Performance

Welcome to the Performance section of Toyota’s North American Environmental Report. Here we provide our ENVIRONMENTAL ACTION PLAN results as well as data related to our environmental performance in the following areas:

ENVIRONMENTAL ACTION PLAN

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About This Chart: This chart summarizes the results of our environmental action (EAP) plan targets for fiscal years 2014 to 2016 in the areas of carbon, water, materials, biodiversity and outreach. Our targets cover over 85 assembly and unit plants, parts and vehicle distribution centers, sales offices and R&D sites. We will publish our next five-year EAP covering fiscal years 2017 through 2021 in next year’s report.

AIR QUALITY

Volatile Organic Compounds

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About This Chart:The primary concern with non-greenhouse gas air emissions is smog. Smog is formed as particulate matter, nitrogen oxides and volatile organic compounds (VOCs) react with sunlight. Smog has been linked to a number of health issues and is particularly prevalent in dense urban areas with heavy traffic, industrial activity and sunny, warm climates.

Toyota’s painting operations generate the majority of our VOC emissions. We have a North American Manufacturing VOC Working Group studying aspects of the vehicle body painting process to find ways to reduce VOC emissions. Group members review painting operations as a whole as well as the components of the process to find big and small opportunities for improvement. We benefit from sharing of lessons learned from one plant to the next.

Toyota's North American manufacturing plants measure grams of VOCs emitted per square meter of vehicle surface area coated (g/m2). Since 2002, we have reduced VOC emissions by 66 percent, from 35.0 to 12.0 g/m2.

Criteria Pollutant Tailpipe Emissions

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About This Chart: Hydrocarbons, nitrogen oxides (NOx) and carbon monoxide — all byproducts of fuel combustion — are linked to various air quality issues, including smog formation as well as a number of health effects. Limiting criteria pollutant tailpipe emissions from our vehicles helps to reduce some of the environmental impacts of driving.

The U.S. Environmental Protection Agency (EPA) and the state of California have certification programs to categorize vehicles in terms of their level of tailpipe emissions. EPA's certification program categorizes vehicles into Tier 2, Bins 1 through 8. Lower bin numbers correspond to vehicles with lower tailpipe emissions; Bin 1 is for vehicles with zero tailpipe emissions. This program requires a manufacturer's fleet average to meet a Tier 2 NOx standard of 0.07 grams per mile (g/mi). (The Canadian program is equivalent to the U.S. federal program.)

In California, the Low-Emission Vehicle III (LEV III) regulations categorize vehicles as LEV (Low Emission Vehicle), ULEV (Ultra Low Emission Vehicle), SULEV (Super Ultra Low Emission Vehicle), ZEV (Zero Emission Vehicle) or AT-PZEV (Advanced Technology Partial Zero Emission Vehicle). For the 2016 model year, the California LEV III regulations required an auto manufacturer's fleet average to meet an emission standard for non-methane organic gas with nitrogen oxides (NMOG + NOx) of 0.093 g/mi for passenger cars and light-duty trucks up to 3,750 pounds, and 0.110 for other light-duty trucks.

Federal vehicle emission standards will change based on EPA's issuance of their Tier 3 rule. In Tier 3, EPA established more stringent vehicle emissions standards to reduce the sulfur content of gasoline beginning in 2017, as part of a systems approach to addressing the impacts of motor vehicles and fuels on air quality and public health. The gasoline sulfur standard will make emission control systems more effective for both existing and new vehicles. The more stringent vehicle standards will reduce both tailpipe and evaporative emissions from passenger cars, light-duty trucks, medium-duty passenger vehicles and some heavy-duty vehicles. This will result in significant reductions in pollutants such as ozone, particulate matter and air toxics and help state and local agencies in their efforts to attain and maintain health-based National Ambient Air Quality Standards.

These vehicle standards are intended to harmonize with California's Low Emission Vehicle program, thus creating a federal vehicle emissions program that will allow automakers to sell the same vehicles in all 50 states. The vehicle standards will be implemented over the same timeframe as the greenhouse gas/fuel efficiency standards for light-duty vehicles (promulgated by EPA and the National Highway Safety Administration in 2012) as part of a comprehensive approach toward regulating emissions from motor vehicles.

Environment and Climate Change Canada has issued Tier 3 regulations aligned with the final U.S. Tier 3 rule.

Toyota, along with other auto manufacturers, supported efforts to harmonize the new California LEV III and federal Tier 3 programs. We worked with federal and state agencies through their regulatory processes to help develop rules that are both effective and feasible. Our goal was – and is – to maintain the flexibility to build vehicles based on customer preferences. In setting tailpipe emission regulations, we believe standards should be performance-based and take into account the interaction with other vehicle rules — such as fuel economy/greenhouse gas standards — to ensure the total package of requirements is effective and acceptable to the consumer. As with greenhouse gas emissions, fuels must be considered with vehicle technologies as a holistic system. Reduced sulfur levels in gasoline, already available for the LEV III program in California, are needed to enable the after-treatment systems being designed for Tier 3 compliance.

Toyota annually complies with the state of California, U.S. and Canadian federal vehicle emissions programs, and we have met the requirements for each model year.

Three Toyota/Lexus vehicles were named on the American Council for an Energy Efficient Economy (ACEEE) "Greenest Vehicles of 2016" list: Toyota Prius, Toyota Prius c and Toyota Prius Two Eco*. The list is notable in that it takes into account a variety of criteria when determining the greenest car, including the car's emissions, emissions from the electric grid on which it charges, and energy necessary to build and dispose of the car.


* The Prius Two Eco is an available trim level within the Prius model line. This trim option offers customers even better fuel efficiency than other Prius trims thanks to lighter weight and further optimized aerodynamics.

BIODIVERSITY

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The Wildlife Habitat Council (WHC) awards Conservation Certifications in November of each year. Because of this timing, our target is based on a calendar year cycle. As of the end of 2016, Toyota had 10 sites* certified with WHC:

  • Toyota Motor Manufacturing, Kentucky — certified in 2008 and recertified in 2013
  • Toyota Motor Manufacturing Canada, Cambridge plant — certified in 2013
  • Toyota Motor Manufacturing Canada, Woodstock plant — certified in 2013
  • Toyota Motor Manufacturing, Indiana — certified in 2013
  • Toyota Motor Manufacturing, Alabama — certified in 2014
  • Toyota Motor Manufacturing, Mississippi — certified in 2014
  • Toyota Motor Manufacturing, Texas – certified in 2015
  • Bodine Aluminum (Jackson, Tennessee) – certified in 2015
  • Bodine Aluminum (Troy, Missouri) – certified in 2016
  • Toyota Motor Manufacturing, West Virginia – certified in 2016

* Our Cambridge and Woodstock, Ontario, plants, while two separate sites, are covered by a single certification held by Toyota Motor Manufacturing Canada. Certification for Bodine Aluminum in Troy is expected by the end of 2016; however, at the time of publishing, certification was still pending. Toyota’s manufacturing headquarters campus in Erlanger, Kentucky, was certified in 2013. Because this campus is in the process of moving to new offices in Plano, Texas, and Georgetown, Kentucky, we let this certification expire at the end of 2016. We counted this site in 2013-2015 but did not include it in our 2016 results.

CARBON

Vehicle Fuel Economy + CO2

United States

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About These Charts: Toyota achieved the required U.S. Corporate Average Fuel Economy (CAFE) standards for both cars and trucks, and the required vehicle CO2 standards

Canada

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About This Chart: Toyota met the required vehicle CO2 standards in Canada for the 2015 model year. (2015 is the latest full year of data available.)

Mexico

In Mexico, Toyota achieved the required vehicle CO2 standards for calendar years 2014 and 2015. In 2014, Toyota’s fleet average was 183.8 grams CO2 per kilometer (g CO2/km), and in 2015, Toyota’s fleet average was 178.7 g CO2/km.

Energy Data

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About This Chart: During fiscal year 2016, Toyota used 1.64 million megawatt-hours of electricity – a 2.4 percent decrease from the previous year – and 177.14 million cubic meters of natural gas – an 8.3 percent decrease from the previous year – at more than 85 North American facilities, including assembly and unit plants, parts and vehicle distribution centers, R&D centers and offices. Our consolidated energy efficiency target covers all of these sites.

Our target was to reduce energy use from stationary sources by 12 percent per vehicle produced by fiscal year 2016, from a 2010 baseline. We met this target in fiscal year 2015, one year ahead of schedule. At the end of fiscal year 2016, we had improved energy efficiency by 23.6 percent.

This target covers the purchase and use of non-renewable electricity and natural gas. We convert all energy measurements to MMBtus for this target as a way to combine these energy sources into a single metric.

GHG Data

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About This Chart: Our consolidated GHG emissions target covers more than 85 North American facilities, including assembly and unit plants, parts and vehicle distribution centers, R&D centers and offices. Our target was to reduce GHG emissions from stationary sources (emissions from our use of electricity and natural gas) by 12 percent per vehicle produced by fiscal year 2016, from a 2010 baseline.

We met this target in fiscal year 2015, one year ahead of schedule. At the end of fiscal year 2016, we had improved GHG efficiency by 22 percent.

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About This Chart: Each year we prepare an inventory of greenhouse gas (GHG) emissions from Toyota’s North American companies. The methodology used to calculate emissions is based on The GHG Protocol® developed by the World Resources Institute and the World Business Council for Sustainable Development. The process of preparing this consolidated inventory has helped us better understand where GHG emissions occur and has facilitated information sharing across Toyota’s North American companies.

The inventory measures GHG emissions from Scopes 1, 2 and 3, as defined by The GHG Protocol:

  • Scope 1 includes emissions from the consumption of natural gas as well as fuel consumption by in-house trucking operations.
  • Scope 2 includes emissions from the consumption of purchased electricity.
  • Scope 3 includes emissions from fuel consumed by third-party carriers, team member commuting and business travel. These are emissions which Toyota has influence over but does not directly control. (Our Scope 3 emissions do not include emissions from the use of our sold vehicles. For information on our vehicle carbon footprint please see Fuel Economy & CO2 Vehicle Emissions.)

Reporting GHG Data to Government Agencies

Three of Toyota’s U.S. manufacturing plants are required to report GHG emissions data under U.S. EPA’s Greenhouse Gas Reporting Program. Individual plant data for our plants in Kentucky, Texas and Indiana are available on EPA’s website through its online data publication tool.

In Canada, Toyota Motor Manufacturing Canada (TMMC) and CAPTIN are required to report GHG emissions data. TMMC’s Cambridge plant is required to report under Environment Canada’s Greenhouse Gas Emissions Reporting Program; both the Cambridge and Woodstock plants are required to report GHG emissions to the province of Ontario under its Environmental Protection Act. CAPTIN is required to report GHG emissions to the province of British Columbia under its Greenhouse Gas Reduction Act.

COMPLIANCE

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About This Chart: Many of our activities in vehicle development, manufacturing and logistics are subject to local, state, provincial and federal laws that regulate chemical management, air emissions, water discharges, storm water management, greenhouse gas emissions, and waste treatment and disposal. These regulations vary by facility based on the type of equipment we operate and the functions performed.

Toyota reports significant environmental violations – those resulting in fines of $5,000 or more and/or in an impact to the environment (we do not report administrative violations). In fiscal year 2016, our North American manufacturing plants and logistics sites had zero significant environmental regulatory violations.

DEALER GREEN BUILDING

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About These Charts: Toyota and Lexus continue to lead the industry with more LEED-certified dealership facilities in both the U.S. and Canada than any other auto manufacturer. As of June 2016, we have assisted 54 Toyota and Lexus dealerships — 49 in the United States and 5 in Canada — with LEED certification.

Several more dealerships have completed construction and are waiting for their ratings to be decided. Many more are under construction or in the design and permitting phase and have registered their intent to pursue LEED with the U.S. or Canadian Green Building Councils.

LEED, or Leadership in Energy and Environmental Design, is a point-based system administered by the U.S. and Canadian Green Building Councils promoting a whole-building approach to sustainable construction and remodeling. LEED certification is based on meeting stringent evaluations in sustainable site development, water savings, energy efficiency, materials selection and indoor air quality.

ENVIRONMENTAL MANAGEMENT SYSTEMS

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About This Chart: Environmental management systems are an essential part of Toyota’s overall effort to minimize risks and achieve leading levels of environmental performance. Each Toyota location has an environmental management system (EMS) that identifies the significant environmental aspects and impacts of its operations and sets corresponding controls, goals and targets to manage and reduce these impacts over time. The facilities listed in the chart have been third-party certified to the ISO 14001 standard, the International Organization for Standardization’s standard for designing and implementing an effective environmental management system.

LEED® CERTIFICATION

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About This Chart: A total of 13 Toyota and Lexus facilities have achieved Leadership in Energy and Environmental Design (LEED®) certification. LEED is a point-based system administered by the U.S. and Canadian Green Building Councils promoting a whole-building approach to sustainable construction and remodeling. LEED certification is based on meeting stringent evaluations in sustainable site development, water savings, energy efficiency, materials selection and indoor air quality. Ranging from office space to vehicle distribution centers, these facilities represent Toyota's continued efforts to improve the design and efficiency of all operations. Toyota is pursuing LEED for the new North American headquarters campus being built in Plano, Texas, and for the new sites under construction in York, Michigan, and Georgetown, Kentucky.

MATERIALS

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About This Chart: As part of Toyota’s environmental action plan for fiscal years 2014 to 2016, we set a target to develop and test a new target for waste. We started by identifying a new key performance indicator (KPI) in 2014, the 3R Rate. Toyota’s 3R Rate is defined as: (Reduce + Reuse + Recycle) / Total Waste

Toyota’s 3R Rate was 96 percent using calendar year 2015 data. (We are using calendar year data instead of fiscal year data to align with EPA’s WasteWise program.) Our 3R Rate counts all types of non-regulated waste (including scrap steel) and covers all North American assembly and unit plants as well as U.S. parts and vehicle distribution centers and sales offices.

WATER

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About This Chart: During fiscal year 2016, Toyota withdrew 1.62 billion gallons of water – a 5.8 percent decrease from the previous year – at more than 85 North American facilities, including assembly and unit plants, parts and vehicle distribution centers, R&D centers and offices.

Of the total amount of water withdrawn, 94.8 percent came from municipal sources, 5.1 percent from surface water and the remaining 0.1 percent was rain water.

Our metric counts water withdrawals, such as from a public utility or surface water. We recently completed an internal water inventory management plan — similar to a greenhouse gas inventory management plan — to document accounting practices related to our water metric and target.

Our consolidated water target, which covers all of our sites, was to reduce water withdrawals by 6 percent per vehicle produced by fiscal year 2016, from a baseline of fiscal year 2010.

We met this target in fiscal year 2015, one year ahead of schedule. At the end of fiscal year 2016, we had achieved a 14 percent reduction from our baseline in water withdrawals per vehicle produced.