4th Action Plan (FY2007 - FY2011)

We have outlined our Fourth Environmental Action Plan. The plan contains our initiatives for sustainable management, and is to be implemented in the five-year period from FY2007 through FY2011.

The Fourth Environmental Action Plan establishes targets for both product and production areas, in response to the growing urgency posed by environmental issues. Implementation items relating to these target values fall under the following four themes, which are intricately related to every aspect of the business operations of the Toyota Industries Group:
(1) Curbing global warming
(2) Using resources more efficiently
(3) Reducing environmental risk factors
(4) Consolidated management

* “FY 2007” refers to the fiscal year ending on March 31, 2007, and all other fiscal years are referred to in a corresponding manner in the CSR section.

Action Plan

Items	Segments	Action policies	Specific actions	Targets
				Control items	Level
Curbing global warming	Products	Automobile-related products: Promote the development of technologies that achieve the best fuel efficiency performance in each country and region	Develop technologies to reduce vehicle weight Develop engines that meet fuel efficiency targets set at the product planning stages Develop high-efficiency car air-conditioning compressors	*1
		Promote technological development to reduce vehicle weight	Developing materials and parts to reduce vehicle size and weight
		Non automobile related products: Promote the development of technologies that achieve the best energy efficiency in the market	Develop technologies to improve energy efficiency of lift trucks Develop industry leading energy-saving technologies for textile machinery Improve energy efficiency of industrial use engines
		Promote the development of equipment for clean energy vehicles	Further improve performance of equipment for hybrid vehicles Develop equipment for the next generation of fuel cell vehicles
		Reduce greenhouse gases throughout product lifecycles	Steadily reduce life-cycle environmental impact through implementation of life cycle assessment (LCA) for all product lines Develop products with high environmental efficiency Develop car air-conditioning compressors with refrigerants with a low global warming potential
	Production	Promote energy reduction and energy saving through innovative production technologies	<Carbon dioxide from energy use> Streamline production processes Optimize supply energy Promote introduction of new energy sources	Standard reduction unit	<Nonconsolidated> 35% reduction from FY1990 <Consolidated> 10% reduction from FY2003
			<Fluorocarbons> Review and improve production processes Convert raw materials	Environmental efficiency	<Nonconsolidated> 30% improvement from base year <Consolidated> 10% improvement from FY2003 (Except CO2 from logistics)
		Globally promote measures to curb global warming	Implement energy audit for consolidated companies Horizontal deployment of global warming preventive measures
	Logistics	Reduce carbon dioxide emissions through implementation of green logistics	Promote modal shifts Formulate green logistics guidelines and strengthen cooperation with transport carriers
Using resources more efficiently	Products	Further promote the use of designs based on the designs for recycling (DfR) concept	Steadily improve recyclability through assessment of recyclability for all product lines Develop products that are easy to dismantle and recycle	*1
		Promoting the development of recyclable materials	Research and development of recyclable materials
	Material	Enhance resource productivity	<Resources> Reduce the volume of discarded materials by taking action at the source, such as improving yields and other measures Promote internal reuse	Environmental efficiency	<Nonconsolidated> 5% improvement from FY2003
			<Packaging and wrapping materials> Reduce use of packaging and wrapping materials
		Reduce use of groundwater	Promote recycling of wastewater Reduce use of water	Groundwater consumption (total amount)	<Nonconsolidated> 50% reduction from FY2003
	Waste	Reduce (comprehensive) environmental impacts of waste treatment	Eliminate landfill disposal at all consolidated production companies Establish measures to evaluate environmental impact of waste disposal	Landfill waste amount	<Consolidated> Less than 1% compared with FY1998
Reducing environmental risk factors	Products	Promote stricter management of and further reduction in the use of substances of concern	Eliminate use of four substances of concern globally (lead, mercury, cadmium and hexavalent chromium) (with some exemptions) Increase the number of substances of concern subject to management	*1
		Reduce emissions to improve air quality in urban areas in all countries and regions	Develop clean, high-efficiency diesel engines Introduce best-performing low-emissions lift trucks	Environmental impact	<Nonconsolidated> 10% reduction from FY2003 <Consolidated> 5% reduction from FY2003 (Applies to production sites in Japan)
	Production	Minimize environmental risks	Establish environmental risk evaluation system at business planning stages (incorporate measures to reduce environmental impact in business planning stages) Ensure appropriate management of chemical substances in accordance with social conditions - Enhance risk communication with stakeholders such as local residents
		Further reduce emissions of substances of concern	Reduce air pollutant emissions, including volatile organic compounds (VOC) Expand the use of water-soluble coatings and powder coatings Introduce VOC removal equipment Reduce water contaminants
Management	General	Strengthen cooperation with business partners	<Suppliers> Further promote green procurement Improve environmental performance by supporting the establishment and promotion of an environmental management system Enhance management of substances of concern Promote consolidated environmental management by enhancing mutual communication Thorough environmental compliance (all companies) Establish environmental management system (sales and service companies) Promote green procurement and environmental accounting (production companies) Improve environmental performance and external environmental communication (production companies)	*2
Social contribution	General	Fulfill responsibilities as a corporate citizen through two-way communication and social contribution activities	Actively disclose environmental information Provide environmental information concerning products Enhance Social & Environmental Report	*2
			Promote social contribution activities that contribute to preservation of biodiversity Implement environmental education for local residents and communication activities with local communities	*2

*1 In order to maintain confidentiality, detailed targets may not be officially published.
*2 Detailed targets are established every fiscal year and released in the Toyota Industries Report and other corporate documents