Our parent company, Toyota Motor Corporation (TMC), conducted a global "environmental materiality analysis"1 as part of developing the Toyota Environmental Challenge 2050. TMC evaluated global trends, risks and opportunities, including the United Nations (UN) 2030 Agenda and the 17 Sustainable Development Goals (SDGs), and identified the following serious environmental issues facing society and the planet: extreme weather phenomena attributed to greenhouse gas emissions, aggravated air pollution in cities, water shortages due to population growth, resource depletion, ecosystem fragmentation, and biodiversity loss. TMC then evaluated the importance of these issues to Toyota and external stakeholders. As a result of this process, TMC identified six material environmental issues:
TMC addresses these six issues in the Toyota Environmental Challenge 2050.
TMNA's process in North America followed a similar path. Our identification of environmental priority issues aligns with TMC’s but consolidates the three CO2 emissions challenges into a single issue we call "Carbon." We also call out the importance of outreach: sharing our know-how to achieve a net positive impact by 2050. The priority environmental issues in North America are our four focus areas – Carbon, Water, Materials and Biodiversity – as well as Outreach.
We continue to manage other environmental issues, including air quality and green building, and remain dedicated to compliance with all applicable environmental laws and regulations. See "Performance" for information on our activities and progress in these areas.
See the feature story "Contributing to the UN Sustainable Development Goals" for information on how Toyota's environmental sustainability activities are supporting the UN's 2030 Agenda and SDGs.
1Materiality, as used in the context of this report and our materiality review process, is different than the term as used and defined in the federal securities laws. For purposes of this report, TMNA uses the Global Reporting Initiative (GRI) definition of materiality, which is based on two dimensions: (1) the significance of the organization's economic, environmental and social impacts (both positive and negative), and (2) their substantive influence on the assessments and decisions of stakeholders (GRI Standard 101: Foundation, 2016). Thus, issues deemed material for purposes of this report, and for purposes of determining our environmental sustainability strategies, may not be considered material for purposes of federal securities laws.
TMNA's Sixth Environmental Action Plan (EAP) for fiscal years 2017 to 2021 put us on a path to achieving the Toyota Environmental Challenge 2050 (Challenge 2050). The final results for the Sixth EAP targets are provided below.
|FY2021 Target||Status||FY2021 PROGRESS & FINAL RESULTS|
|Foster accelerated adoption of electrified vehicles||
|Reduce absolute GHG emissions from North American operations 15%||
|Reduce GHG emissions intensity from logistics 5%||
|Prioritize and implement water stewardship plans for facilities in water-stressed areas||
|Reduce the use of packaging materials||
|Participate in regional biodiversity activities that support wildlife corridor(s)||
Target Achieved Target Partially Achieved Target Missed
The Toyota Environmental Challenge 2050 is guiding our efforts to build a better, smarter, more sustainable future. We break the Challenge 2050 vision down into incremental, five-year environmental action plans (EAPs). This is how the company is working to drive change – step by step to help achieve carbon neutrality and a net positive environmental impact at a global level.
This report marks the end of TMNA's Sixth EAP and the start of the Seventh EAP. The Seventh EAP runs from fiscal years 2022 to 2026. Our targets address greenhouse gas emissions, water use, plastics reduction, and habitat restoration. Click here for more information about TMNA’s Seventh EAP, including a complete list of targets.
TMNA's Sustainability and Regulatory Affairs (SRA) division handles Product Environmental and Safety Regulation, Energy and Climate Research, Environmental Sustainability, Enterprise Chemical Management, and Engine Certification and Compliance.2 The Environmental Sustainability (ES) group of SRA is responsible for developing short-, medium- and long-term sustainability strategies for TMNA, including planning and target setting in alignment with the Toyota Environmental Challenge 2050, which includes developing consolidated five-year environmental action plan goals and targets. ES is also responsible for developing the annual North American Environmental Report. ES reports progress on these activities to the North American Executive Committee (NAEC).
ES facilitates an Environmental Sustainability Directors Committee and Working Group as coordinating mechanisms for TMNA. Both are comprised of environmental experts and representatives from various divisions:
Representatives from these divisions also participate in focus groups that concentrate on specific environmental issues, such as water or biodiversity. These focus groups report to the Environmental Sustainability Working Group and help implement environmental action plan targets, perform benchmarking and data gathering activities, and raise awareness among team members and external stakeholders.
2Separately, TMNA's Environmental & Facilities (E&F) division handles facility environmental and safety regulatory compliance.