Introduction To Strategy

Toyota’s global vision of Respect for the Planet is a core value of the company and a driving force behind our environmental initiatives. Respect for the Planet is also the foundation for Toyota Motor North America’s (TMNA’s) environmental sustainability strategy.

In 2015, our parent company unveiled the Toyota Environmental Challenge 2050, which builds on the core value of Respect for the Planet and provides a blueprint for the next 30-plus years. Challenge 2050 consists of six goals that seek to go beyond zero environmental impact and create a net positive impact on society and the planet. In North America, we developed a regional Environmental Mission Statement that aligns Respect for the Planet and Challenge 2050 with our four focus areas and five-year environmental action plan.

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ENVIRONMENTAL CHALLENGE 2050

The Toyota Environmental Challenge 2050, unveiled in September 2015, consists of six challenges that seek to go beyond merely minimizing environmental impact, to creating net positive change. For an overview of Challenge 2050 and how it relates to our focus areas and our activities in North America, please see Environmental 101.

Our four position statements, released in April 2018 as part of Toyota’s Thought Leadership Summit in Sonoma, California, represent Toyota’s roadmap in North America for how to attain sustainable development in four key areas by 2050. They describe TMNA’s strategy for achieving Challenge 2050.

Achieving Challenge 2050 will require innovation, creativity and new ideas. We will not get there by continuous improvement alone. For more on what it will take to achieve Challenge 2050, see the Feature Story: The Challenge in Challenge 2050.

02 / The Toyota Environmental Challenge 2050 at Work in North America

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Toyota Motor North America (TMNA) has aligned our core focus areas with the global Environmental Challenge 2050. In each focus area, we are working toward zero environmental impact and, with outreach, toward a net positive impact for society and the planet.

PRIORITY ISSUES

A global materiality assessment was conducted by our parent company, Toyota Motor Corporation (TMC), 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 issues:

  1. CO2 emissions from new vehicles
  2. CO2 emissions from upstream activities and end-of-life treatment of vehicles
  3. CO2 emissions from vehicle manufacturing
  4. Water stewardship
  5. Materials management
  6. Biodiversity protection

TMC addresses these six issues in the Toyota Environmental Challenge 2050, which consists of six environmental goals for creating a net positive impact on our planet.

TMNA’s process in North America followed a similar path. Our identification of 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 sharing know-how for achieving a net positive impact by 2050. Our priority 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 we are as dedicated as ever 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 on 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.

03 / Priority Environmental Issues for Toyota Motor North America (Materiality)

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The environmental materiality assessment for Toyota Motor North American complements the global assessment conducted by our parent company, Toyota Motor Corporation (TMC). TMC’s assessment identified six material environmental issues: CO2 emissions from vehicles, CO2 emissions from upstream activities and end-of-life treatment of vehicles, CO2 emissions from vehicle manufacturing, water conservation, materials management and biodiversity protection. These are the issues addressed in the Toyota Environmental Challenge 2050, which establishes six environmental goals for creating a net positive impact on our planet. Our identification of priority issues aligns with TMC’s, but consolidates the three CO2 emissions issues into a single issue we call “Carbon.” We also call out the importance of outreach for achieving a net positive impact by 2050.

We continue to manage other environmental issues, including air quality and green building, and we are as committed as ever to compliance with environmental laws and regulations.

2021 Targets

TMNA’s Environmental Action Plan (EAP) for fiscal years 2017 to 2021 is organized by focus area and the six goals of Toyota’s Environmental Challenge 2050. The targets put us on a path to achieving all six goals. We know there is much to do and a long way to go, but we are putting the building blocks in place for a successful strategy, which, by 2050, is expected to result in net positive impacts to society and the planet.

04 / TMNA Environmental Action Plan, FY2017-2021

Focus Area Challenge 2050 FY2021 Target Status FY2018 Progress
CARBON Challenge 1 Foster accelerated adoption of next-generation vehicles by continuously supporting education and infrastructure deployment On Track
  • Announced global corporate commitment to offer an electrified version of each Toyota and Lexus vehicle by 2025.
  • Supported education initiatives and continued participation in the Hydrogen Council.
  • Continued partnerships with Shell, FirstElement Fuels and Air Liquide on hydrogen fueling infrastructure.
Challenge 2 Improve GHG emissions intensity from all logistics 5% from a baseline of FY2016 On Track
  • Improved GHG intensity from owned and third-party U.S. parts and vehicle logistics by 19% compared to FY2016.
  • Began drayage at Port of Los Angeles with zero-emissions Kenworth/Toyota fuel cell electric heavy-duty trucks.
Challenge 3 Improve absolute GHG emissions from North American operations 15% from a baseline of FY2016 On Track
  • Reduced absolute GHG emissions by 6% compared to FY2016.
  • Announced virtual power purchase agreements that will reduce GHG emissions from North American operations by up to 40%.
WATER Challenge 4 Prioritize and implement water stewardship plans for facilities in water-stressed areas On Track
  • Mapped major sites with Aqueduct™ and prioritized 15 sites in areas of "high" water stress.
  • Continued to implement water reduction projects at various sites.
MATERIALS Challenge 5 Reduce the use of packaging materials On Track
  • Piloting RFID chips on returnable containers to prevent losses.
  • Outdoor wood grain-embossed deck furniture contains up to 60% of low-end plastic scrap, which includes packaging waste, from Toyota's two manufacturing plants in British Columbia, Canada.
BIODIVERSITY Challenge 6 Participate in regional biodiversity activities that support wildlife corridor(s) On Track
  • Toyota has 17 sites with gardens that support monarch butterflies and other pollinators. These gardens are located along the monarch butterfly's migration path and provide food and shelter to the butterflies at various stages of their life cycle as they make their way south for the winter, then return in the spring.
  • On Track Target Exceeded
  • On Track Target Achieved
  • On Track On Track
  • On Track Target Missed

GOVERNANCE

TMNA’s Environmental Sustainability (ES) department reports to the North American Executive Environmental Committee (NAEEC) and serves as the chief environmental body representing Toyota entities in North America. ES, in cooperation with the NAEEC, establishes activities and provides one voice for appropriate responses to environmental sustainability issues in North America. The ES department’s primary responsibilities include setting policy and direction for the region, developing consolidated environmental action plan goals and targets, and developing the annual North American Environmental Report.

TMNA ES facilitates an Advisory Board and Working Group as a coordinating mechanism across the organization. Both are comprised of environmental experts and representatives from various divisions:

  • Manufacturing
  • Research and Development
  • Sales
  • Product Support
  • Corporate Resources (includes Regulatory Affairs and Legal)
  • Social Innovation
  • Compliance and Audit
  • Toyota Canada Inc. (TCI)

This report contains information from these divisions. Representatives from these divisions also participate in focus groups that concentrate on a particular environmental issue (such as water or biodiversity). These focus groups report to the Environmental Sustainability Working Group and help develop and implement environmental action plan targets, develop strategies for the region, perform benchmarking and data gathering activities, and raise awareness among team members and external stakeholders.

05 / Environmental Governance in North America

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