WHAT IS A “CIRCULAR ECONOMY”?

A circular economy is one in which materials circulate continuously. It refers to practices that optimize resource use and minimize waste across the entire production and consumption cycle. When a product reaches the end of its useful life, its materials are recycled and kept within the economy wherever possible. 

 

This model challenges the traditional, linear model of take-make-consume-throw away. The linear model relies on virgin raw materials and waste disposal. But the world’s resources are finite, and the volume of waste is increasing. A circular economy addresses these challenges by relying on resource conservation, recycling, and waste elimination.

 

For Toyota, contributing to the transition to a circular economy means using fewer resources, extending product lifespan, and maximizing reuse and recycling. The company’s long-term vision is to create a car-to-car recycling system so that materials from end-of-life vehicles can be repurposed into new vehicles.

 

HOW CIRCULAR ECONOMY IS TIED TO RESOURCE CONSERVATION

Conserving resources through reuse and recycling slows the rate of consumption of finite resources. In other words, a circular economy relies on materials being used many times in lieu of being disposed, so that fewer raw materials need to be extracted and processed.

 

Consider plastics: An estimated 90 to 95% of plastic production is virgin plastic, meaning it is made from fossil fuel. Over two-thirds of plastics produced each year are for single-use products, like packaging or bags. Globally, only 14% of plastic packaging is collected for recycling, and according to the United Nations Environment Program (UNEP), the equivalent of 2,000 garbage trucks full of plastic are dumped into the world’s oceans, rivers, and lakes every day.1 By 2030, plastic waste is expected to increase by more than 50%. According to the Ellen MacArthur Foundation, a circular economy has the potential to reduce the annual volume of plastics entering the ocean by 80% by 2040.

 

TOYOTA’S APPROACH TO RESOURCE CONSERVATION

Toyota has four levers for conserving resources:

  1. Increasing the amount of recycled content used in new vehicles
  2. Developing a battery-to-battery recycling supply chain
  3. Establishing best practices for dismantling end-of-life vehicles
  4. Reducing the amount of waste generated 

 

For each of these levers, the company has set global five-year environmental action plan targets to keep moving closer to a circular economy.

 

Creating a circular economy is not something that Toyota can achieve on its own. It is also going to take time. But step by step, by making smarter material choices and developing stronger recycling systems, we can create opportunities for growth and resilience. By working together across sectors and borders, we can help turn the challenge of resource conservation 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 contributing to the creation of a circular economy. We are working with business partners on projects to conserve resources and reduce waste. Our engineers and designers are looking for ways to incorporate more recycled content into vehicle parts and to develop battery recycling processes. By working together — sharing solutions and investing in the future— we can amplify positive impact and accelerate progress toward an economy where materials never become waste.

SDG 12

Our materials efforts support Goal #12 on Responsible Consumption and Production, one of the 17 United Nations Sustainable Development Goals.

Find Out More

Don’t stop now, head over to the Toyota Choose Your Change page and see even more smart things you can do to make a positive environmental impact at work, home and play.