WHAT DOES IT MEAN TO BE "CARBON NEUTRAL"

To be carbon neutral, a company first measures all the greenhouse gas (GHG) emissions it produces—whether from energy use, transportation, manufacturing, or other activities. The next step is to reduce those emissions as much as possible through innovation, energy efficiency, renewable energy, and sustainable practices. Any remaining emissions that can't be eliminated are then offset by supporting projects that remove or prevent emissions elsewhere, such as reforestation or carbon capture technologies.

For Toyota, becoming carbon neutral means we aim to reduce GHG emissions from our own operations (e.g., from burning natural gas and purchasing electricity) to the greatest extent possible, then use offsets, if necessary, to get us to net zero GHG emissions. We also include significant upstream and downstream activities in our carbon neutrality commitment so that by 2050, we aspire to be carbon neutral across the value chain.

HOW CARBON NEUTRALITY IS TIED TO CLIMATE CHANGE

Carbon neutrality is tied to climate change because greenhouse gases like carbon dioxide (CO₂) trap heat in the atmosphere, which drives global warming. Global warming leads to shifts in temperatures and weather patterns, which is known as climate change.

Achieving carbon neutrality would help stabilize the climate by ensuring that no additional net emissions are added to the atmosphere. On a global scale, reaching net-zero emissions by mid-century is considered essential to limiting warming to 1.5°C above pre-industrial levels — a threshold scientists say is critical to avoiding the most dangerous impacts of climate change.

Carbon neutrality is not just a technical goal — it’s a call to action. It encourages innovation, accountability, and collaboration across sectors. From companies redesigning supply chains to cities investing in cleaner infrastructure, the pursuit of carbon neutrality is transforming businesses and creating new opportunities for sustainable growth. By aiming for carbon neutrality, we’re not just reducing emissions — we’re building a more resilient, equitable, and climate-safe future.

TOYOTA’S APPROACH TO REDUCING GHG EMISSIONS

Toyota has three levers for working toward carbon neutrality globally:

1. Reducing GHG emissions from vehicles
2. Reducing GHG emissions from our own operations
3. Reducing GHG emissions from our value chain

For each of these levers, we set five-year environmental action plan targets to keep us on a path towards carbon neutrality across the vehicle life cycle. 

This is a long-term journey. No company can reduce emissions to zero immediately, and it will take time to make the technological investments and change the habits required for climate neutrality. But step by step, by making smarter energy choices and continuing to innovate, we can create opportunities for growth and resilience. By working together across sectors and borders, we can turn the challenge of climate change into a powerful catalyst for positive change – one that benefits people and the planet.

SMALL ACTIONS ADD UP TO CREATE POSITIVE IMPACT

Toyota remains committed to decarbonization. We are working with business partners on projects to reduce emissions. Our engineers and designers are finding ways to improve vehicle fuel efficiency and reduce emissions. By working together — sharing solutions and investing in the future— we can amplify positive impact and accelerate progress toward decarbonization.