CSR Materiality

The Obu Plant, a compressor part production base in Aichi Prefecture, is facilitating various CO₂ emissions reduction measures to achieve zero CO₂ emissions by 2050.
Air conditioners account for about 14% of the plant’s entire energy consumption. The amount of energy used by the air conditioners is expected to increase further in the future, as they are needed to improve the workplace environment,especially to counter heat. Along with its conventional energy-saving activities, the plant has been active in reducing energy consumption through the use of renewable energy.
As one such initiative, the Obu Plant introduced an air-conditioning system using renewable thermal energy and initiated a verification test^*3. The system has been developed by Kajima Corporation and Zeneral Heatpump Industry Co., Ltd. under the project “Research and Development for Total Cost Reduction of Heat Utilization as Renewable Energy” of the New Energy and Industrial Technology Development Organization (NEDO). The renewable thermal energy obtained through the system is used for air conditioning and supplying hot water for the plant cafeteria. The plant will use the system to cover about 30% of the air-conditioning capability for the entire cafeteria, and after the launch of the system’s full-scale operation, plans to reduce its annual CO₂ emissions by about 7 tons.
Currently, renewable thermal energy is not used widely despite its abundance because it entails considerable costs for equipment installation. In this verification test, we have set up a structure under which the developers, user and the local government work together toward reducing costs and accelerating widespread acceptance. As the user of the system, Toyota Industries will identify issues in system operation and make proposals for cost reductions while collaborating with the local government to help spread the use of renewable thermal energy in the local community.
Through the participation in the verification test, we intend to accumulate knowhow on the use of renewable thermal energy, such as geothermal and solar heat, and leverage it in reinforcing our CO₂ reduction efforts.

*2 Using renewable thermal energy from the ground, sun and air for heating/cooling and supplying hot water
*3: The system’s first verification test being conducted under a usage environment in an actual building

Toyota Industries Corporation has endorsed the Green Transformation (GX)^*4 League Basic Concept announced by the Ministry of Economy, Trade and Industry (METI).
The GX League is a forum for companies that are taking on the challenge of GX with a view to achieving carbon neutrality by 2050 and social change, and aiming to achieve sustainable growth, to collaborate with companies, government, and academia that are engaged in similar initiatives.
We have set a goal of challenge for net zero CO₂ emissions from our products and production in "Environmental Vision 2050", and are promoting efforts to improve the environmental performance of our products, develop and introduce technologies that reduce CO₂ emissions in production process , and utilize renewable energy and hydrogen.

Toyota Industries Corporation has decided to endorse the "GX League Basic Concept" because it is consistent with the concept of Toyota Industries Corporation's efforts to realize a carbon neutral society.

GX League Basic Concept
https://www.meti.go.jp/english/press/2022/0201_001.html
（HP : Ministry of Economy, Trade and Industry）

*4 ： Transformation of the entire economic and social system to move quickly to a carbon neutrality.

There is an urgent need for better efficiency and labor saving at relay centers (logistics nodes) to counter the serious shortage of truck drivers. As such, we have participated in the demonstration projects^{*5, 6} promoted by Japan’s Ministry of Economy, Trade and Industry and have been developing automated guided forklifts (AGFs).
Looking ahead, we will continue to participate in various demonstration projects. At the same time, we will strive to provide new logistics solutions quickly and in a timely manner by utilizing digital transformation (DX) technologies such as Digital Twin, which creates a virtual replication of an actual environment on a computer to enable running a variety of simulations, in order to achieve more efficient development.

*5: Partnered with NEXT Logistics Japan Co., Ltd. and participated in the 2021 R&D and Demonstration Project to Improve Transportation and Delivery Efficiency through Visualization, Mixed Loading and Automation to work on a feasibility test on automatic truck handling.
*6: Partnered with Daiwa House Co., Ltd., Aeon Global SCM Co., Ltd., Kao Corporation and Hitachi Transport System, Ltd. and participated in the 2021 Project to Further Promote Transport Efficiency by Utilizing AI, IoT, etc., a joint undertaking aimed at improving the efficiency of cargo handling and logistics as well as energy savings in the entire supply chain by utilizing AGFs and other materials handling equipment and linking them with truck operations

In October 2021, we launched the new 3TE25 electric towing tractor as an environmentally conscious materials handling equipment. The aviation industry, which is a major user of towing tractors, has been also making efforts to reduce CO₂ emissions. We aim to contribute to carbon neutrality at airports and other facilities by satisfying the replacement needs for electrification of towing tractors.

The new Aqua released by Toyota Motor Corporation (TMC) in July 2021 is equipped with a number of Toyota Industries’ electrification-related products that include not only a newly developed bipolar nickel-metal hydride battery but also an electric compressor, DC-AC inverter and DC-DC converter.
We have also developed and have been manufacturing products for FCEVs and charging stands, which play an important role as part of social infrastructure. Leveraging our technologies cultivated in these fields to date, we will develop new products and contribute to the expansion of the electrified vehicle markets.

Under the guidance of experts, the Higashichita Plant, an engine production base
in Aichi Prefecture, has been working with other Toyota Group companies to restore Kinuura Bay to its original state by protecting endangered bird species in its coastal area.
To date, a small pond of about 100 m² has been created to provide a “birdpia,” a natural environment that has a constant supply of fresh water, which is essential for living organisms, and is inhabited by insects the birds feed on. The plant has also been facilitating an understanding of the conservation of biodiversity internally, and its employees have joined activities to maintain the birdpia, such as removing tall goldenrod and other non-native weeds.
During the bird monitoring surveys conducted so far, the plant has confirmed that the birdpia has been visited by about 50 species of birds, including eastern marsh harrier designated as a threatened species. Sensor-equipped cameras installed near the pond have caught other birds, such as intermediate egrets and goshawks, both a near threatened species, drinking water from the pond and taking bath in it. In addition to birds,the pond has been used as a water space by mammals, such as Japanese racoons and foxes, as many paw marks of these animals have been found around the pond.