Dear Readers:

As one of the world’s largest automakers, Toyota is in a unique position to shape the future of mobility. That’s why last fall, our parent company announced the global Environmental Challenge 2050, an ambitious set of six challenges to ultimately create a net positive impact on the planet.

The six challenges address four complex environmental issues facing communities all around the world. Challenges 1, 2 and 3 focus on carbon and call for eliminating – not just reducing – greenhouse gas emissions from our vehicles, operations and supply chain. Challenge 4 addresses water availability and quality; Challenge 5 seeks to move us closer to a recycling-based society; and Challenge 6 is devoted to protecting nature.

Here in North America, we are already taking action to achieve the six challenges. On the vehicle side, we know the future of mobility includes electrification. Last year, we launched the Toyota RAV4 Hybrid, and 2016 brought the second generation Prius plug-in hybrid, Prius Prime, to the U.S. and Canada. The Mirai fuel cell electric vehicle continues to roll through California, boasting one of the highest ranges of any zero emission vehicle on the road.

Including Prius Prime, Toyota and Lexus now have 14 hybrid models available in North America; globally, we have 33. We estimate Toyota’s hybrid technology has helped save more than 6.6 billion gallons of gasoline worldwide and resulted in an estimated 67 million fewer tons of CO2 emissions, all since 1997, when Prius first became available in Japan.

On the operations side, we continue to improve our environmental performance. Last year, our North American manufacturing division received its 12th ENERGY STAR Partner of the Year – Sustained Excellence in Energy Management Award; our North American operations reduced water withdrawals by 99.8 million gallons; we were named the WasteWise Very Large Business Partner of the Year; and two more of our sites received Conservation Certifications from the Wildlife Habitat Council.

We’re also building our new North American headquarters campus in Texas to be a model for environmental sustainability. Our plans call for more than 7.7 megawatts of renewable energy and a goal of Platinum LEED® certification, the highest level possible.

These accomplishments all helped us meet, and in some cases exceed, our 2014-2016 targets on vehicles, energy and greenhouse gases, water, chemical management, waste, biodiversity and outreach. But our past success doesn’t mean we can rest.

We are already hard at work on our new environmental action plan that takes us to 2021. This five-year plan will continue to move us toward the 2050 challenge of creating a net positive impact on the planet. We continue to focus on four core areas – carbon, water, materials and biodiversity – and on enhancing outreach activities.

In this report, you’ll find information on many of the advances made over the last year in our focus areas, all moving us closer to creating net positive impact. The culture of Toyota is rooted in continuous improvement – in making constant, small advances until we reach our long-term goals. We believe that if we continue to make small advances, we will create positive change and a more sustainable future.

Jim Lentz Jim Lentz Signature

Jim Lentz
Chief Executive Officer
Toyota Motor North America, Inc.

Kevin M. Butt Kevin M. Butt Signature

Kevin M. Butt
Regional Environmental Director
Toyota Motor North America, Inc.