-residence component will enable Bren faculty to accompany secondary teachers on study trips as part of the Toyota International Teachers Program (described in more detail below).

Toyota Earth Day Scholarship Program

Toyota and Earth Day Canada established the Toyota Earth Day Scholarship Program in 2003 to help cultivate and nurture environmental leadership among students studying in Canada . Each year, the program awards 15 high school students who have distinguished themselves through environmental community service, extracurricular and volunteer activities, and academic excellence with scholarships.

In 2008, that National Winner was Keleigh Annau. In addition to the scholarship, she also received a notebook computer and a donation to her alma mater. One of Keleigh's most notable environmental contributions is Lights Out, an effort for schools to turn off their lights and spend one day learning about global warming. In the first year of this program, over 50,000 Canadian students participated. In the second year, the program went international, with over 90,000 students participating. Her dedication to this project exemplifies that small changes can add up to make a big difference.

The Lexus Eco Challenge

The Lexus Eco Challenge, a partnership with Scholastic, is a nationwide program where middle and high school students participate in three team challenges addressing land, water and climate issues. For each of the challenges, teams define an environmental issue that is important to them, develop an action plan to address the issue, implement the plan and report on the results for a chance to win $10,000. The winning team from the initial challenges are invited to participate in the Final Challenge, where two grand prize-winning teams are awarded $50,000, while the 14 first place teams receive $30,000. In total, more than $1 million in scholarships and grants will be awarded to students, teachers and schools.

The 2007-2008 grand prize middle school winner was a team from New Jersey called the Climate Academy. They took on the challenge of educating Jersey City about storm drain pollution and its effects on ocean health and marine life. The Dream Team from Hawaii took home the high school grand prize for generating awareness of clean and renewable energy sources.

National 4-H Council's Exploring Your Environment Program

In April 2008, Toyota presented the National 4-H Council with a $1.48 million grant to help 4-H introduce Exploring Your Environment, a new environmental curriculum specifically focused on promoting the organization's water conservation programs. In addition, 4-H will develop and launch 4-H2Online, an interactive online learning experience that will connect youth to water conservation issues and environmental engagement.

Finally, the award will expand the 4-H2O water conservation program nationally through community grants in California, Kentucky, Michigan, Mississippi and West Virginia. The community programs, launched in June 2008, address local water quality, water conservation and watershed issues. Information gathered during these one-year programs will be used to develop a local action plan and shared with local elected officials, schools and industry partners to educate and inform the public.

Toyota International Teacher Program

Celebrating its 10th anniversary, the Toyota International Teacher Program sends U.S. secondary teachers abroad each year to study global conservation issues. Aligned with Toyota's Global Earth Charter, the program seeks to inspire environmental stewardship through one of our best resources - educators. This competitive, merit-based program is administered by the Institute of International Education in Washington, D.C., a nonprofit international exchange organization.

The two-week study takes teachers to either Costa Rica or the Galapágos Islands. To date, over 500 teachers have taken part in this program. Their activities have touched hundreds of communities and thousands of students across the country through classroom lessons and service projects. A teacher in California who went on a study tour to the Galapágos in 2007 is planning with his students and school to create a solar-heated minigreenhouse to be placed in the Inyo Mountains. A New Jersey teacher who went on the same trip is planning a virtual field trip to the islands that the entire school community is invited to join.

Toyota has worked in the Galapágos Islands since 2001 with the World Wildlife Fund on projects ranging from recycling and waste management to renewable energy workshops for Galapagueño teachers. This past year, Toyota worked with the municipality to create an environmental department.

National Park Environmental Education Grants

In 2008, Toyota announced a $5 million National Parks grant program (Toyota LEAF) to enhance environmental leadership and educational programs at Everglades National Park, Great Smoky Mountains National Park, Yellowstone National Park, Yosemite National Park, Grand Canyon National Park and multiple national parks through the National Park Foundation. Toyota made its first park announcement at the Everglades National Park, and held an event to highlight its contribution of five vehicles and over $1 million. The contribution will support educational initiatives in the park over the next three years such as day program field trips and camping trips for grade school students, the K-12 Miccosukee Indian School program, in-park teacher workshops for day and camping programs, in-park special programs for other school groups and student organizations, and in-school teacher workshops. Similar programs are being implemented at the other parks.

Environmental Stewardship

We aim to protect, preserve and improve the natural environment, and to establish systems by which people in the community will carry this work forward to coming generations. We partner with the following organizations to contribute to the preservation of biodiversity through funding and volunteering our time.

Arbor Day Foundation

In March 2008, the Arbor Day Foundation and Toyota partnered to create a new Facebook application called Tree Planter. Using Tree Planter, users gift virtual trees to their friends. For every gift sent to a friend, the Arbor Day Foundation plants a tree in one of 11 needy forests, including Custer National Forest, Hoosier National Forest and Huron-Manistee National Forests. Many of these forests have suffered devastating effects from recent forest fires.

The cost of sending a tree to a friend is $1. The Arbor Day Foundation has a goal of planting one million trees in the first year of the application. Toyota supported the effort by purchasing $50,000 worth of trees, so the first 50,000 users could send one tree to a friend for free.

Evergreen

In 2000, Toyota partnered with Evergreen Canada, an organization with a mission to bring both nature and communities together, to create the Toyota Evergreen Learning Grounds program. Now in its eighth year, this program is designed to transform Canadian school grounds into inviting play spaces and natural learning environments. Through our partnership with Evergreen, Toyota and its dealerships have contributed over $5.2 million toward the realization of our shared goals.

In 2007, the program awarded over $265,000 in grants to 132 schools and day care centers. The funds provide access to an online native plant database and project registry; grants ranging from $500 to $2,000 to assist in acquiring native plants, heritage vegetables and berries; and expert assistance through Evergreen and its Learning Ground Associates.

Friends of the Rouge Watershed

For the past eight years Toyota has sponsored the Friends of the Rouge Watershed, a community-based conservation group in Ontario, Canada , which serves to rehabilitate the environmentally sensitive Rouge Valley located within the Greater Toronto area. Since 2001, Friends of the Rouge Watershed, with assistance from Toyota Canada , have planted over 300,000 trees, shrubs and wildflowers on 1.3 million square meters of Rouge Park restoration sites.

National Audubon Society

In March 2008, Toyota donated $20 million to the National Audubon Society to fund a new program called TogetherGreen for five years, enabling Audubon to expand the scope and reach of its internationally-known conservation programs. TogetherGreen will include three program components:

  • Innovation Grants to fund dozens of on-the-ground projects each year that help achieve measurable land, water and/or energy conservation results;
  • Conservation Fellowships to train and foster up to 200 promising environmental leaders who can serve as role models, expert guides and organizers for engaging new and diverse audiences in effective conservation action; and
  • Volunteer Days to be offered at Audubon Centers and other locations nationwide, providing hands-on opportunities to address environmental problems and take part in restoration activities.

TogetherGreen will also reach a diverse array of audiences through www.TogetherGreen.org. This site helps visitors discover dozens of individual conservation actions to help them independently "green" their lives. It also provides opportunities to challenge friends to take conservation actions of their own.

Take Pride in America

Building on the success of National Public Lands Day, Toyota partners with Take Pride in America®, a national organization established by the U.S. Department of the Interior that aims to engage, support and recognize volunteers who work to improve public lands. Through this partnership, Toyota supports the Take Pride in America school campaign called Creating a New Generation of Volunteers, which offers K-12 teachers a Take Pride School Kit to enhance service-learning nationwide. In addition, Toyota sponsors the Take Pride "VolunTour Across America," a nationwide trip promoting volunteerism on public lands.

National Wildlife Refuge Association

The winner of the National Wildlife Refuge Association's 2008 Refuge Photo Contest is Mack Barham, M.D., for his photo of egrets taking flight in the morning fog at Black Bayou Lake National Wildlife Refuge in Louisiana. The contest showcases America 's national wildlife refuges and the diverse wildlife that depend on them. Toyota donated the top prize, a 2009 Highlander Hybrid.

Environmental Research Partnerships

In addition to our philanthropy efforts, Toyota collaborates on research projects that promote sustainable development. In particular, we work with academia and other companies on technologies that reduce greenhouse gas emissions. (Target 15.3)  This research expands beyond automobiles because the car of the future requires a safe and reliable global energy system that supports mobility-friendly roads and cities.

One example of such a research partnership is the Global Climate and Energy Program (GCEP). Toyota is a co-sponsor, along with ExxonMobil, General Electric and Schlumberger, in this $225 million, 10 year project to fund cutting edge clean-energy research. In its first five years, GCEP has funded 44 projects at 24 institutions around the world involving 70 Principle Investigators and over 300 graduate and postdoctorate students. In addition to six patent applications, researchers have published over 200 papers on GCEP-funded research.

GCEP's mission is to conduct fundamental research on technologies that will permit the development of global energy systems with significantly lower greenhouse gas emissions. To accomplish this mission, GCEP activities are separated into two areas, research and analysis. In the research area, GCEP is building a diverse portfolio of innovative, step-out technologies that could lead to cleaner, more sustainable energy systems. In the analysis area, GCEP assesses the potential of processes and technologies to deliver useful energy and reduce greenhouse gas emissions. Toyota is proud to be part of the GCEP team and looks forward to continuing this groundbreaking energy research.

COMMUNICATION WITH STAKEHOLDERS

Toyota communicates its environmental plans, activities and performance through this annual environmental report. (Target 16.1)  This report is available as an interactive publication on the Web at www.toyota.com/environment/2008report. The report is distributed to the media, environmental NGOs and dealerships in the U.S. and Canada , in addition to government officials at the federal, provincial and local level. We also provide information about our hybrid vehicles through hybrid tours and green living shows (these are discussed in the Energy and Climate Change chapter).

CONTRIBUTIONS TO A RECYCLING-BASED SOCIETY

Participating in the creation of a recycling-based society is one of the action guidelines in the Toyota Earth Charter. In North America, we see this participation as a key to being a good neighbor in the communities where we live and work. We use the knowledge we have gained from best practices implemented at our own facilities to teach others how and what to recycle, how to make raw material choices and how to set up recycling programs in their own organizations. To further encourage recycling in our society, we expand our lineup of remanufactured parts, increase the availability of environmentally preferable paper, and encourage the appropriate disposal of tires.

Remanufactured Parts

Toyota continues to support customer needs by expanding our lineup of remanufactured service parts. Remanufactured parts require fewer resources than new parts, decreasing the overall impact on the environment. The number of remanufactured parts launched each year may fluctuate, based on which vehicle applications are still outstanding. In several product lines, we are very close to up-to-date coverage. In FY2008, we launched 96 remanufactured parts applications. (Target 17.1)

Remanufactured parts are highlighted on the Toyota Wholesale Parts Web site at www.toyotapartsandservice.com. Part of this Web site is dedicated to remanufactured products - specifically to ordering, benefits and features, core return policies, program launches, promotions, technical information, and available resources.

Environmentally Preferable Paper

Toyota, through its participation in the Paper Working Group, is expanding the availability of environmentally preferable paper in our U.S. sales and marketing operations. The Paper Working Group is a collaboration among 11 leading companies and the nonprofit metaFore with the shared goal of making environmentally preferable paper products more widely available and affordable. The Environmental Paper Assessment Tool® (EPAT), a project of the Paper Working Group, allows for the consideration of major environmental impacts over the life cycle of paper products.

With the help of the EPAT, our U.S. sales headquarters campus, which includes sales, marketing and financial services functions, consolidated paper purchasing into two contracts. Beginning in the fall of 2007, all fine paper has a minimum postconsumer waste (PCW) content of 10%, and office paper has a minimum of 30%. (Target 17.2)  Certain pieces of Scion collateral are printed on paper containing 30% PCW. Before this improvement, most of the fine and office paper purchased at headquarters contained no postconsumer waste.

Dealers and Tires

In the U.S. , Toyota encourages its dealers to dispose of tires in a safe and environmentally appropriate way through the Tire Shark® tire disposal program. (Target 17.3)

The program seeks to improve scrap tire collection service, and promotes the use of only authorized and licensed scrap tire haulers to help ensure compliance with environmental requirements.

A Tire Shark machine from Oakleaf Waste Management compresses a tire and puts four nails into it so that it cannot be resold or reused. "Sharked" tires are then recycled and converted to crumbs for playgrounds and playing fields, as well as tire-derived aggregate and energy sources. The service was extended to an additional six dealers, with plans to shift as many dealers as possible to Tire Shark in the coming year.

LOOKING AHEAD

Over the next three years, one of the biggest challenges we face in meeting our action plan targets is to improve coordination of our efforts and communication with our stakeholders, so that our contributions to society are most effective.