The Story of Sakichi Toyoda
Sakichi Toyoda, the founder of Toyota Industries Corporation, possessed a strong ambition to contribute to society from his days as a youth. He had devoted his 63-year-long life to invention.
CSR Materiality
Under the Toyoda Precepts (corporate creed), Toyota Industries has been undertaking a broad range of businesses by upholding the philosophy of contributing to society since its founding. In keeping with recent changes in the business environment, we have clarified which social issues we should tackle as our CSR material issues, and will work for the resolution of these issues.
Process to Determine CSR Materiality
Action Policies, Targets and Results of "Resolving Social Issues through Our Business"
Resolving Social Issues through Our Business
Mitigation of Global Warming
Contribution to Circular Economy
Contribution to Vision 2030 (Aspiration)：Clean/zero emissions
Mitigating global warming and achieving a circular economy through such initiatives as reducing CO2 emissions and waste in our business activities and expanding the lineup of environmentally friendly products in our efforts to contribute to maintaining and improving the global environment over the long run
| Action Policies | Action Targets and Activities | Targets for FY 2026 | Results for FY 2021 |
|---|---|---|---|
| Reducing CO2 emissions from production activities | Reduce production-derived CO2 emissions Total emissions | -25% ※1 (vs FY14 level) |
-28% (vs FY14 level) |
| Adopt renewable energy sources Introduction rate | 15% | 6% | |
| Reducing CO2 emissions from production-related logistics | Reduce logistics-derived CO2 emissions Emission volume per unit of production (non-consolidated) |
-11% (vs FY14 level) |
-8% (vs FY14 level) |
| Reducing CO2 emissions through product and technology development | Develop technologies that contribute to an even greater level of energy efficiency | - | - |
| Effective resource utilization in production activities | Reduce waste generation volume Emission volume per unit of production (non-consolidated) |
-12% (vs FY14 level) |
-22% (vs FY14 level) |
| Promote water conservation activities correspoding to the water situations in each country and region | - | - | |
| Implementing initiatives to promote 3R(reduce,reuse and recycle) design for effective resource utilization | Reduce use of resources and promote reuse and recycling of resources | - | - |
＊1 As a more ambitious target, we are aiming for a 50% reduction by fiscal 2031 from the fiscal 2014 level.
Main Initiatives
Toyota Material Handling Europe moves towards net-zero future with 100% renewable electricity
Toyota Material Handling Europe AB (TMHE), a subsidiary serving as the regional headquarters of the materials handling equipment business in Europe, has formulated a two-pronged policy aimed at zero energy muda (waste) and zero carbon emissions by fiscal 2031.
As a result, all of its five production bases and all 28 non-production companies achieved the interim target in April 2021.
TMHE became the first company in the materials handling equipment industry to achieve 100% use of electricity from renewable energy sources at all bases in Europe. In 2019, Toyota Material Handling Manufacturing Sweden AB (TMHMS), a TMHE Group company, went a step beyond using electricity from renewable energy and introduced biogas, thereby becoming the first zero CO2 emissions plant in the Toyota Industries Group.
Initiative to Reduce Sludge Volume
The Nagakusa Plant, a vehicle assembly base in Aichi Prefecture, has been carrying out an initiative to reduce the sludge generation volume. The plant treating wastewater from the electrodeposited painting process, in particular, generates about 432 tons of sludge every year. After repeated tests, the plant selected and switched to an agent that produces less sludge. The plant also installed a sensor to keep the addition of the agent to a minimum according to the quality of wastewater. Through these improvements, the plant was able to reduce its annual sludge volume by about 122 tons.
Creation of Innovative Values
Contribution to Vision 2030 (Aspiration) ：Creation of innovative value, smart
Contributing to achieving a “smart” society and more enriched lifestyles by resolving social issues through technological advancement and innovation that create new values
| Action Policies | Action Targets and Activities | Targets for FY 2031 | Results for FY 2021 | Targets for FY 2022 |
|---|---|---|---|---|
| Promoting development of new technologies that create new values | Ratio of R&D expenses for electrification and automation | Over 70% | 57.6% | Over 60% |
| Improving core technologies and utilizing the new knowledge of business partners to enter into peripheral fields of existing businesses while developing and offering technologies and products in new business fields | Expand peripheral fields and new business fields Net sales | Over ¥1 trillion | - | - |
| -Develop new technologies and products that contribute to resolving environmental and social issues | ||||
| -Develop new technologies and products for logistics automation and expand sales (Materials Handling Equipment) Sales of automation products (growth rate) |
Twofold (100%) (vs FY2021) |
- | Up 10% (vs FY2021) |
Main Initiatives
A test trial of our advanced autonomous towing tractors to carry baggage
Needs are also growing for the automation of materials handling equipment to increase the efficiency of logistics operations and make them contactless. In cooperation with All Nippon Airways Co., Ltd., we have carried out a test trial of our autonomous towing tractors to carry baggage at Kyushu-Saga International Airport. The test trial has been a first* in Japan to take place in actual airport operations.
*This test trial of baggage transportation in actual airport operations was the first of its kind conducted in Japan after the application of the Japanese government’s guidelines for autonomous operations within an airport.
Automated lift truck for practical use in a freezer warehouse
In 2020, TICO put an automated lift truck to practical use in a freezer warehouse for the first time in Japan and launched a feasibility test jointly with Nichirei Logistics Group Inc.
The AiR-T autonomous intelligent mobile robot
At the Aichi Robot Showcase, a project of Aichi Prefecture to promote the implementation of service robots in society, TICO made proposals on the use of the AiR-T autonomous intelligent mobile robot in an office building and at a coffee shop.
Products and Services Which Contribute to Safety, Reliability and Comfort
Mutual Prosperity through Partnerships with Local Communities
Contribution to Vision 2030 (Aspiration) ：Safe/reliable, comfortable
Contributing to creating a compassionate society by offering products and services that anticipate the needs of customers and various stakeholders and that are safe, reliable and comfortable to use while fulfilling our responsibilities as a member of society to thrive together
| Action Policies | Action Targets and Activities | Targets for FY 2031 | Results for FY 2021 | Targets for FY 2022 |
|---|---|---|---|---|
| Expand sales of electrification-related products (all businesses) Ratio of electrification-related products to net sales |
Over 70% | 43% | 45% | |
| Enhancing electrification-related products and services that are highly functional, ecologically sound and adaptable as social infrastructure | -Offer highly efficient and energy-saving electric compressors that are excellent in terms of quiet operation and comfort (Automobile Business) -Offer clean and high-quality fuel cell units and on-board batteries (Automobile and Materials Handling Equipment businesses) -Offer power source-related products, on-board or otherwise, that can also be used as social infrastructure during disasters and other occasions (Automobile Business) |
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| Offering high-quality and safe products and services and maintaining and improving the structure to realize this goal | Conduct product risk assessment (target products) Implementation rate (non-consolidated) |
100% | 100% | 100% |
| Continuously promoting grassroots activities in local communities and thrive together as a member of Society | Promote quality education Training participation rate (non-consolidated) |
100% | 100% | 100% |
| Promote social contribution activities Expenditure/number of participants | - | ¥840 million/ 18,224 persons | - | |
| -Contribute to biodiversity conservation of local communities -Promote other community contribution activities |
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Main Initiatives
Provide highly efficient and energy-saving electric compressors
that are excellent in terms of quiet operation and comfort
The new MIRAI FCEV released by TMC in December 2020 uses an air compressor newly developed by TICO.
The air compressor is the world’s first* mass-produced product to adopt a centrifugal method using a movable roller-type traction drive unit. Not only doesthe product achieve a 24% compression efficiency improvement, 35% weight reduction and 45% sizereduction compared with the previous model but it also contributes to the higher output of the new MIRAI.
*Survey by Toyota Industries Corporation
Use of an Electrified Vehicle as a Power Source during a Disaster
In recent years, there has been a growing public attention to the use of high-capacity batteries of electrified vehicles as a power source. The 1.5-kW type AC inverter, in particular, can operate appliances that require more power, such as rice cookers and hot plates, and has drawn much attention as an emergency power source in a disaster in addition to camping, outdoor events and other applications.
Creating an Animal Path to Improve Natural Habitats of Living Organisms
To provide a safe passage between wooded areas surrounding the Higashiura Plant in Aichi Prefecture, TICO created an animal path within the plant premises.
Action Policies, Targets and Results of "Foundation Supporting Our Business Operations"
Foundation Supporting Our Business Operations
Safe and Healthy Work Environments
Leveraging Diversity and Inclusion
Sustainable Procurement
Compliance and Risk Management
| Action Policies | Action Targets and Activities | Targets for FY 2031 | Results for FY 2021 | Targets for FY 2022 |
|---|---|---|---|---|
| Eliminate serious accidents | ||||
| -Number of serious accidents | 0 | 2 | 0 | |
| -Frequency rate of lost workday injuries (non-consolidated) |
0.00 | 0.09 | 0.00 | |
| Fostering safe and healthy workplaces for everyone | Utilize diverse human resources | |||
| -Ratio of female managers (non-consolidated) |
3.6% | 1.6% | - | |
| -Ratio of employees with disabilities (non-consolidated) | Over 2.3% | 2.4% | Over 2.3% | |
| Creating the environment for everyone to get a fair share of opportunity to develop and demonstrate their potential | Maintain sound transactions and strengthen structure throughout the supply chain -Implementation rate of CSR checks on target suppliers (non-consolidated) |
100% | 100% (955 companies) |
100% (950 companies) |
| Establishing the foundation to remain a company that is trusted and needed by society | Eliminate serious compliance violations Number of violations |
0 | 0 | 0 |
| Promote risk management activities taking a risk-based approach -Improve BCP effectiveness |
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| -Respond to cybersecurity risks Number of serious incidents | 0 | 0 | 0 |
Main Initiatives
TICO have been carrying out activities so that associates who are balancing work and family can work with higher motivation and pursue career development. Such activities mainly focus on enhancing systems to support a work-life balance and facilitating an understanding for maintaining a work-life balance.
TICO received “Platinum Kurumin” certification from the Ministry of Health, Labour and Welfare in August 2019 in recognition of our excellent efforts concerning work-life balance as well as a “Family-Friendly Company” award from the Aichi prefectural government in February 2020.