"Carbon" is one of Toyota's four environmental sustainability focus areas in North America. Our carbon strategy supports the Toyota Environmental Challenge 2050 through seeking to reduce CO2 emissions from new vehicles, eliminate CO2 emissions from our operations, and help suppliers and dealers eliminate their CO2 emissions. Climate change affects people in all parts of the global community. We are working at every stage of the vehicle life cycle to help the world build a low carbon future.
Toyota Motor North America (TMNA) had the following CARBON targets for fiscal years 2017 to 2021:

1) NEW VEHICLE CO2 EMISSION CHALLENGE:

FOSTER ACCELERATED ADOPTION OF ELECTRIFIED VEHICLES (Achieved)

 

In North America, we seek to accelerate the adoption of electrified vehicles – hybrid, plug-in hybrid, battery electric, and fuel cell – by continuously supporting education initiatives, issuing green bonds to fund the acquisition of new electrified vehicle purchase and lease contracts, participating in relevant industry groups working on clean energy, and funding hydrogen infrastructure development.

 

Globally, the company has committed to offer electrified versions of Toyota and Lexus models by 2025. TMNA also has a new target that by 2025, 40 percent of new vehicle sales in the U.S. will be electrified vehicles, and this target will increase to 70 percent by 2030. This target moves us along the path to achieving the challenge of zero CO2 emissions from new vehicles by 2050. For information on our approach to electrification, see our feature story: “Electric Avenue”.

 

 

EDUCATION

 

We engage in a variety of activities to educate consumers and the public about our advanced technology vehicles. For example, we host ride and drive events, participate in demonstration programs with universities and government agencies, and support influential opinion leader forums, such as the Environmental Media Awards. We also sponsor the Electrochemical Society (ECS) Toyota Young Investigator Fellowship to encourage young professors and scholars to pursue battery and fuel cell research.

 

Lyft Canada and Toyota Canada, in partnership with Toyota Credit Canada, are partnering to offer drivers on the Lyft platform in the Vancouver metro area the opportunity to rent a Toyota Mirai through Toyota’s new KINTO Share program. This proof-of-concept project allows more Canadians to experience hydrogen fuel cell electric vehicles first-hand and demonstrates their viability and efficiency. This program also supports the hydrogen goals set forth in the Hydrogen Strategy for Canada, which sets an ambitious framework to make Canada a global hydrogen leader.

 

 

GREEN BONDS

 

In 2020, Toyota Financial Services (TFS) issued a $750 million 10-year green bond, which was used to finance 25,280 new retail installment sales and operating lease contracts for certain Toyota and Lexus hybrid vehicle models. TFS estimates that these vehicles will reduce lifetime CO2 emissions by 627,939 metric tons and result in 64.8 million fewer gallons of gasoline consumed. (Estimates of the lifetime reduction in CO2 emissions and gasoline consumption were measured using industry standard assumptions of lifetime vehicle miles traveled and were relative to the average 2019 model year vehicle in U.S. EPA’s sedan/wagon category.)

 

In 2021, TFS issued its sixth asset-backed green bond. Net proceeds from the $1.6 billion bond offering will be used for the acquisition of new retail installment sales contracts and operating lease contracts financing Toyota passenger vehicles from model year 2020 or later. For this newest offering, TFS set the highest eligibility requirements for vehicle qualification of any of its green bonds to date. These vehicles meet each of the three eligibility criteria: 1) the vehicle must be a hybrid electric vehicle, plug-in hybrid electric vehicle, fuel cell electric vehicle or battery electric vehicle; 2) the base trim model of the vehicle must have a maximum tailpipe carbon dioxide emission of not more than 110 grams per kilometer (approximately 177 grams per mile); and 3) the vehicle must have a smog rating of “7” or better (“10” being the cleanest), as determined by U.S. EPA. There are currently six eligible vehicle models in the Toyota lineup, including Camry Hybrid, Corolla Hybrid, Prius, Prius Prime, RAV4 Prime and Mirai.

 

TFS revolutionized the green bond market by introducing the auto industry’s first-ever asset-backed green bond in 2014. The company followed with a series of additional asset-backed green bonds and unsecured U.S. dollar and Euro-denominated green bonds. TFS' six green bonds total $7.6 billion and are an important component of the company’s diversified funding program.

 

The TFS green bond program was reviewed by Sustainalytics, a leading global provider of environmental, social, and corporate governance research, ratings and analytics. The lead underwriters of the green bond are Citigroup, Credit Agricole Securities, SMBC Nikko and TD Securities. Citigroup and Credit Agricole Securities are also joint green bond structuring advisors on this transaction.

INDUSTRY GROUP MEMBERSHIPS

 

Toyota is a member of numerous trade associations that foster the development and deployment of hydrogen and fuel cell technologies. For example:

 

Hydrogen Council is a global initiative of leading energy, transport and industry companies with a united vision and long-term ambition for hydrogen to foster the transition to a low carbon society. The Hydrogen Council works with and provides recommendations to several key stakeholders, including policymakers, investors, international agencies and civil society, to work towards these goals. Toyota Motor Corporation is a Steering Committee Member.

 

California Hydrogen Business Council (CHBC) is a leading advocate for the hydrogen and fuel cell industry in California. The CHBC is a membership-based trade association that represents a wide array of organizations in the industry. TMNA is a Gold Member.

 

California Hydrogen Coalition (CHC) is dedicated to assisting California’s transition to zero-emission vehicles by expanding the availability of reliable, convenient and affordable hydrogen fueling. TMNA is a Founding Member.

 

Fuel Cell & Hydrogen Energy Association (FCHEA) represents more than 50 leading companies and organizations that are advancing innovative, clean, safe and reliable energy technologies. Its mission is to advance the commercialization of and promote the markets for fuel cells and hydrogen energy. FCHEA drives support and provides a consistent industry voice to regulators and policymakers. TMNA is a Tier 1 Member and has a position on the Executive Board.

 

Renewable Hydrogen Alliance (RHA) is a trade association engaged in policy advocacy, education and outreach to regulators, legislators, the environmental community and other stakeholders to advance renewable power to climate neutral fuels as a critical step to reducing dependence on fossil fuels across a range of sectors: energy, transportation, industrial processes and agriculture. TMNA is a Member.

 

Canadian Hydrogen and Fuel Cell Association (CHFCA) is a national, nonprofit association that supports Canadian companies, governments, research institutions and academia in the development, demonstration and deployment of hydrogen and fuel cell technologies in Canada and overseas. CHFCA has two regional branches: in British Columbia (Hydrogen BC) and Québec (Hydrogène Québec). CHFCA’s members specialize in fuel cell stack development, hydrogen production, hydrogen fueling infrastructure, energy storage, vehicle manufacturing, components and materials, research, engineering and consulting. Toyota Canada Inc. is a Member of CHFCA.

 

 

HYDROGEN FUELING INFRASTRUCTURE

 

Hydrogen fueling infrastructure is key for commercialization of fuel cell electric vehicles (FCEVs) like Toyota’s Mirai. The University of California Irvine estimates only 68 hydrogen fueling stations are needed to support 10,000 FCEVs state-wide, and 49 stations are open to the public. The California Energy Commission (CEC) has earmarked funding for about 100 total hydrogen stations to be built over the next several years.

 

In April 2021, TMNA and Chevron U.S.A. Inc., through its Chevron Products Company division (Chevron), signed a memorandum of understanding to explore a strategic alliance to catalyze and lead the development of commercially viable, large-scale businesses in hydrogen, with the goal to advance a functional, thriving global hydrogen economy. Chevron and Toyota are seeking to work on three main strategic priorities: collaborating on hydrogen-related public policy measures that support the development of hydrogen infrastructure; understanding current and future market demand for light-duty and heavy-duty fuel cell electric vehicles and supply opportunities for that demand; and exploring opportunities to jointly pursue research and development in hydrogen-powered transportation and storage.

 

Toyota is helping to fund the development of a hydrogen infrastructure in North America:

 

  • California: Shell, in partnership with Toyota, has opened six hydrogen stations in the San Francisco and Sacramento areas, with more to come. Similarly, Iwatani has worked with Toyota to further expand the network and now operates four hydrogen stations as part of Iwatani’s growing California operations. Additionally, with support from Toyota, FirstElement Fuels has been a primary player in developing an integrated network of fueling stations across California in target market locations consistent with the California Fuel Cell Partnership Road Map. As of August 2021, FirstElement has successfully opened 28 hydrogen stations, including new, high capacity, four-fueling-position, liquid hydrogen-supplied stations, and is developing many more of these larger liquid-hydrogen stations to further expand hydrogen fuel availability.

 

  • Washington: TMNA, in partnership with the Bonneville Environmental Foundation, the Douglas County Public Utility District (PUD), and the Renewable Hydrogen Alliance, received a $1.9 million grant from the Centralia Coal Transition Board to fund a renewable hydrogen demonstration project, which is delivering the first hydrogen fueling station for FCEVs in Washington State using renewable hydrogen made from Douglas County PUD's clean, renewable hydropower via electrolysis. Initial site selection for hydrogen fueling stations is targeting locations with proximity to public fleets in the Lewis and southern Thurston County area—and also halfway between the Seattle and Vancouver/Portland metro areas.

 

  • Canada: Toyota Canada has been working closely with partners to promote the introduction of an appropriate hydrogen fueling infrastructure in Canada. In June 2018, Canada’s first public retail hydrogen fueling station opened in Vancouver. In 2019, stations opened in Québec City and in Burnaby. In 2020, stations opened in North Vancouver and Victoria, and more are in the works.

 

To further accelerate hydrogen infrastructure and FCEV adoption, Toyota is also actively involved in collaborations towards even bigger, heavy-duty-truck-focused hydrogen stations in order to help promote zero-emissions freight transport while amplifying light-duty hydrogen station efforts, leveraging network supply synergies, and speeding economies of scale. For more on heavy-duty hydrogen fuel cell vehicles, see "Zero-Emissions Trucking."

2) OPERATION CO2 EMISSIONS CHALLENGE:

REDUCE ABSOLUTE GHG EMISSIONS FROM NORTH AMERICAN OPERATIONS 15 PERCENT (ACHIEVED)

 

The target covers total Scope 1 and Scope 2 GHG emissions from stationary and mobile sources at both manufacturing and non-production sites. The baseline year is fiscal year 2016.

 

Total Scope 1 and 2 emissions have decreased 22 percent from the baseline year and 8 percent from the previous year. The decrease from the previous year is due in part to reduced operations during the COVID-19 pandemic, but over the last five years, the decrease can also be attributed to energy efficiency improvements, investments in renewable energy, and changes in production volumes and model mix.

 

Beginning in 2022, we have a new five-year target to reduce CO2 emissions from electricity use by 25 percent from a baseline of fiscal year 2014. This target moves us along the path to achieving the company’s global aim of all manufacturing plants becoming carbon neutral by 2035 and eliminating CO2 emissions from the use of energy at our facilities by 2050.


See "Operations CO2 Emissions" for information on our activities to reduce energy use and GHG emissions.

 

See "GHG Emissions from Operations" in Performance for GHG emissions performance data.

 

3) LIFE CYCLE CO2 EMISSIONS CHALLENGE:

REDUCE GHG EMISSIONS INTENSITY FROM LOGISTICS BY 5 PERCENT (ACHIEVED)

 

This target measures GHG emissions intensity from owned and third-party trucking, rail, air and marine logistics used to transport U.S. service parts, accessories, and vehicles. The baseline year is fiscal year 2016. Intensity is measured as grams CO2e divided by ton-kilometers, which corresponds to the transport of one ton over a distance of one kilometer.

 

Logistics GHG intensity has decreased 6 percent from the baseline year, due in part to reduced operations and sales during the COVID-19 pandemic, but also to improvements in fuel efficiency and an increase in the use of alternative fuels implemented over the past five years.

 

Toyota Transport (truck carrier) and Toyota Logistics Services (shipper) continue to participate in U.S. EPA’s SmartWay® Transport Partnership, a market-driven partnership aimed at helping businesses move goods in the cleanest, most efficient way possible. One of the main purposes of SmartWay is to improve fuel efficiency and reduce GHG emissions from the movement of goods. All of TLS’s contracted car haul carriers are also SmartWay® members.

 

Beginning with fiscal year 2022, we have a new five-year target to reduce CO2 emissions from owned and third-party logistics by 15 percent from a baseline of fiscal year 2018. This target moves us along the path to achieving the challenge of zero life cycle CO2 emissions by 2050.

 

See "GHG Emissions from Operations" in Performance for GHG intensity performance data for logistics.

 

See "Suppliers" for more information on activities to reduce GHG emissions from third-party logistics.

CO2 EMISSIONS FROM VEHICLES

 

The Toyota Environmental Challenge 2050 calls on all Toyota regions globally to reduce CO2 emissions from new vehicles 90 percent by 2050, from a 2010 baseline. To work towards this challenge, Toyota is pursuing multiple pathways to reduce vehicle fuel consumption and GHG emissions and is committed to utilizing various forms of electrification, including hybrid, battery electric and fuel cell technology. We try to match technologies to customer needs and government policies in each specific region. We evaluate vehicle powertrains, weight, aerodynamics and other design factors to boost vehicle efficiency while preserving the vehicle size, power, driving range and affordability that our customers demand — without sacrificing world-class vehicle quality, durability, reliability, safety features and performance.

 

There are several factors that must be weighed when considering the appropriate match. That‘s why we research driving trends, sociological behaviors, the changing energy and transportation landscape, the synergies between vehicle fuels and technologies, and the evolution of cities. Government initiatives can also influence the adoption of advanced technologies where the market and supporting infrastructure are still developing. Researching these factors helps us understand which technologies are best suited for the circumstances in a given market.

 

Knowledge gained from hybrid development and deployment is helping Toyota accelerate the introduction of future powertrains that can utilize a wide variety of energy sources and fuels, including hydrogen and electricity. Toyota and Lexus currently offer 19 electrified vehicle models for sale in North America. This includes 15 hybrid gasoline-electric vehicles, three plug-in hybrid electric vehicles and one hydrogen-powered fuel cell electric vehicle.

 

Toyota believes that we will continue to utilize various electrified technologies going forward and has committed to offering electrified versions of Toyota and Lexus models by 2025. TMNA also has a new target that by 2025, 40 percent of new vehicle sales in the U.S. will be electrified vehicles, and this target increases to 70 percent by 2030.

 

Looking further into the future, Toyota is collaborating with research entities, universities and companies on materials science research, investing in artificial intelligence to help accelerate the design and discovery of advanced materials. The research is helping to identify new advanced battery materials and fuel cell catalysts that can power future zero-emission and carbon-neutral vehicles. These efforts are helping to lay the groundwork for the future of clean energy to bring us even closer to achieving Toyota’s aim of reducing global average new vehicle CO2 emissions 90 percent by 2050.

 

For additional information related to vehicle CO2 emissions, please see the following:

 

Toyota's approach to electrification feature story "Electric Avenue."

 

TMNA's target to foster accelerated adoption of electrified vehicles, see "Carbon Targets."

 

"GHG Emissions from Vehicles" for Toyota fleet data for the U.S. and Canada.

Toyota's Electric Fleet
MODEL TYPE OF ELECTRIFIED VEHICLE
Toyota Mirai Fuel Cell Electric
Toyota Prius Prime Plug-in Hybrid-Electric
Toyota RAV4 Prime Plug-in Hybrid-Electric
Toyota Prius Gasoline-Electric
Toyota Avalon Hybrid Hybrid Gasoline-Electric
Toyota Camry Hybrid Hybrid Gasoline-Electric
Toyota Corolla Hybrid Hybrid Gasoline-Electric
Toyota Highlander Hybrid Hybrid Gasoline-Electric
Toyota RAV4 Hybrid Hybrid Gasoline-Electric
Toyota Sienna Hybrid Hybrid Gasoline-Electric
Toyota Venza Hybrid Hybrid Gasoline-Electric
Lexus ES 300h Hybrid Gasoline-Electric
Lexus LC 500h Hybrid Gasoline-Electric
Lexus LS 500h Hybrid Gasoline-Electric
Lexus NX 300h Hybrid Gasoline-Electric
Lexus RX 450h+ Plug-in Hybrid-Electric
Lexus RX 450h Hybrid Gasoline-Electric
Lexus RX 450hL Hybrid Gasoline-Electric
Lexus UX 250h Hybrid Gasoline-Electric

Clean Assist Program

Clean Assist allows eligible owners of the Prius Prime or RAV4 Prime in California to offset their vehicle charging with 100 percent renewable energy no matter where the vehicles are plugged in. There is no cost to participate in the program.

Clean Assist is centered around Renewable Energy Certificates (RECs), an EPA-recognized method of tracking the generation and consumption of renewable energy. Toyota uses vehicle telematics for enrolled vehicles to log the amount of electricity consumed as the vehicle charges. Toyota then purchases the equivalent number of RECs to match the amount of energy charged, then retires these RECS.

Toyota is choosing to voluntarily participate in the California Air Resources Board (CARB) Low Carbon Fuel Standard (LCFS). This program seeks to reduce California transportation GHG emissions, including through the use of renewable electricity to charge electric vehicles. Charging vehicles with renewable electricity can generate LCFS credits, which can then be sold. Toyota is using the proceeds from the LCFS credits to reinvest in promoting electric vehicles through marketing, education, charging and more.

ADVANCING CONVENTIONAL TECHNOLOGIES

 

The Toyota New Global Architecture (TNGA) exemplifies key elements of our technology strategy for simultaneously reducing vehicle CO2 emissions, increasing fuel economy and boosting vehicle performance. Continuing the use of TNGA enables many of the groundbreaking technologies to be shared more easily with future vehicles and is helping Toyota realize our commitment to “making ever-better cars.” TNGA‘s integrated development supports the concept of total optimization for a lightweight, streamlined, high-performance platform and powertrain unit. TNGA helps us meet consumers‘ needs while continuing to improve the efficiency of our vehicles.

 

2022 Lexus NX 450h+ PHEV

 

The latest addition to our lineup on the TNGA platform is the new 2022 Lexus NX 450h+ PHEV. In a first for Lexus, the new NX plug-in hybrid vehicle (PHEV) system brings Lexus Electrified to life through performance and the signature quietness of a PHEV model. The NX 450h+ has a manufacturer-estimated 36-mile range on electric power only, made possible by the newly developed, high-capacity lithium ion battery. Using the maximum charging current of 240V, the Lexus NX PHEV can be fully charged in approximately two-and a-half hours when equipped with the optional 6.6 kW expedited onboard charger.

2022 Lexus NX 450h+ PHEV

Toyota BZ4X SUV Concept

 

We also announced a new all-electric concept vehicle: the Toyota bZ4X SUV Concept. The bZ4X Concept symbolizes our commitment to push things further and go "Beyond Zero." As the next step in our electrification journey, the bZ4X Concept is the first of a global series of battery electric vehicles (BEVs) to be introduced under the “Toyota bZ” brand umbrella. Jointly developed with Subaru, the Toyota bZ4X SUV Concept features the new e-TNGA BEV-dedicated platform. Sales are planned to begin in 2022.

Toyota bZ4X SUV Concept 

CO2 EMISSIONS FROM OPERATIONS

 

In fiscal year 2021, TMNA’s use of electricity, natural gas and other fuels resulted in emissions of 1 million metric tons CO2, which is a 22 percent decrease from our baseline year of fiscal year 2016 and an 8 percent decrease from the previous year. For energy and GHG data, see "Carbon" in Performance.

 

Toyota aims to make all manufacturing operations carbon neutral by 2035 and eliminate CO2 emissions from the use of energy at our facilities by 2050. To help reach these goals, our facilities implement measures that impact daily operations and reduce energy consumption and GHG emissions. For example, the paint used in the paint shops at our assembly plants needs to be agitated to keep the paint solids in suspension. In the past, this was done using pneumatic motors, which require a constant supply of compressed air to power agitation. The assembly plants in Indiana, Kentucky and Texas fitted paint agitators with electric motors with variable speed controls, which makes agitating the paint much more energy-efficient. Switching to electric motors is saving these three plants more than 3.8 million kWh of electricity per year and avoiding 2,186 metric tons CO2.

 

Additionally, Toyota’s North American plants participated in a region-wide initiative last year to reduce energy use during periods when vehicles are not produced, namely on weekends and between shifts. By turning off lights and adding automatic controls to equipment to manage settings such as speed or temperature, plants are reducing annual electricity consumption by nearly 38.5 million kWh and natural gas consumption by 9,800 MMBtus, and avoiding 9,275 metric tons of CO2. Some examples of these energy-saving projects include the following:

 

  • At the assembly plant in Indiana, auto temperature controls were installed on five ovens in the paint shop and the temperature set back to a lower setting.
  • On the roof of Toyota’s casting plant in Tennessee, 36 exhaust fans were connected to the building management system and 12 variable frequency drives installed to control building pressure and reduce run time.
  • At the assembly plant in Kentucky, HVAC units are now controlled by a system that turns them on only where work is being done. Variable speed fans were also installed so that they no longer turn on at full speed.
  • At Toyota’s assembly plant in Baja California, new controls were installed to operate the painting booths and ovens more efficiently.

Renewable Energy

Toyota aims to make all manufacturing operations carbon neutral by 2035 and eliminate CO2 emissions from the use of energy at our facilities by 2050. To help achieve these aims and address climate change, Toyota invests in a combination of on- and off-site renewable energy projects.

 

During fiscal year 2021, Toyota added 10.8 acres of new solar arrays across the company’s plants in Alabama, Missouri and West Virginia, reducing its reliance on outside energy needed for operations.

 

  • The Huntsville, Alabama, engine plant invested $2.7 million in a 3.3-acre solar array with an electric generation capacity of 1.6 megawatts.
  • The aluminum casting plant in Troy, Missouri, invested $1.7 million in a 1.5-acre solar array with an electric generation capacity of 0.75 megawatts.
  • The Buffalo, West Virginia, engine and transmission plant invested $4.9 million in a 6-acre solar array with an electric generation capacity of 2.6 megawatts.

Combined, these three solar arrays are expected to offset 6,480,000 kWh of energy – the equivalent of powering nearly 800 homes per year – and are expected to reduce CO2 emissions by 4,304 metric tons annually.

 

Additionally, the new Eastern Canada Parts Distribution Center (ECPDC) in Ontario uses geothermal heating that reduces the building’s reliance on natural gas, has dynamic self-dimming glass throughout the offices, and uses motion-sensor LED lights. A solar array will be installed and begin operating in 2022. This building is expected to earn Zero Carbon Building design certification from the Canadian Green Building Council. Once certified, the ECPDC is expected to be one of the largest zero carbon-certified buildings in Canada and in North America.

 

Additionally, we continue to pursue virtual power purchase agreements that will allow us to accelerate TMNA's shift to renewable energy sources. In 2020, Toyota entered into a long-term power purchase agreement with Clearway Energy Group to purchase electricity from Black Rock, a 115 MW wind farm in Grant and Mineral Counties, West Virginia. Clearway began construction on the wind farm in early 2021 and is expected to begin generating power in 2022.

TMNA is a member of the Renewable Energy Buyers Alliance (REBA). REBA is a membership association for large-scale energy buyers seeking to procure renewable energy across the U.S. The organization’s goals are to catalyze 60 gigawatts of new renewable energy projects by 2025 and to unlock the energy market for all large-scale energy buyers by creating viable pathways to procurement.

RENEWABLE ENERGY
Beginning in 2022, TMNA will be using 198.6 million kWh of renewable energy per year and avoiding 85,800 MT CO2.
Onsite Renewables at Toyota Facilites Location Year Installed kWh/year MT CO2 avoided/year
Parts Center - Solar Ontario, CA

2008

1,296,642

560

KY Assembly Plant- Landfill Gas Georgetown, KY

2015

4,941,583

2,134

Plano HQ - Solar Plano, TX

2017

12,121,719

5,238

PEMC - Solar Georgetown, KY

2018

588,000

254

R&D - Solar York, MI

2018

371,424

161

AL Assembly Plant - Solar Huntsville, AL

2020

2,803,200

1,211

MO Aluminum Casting Plant - Solar Troy, MO

2020

1,314,000

568

WV Engine Plant - Solar Buffalo, WV

2021

4,555,200

1,968

Total Onsite    

31,936,104

13,798

Offsite Renewables Location Year Energy Production Begins kWh/year MT CO2 avoided/year
VPPA - wind Mineral and Grant Counties,
WV

2022

166,615,000

71,999

TOTAL OFFSITE    

166,615,000

71,999

LIFE CYCLE CO2 EMISSIONS

 

The Toyota Environmental Challenge 2050 calls on us to work towards eliminating life cycle CO2 emissions. TMNA is focusing our efforts upstream with suppliers and downstream with dealers, supporting and guiding their efforts and sharing our know-how.

SUPPLIERS

 

We updated our Green Supplier Requirements in 2021 to better reflect the Toyota Environmental Challenge 2050. As part of these updated requirements, suppliers are joining us in our efforts to reduce CO2 emissions across the vehicle life cycle and are expected to commit to an annual CO2 reduction target. We are piloting a third-party software platform for suppliers to use to report energy and emissions data that will allow us to track their progress. Through our collaboration, we are better positioned to reduce our carbon footprint significantly and achieve the aim of eliminating CO2 emissions from our supply chain by 2050.

 

We continue to focus on logistics suppliers, which make up a significant portion of TMNA’s supply chain CO2 emissions. Our logistics network consists of trucking, rail, air and marine carriers, all working in sync to ensure smooth shipping and delivery of vehicles, parts and accessories across North America, from the supplier to the plant, to Toyota’s distribution centers, and ultimately to dealerships and customers.

 

In North America, the majority of TMNA’s freight transport emissions are generated by third-party logistics suppliers. To help mitigate transport-related GHG emissions, TMNA’s internal logistics division works with logistics suppliers to develop GHG reduction strategies. For example, Toyota’s production control logistics group – which procures the parts and materials used to manufacture our vehicles – is working on a strategy to reduce GHG emissions from two primary sources: over-the-road transportation (OTR) and cross dock yard operations. The group’s focus is converting diesel-powered OTR equipment to alternative fuels, such as renewable compressed natural gas, and trialing alternative power systems at the cross docks, such as electric shunt trucks.

 

Toyota has 251 shunt trucks operating at manufacturing plants and cross docks across the region and plans to convert all of them from diesel to electricity by 2023. So far, 11 electric shunt trucks are in operation in California, Ohio, Texas and Ontario (Canada). TMNA is conducting a study to understand the electrical infrastructure needs for charging to help facilitate the successful rollout of the remaining 240 electric shunt trucks. Once all 251 trucks are converted by 2023, we expect to avoid approximately 13,000 metric tons of CO2 annually.

 

Total emissions from all logistics sources – including owned and third-party service parts/accessories, vehicle and production control – were estimated to be 663,000 metric tons CO2e in fiscal year 2021, a reduction of 9 percent from the previous year, in part due to reduced operations and sales during the COVID-19 pandemic.

Zero-Emissions Trucking

More than 16,000 trucks serve the twin ports of Los Angeles and Long Beach, which are North America’s largest trade gateway for containerized cargo as well as the single largest fixed source of air pollution in Southern California. The ports are responsible for more than 100 tons per day of smog- and particulate-forming nitrogen oxides – more than the daily emissions from all six million cars in the region.

 

Hydrogen-powered fuel cell electric technology is a clean, scalable platform that can meet a broad range of mobility needs with zero emissions. Ten fuel cell electric heavy-duty Class 8 trucks, utilizing the Kenworth T680 Class 8 model combined with Toyota’s fuel cell electric technology, have been delivered to demonstration fleet customers. These trucks, operated by Toyota Logistics Services, United Parcel Services, Total Transportation Services Inc., and Southern Counties Express, are used for drayage operations at the ports. In the first five months of operation, these trucks logged more than 8,000 in-service, zero-emission miles.

 

Development of the fuel cell electric heavy-duty Class 8 trucks is part of a $41 million Zero and Near Zero Emissions Freight Facilities (ZANZEFF) grant awarded by the California Air Resources Board (CARB), with the Port of Los Angeles as the prime applicant. CARB awarded those funds to the Port of Los Angeles for the ZANZEFF project as part of California Climate Investments, a California initiative that puts billions of Cap-and-Trade dollars to work reducing greenhouse gas emissions, strengthening the economy and improving public health and the environment, particularly in disadvantaged communities.

Toyota Logistics Services has put four hydrogen-powered fuel cell electric trucks into service for vehicle delivery in the Los Angeles metro area. These trucks are married up with trailers that can carry up to seven new Toyota/Lexus vehicles. Three of the zero-emission trucks are stationed at TLS’ Long Beach vehicle distribution center and haul imported vehicles, and one is at Union Pacific Railroad’s Mira Loma rail ramp and delivers North American produced vehicles.

DEALERS

 

The Toyota and Lexus brand divisions provide guidance to dealerships on implementing sustainable strategies during construction and renovation projects to achieve Leadership in Energy and Environmental Design (LEED®) certification. For information on Toyota and Lexus dealership LEED® certifications, see "Dealers" in Performance.

To complement this effort, TMNA launched the Dealership Environmental Excellence Program (DEEP), an annual recognition program that provides guidance and incentives to Toyota dealerships for positive environmental performance. The program targets continuous operational improvement in six categories: energy use, water consumption, waste, indoor environment, community outreach, and connecting with nature. Participating dealerships can earn up to five stars in each category for tracking environmental performance data, achieving minimum performance benchmarks, implementing improvement projects, and aligning with the Toyota Environmental Challenge 2050. We piloted DEEP in 2021 and plan to expand the program in 2022. We look forward to recognizing the results of the pilot group at the end of fiscal year 2022.