Recycling

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					      Environmental Aspects




     Recycling

                                                                                                                                                  Initiatives in the Development
                                                                                                                                                  and Design Stage

                                                                                                                                                       Enhanced Recyclable
                                                                                                                                                          Vehicle Design
                                                                                                                                                                 FY2004 Goal
                                                                                                                                                 • Incorporate the concept of design for
                                  Kosuke Shiramizu
                                                                                                                                                   recycling (DfR) into vehicles to be launched
                       Recycling Committee Chairman                                                                                                in FY2005, in response to a vehicle
                                                                                                                                                   recovery target rate of 95% by 2015
                                                                                                                                                 • Improve dismantlability and switchover to
                                                                                                                                                   easy-to-recycle materials in consideration
                                                                                                                                                   of future recycling/recovery technologies

                                                                                                                                                 Implementation of Prior Assessment System
                                                                Kosuke Shiramizu joined Toyota in 1963 and has gained experience
                                                                                                                                                     Toyota applied its Prior Assessment
                                                                in a wide range of production engineering and production areas. In
                                                                2001, he became Executive Vice President, and Chairman of the                    System to nine passenger vehicle series
                                                                Recycling Committee. In June 2005, he was appointed Chairman                     launched in FY2004 that were either new
                                                                of Daihatsu Motor Co., Ltd.                                                      or underwent complete redesign. Prior
                                                                                                                                                 assessment of evaluation items, including
         It is important to keep recycling in mind throughout the entire lifecycles of                                                           recyclability, long useful life, and resistance
     automobiles. Therefore, Toyota is actively promoting recycling at every stage of a                                                          to corrosion, was done at the development
     vehicle’s lifecycle —development, production, use, and disposal— and also feeds the                                                         and design stage.
     information learned from recycling processes back to the design stage in order to
     produce easy-to-recycle cars.                                                                                                               Use of Materials with Consideration to Recycling
         Toyota’s efforts in recycling end-of-life vehicles (ELVs) began with the foundation                                                         Toyota used its proprietary TSOP in the
     of Toyota Metal Co., Ltd., a shredding company, in 1970, and later the establishment                                                        interior and exterior parts of new models or
     of the Recycling Committee in 1990, the operation of the world’s first mass-production                                                      models that underwent complete redesign
     ASR1 Recycling Plant in 1998, the 2003 announcement of the Toyota Recycle Vision                                                            in a total of nine passenger vehicle series.
     (medium- to long-term goal), and the launch of the new Raum into which Toyota                                                               Toyota also used RSPP in three additional
     incorporated many new design for recycling (DfR) features.                                                                                  new vehicle series, for a cumulative total of
         In FY2004, in order to comply with the Automobile Recycling Law, which went into                                                        24 vehicle series. Toyota is also actively
     effect in January 2005, Toyota took a leadership role in the creation and smooth start-                                                     promoting the use of renewable materials
     up of a recycling system in the automobile industry, establishing a framework for                                                           derived from plants and has used kenaf in
     collecting and recycling ASR, airbags, and CFCs/HFCs from end-of-life vehicles, all of                                                      some of the interior parts of the Mark X,
     which automakers are required to accept. Toyota announced its FY2004 recycling                                                              Crown Royal, and Crown Majesta.
     results in June 2005.                                                                                                                            Please see p. 85 for details on TSOP
         Toyota also took various other measures, such as the continued incorporation of                                                              (Toyota Super Olefin Polymer)
     new DfR features into new vehicles, the consistent reduction of substances of concern
                                                                                                                                                      Please see p. 85 for details on RSPP
     (e.g. lead, mercury), and the development of new recycling technologies. Toyota                                                                  (Recycled Sound-Proofing Products)
     plans to continue taking action to attain goals such as the early achievement of a 95%
     vehicle recovery rate.                                                                                                                      Improved Dismantlability in the New Vitz
                                                                                                                                                      The Raum, launched in 2003, is a
                                                                                                                                                 model into which Toyota incorporated as
     1. ASR (Automobile Shredder Residue):                                                                                                       many DfR features as possible. Since then
        Residual resin, rubber and glass, after metals are removed from shredded end-of-life                                                     Toyota has been incorporating the various
        vehicles
                                                                                                                                                 recyclability-improving measures developed
                                                                                                                                                 for the Raum into the design standards of
                                                                                                                                                 all vehicle series thereafter, and consistently
     Organization Chart                                                                                                                          employing them in the actual vehicles.
     (Positions and areas of responsibility as of March 2005)                                                                                         For example, of the vehicle series
                                                                      Research and Development Subcommittee
                                                                                                                                                 launched in FY2004, the new Vitz
                                                                    Promotes the concept of design for recycling and prior assessment
                                                                    based on the 3Rs (reduce, reuse, recycle)                                    incorporated the Easy to Dismantle Mark
         Recycling Committee
                                                                      Domestic Subcommittee                                                      and pull-tab type grounding terminals,
       Chairman:                                                    Promotes dealer activities regarding the manifest system and recycling       among other DfR features; as a result, its
       Executive Vice President Kosuke Shiramizu                    activity
       Vice Chairmen:                                                                                                                            dismantling time2 was reduced by
                                                                      Overseas Subcommittee
       Senior Managing Director Hiroyuki Watanabe                                                                                                approximately 10% compared to the
       Senior Managing Director Kyoji Sasazu                        Construction of collection and recycling networks for end-of-life vehicles
       Established in 1990                                                                                                                       previous model. Furthermore, the use of
                                                                      ASR Subcommittee
       Studies easy-to-recycle designs of vehicles,                                                                                              electric power steering eliminated the need
       development of recycling/recovery                            Steadily promotes the recycling/recovery of ASR
       technologies, and collection methods
                                                                                                                                                 for extracting oils, and as a result, the time
                                                                      SOC Subcommittee                                                           required for extracting fluids was shortened
                                                                    Reduction of substances of concern                                           by approximately 20% compared to the
     *The Special Projects established in 2001 to promote responses to the Automobile Recycling Law were concluded in May 2005.                  previous model.
      Operations relating to the Automobile Recycling Law fall under the auspices of the Environmental Affairs Division.
                                                                                                                                                 2. Dismantling time is a time parameter
                                                                                                                                                    defined by Toyota
38
                                                                                                                                          Environmental & Social Report 2005




  Environmentally Considerate Materials              1996 level. The remaining five models                                         Development of
  Used in the New Vitz                               reduced lead usage to 1/3 or less of the 1996                             Dismantling Technologies
                                                     level. Cadmium: Toyota has implemented
                                                     measures to complete the switch from                                       At the Automobile Recycle Technical
                                                     cadmium, contained in thick-film paste                                  Center established inside Toyota Metal,
                                                     (used in some electronic parts), which is                               Toyota has been promoting research on
                                                     currently not subject to regulation, to                                 DfR and tools that simplify the dismantling
                                                     another substance by the middle of 2005.                                process. In FY2004, Toyota took steps
                                                     Mercury: Although the mercury used in                                   such as evaluating vehicle dismantlability




                                                                                                                                                                                      Aspects
                                                                                                                                                                                      Environmental
                                                     discharge lamps and backlights for the                                  and making related suggestions to the
                                                     meter and navigation displays are                                       design groups, improving the front glass
                                                     exempted from the Japanese industry’s                                   cutting tool, and developing dismantling
                                                     voluntary standards and the EU (European                                simulation technologies.       In FY2004,
                                                     Union) ELV Directive, Toyota developed                                  Toyota also began selling an improved
     TSOP: Toyota Super Olefin Polymer               mercury-free discharge lamps and began                                  version of its airbag on-board deployment
     RSPP: Recycled Sound-Proofing Products          using them in the Porte.                                                tool developed in FY2003, which has been
                                                                                                                             well received.

                                                             Status of Lead Reduction in Toyota Vehicles
        Reduction of                               (g/Vehicle)                                                                 Airbag On-board Deployment Tool
    Substances of Concern                                    2,000    1,850

                 FY2004 Goal
                                                                                                                                                                         Airbag
• Reduction of lead usage in vehicles                        1,500
  launched in 2006 and after to 1/10 or less
  of 1996 level                                                                             Average of new models
                                                Lead usage




*Japanese automobile industry’s new voluntary
 goal                                                        1,000                          Model with the least lead

                                                                                                                1/3 the
Decision for Early Elimination of                                                                               1996 level

Four Substances                                               500                                                                 Individual
                                                                                            294                                deployment tool
    Toyota established the goal of early                                        439   437          194    211 1/10 the                           Airbag computer
elimination of the use of four substances of                                                                    1996 level
                                                                      1,850     212   212
concern (lead, cadmium, mercury, and                            0
                                                                                            131    118          117
hexavalent chromium) from all vehicles                                 ’96      ’00   ’01   ’02    ’03    ’04         (FY)
                                                                     Industry
and vehicle-related products produced or                             average                                                     Dismantling Simulation Technologies
sold by the Toyota Group worldwide.                                                                                              In order to design easy-to-dismantle
Toyota reduced the use of these                                                                                              vehicles, these technologies allow
substances in accordance with the                                                                                            designers to run computer simulations of
Japanese automobile industry’s voluntary                                                                                     the process of removing plastic parts. This
goals and European regulations. However,                                                                                     allows designers to calculate the force
since vehicles and parts are produced all                                                                                    necessary for breakage and removal
around the world, Toyota decided to                                                                                          without the need for conducting tests on
establish a worldwide uniform goal.                                                                                          actual vehicles.      In FY2004, Toyota
                                                                                                                             established simulation technologies for
Actions Taken in FY2004                                                                                                      bumpers as well as instrument panels.
   Lead: Four of the nine new models
launched in FY2004 achieved the goal of
reducing lead usage to 1/10 or less of the                                       Mercury-free discharge lamp (center)          Instrument Panel Removal Simulation

                                                                                                                                                         Pulled upward using a hook
   Global Movement of Vehicles and Parts
                                                                                                                                                             Similar breakage as in
                                                                                                                                                             an actual vehicle




                                                                                                                                                                                         39
     Environmental Aspects                                                                                 Recycling




                                                                                                                                               groups. Toyota, jointly with Daihatsu Motor                                                            Airbag Recycling Status
      Responses to the                                                                                                                         and Hino Motors, Honda Motor, Volkswagen                                                                   Toyota built a system for proper and
      Automobile Recycling Law                                                                                                                 AG, Audi, Peugeot, and BMW, have built a                                                               efficient processing of airbags in
                                                                                                                                               reliable and efficient ASR recycling/recovery                                                          cooperation with the Japan Auto Recycling
     Status of Automobile Recycling Law                                                                                                        system with the objective of improving                                                                 Partnership (JARP), which functions as a
         The Law Concerning Recycling                                                                                                          recovery rates. The tables below summarize                                                             common       collection   point  for    all
     Measures for End-of-life Vehicles                                                                                                         the status of recycling/recovery in FY2004.                                                            automakers. Three methods exist for
     (Automobile Recycling Law), which went                                                                                                                                                                                                           processing airbags: on-board deployment
                                                                                                                                               *Recover refers to thermal recovery of ASR
     into effect in January 2005, defines the                                                                                                                                                                                                         (both simultaneous and individual
     responsibilities of automakers and other                                                                                                                                                                                                         deployment) and removal/collection. In on-
     concerned parties in order to encourage                                                                                                   Status of ASR Collection and                                                                           board deployment, processing and
     the recycling, thermal recovery, and proper                                                                                               Recycling/Recovery                                                                                     recycling are completed at dismantlers.
     treatment of end-of-life vehicles (ELVs).                                                                                                     In order to recycle/recover the ASR                                                                However, in removal/collection, airbags
         Toyota has been at the forefront of                                                                                                   generated by shredding companies                                                                       must be transported to designated
     efforts to enable automakers to collect,                                                                                                  nationwide, Toyota built a nationwide                                                                  collection locations and processed and
     recycle/recover,* and properly process                                                                                                    framework in cooperation with Toyotsu                                                                  recycled by a processing company.
     three specified items, namely CFCs/HFCs,                                                                                                  Recycle Corporation. From the three ASR
     airbags, and automobile shredder residue                                                                                                  processing methods currently available, i.e.,                                                          CFCs/HFCs Collection/Processing Status
     (ASR), that are generated from ELVs. To                                                                                                   recycling/recovery, incineration, and disposal                                                             With regard to CFCs/HFCs, Toyota has
     accomplish this, Toyota played a central                                                                                                  in landfills, Toyota will select a combination                                                         been taking various actions based on a
     role in establishing three designated                                                                                                     that is reliable, causes the least                                                                     collection and destruction system that
     corporations (for fund management,                                                                                                        environmental impact, and is efficient in                                                              satisfies the Fluorocarbon Recovery and
     information management and recycling                                                                                                      order to steadily increase the recovery rate.                                                          Destruction Law, which went into effect in
     support) in June 2003, as well as in the                                                                                                      Toyota is also developing and                                                                      2002. For example, in cooperation with
     creation of mechanisms for the collection,                                                                                                promoting dismantling technologies that                                                                JARP, Toyota built a system in compliance
     proper processing and recycling/recovery                                                                                                  enable “complete utilization,” which                                                                   with the Automobile Recycling Law that
     of the three specified items, and the design                                                                                              involves the thorough dismantling and                                                                  can efficiently and reliably process
     of electronic manifests for ELVs.                                                                                                         removal of copper parts in addition to                                                                 CFCs/HFCs by improving transport
         As for ASR collection and recycling/                                                                                                  normal dismantling procedures, so that the                                                             efficiency and adding destruction facilities.
     recovery, automakers are working to build                                                                                                 resulting material mix can be used as a
     the necessary framework in two separate                                                                                                   fuel for electric furnaces.
                                                                                                                                                                                                                                                         Record of Recycling and Recovery for
                                                                                                                                                                                                                                                         the Three Specified Items
       Framework for Collection and Recycling/Recovery based on the Automobile Recycling Law                                                                                                                                                          1) Period covered: January 1 - March 31, 2005
                                                                                     Target vehicles: 4-wheel vehicles (including minivehicles) and 4-wheel commercial vehicles (standard, small, mini-trucks, and buses)                             2) Recycling/recovery/proper treatment status

                                                                                                                                                                                                                                                                          ASR                       73,088 vehicles
                                                                                                                                                             New car owner                                                                             Number of
                                                                                      Japan Automobile Recycling                                                                                                                                                          Airbags                     9,883 vehicles
                                                                                                                                                                                                                                                      units collected
                                                                                       Promotion Center (JARC)                                                    Used car
                                                                                      (Three designated corporations)                                                                                                                                                     CFCs/HFCs                 56,283 vehicles
                                                                                                                                                                                                                       De-registration system under




                                                                        Claim                                                                                                                     Return of
                                                                                                                                                                                              vehicle weight tax
                                                                                                                                                                                                                                                                          ASR                         14,562,116kg
        Carmakers and importers (self implementation or outsourced)




                                                                                                                                                                                                                          the Road Vehicles Act




                                                                                                                                                               Final owner
                                                                                        Fund management corporation                                                                                                                                       Volume
                                                                                                                                  Recycling                                                                                                                               Airbags                      24,991 units
                                                                       Payment                                                       fee                             ELV                                                                                 collected
                                                                                       Information management center                                                                                                                                                      CFCs/HFCs                       20,052kg
                                                                                         Designated recycling support                                  ELV collection company                                                                            Weight of        ASR                          7,437,076kg
                                                                                                 department                                         (dealer, car maintenance company, etc.)                                                              materials
                                                                                                                                                                                                                                                          recycled/
                                                                                                                                                                                                                                                         recovered        Airbags                            170kg
                                                                                                                                                                     ELV
                                                                                                  Outsourced/      CFCs/HFCs                                                                                                                                              ASR                                  51%
                                                                                                                                    Collection of
                                                                                                   Payment         destruction       CFCs/HFCs                                                                                                          Recycling/
                                                                                                                    company                                   CFCs/HFCs                                                                                recovery rate      Airbags                             95%*
                                                                      Outsourced/                                                                         collecting company
                                                                       Payment      Japan Auto
                                                                                     Recycling                      Payment                                                                                                                           *Value obtained by dividing the recycled weight (170kg) by the
                                                                                    Partnership                                                                      ELV                                                                               weight of airbags collected by recycling facilities (179kg)
                                                                                                  Outsourced/        Airbag         Collection of
                                                                                                   Payment          recycling         airbags                                                     Used parts,                                         3) Expense status                                      Unit: Yen
                                                                                                                    company                                                                          etc.
                                                                                                                                                         Dismantling company                                                                                              ASR                          462,895,150
                                                                                                                    Payment                                                                                                                               Funds
                                                                                                                                                                                                                       Usable parts market/
                                                                                                                                                                                                                       usable metal market




                                                                                                                                                                                                                                                                          Airbags                       19,490,550
                                                                                                                                                                 Dismantled                                                                              paid from
                                                                                                                                                                   vehicle
                                                                                         Collection management                                                                                                                                             JARC           CFCs/HFCs                    115,430,350
                                                                                          companies by team                                                                                         Metals,
                                                                                                                                    Contract                                                         etc.
                                                                                                                                                          Shredding company                                                                                               Total                        597,816,050
                                                                      Outsourced/
                                                                       Payment        TH team — 8 companies
                                                                                      (Toyotsu Recycle Corporation),                                                                                                                                                      ASR                          482,289,769
                                                                                                                                             Collection of
                                                                                      Toyota, Honda, Daihatsu, Hino,                             ASR                 ASR
                                                                                      VW, Audi, Peugeot, BMW                                                                                                                                              Expense         Airbags                       57,850,379
                                                                                                                                   Outsourced/                                                Metals, electricity,
                                                                                                                                    Payment                                                                                                            for recycling/
                                                                                                       ART*                                                                                          etc.                                                                 CFCs/HFCs                    159,310,816
                                                                                                                                                    ASR recycling company, etc.                                                                          recovery
                                                                                                                                                                                                                                                                          Total                        699,450,964
                                                                                                                                                                   Residue                                                                                                ASR                          – 19,394,619

                                                                                                                                                                                                                                                                          Airbags                      – 38,359,829
                                                                                                                                                                  Landfill                                                                                Balance
      *ART: Automobile shredder residue Recycling promotion Team                                                                                                                                                                                                          CFCs/HFCs                    – 43,880,466
                                                                      Registration required              License required               Certification required                   Materials flow                      Expenses flow                                        Total                       – 101,634,914

40
                                                                                                                                                        Environmental & Social Report 2005




                                                                                  Initiatives to Improve Recovery Rate
 Development of                                                                       Toyota began working on recycling                Recycling at Dealers
 Recycling Technologies                                                           sorted resins (solids and fuel additive
                                                                                  residue), which used to be disposed of in           Enhanced Supply of Used and Rebuilt
                      Initiatives in                                              landfills, and together with Aichi Steel            Parts
                     ASR Recycling                                                Works developed a technology for utilizing              In FY2004, Toyota dealers continued
                                                                                  this resin as an alternative to coke for            sales of used and rebuilt parts and retrofit
Promotion of Material Recycling of ASR                                            steel-making electric furnaces. The use of          kits. In particular, the number of used
     Toyota, together with Toyota Metal Co.,                                      this new technology began in January 2005.          parts sold increased significantly.




                                                                                                                                                                                                                   Aspects
                                                                                                                                                                                                                   Environmental
Ltd., developed technologies for ASR                                                  In a steel-making electric furnace, a
utilization, resulting in the building of the                                     carbon material such as coke powder is                  Trend in Number of Used Parts Sold
world’s first mass-production recycling                                           normally used as a heat source and                   (Parts)
plant in 1998, which continues to operate                                         recarburizer when melting scrap iron to             80,000                                                     76,524
with a recycling capacity of approximately                                        form steel stock for automobile parts, etc.         70,000
15,000 ELVs per month.            This ASR                                        By adding an appropriate amount of the              60,000                                          55,456
Recycling Plant sorts and recycles copper                                         resin sorted out from ASR, it has become            50,000
and glass, as well as raw materials for                                           possible to achieve a heating efficiency            40,000
RSPP and roof insulators.                                                         usable as a heat source and also to use                                                28,885
                                                                                                                                      30,000
     The recovered RSPP (urethane, fibers,                                        the resin as an alternative to the
                                                                                                                                      20,000
etc.) is used for soundproofing materials in                                      recarburizer.
                                                                                                                                      10,000               8,210
approximately 1.5 million vehicles a year,                                            This new technology now makes it
and accounted for roughly 44% of Toyota’s                                                                                                    0
                                                                                  possible to effectively utilize mixed resins,                             ’01           ’02          ’03            ’04   (FY)
production in Japan in FY2004.                                                    which have been difficult to recycle
     The copper is utilized as a resource                                         because of their light weight and small                Supply of Rebuilt Parts, etc.
while the glass is recycled into road-paving                                      calorific value.                                      Rebuilt parts supplied                           Number supplied
materials. Furthermore, 4,576 tons of sorted                                          While the Automobile Recycling Law
and recovered resins, rubber, etc. are being                                      requires that the ASR recovery rate be                         Automatic transmission                      13,592 (296)
used as an alternative to kerosene fuel.                                          increased to 70% by 2015, Toyota is
                                                                                                                                                 Turbo charger                                   40 (1,249)
                                                                                  determined to achieve this goal early by
          Please see p. 85 for details on RSPP                                    continuing to develop new recycling                            Power steering                              18,568 (10,909)
          (Recycled Sound-Proofing Products)
                                                                                  technologies.
                                                                                                                                                 Torque converter                             5,094 (3,882)
   Trends in Usage Volume of RSPP Materials
   (Urethane and Fibers)                                                            Utilization of Sorted Resins (Solids, Fuel          Retrofit kits supplied                                1,563
  (Tons)                                                                            Additive) as a Fuel for an Electric Furnace
3,000                                                                                                                                 ( ) indicates supply of new parts
                                 2,620                      2,585
                                                                      2,683*
                      2,480                      2,490
                                         2,310                                                                                        Promoting the Collection and Recycling
2,000                                                                                                                                 of End-of-life Parts
                                                                                                                                          Toyota expanded both its program to
                                                                                                                                      have parts distributors and dealers
                                                                                                                                      nationwide collect end-of-life parts, and its
1,000
               680                                                                                                                    bulk supply* system for motor oil. The
                                                                                     Solids, fuel additive              Scrap iron
                                                                                                                                      amount of lead wheel-balancing weights
                                                                                                                                      collected reached 63 tons, and the volume
      0                                                                                                                               of engine oils supplied through the bulk
           ’98  ’99     ’00    ’01     ’02     ’03     ’04 (FY)
                                                                                                                                      supply system expanded to 59% as a
*Used as soundproofing products in about 1.5 million new
 vehicles/year                                                                                                                        percentage of the engine oil sold at parts
                                                                                                                                      distributors. The number of damaged
      Trends in Copper and Glass Recycling                                                                                            bumpers collected and recycled steadily
 (Tons)                                                                                                                               increased to 828,000 units.
300
                                                                                                                                      *Bulk supply:
                                                 250                                                                                   A tanker truck transports the motor oil to
                     234                                                                                                               dealers, who then store it in tanks, reducing
                                210      210                205       203                            Electric furnace                  the number of drums and containers needed
200


                                                                                                                                          Number of Bumpers Collected
                                                                                                                                      (Thousand Tons)
100                                                                                                                                  1,000
          62                      71                                                                                                                                                                  828
                           61
                                           53                                                                                         800                                                771
                                                       32                40                                                                                                  717
               24                                                                                                                                                 665
                                                                  3                                                                   600           546
  0
           ’98        ’99        ’00      ’01     ’02        ’03       ’04 (FY)                                                       400
       Copper:
       Recycled as a reinforcement in cast aluminum components                           Steel stock and parts for automobiles        200
       for vehicles
       Glass:                                                                                                                            0
       Recycled as materials for landscape pavement, etc.                                                                                            ’00           ’01          ’02      ’03          ’04   (FY)
                                                                                                                                                                                                                      41

				
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