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					             Environmental & Social Report 2004

                             Environmental Aspects
                             Automobile Peripheral and Other Businesses

                             Housing Business
         On January 1, 2004, Toyota’s Housing                                                                                                                 finishing materials used in such places as
                                                                                  Development of Environmentally
     Sales Group became an independent                                                                                                                        the inside of walls and ceilings, and has
                                                                                  Considerate Housing
     entity and began sales as Toyota Housing                                                                                                                 made it a standard feature in all of its
     Corporation. Continuing to function as the                                                                                                               products ahead of other companies.
     sales division of Toyota’s housing business,                                                                                                                 As a result, the emission of formaldehyde,
     Toyota Housing has been developing a                                                                                                                     of which there is usually a high risk when the
     comprehensive operation stretching from                                                                                                                  temperature rises above 28°C, has been
     the sale of environmentally considerate 21st                                                                                                             verified to remain at or below guideline
     century homes to projects for condominiums                                                                                                               values even at high temperatures.
     and proposals for town creation. In FY2003,
     a total of 4,038 houses were sold.                                                                                                                                                             Emission of Formaldehyde in Toyota Home
         In terms of environmental initiatives,

                                                                                                                                                              Concentration of formaldehyde (ppb)
     Toyota is developing new products which
     meet “Next generation energy-saving
     standards” and that are even more
                                                                                                                                                                                                            Guideline values set by the Ministry of
     environmentally considerate. Toyota has                                   The new “SINCÉ Cada” series launched in April 2004                                                                           Land, Infrastructure and Transport        Toyota Home actual
                                                                                                                                                                                                     80                                                 value (average)
     been taking measures to reduce CO2
     emissions at both the production stage and                                    In April 2004, Toyota Housing launched
     the occupation stage. Toyota is also making                               the “SINCÉ Cada” series, which not only
     efforts to prolong the lifespan of houses                                 adopts the Next-generation energy-saving
     through its long-term (30-year) warranty                                  standards as standard specifications, but also                                                                          22         24        26                  28         30         32
     system for major structural supporting elements,                          allows inhabitants to enjoy living in coexistence                                                                                Room temperature (°C)           x: Toyota actual values
     thus promoting resource conservation and                                  with nature through careful management of
     the reduction of waste generation.                                        light and air, such as blocking out afternoon                                                              Initiatives at Production Plants
         Toyota Housing has joined together with                               sun while still retaining good airflow, and an
     dealers, construction companies and                                       optional all-electric system, making this an
     suppliers in concerted action to reduce                                   environmentally considerate dwelling.                                          Reduction in CO2 Emissions
     environmental impact and promote the                                      *Next-generation energy-saving standards:                                         At the Kasugai Housing Works, a cationic
     widespread adoption of environmentally                                     Hermetically sealed and well insulated housing                                electrodeposition coating and drying facility,
     considerate housing.                                                       able to reduce by 20% the amount of energy                                    a pretreatment immersion boiler, and the
                                                                                needed for heating and air conditioning as a
                                                                                means of reducing CO2 emissions to prevent                                    canteen kitchen facilities were converted to
      Environmental Management                                                  global warming                                                                natural gas-powered operation, realizing
                                                                                                                                                              a reduction in CO2 emissions of 220
        Toyota’s Housing Group operates an                                     Reduction of Indoor VOC Levels                                                 tons a year. The Tochigi Housing Works
     environmental management system (EMS)                                         Following a revision of the Building                                       also promoted CO2 emissions reduction
     based on ISO 14001 certification and                                      Standard Law of Japan, responses to the                                        measures, including shortening operating
     promoted initiatives at all Toyota Housing                                “sick house syndrome” were strengthened.                                       times for drying facilities and revising
     housing works with the aim of achieving its                               Indoor concentration of formaldehyde must                                      operational start times for the heatup
     FY2003 goals. As a member of the Japan                                    be at or below guideline values and the use                                    system boiler, to achieve a reduction of 9.2
     Prefabricated Construction Suppliers and                                  of chlorpyrifos is banned in all construction                                  tons per year. At the Yamanashi Housing
     Manufacturers Association, Toyota worked                                  work begun on or after July 1, 2003.                                           Works, despite an unprecedented increase
     towards a revision of Eco Action 21, an                                   Regarding formaldehyde, Toyota Housing                                         in production, a yearly reduction in CO2
     environmental action plan which serves as                                 applies the F✩✩✩✩ standard, the                                                emissions of 7.5 tons was achieved through
     a guideline for the housing industry, and set                             standard with the lowest permissible                                           enhanced processing capability, while all
     new goals for FY2005 and FY2010.                                          emission levels, to structural materials and                                   employees joined together to implement
       Toyota’s Housing Group Environmental Action Plan and Goals; Results of Initiatives in FY2003
       Action guideline                 Item                                    Specific action items and goals (FY2005 goals)                                                                              FY2003 goals                              Results
     1. Development and        CO2 emissions           • At least 50% of houses built by Toyota to comply with “Next-generation energy-saving standards”                                                          40%                                  90%
        supply of products     reduction during the    • Fitting of photovoltaic power generation systems, etc., that supply at least 5% of power consumed
                               occupation stage          during the occupation stage                                                                                                                               1%                                  0.5%
        with top levels of
        environmental                                  • All homes to be provided with a 30-year long-term warranty contract                                                                                     100%                                  100%
                               Long-life and
        performance            durability of houses    • At least 80% of contracted houses to correspond to top rating in Housing Performance Index System                                                       100%                                  100%
                               Management and          • Reduction of formaldehyde concentration in at least 80% of contracted houses (top rating in
                               reduction of              Housing Performance Index System)                                                                                                                       100%
                                                       • Toluene and xylene levels to conform to interior air quality guidelines of the Japan Federation of                                                                                            100%
                               substances of concern
                                                         Housing Organizations
     2. Pursuit of             Promotion of measures
                               to prevent global warming • 5% reduction in total CO2 emissions compared to FY2001
                                                                                                                                                                                                            2.6% reduction                        7.7% increase
        activities that do     Waste reduction and     • 50% reduction in combustible waste generated compared to FY1999, aiming to                                                                   50% or more reduction
                               resource conservation     achieve zero emission                                                                                                                                                                    45% reduction
        not discharge
        waste                  Conservation of water   • 20% reduction in total water consumption compared to FY1995                                                                                        12.2% reduction                      8.3% reduction
                               Reduction of trash at   • 70% reduction of on-site trash such as packaging and wrapping material, remnant material and                                                       33.3% reduction                      37.0% reduction
                               construction sites        excess material, compared to FY2000
     3. Business partners      Enhanced cooperation    • Promotion and support of EMS, thorough management of substances of concern, and promotion                                                                                          67% (of total value of
        are environmental      with suppliers            of efforts to acquire ISO 14001 certification by suppliers                                                                                                                     material purchased by Toyota)
        partners                                                                                                                                                                                    Periodic audits were carried out between May and June
                                                       • Establishment of EMS, promotion and support of achievement of goals in Toyota Housing Dealer                                               2003 in compliance with legal regulations governing
                               Enhanced cooperation      Environmental Standards
                               with dealers                                                                                                                                                         industrial waste. Legal compliance was confirmed at all
                                                       • Increased support for environmental responses of Toyota Housing dealers                                                                    Toyota Housing Dealers. Similar audits are scheduled for
                                                                                                                                                                                                    every May and June in the future also.

                                                                                                                                                               Automobile Peripheral and Other Businesses

strict control of heating and cooling system                                     Conservation of Water Resources                                                           Environmental Education within
temperatures by installing temperature                                               Water consumption at the three housing                                                the Housing Group
gauges on the premises. As a result of                                           works in FY2003 totaled 121,763 tons, due
these activities, the total CO2 emissions of the                                 to increased production and other factors,                                              Improving Awareness of Environmental
three housing works combined was 6,900                                           meaning the FY2003 water conservation                                                   Preservation by Facility Visits
tons in FY2003. This means that, while                                           goal could not be met. As no industrial-use                                                In April 2004, environmental education
emissions per unit were reduced, the total                                       water is supplied to the Kasugai Housing                                                was conducted for 25 new employees or
emissions volume increased slightly due to                                       Works, regular clean water has so far been                                              those transferred from other groups. The
increased production volume. In the future,                                      used in the production process. In order to                                             session consisted of formal lectures and
Toyota will work toward achieving FY2005                                         reduce the amount of clean water used, a                                                touring of environmental facilities, so that as
targets through reinforced operational control                                   purification system was introduced in                                                   well as learning the theory, participants also
of equipment in use and other activities.                                        March 2004 which makes use of the                                                       made actual visits to facilities to see the
                                                                                 rainwater that falls on the roof of the entire                                          new rainwater utilization system, as a way
   Trend in CO2 Emissions at Production Processes                                facility. The introduction of this purification                                         of encouraging enhanced awareness of
                      FY2005 goal 5% reduction from FY2001                       system is expected to reduce water                                                      environmental preservation.
                                                                                 consumption by approximately 10,000 tons
                    Total volume of CO2 emissions                     (Tons/
(Tons)                                                                  Unit)    in FY2004.
8,000                      7,900                                          4
         6,800                                        6,900   6,900
                                   6,300                                              Trend in Total Water Consumption
 6,000                                                                    3
                                                                                                              FY2005 goal 20% reduction from FY1995
                                    Standard value

 4,000                                                                    2     (Thousand Tons)
                                                                                150     133
 2,000                                                                    1                                                    118                 112   122
                                                                          0                                                                                                    Visit to see the new rainwater utilization system
                                                                                             Standard value

          ’99     ’00    ’01    ’02    ’03                              (FY)
CO2 emissions volume has been rounded off to
the nearest hundred                                                              50
                                                                                                                                                                              Participation in the Creation of an
                                                                                                                                                                              Environmentally Harmonized Cityscape
Reduction of Substances Subject to PRTR                                           0                                                                                              In   the     summer       of    2003,    an
                                                                                          ’95                                  ’00         ’01     ’02   ’03     (FY)
   At the Tochigi Housing Works,                                                                                                                                           environmentally harmonized cityscape, Eco
discharge of substances subject to PRTR,                                                                                                                                   Village, was created in a corner of the
reporting of which is required by law, was at                                                                                                                              Urban Development Corporation’s City
or below standard values. At the Kasugai                                           Initiatives at Construction Sites                                                       Garden Tsurukawadai. In the center of the
Housing Works, 6.3 tons of toluene and 4.0                                                                                                                                 facility, eight companies, including Toyota
tons of xylene were reported, while the                                              At the construction sites, initiatives to                                             Home Tokyo Co., Ltd., have built nine
Yamanashi Housing Works reported 1.7                                             reduce waste included measures to reduce                                                  environmentally harmonized dwellings. These
tons of toluene and 1.0 tons of xylene.                                          trash by switching from cardboard to                                                      units are equipped with a number of
                                                                                 re-usable plasterboard for curing and                                                     environmental features including photovoltaic
Reduction of Waste                                                               packaging material; and incorporating                                                     panels, organic waste disposal devices and
    At the Kasugai Housing Works, waste                                          in the manufacturing process certain                                                      rainwater storage facilities. The eight companies
vinyl, one of the waste plastics which had                                       operations previously carried out on-site so                                              have formulated the so-called Attractive Town
previously been incinerated, is now sold                                         as to reduce remnant material. In FY2003,                                                 — Friendly Town Guidelines, and are working
to toy manufacturers as raw material                                             the volume of waste generated per unit at                                                 to create an environmentally harmonized
(recycling of resources), which has reduced                                      the construction sites was 3.4m3.                                                         cityscape in which due consideration is given
waste generation by 34 tons a year. At the                                           As part of initiatives for the future,                                                to visual appearance to the extent that power
Yamanashi Housing Works, following                                               Toyota will continue to promote activities                                                poles and power lines are as unobtrusive as
advice from a waste processing company,                                          concentrating on recycling and re-use. In                                                 possible, a minimum distance of 1m is
action was taken to reduce the water                                             specific terms, efforts will be made to                                                   preserved between walls, and hedges are
content of waste at the processing stage.                                        secure recycling routes and to ensure full                                                utilized on external boundaries, all in an effort
The total waste generated by the three                                           implementation of on-site sorting.                                                        to establish privacy and give ample consideration
housing works combined increased to 623                                                                                                                                    to boundaries shared by neighbors. From
tons, exceeding the fiscal year goal, due to                                                                                                                               environmentally harmonized dwellings to
                                                                                      Results of Waste Reduction Measures at
increased production and other factors.                                                                                                                                    environmentally harmonized cityscapes, the
                                                                                      Construction Sites of Prefabricated Houses
                                                                                                                                                                           project shows the way forward in the creation
   Trend in Volume of Waste Generated                                                                         FY2005 goals 70% reduction from FY2000                       of residential environments.
            FY2003 goal 50% reduction from FY1999                                (m3/unit)
 1,300                                                                            5.0                                                4.5
                                                                                                              Standard value

          Standard value

                                                                                  3.0                                                            2.8
                                                          600     623             2.0

  500                                                                             1.0

                                                                                            ’00        ’01        ’02       ’03 (FY)                                                                 Center of Eco Village
                                                                                 Data is based on waste reduction for an average-sized                                                        Source: Jutaku Sangyo Hyakka 2004
          ’99                ’00                ’01       ’02     ’03 (FY)       house in Japan (130 - 140m2)

           Environmental & Social Report 2004

                                 Environmental Aspects
                                  Automobile Peripheral and Other Businesses

                                 Intelligent Transport Systems/Biotechnology and Afforestation Businesses
                                                      IMTS as a Means of On-site                              ETC On-board Unit Sales Surpass
       Intelligent Transport                          Transportation at EXPO 2005 Aichi, Japan                500,000 Units
                                                          The movement of visitors within 2005                    The Electronic Toll Collection system
       Systems                                        World Exposition, Aichi, Japan (EXPO                    (ETC), which automatically collects
                                                      2005) will be facilitated by Toyota’s IMTS              charges from vehicles passing toll points,
     Intelligent Transport Systems (ITS) are an       (Intelligent Multimode Transit System)1. It is          leads to easing of traffic congestion and
     attempt to solve the various issues caused       expected to cover a total one-way distance              reducing exhaust emissions. The number
     by an advanced motorization society,             of about 1.6km in the automatic operation               of ETC on-board units sold at Toyota
     including accidents, traffic congestion and      zone and a total distance of about 0.8km in             dealers in FY2003 (the number of set-ups*)
     environmental issues, through the use of         the manual operation zone, and can carry                reached around 530,000. The ETC market
     electronics and telecommunications               approximately 30,000 passengers/day. The                is expanding rapidly due to falling prices for
     technology.                                      vehicles envisaged for actual operation                 the on-board unit and toll discounts for
                                                      have a design based on glass cabins with                system users. Toyota will continue to work
     Promoting Test Operations On the                 curved profiles.                                        to encourage the wider use of ETC.
     Crayon EV Commuter System                                                                                2. Set-up:
                                                      1. IMTS:
         Toyota has been conducting test                 IMTS is a new transit system that allows the            The registering of vehicle information in the
     operations on the Crayon EV Commuter                unmanned, automatic and platoon operation of            on-board unit, essential for ETC operation
     System based on shared-use of compact               buses on dedicated roads, as well as manual
                                                         and independent operation on ordinary roads.
     electric vehicles, “e-com” in the Toyota            The system features the passenger capacity of              Sales of Toyota ETC On-board Units
     Head Office area in Toyota City since 1997.         conventional rail-based mass transit systems          (Thousand Units)
     These cars are parked in front of train             and the economic efficiency of buses.                600
     stations so that people can drive them in a
     “park and ride” fashion for commuting to
     work or school or to drive freely within the                                                             400
     community. They not only contribute to
     smoother transport within the region, but
     also alleviate environmental impact by                                                                                                  197
     reducing emissions of CO2 and other
     substances.                                                                                              100            75

                                                           An artist’s rendering of IMTS platoon operation      0
                                                                                             at EXPO 2005                   2001            2002             2003       (FY)

                                                                                                                    Status of Progress in FY2003
       Biotechnology and                                                                                                          Bio-plastics Business
                                                                                                                    World’s first use of bio-plastics for vehicle interior
       Afforestation Businesses                                                                                     parts on the new Raum and Prius
                                                                                                                    Bio-plastic pilot plant with yearly production
     World’s First Bio-plastic Interior Parts                                                                       capacity of 1,000 tons under construction
         Toyota became the first automaker in                                                                                     Sweet Potato Business
     the world to use bio-plastics for vehicle
                                                                                                                    Sweet potato harvest 1,000 tons
     interior parts, employing them for the spare
                                                                                                                    Concerted effort to recruit farms and expand
     tire cover and optional floor mats in the                                                                      cultivated area
     new Raum that debuted in May 2003. As                  Artist’s rendering of the completed bio-plastic
                                                                                                pilot plant
     bio-plastics are made from plants, which
     take in CO2 from the atmosphere when             plastic products that pervades people’s                                     Afforestation Business
     they grow, they cause no additional              daily lives.                                                  Tree planting projects in Australia cover 1,550ha
     generation of CO2 even when incinerated.                                                                       First term of reforestation activities in China
     Toyota also began using bio-plastic in the       Yearly Crop in Sweet Potato Business                          completed. Second term started in 2004.
     optional floor mats of the new Prius,            Reaches 1,000 tons
     launched in September 2003.                          P.T. Toyota Bio Indonesia (TBI),                                        Floriculture Business
                                                      established in 2001 as a sweet potato
                                                                                                                    Sales begun in October 2003 of Cape Jasmine with
     Establishment of Bio-plastic Pilot Plant         business venture, is making a concerted                       high air-cleansing capacity
        Toyota is currently constructing a bio-       effort to recruit farms to grow sweet                         Development of easy-care slow-growth Zoysia
     plastic pilot plant within the Hirose Plant to   potatoes and to expand the area under                         Grass
     investigate the feasibility of its bio-plastic   cultivation. In FY2003, 1,000 tons of sweet
     mass-production technology. The plant is         potatoes were harvested and in FY2004                               Peat and Roof Garden Business
     envisioned to be able to produce 1,000           Toyota aims to harvest 5,000 tons.
                                                                                                                    Mining of peat begun in China in March 2003
     tons of bio-plastics a year. Full-scale
                                                                                                                    Supply to Japan, Mexico and Chinese domestic
     operation is due to begin in early 2005. In                                                                    market
     addition to its usage as raw material for                                                                      Total constructed area of roof and wall gardens
     automobile parts, Toyota also plans to                                                                         reaches 14,000 m2
     adapt bio-plastics to the wide range of