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Toyota takes a systematic approach to environmental management. We have a third-party certified environmental management system (EMS) in place at all of our production and logistics facilities. A critical element of these systems is action planning—setting the goals and targets described throughout this report. The environmental management system drives our accomplishments by providing a framework for identifying significant environmental aspects and impacts, setting goals and targets to manage the impacts, measuring performance and identifying areas for improvement.

Toyota also uses the EMS as a tool for educating suppliers. We teach suppliers how to implement an environmental management system, the action planning process and how to conduct “treasure hunts”—a way of analyzing a process to find opportunities for reduction.

We also use the tools in our environmental management system to help Toyota and Lexus dealerships with green building projects. Our work with Mungenast Lexus of St. Louis, Missouri, is one example. The Lexus Facilities Design Department partnered with the dealership and its architectural firm to navigate through the LEED® (Leadership in Energy and Environmental Design) certification process. We shared our knowledge of the green building process to help the dealership save water and energy, reduce waste and improve indoor air quality. We share our expertise with the hope that our partners will then encourage such practices in the broader community.

Our performance in the areas of dealer support, supplier engagement, environmental management systems, compliance and sustainable building is described in this chapter.

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The Lexus Facilities Design Department works with dealerships and their architectural firms to navigate through the LEED certification process.

Mungenast Lexus of St. Louis received Silver LEED certification in 2010. LEED (Leadership in Energy and Environmental Design) is a point-based program administered by the U.S. Green Building Council that promotes a whole-building approach to sustainable construction and remodeling. LEED certification is based on meeting stringent evaluations in such areas as sustainable site development, water savings, energy efficiency, materials selection and indoor environmental quality.

Mungenast was a new construction, built from the ground up. Examples of interior and exterior measures implemented by the dealership to make its facility more sustainable include:

  • A car wash reclamation system that uses 72% reclaimed water per wash (featured in the photo to the left).
  • Xeriscaping with native and drought-tolerant plants for a water-efficient landscape.
  • Insulated architectural precast panels and aluminum curtain walls with high performance glazing.
  • A white roof with special layers of insulation for reduced heat island effect and energy efficiency.
  • Highly efficient HVAC and electrical systems with sensors.
  • Skylights in the service shop to provide natural light and reduce energy use.
  • Millwork and furniture made with third-party certified woods.
  • Finishes and paints with low volatile organic compound (VOC) content.

The measures taken by Mungenast Lexus reduce or eliminate negative impacts on the environment. The partnerships we form with our Lexus dealerships are one example of how we seek to educate consumers more broadly about sustainable lifestyle choices, so they can enjoy maximum luxury with minimal impact to the environment. Please see for more information.

We work closely with our dealerships to promote green building practices. Both our Toyota and Lexus divisions have programs to work with dealers on new construction and remodeling projects that encourage the use of the U.S. Green Building Council guidelines. A study performed on LEED-certified Toyota dealerships shows the average dealer who completes the LEED process is saving 26% on their energy costs per square foot per year. We are finding that the often rapid return on investment for environmentally sustainable materials, energy-efficient lighting fixtures and other LEED elements shows other dealers the economic sense of pursuing LEED certification.

Photo of Pat Lobb in front of dealership.
2007 - Pat Lobb Toyota of McKinney, Texas, is the first dealership of any of the automobile manufacturers to achieve LEED certification.

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2009 - The pre-owned building of Sewell Lexus of Fort Worth, Texas, is the first Lexus dealership to achieve LEED certification.

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2010 - The Kendall Toyota dealership in Eugene, Oregon, achieves LEED Platinum, the highest level of certification possible and the fist LEE D Platinum dealership in the world.

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2010 - Stratford Toyota in Stratford, Ontario, is Toyota’s first Canadian dealership to achieve LEED certification. This is also the first LEED Gold dealership and the highest rated dealership in Canada.

We exceeded our target and assisted 11 U.S. Toyota dealerships in obtaining LEED certification. (Target 14.3) One Toyota dealership in Canada and three Lexus dealerships in the U.S. have also achieved LEED (please see Figure T). Eight more dealers have completed construction and are waiting for their ratings to be decided; six are under construction and are targeting LEED; 12 are in the design and permitting phase; and eight more have registered their intent to pursue LEED with the U.S. Green Building Council. We have a number of other dealers learning about LEED who may decide to pursue certification in the future.

Figure T North American Dealerships with LEED Cerfification

As of the end of 2010, there were approximately 1,800 Toyota, Lexus and Scion dealerships in the U.S., Canada and Mexico. Often, our dealers’ biggest challenge is understanding and complying with all applicable environmental regulations and standards, mainly for hazardous waste and hazardous materials. Over the past five years, we have worked with industry and the Coordinating Committee For Automotive Repair (CCAR) to launch a number of training programs to help dealerships meet this challenge. (Target 14.2)

In 2008, we revamped our Web-based environmental assistance network and launched the C.L.E.A.N. Dealer Web site (Community Leadership Environmental Assistance Network) at The Web site now includes environmental, health and safety resources as well as hazardous materials information. Since launching in 2008, the number of unique users has increased over 100% and page views have increased by over 300%.

HazMatU (, an industry dealer training program on hazardous materials transportation, was introduced and made mandatory for Toyota dealerships in 2008. During the same year, we launched the Toyota Recycling and Environmental Awareness (TREA) program, an online voluntary nonhazardous waste recycling program for U.S. dealers. The site has seen over 35,000 hits since launch, with 88% of dealers reporting participation in a recycling program in 2010 that included at least one of the following: cardboard, office paper, soft plastics, scrap metal or used beverage containers.

In an effort to continually improve our battery recycling program, we recently introduced the use of returnable packaging for the shipment of large format nickel-metal hydride (NiMH) batteries for our hybrid vehicles. These containers will be used to ship the batteries to and from the dealers. To prepare for the launch of the durable reusable containers, a training program was developed to educate the dealers on how to properly pack the NiMH batteries in the reusable containers. Spent batteries are collected from the dealers and transported to our plant in Long Beach, California. Spent batteries are either exported to Japan for inspection and possible remanufacture, or recycled here in the U.S.

Photo of packaged battery.
Spent batteries from our hybrid vehicles are collected from dealers and transported to our plant in Long Beach, California, for export to Japan for proper recycling and disposal management.

Toyota recognizes that environmental impacts extend into our supply chain. We work closely with our suppliers to share our knowledge and experience to help them improve their environmental performance.

In 2000, Toyota’s manufacturing headquarters in North America released a set of Green Supplier Guidelines to encourage suppliers to support Toyota’s environmental goals by going beyond compliance with environmental laws and regulations. We updated these Guidelines in early 2007. (Target 14.1)

Since the launch of the updated Guidelines, we have conducted training sessions and benchmark exercises to teach suppliers about how we manage waste streams and how we conduct environmental action planning. We also facilitate energy saving activities (treasure hunts) with interested suppliers to help them identify ways to reduce. Toyota has shared its treasure hunt process with 157 Tier 1 suppliers to date. Treasure hunt participants receive training, access to Toyota’s energy tools, and support from the engineering team on investigating and designing energy reduction projects. Since the program began in 2008, savings of 34,000 metric tons of CO2 and 250,000 MMBTUs have been identified during 36 supplier treasure hunts.

Environmental management systems (EMSs) are an essential part of Toyota’s overall effort to minimize risks and achieve leading levels of environmental performance. (Target 13.1) All of Toyota’s North American manufacturing plants and logistics sites and several office complexes have an environmental management system certified to the International Organization for Standardization’s (ISO) 14001 standard. (Target 13.2 and 13.3) These 41 locations are listed in Figure U below. Each location’s EMS identifies the significant environmental aspects and impacts found there, and has corresponding goals and targets to manage and gradually reduce these impacts over time.

Figure U ISO 14001 Cerfications

Our North American logistics sites achieved their 13th year with no hazardous materials or dangerous goods violations, and their ninth year with no environmental non-conformances resulting in monetary fines.

Toyota’s North American manufacturing plants received two notices of violation in 2010. (Target 13.4) The plant in Texas had a wastewater violation for exceeding their zinc limit, and the plant in Tennessee had a waste violation for not properly labeling used oil containers. Corrective actions have been implemented in both cases to ensure these issues do not recur.

Toyota is one of a number of companies named as a potentially responsible party (PRP) at the Portland Harbor Superfund Site in Portland, Oregon, and at a waste management site in Calvert City, Kentucky. We continue to work on groundwater remediation at our Newark vehicle distribution center with the New Jersey Department of Environmental Protection and the New York/New Jersey Port Authority. At the Long Beach vehicle distribution center, we are working with the Port of Long Beach and the Regional Water Quality Control Board to monitor groundwater quality.

Prior to beginning construction on a new assembly plant or a major expansion of an existing plant, Toyota develops an “Eco-Plant Plan” that directs us to use the best available technology to minimize environmental impacts and meet or exceed regulatory requirements. Each plan contains operational performance targets for energy use, VOC emissions, waste generation and water consumption. These plans consider best practices and are tailored to local conditions. After the plans have been developed and approved, audits are conducted throughout the construction and trial phases to verify that the plan has been followed.

Over the past five years, Toyota has implemented eco-plant plans for our new manufacturing facilities in Woodstock, Ontario (opened in 2008), and Blue Springs, Mississippi (scheduled to open in late 2011). We also confirmed through an audit in 2007 that our assembly plant in San Antonio, Texas, is operating in a manner consistent with its eco-plant plan. (Target 13.6)

Toyota has achieved LEED® certification (Leadership in Energy and Environmental Design) at a number of facilities, including leased office spaces and a vehicle distribution center. (Target 13.5) LEED is a point-based program administered by the U.S. Green Building Council that promotes a whole-building approach to sustainable construction and remodeling. Figure v lists the Toyota locations in the U.S. that have achieved LEED certification.

While we do not consider LEED certification in all cases, we do evaluate the inclusion of sustainable elements in each building design phase. In recognition of these efforts, the International Facility Management Association (IFMA) recognized the corporate real estate and facilities department of Toyota’s U.S. sales and logistics division with the 2010 Sheila Sheridan Award for Sustainable Design and Energy Efficient Products. This is one of 18 Awards of Excellence given by the IFMA to leaders in facilities management.

Figure T North American Dealerships with LEED Cerfification