COMBATTING CLIMATE CHANGE

Carbon is one of Toyota's four environmental sustainability focus areas in North America. We are designing vehicles that emit less CO2 during driving, striving to eliminate CO2 emissions from our own operations, and working with suppliers and dealers to lower their CO2 emissions. We are working at every stage of the vehicle life cycle to help the world build a low carbon future.

WHY IS CARBON AN IMPORTANT ISSUE?

 

CARBON is the term we use at Toyota to refer to carbon dioxide (CO2) emissions, the main greenhouse gas (GHG) linked to climate change.

GHG emissions are caused by activities that generate energy, such as the combustion of fossil fuels like coal and natural gas to make electricity, and gasoline and diesel to power cars and trucks. These emissions are increasing, driven largely by economic and population growth. GHGs in the Earth’s atmosphere trap the sun's heat, causing the planet's average temperature to rise and leading to large-scale shifts in weather patterns.

Global warming and its effects — referred to as climate change — are being felt in every region around the world in the form of more severe and frequent floods, hurricanes, wildfires and droughts. According to the latest climate change report issued by the United Nations (UN), limiting human-induced global warming requires reaching at least net zero CO2 emissions, along with strong reductions in other greenhouse gas emissions.

Addressing carbon challenges is critical to the UN 2030 Agenda for Sustainable Development, a plan of action for people, planet and prosperity that establishes 17 Sustainable Development Goals (SDGs). Three of these goals in particular confront climate change: SDG #7: Affordable and Clean Energy for All aims to ensure access to affordable, reliable, sustainable and modern energy; SDG #11: Sustainable Cities and Communities aims to make cities inclusive, safe, resilient and sustainable; and SDG #13: Climate Action advises urgent action to combat climate change and its impacts.

Businesses are expected to play a significant role in achieving the bold and transformative steps urgently needed to shift the world onto a sustainable and resilient path and achieve the SDGs. Transportation is responsible for nearly one quarter of the world's GHG emissions and as an automotive company, Toyota is committed to doing our part to help the world transition to a low carbon economy. Toyota acknowledges climate change as a priority management issue and supports the goals of the Paris Agreement, a pact adopted by 196 countries that commits to reducing greenhouse gas emissions in order to keep warming well below 2° Celsius, and to pursue efforts to limit warming to 1.5° Celsius. That's why Toyota named "Carbon" as one of our four environmental sustainability focus areas in North America and why, globally, it is the focus of the CO2 Emissions Reduction Challenges in the Toyota Environmental Challenge 2050.

WHAT ARE WE DOING TO BETTER MANAGE CARBON?

 

Here in North America, our carbon strategy addresses multiple aspects of the vehicle life cycle to find ways to reduce CO2 emissions. Our projects focus on finding ways to reduce emissions from driving vehicles, eliminate CO2 emissions from our own operations, and eliminate emissions from the daily activities of our suppliers and dealers.

For detailed performance data on key metrics, visit "Carbon" in the Performance chapter of Toyota's North American Environmental Report.

 

 

Reducing CO2 Emissions from New Vehicles

Globally, Toyota aims to reduce CO2 emissions from new vehicles by 90 percent by 2050 (from a 2010 baseline).

We believe the path to making our vehicles carbon neutral is with a portfolio approach – fuel cell vehicles, hybrid vehicles, plug-in hybrid vehicles and battery electric vehicles. As the next step in our electrification journey, we announced the Toyota bZ4X SUV Concept, the first of a global series of battery electric vehicles to be introduced under the “Toyota bZ” brand umbrella.

The company has committed to offering electrified versions of Toyota and Lexus models by 2025, and in the U.S., we have also committed to 40 percent of vehicle sales coming from electrified vehicles by 2025, and 70 percent by 2030. Currently, 52 percent of Toyota and Lexus models have an electrified option, and there are 19 Toyota and Lexus electrified vehicle models on the market in North America, where cumulative electrified vehicle sales are more than 4 million vehicles (since 2000).

We continue to support the purchase and lease of electrified vehicles with Green Bonds issued by Toyota Financial Services (TFS). Since 2014, TFS has issued six green bonds totaling $7.6 billion. The previous green bond, issued in 2020 for $750 million, 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.

Toyota collaborates with the U.S. Department of Energy's National Renewable Energy Laboratory (NREL) to find ways to advance hydrogen as a sustainable transportation fuel. NREL researches pathways for making hydrogen from renewable and low carbon sources so that it can be a zero-emission fuel.

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Eliminating CO2 Emissions from Suppliers and Dealers

We work at every stage of the vehicle life cycle to reduce GHG emissions. Our supply chain is responsible for upstream GHG emissions, while dealers are responsible for downstream emissions.

Suppliers: In 2021, we published updated Green Supplier Requirements. 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.

In North America, the majority of TMNA's freight transport emissions are generated by third-party trucking, rail, air and marine carriers. Freight transport is a significant — and growing — contributor to GHG emissions. To help mitigate transport-related GHG emissions, TMNA's internal logistics division works with third-party carriers to develop GHG reduction strategies.

Toyota and Kenworth have rolled out hydrogen-powered fuel cell electric heavy-duty trucks in Southern California. These 18-wheelers emit nothing but water and will help to reduce the environmental impact of drayage operations at the Ports of Los Angeles and Long Beach.

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Dealers: There are approximately 1,850 Toyota and Lexus dealerships in the United States, Canada and Mexico, all independently owned franchises. The Toyota and Lexus brands work with their dealerships and provide guidance on implementing sustainable strategies during construction and renovation projects to achieve Leadership in Energy and Environmental Design (LEED®) certification. Through efforts like the Toyota Image II facility initiative and Lexus Vision USA, dealerships incorporate features such as LED lighting, windows that allow for natural light, and solar arrays.

Eliminating CO2 Emissions From Our Operations

By 2035, Toyota aims to make its manufacturing plants carbon neutral and by 2050, we aim to eliminate CO2 emissions from operations. Here in North America, we're investing in on- and off-site solar and wind projects to lower our carbon footprint. We entered into a power purchase agreement with Clearway Energy Group to purchase electricity from Black Rock, a 115 MW wind farm in West Virginia. Once the system begins generating power in 2022, Toyota is expected to offset 166.6 million kWh annually with renewable energy and eliminate 72,000 metric tons of CO2.

Toyota installed an 8.79-megawatt rooftop solar array at our corporate headquarters campus in Plano, Texas. The system provides approximately one-third of the annual power needs of the campus. Coupled with the purchase of renewable energy credits, the campus operates on 100 percent green power.

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Toyota / Lexus LEED® Dealerships
*As of July 2021, 69 Toyota and Lexus dealerships - 61 in the U.S., 7 in Canada and 1 in Mexico - have earned LEED® certification. If a dealership has multiple buildings certified, we counted the dealership only once.
  Toyota Lexus
Platinum 5 0
Gold 20 3
Silver 16 3
Certified 17 5
Total 58 11

WHAT DO WE PLAN TO DO NEXT?

 

Toyota has been developing five-year environmental action plans for 30 years. These plans help us manage our impacts and hold us accountable for our performance.

 

Here in North America, we recently announced our new five-year environmental action plan for fiscal years 2022 to 2026. This plan is our seventh and runs from April 1, 2021 to March 31, 2026. Our first report on progress against these targets will be published in 2022.

 

Our carbon targets are to:

Each five-year action plan puts us further along the path to achieving the Toyota Environmental Challenge 2050 (Challenge 2050). Challenge 2050 is a set of six challenges that seek to go beyond eliminating environmental impacts to creating net positive value for the planet and society. The six challenges are the most demanding and most inspiring environmental commitments Toyota has ever made.

The three CO2 EMISSIONS REDUCTION CHALLENGES call on Toyota affiliates around the world to support a low carbon future by eliminating CO2 emissions from our activities and by helping others do the same. For more information about Toyota’s 2050 carbon strategy for North America, see "Carbon: Toyota Motor North America Position Statement."

Find out more by visiting IDEAS & ACTIONS and the North American Environmental Report.