Dear Reader

Climate change continues to be one of the most pressing and complex challenges of our time and its impacts – fires, flooding, storms and drought – are leaving an indisputable impression that is seen and felt by all of us.

Toyota has long been committed to the sustainable development of society and addressing climate change. We continue to aggressively pursue technologies and find additional ways to reduce our environmental footprint for all of our North American operations and products with the aim of achieving carbon neutrality by 2050.

To help us reach our goal, we are relentlessly pursuing the six core challenges laid out in the global Toyota Environmental Challenge 2050. These include:

• Eliminate almost all CO₂ emissions from new Toyota and Lexus vehicles.
• Eliminate all CO₂ emissions from Toyota facilities and processes.
• Partner with suppliers and dealers to help them eliminate CO₂ emissions from their operations.
• Ensure all Toyota facilities and processes conserve and protect water resources.
• Ensure all Toyota facilities and processes support a recycling-based society.
• Ensure all Toyota facilities and processes operate in harmony with nature.

Here in North America, our regional strategy lays out a roadmap for the future, focusing on core areas that will have the greatest positive impact, today and tomorrow. These include:

• Expanding vehicle electrification
• Reducing carbon emissions
• Encouraging conservation through water stewardship
• Reusing materials and protecting biodiversity

To help us achieve targets in these core areas, this year we announced our Seventh Environmental Action Plan (EAP), which breaks down the Toyota Environmental Challenge 2050 vision into incremental, five-year milestones. As we close out our Sixth EAP and embark on this next cycle, we are setting new targets and addressing new areas, such as reducing the use of plastics across our North American operations, with the ultimate goal of realizing carbon neutrality and a net positive environmental impact at a global level.

This report offers the latest updates on our environmental sustainability efforts throughout our North American organization.

Toyota has a long and proud history of environmental innovation with products and initiatives that have become synonymous with environmental stewardship and conservation. As we move forward on this journey, we are thankful for our team members, dealers, suppliers and local communities who continually help us to achieve the goals of our environmental sustainability strategy.