All Toyota Projects Marketing by syh10093

VIEWS: 541 PAGES: 17

More Info
									Environment and Community Report 2006




               Toyota Motor Corporation Australia Limited ACN 009 686 097
                                                                                                                                                                               01
                                                                                                                                                                                                                              i n t r o d u c t i o n




                                                                                                                                                                               Toyota in Australia                             Key Facts
      Contents                                  Page                                                                                                                                                                                                                        2003                      2004                         2005
                                                                                                                                                                               Toyota Australia (Toyota Motor Corporation      Sales revenue                              $7.13b                    $7.30b                       $7.62b
 01 Introduction                                                                                                                                                               Australia Limited) is one of Toyota’s
                                                                                                                                                                                                                               Total assets                               $1.83b                    $1.74b                       $2.05b
                                                                 i n t r o d u c t i o n                                                                                       (Toyota Motor Corporation) global
      Environment and Community                                                                                                                                                manufacturing centres.                          Employees                                   4,700                      4,463                       4,512
      Highlights                                     3                                                                                                                         The corporate headquarters, manufacturing       Vehicle production                        113,614                   109,862                     109,222
                                                                                                                                                                               and engineering activities are in Melbourne,    Engine production                          86,673                    85,037                       85,769
 02 Principles, values and                                                                                                                                                     and sales and marketing operations are
                                                                                                                                                                                                                               Local component suppliers                       97                         89                          84
    people                                                  Message from the President                            We have adopted global projects which                        located in Woolooware Bay, Sydney.
                                                                                                                  will have a positive affect on our Australian                There are also regional offices and parts       Purchase value                              $1.6b                    $1.03b                       $1.01b
                                                            Throughout 2005 and now into 2006, the
      Guiding Principles                             5      environmental activities of Toyota across             operations and we are regularly seeking                      distribution centres in Victoria, New South     Vehicle sales, domestic
                                                            the globe have been unified with the                  opportunities to engage with our                             Wales, Queensland, and the Northern
      Health and Safety                              6                                                            communities.                                                                                                 Toyota                                    186,370                   201,737                     202,817
                                                            phrase ‘Think and Act’. It is a phrase that                                                                        Territory.
                                                                                                                                                                                                                               Lexus                                       4,490                      5,009                       6,005
      Compliance                                     7      is consistent with the pillar of the Toyota           The environmental and community                              Toyota Australia has a long-term
                                                            Way that encourages continuous                        engagement programs operate across the                       commitment to both its domestic and             Daihatsu                                    4,845                      5,016                       3,007
      Stakeholder Engagement                         8      improvement in everything we do.                      company, and I am proud of the efforts                       export markets. Apart from the locally built    Exports
                                                            One great strength of this approach is that           Toyota Australia people have made to                         Camry, Toyota Australia imports a wide          Vehicles exported                          66,200                    65,400                       68,989
 03 Environment                                             it recognises the ability of individuals to act       adopt the ‘Think and Act’ approach in                        range of passenger, 4WD and commercial
                                                                                                                  everything they do. I am also pleased with                   vehicles. These include the Yaris, Corolla,     Export countries                                24                         24                          23
                                                            and generate change. The actions of one
      Environment Plan                               9      person can create a ripple effect that                the relationships we have developed                          Avensis, Tarago, RAV4, LandCruiser,             Export revenue (incl. parts)                $1.4b                      $1.2b                       $1.3b
                                                            ultimately can touch on people at our                 across the country and we look forward to                    Prado, HiLux and HiAce, as well as the
                                                                                                                  future opportunities to engage and to
                                                                                                                                                                                                                               Dealers
      Environmental Awareness Survey 11                     workplace, in our homes or in our                                                                                  hybrid-model, Prius. In addition the luxury
                                                                                                                  learn.                                                       Lexus range of vehicles is also sold and        Toyota                                         218                       217                          218
                                                            community.
      Vehicle Life-Cycle                           12                                                                                                                          distributed. Sales of Daihatsu vehicles         Lexus                                           17                         18                          18
                                                            Toyota Australia knows that a decision to             As an automotive company, we are well
                                                                                                                  aware of the great responsibility we have                    within Australia ended on 31 March 2006.        Daihatsu                                        83                         79
      Product                                      13       change a process in the manufacturing
                                                            plant in a bid to reduce energy use, or               to work with the environment to create a                     Toyota Australia is the largest Australian      Dealer employees                                                                                  11,400
      Supply Chain and Purchasing                  15       steps to engage with specific stakeholder             better place to live and work. We look                       vehicle exporter. In 2005, 68,989 cars
                                                            groups can have a ripple effect on people             forward to continuing our journey in 2006.                   were exported to 23 export destinations,       * All figures relate to calendar years
      Manufacturing                                17                                                                                                                          supplying Camry vehicles to the Middle
                                                            in other parts of the business or community.
                                                            Our efforts must be focused on managing                                                                            East, South Africa and several South
      Export and Distribution                      21
                                                            these effects and channelling them in a                                                                            Pacific countries.                              Toyota Australia - Historical Facts
      Sales and Marketing                          23       way that promotes benefits for everyone                                                                                                                           1958       First 13 Landcruisers imported for use on Snowy Mountains Scheme
                                                            concerned.
                                                                                                                                                                                                                              1962       Toyota passenger vehicle franchise acquired by Australian Motor Industries(AMI)
 04 Community involvement                                   During the past year, Toyota Australia has            Ted Okada,                                                                                                             Thiess (Sales) appointed to distribute Toyota commercial vehicles
                                                            developed a five year environment plan
      Toyota Community Spirit                      25                                                             President and CEO, Toyota Australia                                                                         1963       Tiara assembly begins at AMI Port Melbourne plant
                                                            and revised its governance structure in an
                                                            effort to streamline information flows and                                                                                                                        1964       Corona assembly begins at Port Melbourne
      Support of Major Community
                                                            consultation regarding environmental and                                                                                                                          1967       Crown assembly begins at Port Melbourne
      Events                                       30
                                                            community engagement issues.
                                                                                                                                                                                                                              1968       Corolla assembly begins at Port Melbourne
                                                                                                                                                                                                                                         Toyota acquires 51% of AMI, and 40% of Thiess sales and changes name to Thiess Toyota
                                                                                                                                                                                                                              1978       First engines built at Altona
                                                                                                                                                                                                                              1980       Toyota acquires 100% of Thiess Toyota
                                                                                                                                                                                                                              1985       First Corona wagons exported to New Zealand
                                                                                                                                                                                                                              1987       Camry replaces Corona at Port Melbourne
                                                                                                                                                                                                                                         Toyota acquires 100% of AMI and York Motors
                                                                                                                                                                                                                              1988       Toyota Motor Corporation Australia formed
Front cover: Andy Dudok has worked in the Body Shop                                                                                                                                                                           1990       Lexus LS400 launched in Australia
in Altona manufacturing and then in Rectifications since
1997. He decided to use scrap metal from a Toyota                                                                                                                                                                             1991       Toyota Australia becomes Australian overall market leader
Camry to create this accurate replica of a southern                                                                                                                                                                           1992       One millionth locally built Toyota produced
rock lobster. This sculpture was displayed as part of
the Toyota Community Spirit gallery exhibition, ‘Natural                                                                                                                                                                      1995       Altona assembly plant officially opened. Camry enters production at Altona
Selection’, from December 2005 to February 2006.
                                                                                                                                                                                                                              1998       Altona plant achieves ISO14001 Environmental Management System certification
Scope of the 2006 Report                                    energy use and 91% of local water use. Additional     Important notice                                                                                            2000       National Sales and Marketing headquarters opened in Woolooware Bay, Sydney
The 2005 Environment and Community Report used a            operations in Port Melbourne included the             Toyota Australia has made every reasonable effort to
calendar year for reporting purposes. In this transition    manufacture of fuel tanks, metal stamping and         ensure that this report is correct at the time of                                                           2001       Launch of Prius hybrid petrol/electric vehicle onto the Australian market
year, manufacturing data is used from the Japanese          bumper bar painting. Relocation of the bumper bar     publication. However, as vehicle specifications and
fiscal year (April 1 to March 31), the key facts table      painting operations was completed in March 2006       business processes may vary, the details in this report                                                     2003       Toyota Australia overall Australian market leader with industry record sales of 186,370 vehicles
uses calendar year data, and all other information covers   with the commissioning of a new facility at Altona.   may change over time. To the extent allowed by law,
the period from 1 January 2005 to 31 March 2006.            From June 2006 all manufacturing operations will be   Toyota Australia will not be liable for any reliance which                                                  2004       Toyota Australia overall Australian market leader with industry record sales of 201,737 vehicles
All manufacturing data refers to the Altona                 located at Altona.                                    may be placed on this report.                                                                               2005       Toyota Australia overall Australian market leader with industry record sales of 202,817 vehicles
manufacturing site, which accounts for 92% of local
1 Toyota Australia                                                                                                                                                                                                                                                                                   Environment and Community Report 2006 2
01
                            e n v i r o n m e n t                &     c o m m u n i t y

                            h i g h l i g h t s




Toyota Australia Environment & Community highlights


                                  Key focus areas for 2005                                                                    Performance 2005
   Products                  1.   Finalise long-term industry and corporate fuel consumption targets for all new light
                                  passenger and commercial vehicles
                                                                                                                         1.   Industry agreed to a target of 222g CO2/km at 2010 for all light vehicles
                                                                                                                         2.   All vehicles certified to Euro 3 (ADR 79/01) from January 2006. A number of models certified to Euro 4 or beyond
                             2.   Complete the development of local and imported vehicles to comply with Euro 3          3.   New model HiAce incorporating sequential vapour injection LPG system available as an option with the petrol engine model
                                  and Euro 4 emissions standards
                                                                                                                         4.   Product development awareness initiatives not progressed due to changes in organisational responsibilities
                             3.   Launch new model incorporating direct injection LPG system
                             4.   Continue initiatives to raise awareness of environmental issues among product
                                  development staff
                             1.   Continue to support cross divisional environmental projects with an increased
   Supply chain and               emphasis on in-plant substances of concern procurement
                                                                                                                         1.   Established a program to remove four substances of concern from the supply chain
                                                                                                                         2.   Environment Policy updated and distributed to suppliers
   purchasing                2.   Develop Supplier Environmental Management System policy beyond 2005
                                                                                                                         3.   Toyota Australia supplier conference held
                             3.   Support information sharing between manufacturing and the supply chain
                                                                                                                         4.   Toyota Australia signed up as founding member of ECO-Buy

                                                                                                                         1.   Recertified EMS to ISO14001 with no non-conformances. ‘Per vehicle’ reductions achieved in overall energy use, water
   Manufacturing             1.
                             2.
                                  Maintain ISO 14001 certification and achieve 2005 performance targets
                                  Home focus training & awareness program
                                                                                                                              consumption and waste disposal
                                                                                                                         2.   Increased participation in home focus and awareness activities with over 200 staff attending the Phillip Island Nature Park
                             3.   Assist with new project targets (water 70%, and electricity 10% - reductions)
                                                                                                                         3.   Manufacturing Environment Group assisted TEMS work groups to implement 16 documented environmental improvement
                             4.   Establish Work Group Leaders for Action Learning Teams                                      projects, saving approximately $775,000 per year
                             5.   Release TEMS guide (for use by work group members)                                     4.   Launch of TEMS work group leader Action Learning Team
                             6.   Support environment graduate rotation into manufacturing shops                         5.   Design and launch of the ‘Green Guide’ to assist in TEMS development and implementation
                             7.   Increase parts & accessories monthly review of environment activity                    6.   Successful graduate rotation undertaken in Powertrain plant
                             8.   Establish training-gap analysis system                                                 7.   Parts & accessories review not undertaken
                             9.   Support & identify training requirements                                               8.   Training gap analysis system not implemented
                             10. Utilise the introduction of a new waste contract to focus on waste minimisation         9.   Environmental awareness training expanded to non manufacturing areas including Brisbane Parts Distribution Centre
                             11. Determine the most appropriate replacement for afterburners in the paint shop           10. Additional recycling opportunities identified through new waste contract, such as windscreen glass recycling
                                                                                                                         11. Major energy saving project implemented in Paint Shop with the decommissioning of the Topcoat A afterburner
                                                                                                                         12. Commissioning of new bumper resin plant featuring water borne painting technology


                             1.   Review environmental compliance in the dealership network
   Sales and after sales,    2.   Waste audits and colour-coded waste segregation will be extended across all
                                                                                                                         1.   61.6% of dealers completed TSM environmental management self-assessment
                                                                                                                         2.   Colour-coded waste segregation implemented in Sydney and extended across other parts distribution centres
   marketing and parts            parts distribution centres in 2005
                                                                                                                         3.   Confirmed strategy and schedule for the implementation of returnable modules from Japan
                             3.   Start the use of returnable packaging modules from Japan in February 2005
   distribution              4.   Provide environmental practice coaching and support, coordinated with the
                                                                                                                         4.   Environmental practice coaching deferred
                                                                                                                         5.   Export and Distribution Division completed review of CO2 emissions for vehicle distribution
                                  Environmental Policy Department, to field representatives and district sales
                                  operations managers, as well as dealers who complete the self assessment and           6.   Waste reporting system to be implemented as part of 5 year environment plan
                                  register with Toyota Australia’s national database                                     7.   Staged reductions in cardboard packaging resulting in significant reductions in cardboard packaging waste throughout
                                                                                                                              supply chain
                                                                                                                         8.   Brisbane Parts Distribution Centre installed plastic baler
                                                                                                                         9.   Environmental Management System (EMS) Co-ordinator appointed to implement EMS into the five parts distribution centres


   Community                 1.   Increase dealer participation in Toyota Community Spirit activities                    1.   Dealer participation statistics developed for each state
                             2.   Increase employee participation in Toyota Community Spirit                             2.   Full roll-out of Toyota Community Spirit to each state and regional offices. Employee participation in Project Penguin Homes
   and stakeholder           3.   Foster links between the Toyota Community Spirit partnerships and partners             3.   Toyota Community Spirit still investigating ways to foster links between partners
   engagement
3 Toyota Australia                                                                                                                                                                                                             Environment and Community Report 2006 4
                                                                                                                                                              02
                                                                                                                                                                                                          p r i n c i p l e s ,                v a l u e s            a n d          p e o p l e




                                                  Contribution to sustainable                                   Toyota Way training in Australia
                                                  development                                                   The Toyota Way Foundations is a one day
                                                                                                                                                              Health and Safety                           SafetyMAP
                                                                                                                                                                                                          The Safety Management Achievement
                                                                                                                                                                                                                                                             President’s Safety Shield
                                                                                                                                                                                                                                                             The Toyota Australia President’s Safety
                                                  As Toyota’s business operations have                          training course, based on The Toyota Way      The Health and Safety system within         Program (SafetyMAP) is an audit tool,              Shield was introduced to manufacturing
                                                  become global, society’s expectation of                       2001. It is an education and development      Toyota Australia is structured around the   managed by the Victorian Workcover                 operations in Victoria in 2001. Since then
                                                  the company’s contribution towards                            starting point, designed to give employees    Plan-Do-Check-Act continuous                Authority. Use of SafetyMAP makes an               it has evolved into a national program that
                                                  sustainable development has increased                         a firm grasp of the terminology and           improvement process.                        independent audit and review of an                 has increased awareness of health and
                                                  and the scope of these expectations has                       concepts of the Toyota Way, as well as                                                    organisation's health and safety                   safety and encouraged enhancements to
                                                                                                                                                              Toyota Australia ‘Plans’ using risk
                                                  expanded. Toyota has prepared an                              the basic history and heritage of Toyota.                                                 management systems possible.                       safety systems. The objectives of the
Guiding Principles                                explanation paper called ‘Contribution to                     By 30 March 2006, 1,891 employees in
                                                                                                                                                              assessments, undertakes the ‘Do and
                                                                                                                                                              Check’ by performing regular workplace
                                                                                                                                                                                                          SafetyMAP helps to establish safer                 President’s Safety Shield are:
                                                  Sustainable Development’ which interprets                     Australia had received Toyota Way                                                         working environments consistent with the           1. To reward and recognise outstanding
                                                                                                                                                              safety checks and ‘Acts’ by addressing
Toyota’s seven Guiding Principles serve as        the ‘Guiding Principles’ from the                             Foundations training.                                                                     requirements of health and safety                  health and safety management; and
                                                                                                                                                              hazards immediately when they become
the fundamental management policy for all         perspective of how Toyota can work                            Human resources development                                                               legislation, and protects people by
                                                                                                                                                              apparent.                                                                                      2. To implement regular monthly auditing
operations. The principles reflect Toyota’s       toward sustainable development in                                                                                                                       eliminating, or better managing, any health
                                                  interactions with stakeholders. The full                      Toyota Australia is committed to improving                                                and safety hazards. The SafetyMAP audit            of safety management systems to ensure
commitment to providing clean, safe and
                                                  text version of this paper is available at:                   the performance of the entire organisation                                                criteria allow an organisation to:                 compliance with corporate policy and
innovative products, while respecting the
                                                                                                                through improving the abilities of each                                                                                                      procedures.
environment and culture of the local                                                                                                                                                                      • measure the performance of its health
                                                                                                                employee and maintaining and improving                                                                                                       To be eligible to receive the award a
communities. The Guiding Principles form             http://www.toyota.co.jp/en/sustainability/index.html                                                                                                   and safety program
                                                                                                                the morale of employees by providing                                                                                                         department must:
a foundation for Toyota’s Earth Charter,                                                                                                                                                                  • implement a cycle of continuous
                                                                                                                them with the opportunity for growth
adopted in April 2000.                                                                                                                                                                                      improvement                                      • Report, investigate and effectively
                                                                                                                through work.
                                                  Toyota Way                                                                                                                                              • compare health and safety performance              countermeasure every accident/incident
                                                                                                                Workplace agreement (WPA)                                                                   systems to a recognised benchmark                  occurring for that month, including near-
  1. Honour the language and spirit of the        Toyota has stated its corporate values and
                                                                                                                The Toyota Australia 2005 WPA was                                                         • gain recognition for the standards                 miss incidents
     law of every nation and undertake open       methods in The Toyota Way 2001.
                                                                                                                certified in the Australian Industrial                                                      achieved by management of health and
     and fair corporate activities to be a        These are shared throughout the Toyota                                                                                                                                                                     • Support and facilitate successful
                                                                                                                Relations Commission in July 2005.                                                          safety.
     good corporate citizen of the world.         group as an aid to realising the Guiding                                                                                                                                                                     rehabilitation of any injured team
                                                                                                                This agreement is                                                                         There are two levels of SafetyMAP                    member as a result of an accident in
                                                  Principles. The Toyota Way defines how                        binding for a period
  2. Respect the culture and customs of                                                                                                                                                                   certification, an initial and an advanced            that month
                                                  employees should perform and behave in                        of three years, with
     every nation and contribute to economic                                                                                                                                                              level, with Toyota Australia at present
                                                  supporting the Guiding Principles.                            a commitment for a                                                                                                                           • Share accident report details with other
     and social development through                                                                                                                                                                       holding the initial level certification.
     corporate activities in the communities.     The Toyota Way is supported by two main                       fourth year.                                                                                                                                   departments to prevent a repeat of the
                                                                                                                The overall purpose                                                                       Toyota Australia first achieved SafetyMAP            accident
                                                  pillars: continuous improvement, and
  3. Dedicate ourselves to providing clean                                                                      of the WPA is to                                                                          certification in August 2003. Since then
                                                  respect for people.                                                                                                                                                                                        • Update and maintain accurate visual
     and safe products and to enhancing                                                                         express the                                                                               auditors from Lloyds have audited various
                                                                                                                                                                                                                                                               control boards (these display inspection
     the quality of life everywhere through all                                                                 commitment of                                                                             departments every six months to make
                                                                                                                                                                                                                                                               results, managers audit results, hazard
     our activities.                                                                                            the parties                                                                               sure safety systems are operating
                                                                                                                                                                                                                                                               identification and countermeasure)
                                                                                                                towards Toyota                                                                            effectively. In 2006 all Victorian sites will be
  4. Create and develop advanced                     Continuous                        Respect                  Australia achieving                                                                       audited for recertification (certification is      • Display near-miss reports on visual
     technologies and provide outstanding
                                                    Improvement                       for People                                                                                                          valid for three years).                              control boards.
                                                                                                                sustainable
     products and services that fulfil the
                                                                                                                success in a                                                                                                                                 Recipients of the award are presented
     needs of customers worldwide.
                                                                                                                global company.                                                                                                                              with a trophy each month, with a major
  5. Foster a corporate culture that                                                                            This agreement                                                                                                                               prize being awarded annually to a
     enhances individual creativity and           Challenge                       Respect                       also assists Toyota Australia in business                                                                                                    department for the achievement of
     teamwork value, while honouring mutual       Form a long term vision,        Respect others, make          planning, maintaining competitiveness on                                                                                                     outstanding health and safety
                                                  meeting challenges with         every effort to understand    a local and global scale, and in ensuring                                                                                                    performance.
     trust and respect between labour and
                                                  courage and creativity to       each other, take
     management.                                  realise our dreams.             responsibility and do our
                                                                                                                consistency and fairness of work
                                                                                  best to build mutual trust.   conditions.
                                                  Kaizen
  6. Pursue growth in harmony with the
                                                  We improve our business         Teamwork                      Workplace diversity
     global community through innovative          operations continuously,        Stimulate personal and
     management.                                  always driving for              professional growth,          Toyota Australia is proud that there is a
                                                  innovation and evolution.       share opportunities of        dynamic mix of cultures, ages, religions
  7. Work with business partners in               Genchi Genbutsu                 development and               and beliefs represented amongst 4,512
     research and creation to achieve stable,     Practice Genchi                 maximise individual and
                                                                                  team performance.             employees. There are approximately 60
     long-term growth and mutual benefits,        Genbutsu… go to the
                                                  source to find the facts to
                                                                                                                nationalities, with ages ranging from 18 to
     while keeping ourselves open to new
                                                  make correct decisions,                                       80. The workforce is 13% female and
     partnerships.
                                                  build consensus and                                           87% male, the average length of service is
                                                   achieve goals at our                                         10.3 years, and the longest length of
                                                    best speed.
                                                                                                                service is 51 years.


                                                  Two pillars. Five Principles.
                                                                                                                                                                                                                                                             Brisbane Customer Services Division won the 2005
                                                                                                                                                                                                                                                             President’s Safety Shield.
                                                                                                                                                                                                                                                             The award was presented to Philippe Faydherbe,
                                                                                                                                                                                                                                                             Corporate Manager Operations (right), by Executive
                                                                                                                                                                                                                                                             Vice-President of Manufacturing, Shoji Baba.

5 Toyota Australia                                                                                                                                                                                                                                                          Environment and Community Report 2006 6
02
                                                 p r i n c i p l e s ,           v a l u e s         a n d           p e o p l e


                                                                                                                                                      02
                                                                                                                                                                                                   p r i n c i p l e s ,                v a l u e s      a n d           p e o p l e




Compliance                                       Balanced scorecard
                                                 Toyota Australia’s company-wide strategy
                                                                                                                                                      Stakeholder                                  Toyota Australia’s ratings for 2004 were:
                                                                                                                                                                                                   Corporate Strategy:                  Gold
Toyota Australia has established a
                                                 management system is based on the
                                                 Kaplan & Norton Balanced Scorecard.
                                                                                                                                                      engagement                                   Integration:                         Silver
Corporate Compliance Committee to                                                                                                                                                                  Management practice:                 Gold
                                                 This system translates long term
provide a strong and consistent                                                                                                                       Toyota Australia engages with a range of
                                                 corporate goals into specific annual                                                                                                              Performance and impact:              Gold
commitment to the highest standards of                                                                                                                stakeholders. The following is a list of
                                                 commitments that then cascade to all
corporate governance and to maintain a                                                      Toyota Australia is committed to ensuring all employees   environment-specific interactions.           Assurance and disclosure:            Gold
                                                 divisions, and departments. Performance
culture of compliance at all levels.                                                        are provided with opportunities to build positive
                                                                                                                                                      Toyota Australia is a member of:
                                                 monitoring is assisted by the intranet-    relationships both within and outside the workplace. In                                                Toyota Australia’s ratings for 2005 were:
The Corporate Compliance Committee               based Balanced Scorecard reporting         this photo are some of the 18 Melbourne-based             • The PACIA Automotive Plastics Steering
meets every two months and addresses             system, using the Plan-Do-Check-Act        employees who participated in the 2006 Melbourne                                                       Corporate Strategy:                  Gold
                                                                                                                                                        Committee
Toyota Australia’s key compliance areas:         cycle.                                     Corporate BRW Triathlon.                                                                               Integration:                         Gold
                                                                                                                                                      • The Australian Industry Group
• Trade Practices Act                                                                                                                                   Environment Working Group                  Management practice:                 Gold
• National Privacy Principles                                                                                                                         • The ECO-Buy Business Advisory Group        Performance and impact:              Gold
• Occupational Health & Safety                                                                                                                        • The Commonwealth Games                     Assurance and disclosure:            Gold
• Environment                                                                                                                                           Environment Stakeholder Forum.
                                                                                                                                                                                                   Toyota’s survey response and feedback
• Australian Design Rules.                                                                                                                            In addition to the above Toyota Australia    report are published on:
Compliance is a fundamental requirement                                                                                                               has also participated in the:                                                               Toyota Australia’s Manager Environmental Policy,
for fulfiling Toyota’s Guiding Principles and                                                                                                         • Victorian EPA Greenhouse Gas                         http://www.toyota.com.au             James Holgate (left), is congratulated by Origin
business objectives. It is also included in                                                                                                             Emissions Reporting and Disclosure                                                        Energy’s Executive General Manager of
                                                                                                                                                                                                                                                  Development Projects, Andrew Stock, on winning
the annual Balanced Scorecard for each                                                                                                                  Pilot
                                                                                                                                                                                                                                                  the 2005 Banksia Award for Business
division.                                                                                                                                             • Federal Government Energy Efficiencies                                                    Environmental Responsibility and Leadership.
                                                                                                                                                                                                   Reputation Quotient
Toyota Australia Board members have                                                                                                                     Opportunities Pilot
responsibility for different corporate issues.                                                                                                                                                     Toyota Australia participates in the RQ        Toyota Australia wins 2005
                                                                                                                                                      • Australian Research Institute in
This is confirmed by membership of                                                                                                                                                                 survey conducted by Harris Interactive         Banksia Award
                                                                                                                                                        Education for Sustainability (ARIES),
different committees, such as the                                                                                                                                                                  Australia. The RQ study is based on
                                                                                                                                                        Industry Sustainability Project                                                           This Award recognised Toyota
Environment Committee, Human                                                                                                                                                                       national research and specifically
                                                                                                                                                      • Victorian Planning and Environmental       measures a respondent’s perceptions in         Australia’s continuous improvement in
Resources Committee and Corporate
                                                                                                                                                        Lawyers Association Conference             relation to six measures: Emotional            its environmental performance.
Compliance Committee.
                                                                                                                                                      • Australian Greenhouse Office               Appeal, Products and Services, Social          Judges commended Toyota Australia
                                                                                                                                                        Greenhouse Challenge Plus Conference       Responsibility, Workplace Environment,         for broadening its environmental
Code of ethics                                                                                                                                                                                     Financial Performance, and Vision and          strategies beyond manufacturing to
                                                                                                                                                      • 6th Asia Pacific Roundtable on             Leadership                                     back office functions, suppliers and
Toyota Australia’s Code of Ethics is                                                                                                                    Sustainable Consumption and                                                               dealers, and to other parts of the
distributed to all employees. Employees,                                                                                                                Production                                 Toyota Australia has been ranked as
                                                                                                                                                                                                   number 1 in the 2005 RQ study released         distribution chain.
contractors and agents of Toyota                                                                                                                      • 5th National Environment and Energy
Australia are expected to:                                                                                                                                                                         in August 2005. It is the first time that an   The Banksia Awards have earned a
                                                                                                                                                        Conference.                                automotive company has achieved the top        reputation for being the most
• obey the law                                                                                                                                                                                     ranking in the survey.                         prestigious in recognition of
• be honest in word and deed                                                                                                                                                                       In 2005, Toyota Australia achieved top         environmental excellence and
                                                                                                                                                      Corporate Responsibility Index (CRI)
                                                                                                                                                                                                   ranking in the Products & Services and         innovation in Australia for individuals,
• respect community values                                                                                                                            The Australian CRI is based on a United                                                     community groups, businesses and
                                                                                                                                                                                                   Workplace Environment categories, and
• be responsible                                                                                                                                      Kingdom reputation tool and administered                                                    government organisations.
                                                                                                                                                                                                   number two in all other categories.
                                                                                                                                                      by the St James Ethics Centre in
• perform their duties consistent with the                                                                                                                                                         The tables below provide 2005 rankings         Toyota Australia was also a finalist in
                                                                                                                                                      consultation with Australian business.
  Code of Ethics.                                                                                                                                                                                  and Toyota Australia’s results since 2000.     the Banksia Award for Environmental
                                                                                                                                                      Participating companies use this tool to
                                                                                                                                                                                                                                                  Leadership in Media Communications.
• use good judgement in avoiding any                                                                                                                  better understand how corporate social
                                                                                                                                                                                                   2005 Results             Toyota Results        This recognised Conservation Connect,
  action that could create a conflict                                                                                                                 responsibility applies to their business.                             2000-05
                                                                                                                                                                                                   1. Toyota Australia                            a key element of the Toyota Community
  between personal, company and                                                                                                                       The CRI provides a benchmark for                                                  Rank
                                                                                                                                                                                                   2. Microsoft                                   Spirit partnership with Conservation
  community interests.                                                                                                                                companies to compare their management                                 2005             1
                                                                                                                                                                                                   3. Sony                                        Volunteers Australia.
                                                                                                                                                      practice across the four areas of                                     2004             3
                                                                                                                                                      community, environment, marketplace and      4. Virgin Blue
                                                                                                                                                                                                   5. Woolworths            2003             3
                                                                                                                                                      workplace, as well as their performance
                                                                                                                                                                                                   6. Holden                2002           4/5
                                                                                                                                                      across a range of environmental and
                                                                                                                                                                                                   7. Harvey Norman         2001           3/4
                                                                                                                                                      social impact areas.
                                                                                                                                                                                                   8. David Jones           2000             9
                                                                                                                                                      Ernst and Young verifies and audits all
                                                                                                                                                                                                   9. NRMA
                                                                                                                                                      survey responses. Results are published in
                                                                                                                                                                                                   10. Coles Myer
                                                                                                                                                      ‘The Age’ and ‘The Sydney Morning
                                                                                                                                                      Herald’. In 2005 Toyota Australia moved
                                                                                                                                                      from fourth to second position with a
                                                                                                                                                      score of 95.7%.


7 Toyota Australia                                                                                                                                                                                                                                              Environment and Community Report 2006 8
                               e n v i r o n m e n t


                                                                                                                                                          03
                                                                                                                                                                                                                    e n v i r o n m e n t




                               Guiding principles for contribution                            This is in response to Toyota’s Guiding                     Toyota Australia Environmental Policy:                    Management and coordination of                           Australia’s five parts distribution centres.
                               to sustainable development                                     Principle No 6: To pursue growth in                         • Pollution prevention                                    Toyota Australia’s Environment Plan                      These activities are supported by
                               The 4th Toyota Environmental Action Plan                       harmony with the global community                                                                                     The Environmental Policy Department plays                management environment committees in
                                                                                                                                                          • Waste minimisation
                               is a statement of the activities that Toyota                   through innovative management. The plan                                                                               a key role in the development of strategy and            the Manufacturing and Sales and
                                                                                              contributes to sustainable development by                   • Compliance with legislation
                               must undertake in order to realise the                                                                                                                                               initiatives which are deployed to divisions.             Marketing operating arms and workplace
                                                                                              reducing environmental impact throughout                    • Continuous improvement
                               corporate objective it is striving to achieve:                                                                                                                                       The Manufacturing Environment Group is                   teams across manufacturing and non-
                               – to become a leader and driving force in                      all areas of business activities. This enables              These four key aspects of Toyota                          responsible for environmental management                 manufacturing functions.
                               global regeneration by implementing the                        environmental and economic sustainability                   Australia’s Environmental Policy guide                    at the Altona manufacturing site.
                                                                                              and helps build close and co-operative                      every stage of Toyota Australia’s activities                                                                       The management environment committees
                               most advanced environmental technologies                                                                                                                                             An Environmental Management Systems                      report to the Toyota Australia Environment
                               and processes.                                                 relationships with a wide spectrum of                       in achieving the objectives of the
                                                                                              individuals and organisations involved in                   Environment Plan.                                         Coordinator oversees the environmental                   Committee which is chaired by Toyota
                                                                                              environmental preservation.                                                                                           management in the network of Toyota                      Australia President and CEO, Ted Okada.


                                Toyota’s 4th global environmental action plan*                                                                                                                   Toyota Australia 5 year environment plan
                                 Action items                                                                                                          2006 Targets                                                                                 2010 Targets
 1. Energy/Global Warming        1. Reduce CO2 emissions                                                                                               • Five year CO2 reduction targets will be set for office sites                               • Manufacturing will achieve a 13% CO2 reduction per unit of
                                 2. Promote the development of technologies to achieve the fuel efficiency performance in each                         • A complete review of environmental product and environmental brand strategies                production compared with 2001 data
                                    country and region                                                                                                   will be undertaken                                                                         • Logistics operations, parts distribution centres and offices, will
                                 3. Promote the development of clean energy vehicles, encourage their effective introduction and                       • Manufacturing will achieve a 10% reduction in CO2 emissions using 2001                       achieve reduction targets to be established following further
                                    ensure wider market acceptance                                                                                       baseline data                                                                                analysis of current usage
                                 4. Develop technologies to respond to the diversification of energy and fuel sources                                  • A complete inventory of logistics CO2 data will be undertaken and action plans
                                 5. Promote initiatives to improve traffic flows using a variety of networking technologies                              for CO2 reduction will be developed
                                 6. Reduce CO2 emissions in production and logistics activities
 2. Recycling of Resources       7. Promote effective use of resources to contribute to the realisation of a recycling-based society                   • Manufacturing will achieve an 8% reduction in waste generated per unit from                • Manufacturing will achieve a 25% reduction in waste per unit of
                                                                                                                                                         2005/06 baseline data                                                                        production compared with 2005/06 data
                                                                                                                                                       • Two returnable parts delivery modules will be introduced at the parts distribution         • Parts distribution centres will achieve reduction targets to be
                                                                                                                                                         centres                                                                                      established following further analysis of current processes.
                                                                                                                                                       • Five year waste reduction targets will be set for offices and parts distribution centres   • Offices will achieve zero waste to landfill
                                 8. Reduce water consumption                                                                                           • Manufacturing will achieve a 12% reduction in water consumption per unit from              • Manufacturing will achieve a 25% reduction in water consumption
                                                                                                                                                         2005/06 baseline data                                                                        per unit of production based on 2005/06 data
                                                                                                                                                       • Five year water consumption reduction targets will be set for offices and parts            • Reduction targets will be established for parts distribution centres
                                                                                                                                                         distribution centres                                                                         and offices following further analysis of current usage
                                                                                                                                                       • The installation of rainwater collection tanks at Sydney Parts Distribution Centre
                                                                                                                                                         and Corporate Headquarters Company Fleet will be completed
 3. Substances of Concern        11. Promote management and further reductions in the use of substances of concern (SOC).                              • Processes and plans will be developed to eliminate four substances of concern              • Toyota Australia will eliminate the four SOC (lead, mercury, cadmium
                                     Eliminate use of four SOCs (lead, mercury, cadmium and hexavalent chromium) globally                                from vehicles, service parts and accessories                                                 and hexavalent chromium) from all vehicles, parts and accessories
                                                                                                                                                                                                                                                      supplied to Australian and overseas markets

 4. Atmospheric Quality          13. Reduce emissions to improve air quality in urban areas in all countries and regions                               • Manufacturing will achieve a 1% reduction per unit in volatile organic compound            • Manufacturing will achieve a 5% volatile organic compound (VOC)
                                                                                                                                                         manufacturing emissions based on 2005/06 baseline data                                       reduction per unit of production compared with 2005/06 data
                                                                                                                                                                                                                                                      Toyota Australia will strive to further reduce VOC emissions to 30g/m2
 5. Environmental Management     15. Strengthen consolidated environmental management                                                                  • Manufacturing will maintain ISO14001 certification with zero non-compliance                • Altona manufacturing site will maintain the Environmental
                                                                                                                                                         and zero complaints                                                                          Management System and achieve a target of zero complaints and
                                                                                                                                                       • Plans for expansion of Environmental Management Systems to all Toyota                        zero non-compliances
                                                                                                                                                         Australia sites will be developed                                                          • Complete a rollout of EMS across the remainder of the Company,
                                                                                                                                                       • Sydney Parts Distribution Centre will be certified to ISO 14001                              including ISO 14001 certification where required
                                 16. Further promotion of environmental management at business partners                                                • 80% of major dealers will be compliant with the Dealer Environment Risk Audit              • All suppliers are asked to comply with Toyota Australia’s Supplier
                                                                                                                                                          Program                                                                                     Environmental Policy
                                                                                                                                                       • Implement an ECO-Buy action plan to increase the purchase of more                          • Implement an ECO-Buy action plan to increase the purchase of more
                                                                                                                                                          environmentally sensitive supplies                                                          environmentally sensitive supplies
                                                                                                                                                                                                                                                    • Assist all dealers to comply with Dealer Environmental Risk Audit
                                                                                                                                                                                                                                                      requirements and introduce coordinated reporting of environmental
                                                                                                                                                                                                                                                      performance indicators across the network
                                 17. Enhance environmental education                                                                                   • Continue initiatives to achieve quantifiable improvements in staff awareness of,           • Continue initiatives to achieve quantifiable improvements in staff
                                                                                                                                                         and involvement in, environmental activities                                                 awareness of, and involvement in, environmental activities
                                 20. Contribute to the development of a recycling-based society                                                        • Develop jointly with the Community Liaison Committee, a new Environmental                  • Develop jointly with the Community Liaison Committee, a new
                                                                                                                                                         Improvement Plan for the manufacturing plant                                                 Environmental Improvement Plan for the manufacturing plant
                                                                                                                                                       • Toyota Community Spirit partnerships and employee volunteering activities will             • Toyota Community Spirit partnerships and employee volunteering
                                                                                                                                                         be maintained                                                                                activities will be maintained
                                 21. Improve disclosures of environmental information and two-way communications                                       • Produce the Toyota Australia Sustainability Report                                         • Improve disclosures of environmental information through regular
                                                                                                                                                                                                                                                      reporting
                               *4th Action Plan items 9, 10, 12, 14, 18, 19, and 22 relate to issues that are not relevant to Australian operations.
9 Toyota Australia                                                                                                                                                                                                                                                                         Environment and Community Report 2006 10
03
                                                              e n v i r o n m e n t


                                                                                                                                                            03
                                                                                                                                                                                                          e n v i r o n m e n t




Environmental awareness survey                                                                                                                              Vehicle life-cycle
                                                              In December 2005 a Toyota Australia             From the results of the initial survey,
                                                              Employee Environmental Awareness                priority is being given to achieving
                                                              Survey was conducted. Approximately             improvements in staff awareness.
                                                              810 employees responded to the survey.          Toyota Australia hopes to achieve 85%
                                                              The survey was developed to measure             of staff reporting significant increases in
                                                              environmental awareness and, over time,         awareness over the next year.
                                                              to determine success in improving
                                                              performance.




                       Target           Toyota Australia total
                                                                                                                                                                                                             Parts and materials suppliers
                                                                                    Q1
                                                                                    How would you rate your awareness of
                                                                                    environmental issues facing the world today?

                               Percentage of respondents
                          rating a positive score of 4 or 5                                                                                                                                                                                            Procurement
                                       on a 5 point scale.                                                                                                               Recycling
                                                         100%
                                   Q7                                                                                  Q2
                                                                80%                                                    I have a good understanding                                                                                                             Logistics
                Has your environmental
                    awareness at work                                                                                  of how my activity at Toyota
                                                                      60%                                              can impact the environment.                                                                                                               Global warming (CO2)
                          changed over                                                                                                                                                                                                                            Waste (packaging
                   the last 12 months?                                                                                                                                                                                                                              materials, etc)
                                                                            40%
                                                                                                                                                                                                                                                                Substances of concern
                                                                                                                                                                                                               Extraction of resources
                                                                                  20%

                                                                                                                                                                  Disposal

                                                                                                                                                                   Re-use.
                                                                                                                                                                                                                                                                    Toyota production
                                                                                                                                                               Waste (shredder
                                Q6                                                                                             Q3                            residue, used parts                                                                                                   Toyota
                   Everyone in the                                                                                             Management are                 including batteries)                                                                                              development
                                                                                                                                                                                                           Raw        Fuel    Energy     Water
                 office copies and                                                                                             committed to                                                                                                                                      and design
                                                                                                                                                                                                          materials
               prints double sided                                                                                             implementing
                and re-uses single                                                                                             responsible                                                                                                                         Global warming (CO2)
                       sided paper.                                                                                            environmental                                                                                                                    Substances released into
                                                                                                                               practices.                                                                                                                          the atmosphere and
                                                                                                                                                                                                                                                                discharged to waterways,
                                                                                                                                                                                                                                                                 noise, odour, waste etc.
                                                                                                                                                                             Customer
                                                                                                                                                                                use
                                                       Q5                                               Q4                                                                                                                                       Toyota logistics
                                Do you think paper waste                                                I'm aware of my role in ensuring
                                  is minimal in your area?                                              Toyota's environmental obligations                                   Global warming (CO2 HFC)
                                                                                                        are met.                                                           released into the atmosphere
                                                                                                                                                                                (HC, CO, NOx, etc.)
                                                                                                                                                                                                                  Toyota dealerships
                                                                                                                                                                                                             Waste (waste oil, used parts,
                                                                                                                                                                                                            etc. resulting from maintenance)




11 Toyota Australia                                                                                                                                                                                                                                          Environment and Community Report 2006 12
03
                                             e n v i r o n m e n t


                                                                                                                                         03
                                                                                                                                                                                                   e n v i r o n m e n t

                                             P r o d u c t                                                                                                                                         P r o d u c t



                                             Vehicle emissions                            Yaris                                          RAV4                                                     Prius                                          Camry
                                             With the introduction of ADR 79/01, all

                 Product                     models have been certified to the more
                                             stringent emissions standards, equivalent
                                             to international Euro 3 requirements. In
                                             addition, Toyota Prius, Corolla, RAV4,
                                             Tarago and Avensis models and Lexus
Corporate average carbon dioxide             LS430, SC430, IS250 and RX350 were all
emissions                                    certified to Euro 4 or above.                In 2005 the new Yaris hatchback replaced       TSOP and Toyota Plastic Olefin materials                 The Australian Government has revised its      The Camry four cylinder achieves a
Previous reported average fuel consumption                                                the Echo. It features an efficient, easy-to-   are used throughout the interior and                     environmental rating of the Prius. Prius       certified fuel efficiency of 9.9 litres/100km
figures have been discontinued due to                                                     dismantle structure which greatly              exterior of the new RAV4. The                            currently has top ranking in the Green         (auto) and 8.9 litres/100km (manual).
                                             Green Vehicle Guide                          improves the recyclability of this vehicle.    manufacture of RAV4 also uses water-                     Vehicle Guide and is the only car to gain a    Some of the environmental features of the
changes in mandated test procedures. The
Australian motor industry is now reporting   Toyota Australia continues to provide        This has been achieved by:                     based paints. Polyvinyl chloride-free                    five-star environmental rating using regular   Camry are:
carbon dioxide vehicle emissions in          information to the Federal Government        • Easy to dismantle marks are stamped to       materials are used for the roof mouldings,               unleaded petrol (ULP), as opposed to           Variable valve Timing (VVT-i) Technology
accordance with Australian Design Rule       Department of Transport and Regional           indicate where dismantling can best be       the surfaces of the tonneau cover, and the               more expensive premium unleaded
                                             Services for the Green Vehicle Guide.                                                       floor tunnel silencer. The clutch lining has             (PULP). Sales of the Prius continue to         By adjusting the overlap time between the
(ADR) 81/01. The graph below shows                                                          commenced                                                                                                                                            exhaust valve closing and intake valve
sales weighted average of carbon dioxide     For more information on the Green Vehicle                                                   been manufactured without the use of                     increase despite extremely short supply
                                             Guide please visit:                          • The front and rear door trim, deck side      organic solvents. The use of halogen-free                due to high global demand. Sales in 2005       opening, the engine characteristics can be
emissions of all Toyota, Lexus and                                                          trim, back door trim, and the front                                                                                                                  changed to provide instant engine torque
Daihatsu vehicles sold in each calendar                                                                                                  insulation for the cabin wire harnesses and              were 1,423 vehicles, compared to 201
                                                                                            bumper are also stamped with                 for all protective materials also reduces                vehicles in 2002.                              across the entire rev range. This gives
year. Industry averages have not yet been         http://www.greenvehicleguide.gov.au
                                                                                            dismantling marks                                                                                                                                    both powerful acceleration and superior
compiled.                                                                                                                                environmental impact                                     Overall cumulative worldwide sales of
                                                                                          • Screw fastening points have been                                                                                                                     fuel economy. In addition, more complete
During 2005 the Australian motor industry                                                                                                                                                         Toyota (including Lexus) hybrid vehicles       fuel burn at a higher combustion
                                             Participation in industry forums               reduced, and replaced with clip                                                                       passed the 600,000 mark at the end of
agreed with the Federal Government to a                                                     fastenings                                                                                                                                           temperature leads to fewer emissions.
target of 222gCO2/km by 2010 for all light                                                                                                                                                        March 2006.
                                             As part of the Federal Chamber of                                                                                                                                                                   Styling modifications
vehicles.                                    Automotive Industry, Toyota Australia is     • The structure has been engineered so
                                             involved with all relevant committees,         that no separating or sorting is required                                                                                                            By embedding the radio aerial in the glass
           250                                                                                                                                                                                                                                   of the rear window and modifying styling
                                             including the Fuels Committee, and the       • Recycled materials have been used in
                                             Transport Emissions Liaison Group.             the dash insulator, floor silencer and                                                                                                               to optimise airflow over the bonnet, front
                                             Toyota Australia also participates in the      deck box                                                                                                                                             bumper, headlamps, roof and A-pillars, the
           200
                                             Government Policy Advisory Committee,                                                                                                                                                               Camry’s aerodynamic drag coefficient was
                                                                                          • The main parts of the instrument panel                                                                                                               improved from 0.30 to 0.29.
                                             handling such issues as tyre stewardship       are constructed with polypropylene
                                             and the recycling of refrigerants.             materials such as Toyota Super Olefin                                                                                                                Reduced rolling resistance
           150
                                                                                            Polymer (TSOP)                                                                                                                                       The Camry is supplied with silica/carbon-
                                                                                          • An alignment mark for the fuel removal                                                                                                               based tyres initially developed by Toyota
                                             Vehicle recyclability and reduction                                                                                                                                                                 and Dunlop to improve fuel efficiency and
           100                               of harmful materials                           device is provided on the bottom of the
                                                                                            fuel tank. This ensures all fuel is safely                                                                                                           durability, while maintaining safe levels of
CO2 g/km




                                             Toyota continues to use material               removed during dismantling.                                                                                                                          grip in wet and dry conditions.
           50
                                             identification marking to enable parts
                                             separation for recycling and uses the        The use of VOCs in the vehicle painting
                                             100% recyclable Toyota Olefin polymer for    and coating processes has been
                                             various parts including bumpers,             controlled and reduced by using water-
            0                                                                             based paint for the top coat of the outer
                 2004   2005     2010        dashboards and door trims.
                                                                                          body panel base paint. The undercoat
Ethanol                                      Vehicle painting and coating processes       consists of an acrylic material that is
                                             potentially release harmful chemicals such   applied to the back surface of the
During 2005, Toyota Australia, in concert    as trichloroethylene. Toyota continues to
with other industry members, undertook                                                    underbody floor, while the use of polyvinyl
                                             control and reduce these by setting strict   chloride has been eliminated.
further work to help improve consumer        VOC emission reduction targets for all
confidence in the use of appropriate         global manufacturing plants.
ethanol blended petrol.
In addition to the vehicles previously       As the following information shows, the
publicised as suitable for use with fuel     new model Yaris and recently upgraded
with up to 10% ethanol, additional           RAV4 are examples of expanding use of
vehicles able to operate at up to 5%         technologies to reduce the impact of
ethanol were identified. Also, agreement     vehicle manufacture.
was reached among manufacturers and
the Federal Government to provide vehicle
labelling on locally manufactured models
to declare their suitability with fuel
containing up to 10% ethanol.



                                                                                                                                         The new Camry, released in August 2006 is the only four cylinder car manufactured in Australia.

13 Toyota Australia                                                                                                                                                                                                                                          Environment and Community Report 2006 14
03
                                                              e n v i r o n m e n t


                                                                                                                                                                               03
                                                                                                                                                                                                                            e n v i r o n m e n t

                                                              S u p p l y                  c h a i n              &       P u r c h a s i n g                                                                               S u p p l y         c h a i n        &      P u r c h a s i n g



                                                               Supplier Environment Policy                                   SOC                                               The ECO-Buy green purchasing                 2005 Supplier Environmental                  Toyota Australia waste management

  Supply chain                                                 The three key requirements of suppliers
                                                               are:
                                                                                                                             The 4th Toyota Environmental Action Plan
                                                                                                                             goal has been set to eliminate the use of
                                                                                                                                                                               program
                                                                                                                                                                               ECO-Buy is an initiative to increase
                                                                                                                                                                                                                            Excellence Award
                                                                                                                                                                                                                            The annual Supplier Environmental
                                                                                                                                                                                                                                                                         service provider
                                                                                                                                                                                                                                                                         Toyota Australia Purchasing Division
                                                                                                                             the four SOC: lead, cadmium, mercury              purchasing of environmentally sensitive      Excellence Achievement Award encourages      finalised its tender process for waste
  & Purchasing                                                 1. Environmental Management Systems
                                                               (EMS):
                                                                                                                             and hexavalent chromium.
                                                                                                                             This decision was made in response to
                                                                                                                                                                               supplies. It is a joint initiative of the
                                                                                                                                                                               Municipal Association of Victoria and
                                                                                                                                                                                                                            environmental improvement and
                                                                                                                                                                                                                            innovation in Toyota Australia’s supply
                                                                                                                                                                                                                                                                         management services in 2005 with
                                                                                                                                                                                                                                                                         Collex the successful tenderer. The
                                                               Toyota Australia requests all first tier                                                                        EcoRecycle Victoria (now known as            chain. The winner of the 2005 Achievement    services agreement covers all Victorian
                                                                                                                             Directive 2000/53/EC of the European
The 4th Toyota Environmental Action Plan                       suppliers who provide components, direct                                                                        Sustainability Victoria). ECO-Buy started    Award for Environmental Excellence was       operations and includes the following
                                                                                                                             Parliament to prevent waste from end-of-
includes a commitment to further promote                       raw materials (for use either on the vehicle                                                                    as a local government program and is         Autoliv Australia. This was announced at
                                                                                                                             life vehicles. This directive stipulates that                                                                                               key performance indicators:
environmental management to our                                or in accessories), indirect raw materials                                                                      now being launched to business.              the Supplier Conference in April 2005.
                                                                                                                             vehicle manufacturers and material                                                                                                          • Achieve ISO14001, ISO9001,
business partners, through increased                           (supplied to Toyota Australia facilities, but
                                                                                                                             manufacturers in Europe must ensure that          As a member of ECO-Buy Toyota Australia                                                     SafetyMAP and Waste Wise
cooperation with suppliers.                                    not to become part of the vehicle), and
                                                                                                                             components of vehicles placed on the              will:                                                                                       accreditation for Toyota Australia sites
                                                               services to develop an ISO14001 certified
Key focus areas include:                                                                                                     market after 1 July 2003 do not contain           • Manage risks in the supply chain that                                                     within 12 months
                                                               EMS.
• Management of Substances of Concern                                                                                        mercury, hexavalent chromium, cadmium               may arise from using potentially harmful
                                                               2. Elimination of SOC:                                        or lead.                                                                                                                                    • Zero non-compliance with legal and
  (SOC) contained in parts, raw materials,                                                                                                                                       or socially unacceptable products                                                         statutory requirements
  production facilities and other items                        Toyota Australia expects all first tier                       Toyota Australia aims to eliminate these          • Minimise impact on the environment by                                                   • Zero non-compliance with all Toyota
  supplied to Toyota Australia                                 suppliers providing components and/or                         four substances from all vehicles, parts            integrating environmental considerations                                                  Australia site procedures
                                                               direct raw materials to eliminate the                         and accessories by the end of 2007.
• Voluntary initiatives by suppliers to                                                                                                                                          into business operations
                                                               substances of environmental concern                           This voluntary objective exceeds all                                                                                                        • Zero general waste to landfill by 2010
  improve environmental performance.                                                                                                                                           • Publicise practical and measurable
                                                               contained in those components and                             national and state regulatory requirements
                                                               materials. Toyota’s goal for all vehicles is                                                                      environmental initiatives                                                               • Zero prescribed waste to landfill by 2010
                                                                                                                             in Australia.
                                                               to be SOC-free by the end of 2007.                                                                              • Become part of a network of councils                                                    • Active participation in Toyota Australia
                                                                                                                              SOC Heavy         Limit      Exemptions
                                                                                                                                                                                 and businesses who will share knowledge,                                                  waste management meetings, waste
                                                               3. Supplier Reporting:                                         Metals
                                                                                                                                                                                 experiences and achievements.                                                             audits, Environment Improvement Plan,
                                                               Suppliers must maintain close                                  Lead              MAX        • Car batteries                                                                                                 damaged material transfer, and
                                                               communication with Toyota Australia                                              1000 ppm   • Solder                                                                                                        development of objectives and findings
                                                               Purchasing Division on status with respect                                                                                http://www.ecobuy.org.au/
                                                                                                                                                           • Electronic                                                                                                    and prioritising of improvement plans as
                                                               to the Supplier Environment Policy.                                                           circuit boards                                                                                                scheduled
                                                                                                                              Mercury           MAX        • Discharge                                                                                                   • 2% annual reduction in volume of waste
                                                                                                                                                1000 ppm     lamps
                                                                                                                                                                                                                                                                           products arriving at Toyota Australia
 Supplier Applicability                                                                                                                                    • Instrument                                                                                                    sites
                                                                                                                                                              panel displays
 Key requirement:                                               Supplier Category Applicability                                                                                                                                                                          • Develop inventory of equipment
                                                                                                                              Hexavalent        MAX        • NIL                                                                                                           producing CO2 emissions.
                                                1ST Tier O.E.      Direct             Indirect            Service             Chromium          1000 ppm
                                                                   Raw Material       Raw Material        Suppliers
                                                                                                                              Cadmium           MAX        • Nickel cadmium                                                                                              The services agreement requires weekly,
 1. Implement EMS                               ✓                  ✓                  ✓                   ✓                                     100 ppm      batteries                                                                                                   monthly and quarterly waste reports that
                                                                                                                                                                                                                                                                         include recommendations for
 2. Eliminate SOC’S                             ✓                  ✓                  Select         Not                                                                                                                                                                 improvements. Also, annual waste reports
                                                                                      Suppliers Only Applicable                                                                                                                                                          are required that detail environmental
 3. Communicate with TMCA                       ✓                  ✓                  ✓                   ✓                                                                                                                                                              impacts of services provided to Toyota
                                                                                                                                                                                                                                                                         Australia.
Toyota Australia Senior Management with the 2005 Toyota Australia Supplier Award winners.
Back row (left to right): Yoshiaki Numata, Ted Okada, Mitsuo Kinoshita (TMC Senior Managing Director), Shoji Baba, Mike Harvie, Rob Jakobi.
Front row (left to right): Bob Franklin (Autoliv Australia), Ron Kirwan (Kirwan Group Services), Mark Dwyer (OzPress), Kan Ito (Australian Arrow),
Brian Freeborn (Schefenacker Vision Systems), Manny Larre (Pilkington (Australia), Alan Stevens (PBR Automotive)




                                                                                                                                                                                                                                                                         On Wednesday 2 November 2005, Toyota Australia
                                                                                                                                                                                                                                                                         President and CEO Ted Okada (front) committed the
                                                                                                                                                                                                                                                                         company to the ECO-Buy program as the founding
                                                                                                                                                                                                                                                                         member of ECO-Buy Business. Also present were
                                                                                                                                                                                                                                                                         Deputy Premier of Victoria and Minister for
                                                                                                                                                                                                                                                                         Environment, Water and Victorian Communities, John
                                                                                                                                                                                                                                                                         Thwaites, and Commonwealth Games Environment
                                                                                                                                                                                                                                                                         Ambassador, Rob Gell (far right).
15 Toyota Australia                                                                                                                                                                                                                                                                   Environment and Community Report 2006 16
03
                                                e n v i r o n m e n t


                                                                                                                                                                 03
                                                                                                                                                                                                                                  e n v i r o n m e n t

                                                M a n u f a c t u r i n g                                                                                                                                                         M a n u f a c t u r i n g




                                                 Environmental performance 2005-2006
 Manufacturing                                   Energy
                                                 Overall energy use from stationary energy                   In terms of gas reduction activities, it has
                                                                                                                                                                                  Gas per vehicle                                                                                         Electricity per vehicle
                                                 sources per vehicle was 8.54GJ in 05/06                     been possible to turn off one of the gas                                                                  Target        Actual                                                                                       Target       Actual
                                                 versus 8.77GJ in 04/05. This represented                    fired afterburners in the Paint Shop. This                     7.5                                                                                                    1000

During 2005 new manufacturing targets            a 2.6% reduction, but remained above the                    project has saved 52,000 GJ per annum
were set based on directives from the 4th        energy target of 8.34 GJ/veh. While natural                 and was made possible through continued                        7.0
Environmental Action Plan. This has been         gas supplies the majority of energy, electricity            improvement in paint technology and
done in conjunction with preparation for         performance lagged against the target.                      efficiencies in line sequencing.                               6.5
introduction of the new model Camry and          Greenhouse gas emissions increased from                     In terms of electricity usage, Toyota                                                                                                                                  900
Aurion at the Altona manufacturing plant.        168,590 tonnes CO2 equivalents in 04/05 to                  Australia has introduced several initiatives                   6.0
This project has required the investment of      179,990 tonnes CO2 equivalents in 05/06 in-                 in 05/06 which will reduce consumption.
more than $400 million in new facilities         line with a 7% increase in overall production               The new unit parts and bumper resin                            5.5




                                                                                                                                                                                                                                                                         kWh/veh
                                                 volume. Details of Toyota Australia’s                       plants have been equipped with ‘Goldway




                                                                                                                                                                 GJ/veh
and equipment.
                                                 greenhouse gas emissions can be found                       Enersave’ units. These units manage to                         5.0
The subsequent construction and                  as part of Toyota Australia’s submission to                 balance out peaks in electricity demand                                                                                                                                800
commissioning activities have resulted in




                                                                                                                                                                                   1



                                                                                                                                                                                             2



                                                                                                                                                                                                         3



                                                                                                                                                                                                                   4



                                                                                                                                                                                                                             5



                                                                                                                                                                                                                                          6




                                                                                                                                                                                                                                                                                            1



                                                                                                                                                                                                                                                                                                        2



                                                                                                                                                                                                                                                                                                                   3



                                                                                                                                                                                                                                                                                                                              4



                                                                                                                                                                                                                                                                                                                                         5



                                                                                                                                                                                                                                                                                                                                                   6
                                                                                                                                                                                  /0



                                                                                                                                                                                            /0



                                                                                                                                                                                                       /0



                                                                                                                                                                                                                  /0



                                                                                                                                                                                                                            /0



                                                                                                                                                                                                                                      /0
                                                 the Australian Greenhouse Challenge:                        and are expected to return an 8%




                                                                                                                                                                                                                                                                                          /0



                                                                                                                                                                                                                                                                                                    /0



                                                                                                                                                                                                                                                                                                               /0



                                                                                                                                                                                                                                                                                                                          /0



                                                                                                                                                                                                                                                                                                                                     /0



                                                                                                                                                                                                                                                                                                                                                  /0
                                                                                                                                                                              00



                                                                                                                                                                                        01



                                                                                                                                                                                                    02



                                                                                                                                                                                                              03



                                                                                                                                                                                                                        04



                                                                                                                                                                                                                                     05




                                                                                                                                                                                                                                                                                       00



                                                                                                                                                                                                                                                                                                   01



                                                                                                                                                                                                                                                                                                              02



                                                                                                                                                                                                                                                                                                                         03



                                                                                                                                                                                                                                                                                                                                    04



                                                                                                                                                                                                                                                                                                                                              05
additional resource use at Altona. The




                                                                                                                                                                            20



                                                                                                                                                                                       20



                                                                                                                                                                                                  20



                                                                                                                                                                                                             20



                                                                                                                                                                                                                       20



                                                                                                                                                                                                                                   20




                                                                                                                                                                                                                                                                                     20



                                                                                                                                                                                                                                                                                                 20



                                                                                                                                                                                                                                                                                                            20



                                                                                                                                                                                                                                                                                                                       20



                                                                                                                                                                                                                                                                                                                                  20



                                                                                                                                                                                                                                                                                                                                             20
                                                                                                             improvement in electricity consumption in
upgrade involved the relocation of several           http://www.greenhouse.gov.au/challenge/               these plants.
processes from the Port Melbourne site.
Toyota Australia commissioned a new
bumper bar painting and moulding facility,
a new unit parts assembly operation, a           Waste
new fuel tank assembly and painting              An emphasis on identifying recycling                        Toyota Australia continues to pursue
operation, a new main jig line in the weld       opportunities has resulted in a reduction of                recycling and reuse opportunities for all                            General waste per vehicle                                                                               Prescribed waste per vehicle
shop and a new logistics centre.                 general waste from 9.43 kg/veh to 9.06                      waste streams. During 2005/06, Toyota                          20                                                                                                       4
                                                 kg/veh. For example, it is now possible for                 Australia managed to recycle or reuse 96%                                                                 Target         Actual                                                                                      Target       Actual
As a result of this activity, the achievement
of internal environmental targets for the        Toyota Australia to recycle its laminated                   of all waste material flows and only 4% of
Altona site represented a challenge for the      glass waste from the assembly process,                      waste had to be disposed to landfill.
manufacturing operations in 2005/06.             diverting 11,000 kg of waste per annum                      The majority of recycled material is the                       15
Despite this, all additional processes have      from landfill.                                              steel off cuts which occur during the
been introduced without any required             There has been an increase in the yearly                    pressing of the complex shapes that make                                                                                                                                3
increases to existing licence limits for the     result for prescribed waste from 3.13 kg/veh                up a vehicle body. Last year 24,000
Altona site.                                     to 3.45 kg /veh. The majority of this                       tonnes of steel was recycled by Simsmetal.
                                                                                                                                                                            10
                                                 increase is due to prescribed waste at the                  Other waste streams to benefit from
                                                 Paint Shop. Improvements in waste                           recycling were:




                                                                                                                                                                   kg/veh




                                                                                                                                                                                                                                                                        kg/veh
                                                 separation have led to an increase in the                   • Aluminium dross and turnings
                                                 number of chemical drums and liners                           - 1,800 tonnes                                                5                                                                                                       2
                                                 being disposed. Installation of robots into                 • Casting sand - 1,500 tonnes




                                                                                                                                                                                   1



                                                                                                                                                                                              2



                                                                                                                                                                                                        3



                                                                                                                                                                                                                   4



                                                                                                                                                                                                                             05




                                                                                                                                                                                                                                         6




                                                                                                                                                                                                                                                                                            1



                                                                                                                                                                                                                                                                                                       2



                                                                                                                                                                                                                                                                                                                  3



                                                                                                                                                                                                                                                                                                                             4



                                                                                                                                                                                                                                                                                                                                        5



                                                                                                                                                                                                                                                                                                                                                   6
                                                                                                                                                                                 /0



                                                                                                                                                                                            /0



                                                                                                                                                                                                      /0



                                                                                                                                                                                                                 /0




                                                                                                                                                                                                                                       /0




                                                                                                                                                                                                                                                                                          /0



                                                                                                                                                                                                                                                                                                     /0



                                                                                                                                                                                                                                                                                                                /0



                                                                                                                                                                                                                                                                                                                           /0



                                                                                                                                                                                                                                                                                                                                      /0



                                                                                                                                                                                                                                                                                                                                                 /0
                                                                                                                                                                                                                            /
                                                                                                                                                                               00



                                                                                                                                                                                          01



                                                                                                                                                                                                    02



                                                                                                                                                                                                               03



                                                                                                                                                                                                                         04



                                                                                                                                                                                                                                     05
                                                 the primer spraybooth have however




                                                                                                                                                                                                                                                                                      00



                                                                                                                                                                                                                                                                                                   01



                                                                                                                                                                                                                                                                                                              02



                                                                                                                                                                                                                                                                                                                         03



                                                                                                                                                                                                                                                                                                                                    04



                                                                                                                                                                                                                                                                                                                                               05
                                                                                                             • Windscreen glass - 11 tonnes




                                                                                                                                                                             20



                                                                                                                                                                                        20



                                                                                                                                                                                                  20



                                                                                                                                                                                                             20



                                                                                                                                                                                                                       20



                                                                                                                                                                                                                                   20




                                                                                                                                                                                                                                                                                     20



                                                                                                                                                                                                                                                                                                 20



                                                                                                                                                                                                                                                                                                            20



                                                                                                                                                                                                                                                                                                                       20



                                                                                                                                                                                                                                                                                                                                  20



                                                                                                                                                                                                                                                                                                                                             20
                                                 saved 23,000 kg of sludge disposal per                      • Cardboard - 797 tonnes
                                                 year.                                                       • Timber - 770 tonnes
                                                 Overall, waste performance has improved                     • Paper - 18 tonnes
                                                 from 12.56 kg/veh to 12.51 kg/veh.                          • Plastic - 83 tonnes.

                                                                                                       Water per vehicle                                                                                                                                                                  VOC g/m² per vehicle
                                                 Water                                            6                                                              Volatile Organic Compounds (VOC)                                 Overall, recovered solvent                         70
                                                 Water use at Toyota Australia                                                             Target       Actual   VOC emissions from Paint Shop increased                          dropped from 126,000 litres in                                                                  Target       Actual
                                                 has declined marginally from                                                                                    slightly from 37.2 g/m2 to 37.6 g/m2.                            04/05 to 105,000 litres in 05/06.
                                                 3.88 m3/veh to 3.87m3/veh.                                                                                      While reducing the amount of solvent used                        The recycled solvent prevented
                                                                                                                                                                                                                                                                                     60
                                                 There was extensive use of                                                                                      is a positive outcome and reduces emissions                      approximately 80 tonnes of
                                                                                                  5
                                                 water as part of the                                                                                            of VOCs, a side effect of this reduction has                     VOCs from being emitted into
                                                 commissioning process for                                                                                       been that the used solvent contains a higher                     the atmosphere.
                                                                                                                                                                                                                                                                                     50
                                                 the new unit parts and                                                                                          concentration of paint solids than before.                       The installation of new articulated
                                                 bumper resin facilities. During                  4
                                                                                                                                                                 This higher concentration has reduced                            robots in the Paint Shop primer
                                                 the construction and                                                                                            solvent recovery. Maintenance                                    area has contributed to a
                                                                                                                                                                                                                                                                                     40
                                                 commissioning of these                                                                                          improvements during the Christmas                                reduction of VOC emissions,
                                                 plants, up to 700m3 per                                                                                         shutdown resulted in an increase in solvent                      from 6.38 g/m2 to 5.48 g/m2,
                                                                                        m3 /veh




                                                                                                                                                                                                                                                                         g/m²
                                                 month was used by these                                                                                         recovery and a consequent drop in VOC                            and also reduced paint
                                                 sites to test the integrity of                   3                                                              emissions.                                                       consumption by 17,700 litres.                      30




                                                                                                                                                                                                                                                                                             1



                                                                                                                                                                                                                                                                                                        2



                                                                                                                                                                                                                                                                                                                   3



                                                                                                                                                                                                                                                                                                                             4



                                                                                                                                                                                                                                                                                                                                         5



                                                                                                                                                                                                                                                                                                                                                   6
                                                                                                        1



                                                                                                                   2



                                                                                                                              3



                                                                                                                                       4



                                                                                                                                                  5



                                                                                                                                                           6




                                                 the processes and to run




                                                                                                                                                                                                                                                                                          /0



                                                                                                                                                                                                                                                                                                    /0



                                                                                                                                                                                                                                                                                                               /0



                                                                                                                                                                                                                                                                                                                          /0



                                                                                                                                                                                                                                                                                                                                     /0



                                                                                                                                                                                                                                                                                                                                                  /0
                                                                                                       /0



                                                                                                               /0



                                                                                                                            /0



                                                                                                                                     /0



                                                                                                                                                /0



                                                                                                                                                         /0




                                                                                                                                                                                                                                                                                       00



                                                                                                                                                                                                                                                                                                   01



                                                                                                                                                                                                                                                                                                              02



                                                                                                                                                                                                                                                                                                                         03



                                                                                                                                                                                                                                                                                                                                    04



                                                                                                                                                                                                                                                                                                                                              05
                                                                                                   00



                                                                                                              01



                                                                                                                        02



                                                                                                                                    03



                                                                                                                                            04



                                                                                                                                                        05




                                                 initial production trials.




                                                                                                                                                                                                                                                                                     20



                                                                                                                                                                                                                                                                                                 20



                                                                                                                                                                                                                                                                                                            20



                                                                                                                                                                                                                                                                                                                       20



                                                                                                                                                                                                                                                                                                                                  20



                                                                                                                                                                                                                                                                                                                                             20
                                                                                                  20



                                                                                                            20



                                                                                                                       20



                                                                                                                                  20



                                                                                                                                           20



                                                                                                                                                      20




17 Toyota Australia                                                                                                                                                                                                                                                                                            Environment and Community Report 2006 18
03
                                                e n v i r o n m e n t


                                                                                                                                             03
                                                                                                                                                                                          e n v i r o n m e n t

                                                M a n u f a c t u r i n g                                                                                                                 M a n u f a c t u r i n g



Environmental incidents                         • An Environmental Audit Program              improvement opportunities. Toyota Australia    Manufacturing Environment Group and          awareness and understanding of
The Toyota Australia Environmental              • An Environment Improvement Plan.            met or exceeded all required standards.        TEMS work groups                             environmental issues.
Management risk matrix rates                    Toyota Australia continues to operate                                                        The Manufacturing Environment Group          A range of activities were also organised
environmental incidents as high,                under its accredited licence. The             Toyota Environmental Management                coordinates the TEMS and the                 at Altona to celebrate World Environment
significant, moderate, or low. Toyota           accredited licence was fundamental in the     System (TEMS) Green Guide                      environmental programs and initiatives in    Day, and National Tree Day.
Australia has a system for identifying          approval of recent plant improvements                                                        the manufacturing operations. The group
solutions and countermeasures for                                                             This Green Guide is a practical manual on      supports the seven shop floor
                                                such as the unit parts and bumper resin       managing the TEMS system for new                                                            2005 TEMS awards
incidents which have an environmental           operations. Both of these developments                                                       environmental teams (TEMS work groups);
impact called Environmental Action                                                            workgroup members and/or experienced           Weld, Assembly, Paint, Press, Powertrain,    Awards are given each year to both
                                                offer a net benefit to the environment as     Work Group leaders. The Guide is an aid
Requests (EAR).The total EARs for               they replace older and less efficient                                                        Production Control, and Port Melbourne.      groups and individuals in recognition of
2005/06 were as follows:                                                                      to understanding environmental policy,                                                      their hard work and efforts to:
                                                facilities at the Port Melbourne site. They   aspects and impacts, controlling               With the consolidation of manufacturing
                                                                                                                                                                                                                                       Bumper bar production
  High                 =                6       were approved by EPA Victoria under the       operations, and learning how Toyota            operations from Port Melbourne to Altona,    • Reduce costs through resource saving
                                                conditions of the accredited licence                                                         a new Bumper/Resin workgroup will be           projects                                   The new bumper bar, unit parts and fuel
  Significant          =                3                                                     Australia manages its environmental
                                                without the need for a Works Approval.                                                       set up in the second half of 2006 together                                                tank operations replace existing
  Moderate             =               14                                                     activities. It is also a reference guide for                                                • TEMS maintenance and commitment.
                                                                                                                                             with a Unit Parts workgroup.                                                              operations at the Port Melbourne site
                                                                                              developing TEMS skills, auditing and
  Low                  =                3                                                                                                                                                 The winners this year were:                  and have enabled Toyota Australia to
                                                Community Liaison Committee (CLC)             operational knowledge.                         There are regular cross-functional
                                                                                                                                                                                                                                       embark on air quality improvement
There has been an increase in High and                                                                                                       workshops where these groups address         Most Effective Work Group – Powertrain
                                                Toyota’s CLC meets every two months to                                                                                                                                                 initiatives.
Significant incidents since 04/05. The High                                                                                                  environmental issues such as:                Best Individual Effort –
and Significant EARs in 05/06 can be split      review progress on Toyota’s Environment       Toyota Australia and other                                                                                                               For example:
                                                                                                                                             • Internal and external audits findings      Phat Huynh (Body Shop)
into two categories:                            Improvement Plan. It comprises                environmental reporting initiatives.
                                                                                                                                                                                                                                       • The solvent-borne, hand painted
                                                representatives from local government, the                                                   • New environmental improvement              Most Supportive Work Group Member -
  1. Spills to stormwater                                                                     In addition to the Environment and                                                                                                         bumper bar process was replaced by
                                                EPA, City West Water and the local                                                             projects                                   Manjit Sidhu and David Mifsud
     (3 High, 2 Significant)                                                                  Community Report, Toyota Australia reports                                                                                                 a new waterborne robotic process
                                                community.                                                                                                                                (Powertrain), Peter Holt (Assembly Shop),
                                                                                              publicly on its environmental performance      • Training and awareness.                                                                   that is expected to reduce the amount
  2. High trade waste discharge                                                                                                                                                           Phil Vella (Paint Shop)
                                                During the next year, Toyota Australia and    through a variety of methods.                  During 2005 the TEMS work groups                                                            of solvent and VOCs emitted from
     (3 High, 1 Significant)                    the CLC will revise the Environment                                                                                                       Most Supportive Manager -                      205 tonnes per annum (tpa) to 155 tpa.
                                                                                              These include reports to:                      implemented 16 documented environmental
Toyota Australia experienced a number of        Improvement Plan in line with the                                                                                                         Malcolm Tucker (Paint Shop)
                                                                                              • The National Pollutant Inventory             improvement projects, saving
spills during the delivery of bulk chemicals.   requirements of the accredited licence.                                                                                                                                                • The new fuel tank painting
                                                                                                                                             approximately $775,000 for the year.         Best Project for Water -
These events have led to an increased           For more information on the Toyota                                                                                                                                                       showercoat process is a closed loop
                                                                                                          http://www.npi.gov.au                                                         Paul Maranelli (Paint Shop) – Sludge pool
focus on contractor education to ensure         Australia Environment Improvement Plan                                                                                                                                                   system, with a transfer efficiency of
                                                                                                                                                                                          optimisation saving 19,000 m3 and
that all delivery drivers are familiar with     visit:                                                                                       Environmental shop floor training and                                                       almost 100%, virtually eliminating the
                                                                                                                                                                                          $28,000 per year.
Toyota Australia’s equipment, procedures                                                                                                     awareness                                                                                   overspray waste of the previous spray
                                                    http://www.environment.toyota.com.au/   • The Australian Greenhouse Challenge Plus                                                  Best Project for Waste -
and emergency response.                                                                                                                                                                                                                  painting process. This process is
                                                          TWP/Upload/Media/299.pdf                                                           In 2005 Toyota Australia continued to        Clint Harrison (Production Engineering) –      expected to halve VOC emissions
The incidents associated with high trade                                                         http://www.greenhouse.gov.au/challenge/     present an environmental unit as part of     Primer robots introduction saving 17,700       from 14.35 tpa to 7.72 tpa.
waste discharge were linked to increased                                                                                                     the curriculum of the Success in             litres of paint, 23,000 kg of sludge and
metal levels, and high pH levels in the         Global ISO 14001 TEMS annual                                                                 Automotive Manufacturing (SAM) course it     $390,000 per year.
trade waste. These were identified by the       surveillance audit                            • The State Environment Protection Policy      conducts for team member development.
                                                                                                on Air quality Management.                                                                Best Project for Energy -
ongoing monitoring regime and addressed         This audit was conducted by SAI Global                                                       Over 90 employees from Altona
                                                                                                                                                                                          Matthew Allan & Malcolm Tucker (Paint
as required through:                            and held from 7 April to 14 April 2005 in                                                    manufacturing and the Brisbane Parts
                                                                                                                                                                                          Shop) – Decommissioning of afterburners,
• Improvements to the engine trade waste        selected shops/departments at the Altona                http://www.epa.vic.gov.au          Distribution Centre attended a practical
                                                                                                                                                                                          saving 52,000GJ and $195,000 per year.      TEMS work group members at the 2005
   treatment plant to allow mechanical          site. The findings highlighted minor                                                         training session aimed at improving
                                                                                                                                                                                                                                      Awards Ceremony
   isolation
• Improved maintenance of polymer
   dosing lines in the Port Melbourne unit
   parts area
• A redesign of the phosphate press bund
  and transfer system to provide an earlier
  alarm and system shut down.
A small number of spills were also attributed
to the malfunction of new equipment
during commissioning of new facilities.


Accredited licence
To be an accredited licensee, the overriding
requirement is to demonstrate a high level
of environmental performance and an
ongoing capacity to maintain and improve
this performance. This is demonstrated
through the following cornerstones:
• An Environmental Management System

19 Toyota Australia                                                                                                                                                                                                                               Environment and Community Report 2006 20
03
                                    e n v i r o n m e n t


                                                                                                                                         03
                                                                                                                                                                                                  e n v i r o n m e n t

                                    E x p o r t           a n d          D i s t r i b u t i o n                                                                                                  E x p o r t          a n d          D i s t r i b u t i o n



                                    Environmental impact and activities                   Key suppliers are Patrick Autocare             Key environmental initiatives to date

       Export and                   As a result of Toyota Australia’s
                                    continuous improvement philosophy
                                                                                          (processing and transport), Prixcar
                                                                                          (processing), Toll (transport), TNT
                                                                                          (transport), NYK (shipping), and K-Line        Action                                                      Year         Result                                                                Benefit
                                    (Kaizen), this report contains a new
       Distribution                 section on the impact of export and
                                    distribution activities.
                                                                                          (shipping). Currently, environmental data is
                                                                                          only being collected from one key logistics
                                                                                          supplier, Patrick Autocare.
                                                                                                                                         Port Dealer Direct facilities - on wharf processing         2001         Eliminated transport from wharf to processing
                                                                                                                                                                                                                  site by creating on-wharf processing facilities.
                                                                                                                                                                                                                                                                                        C02 emissions

                                    The Export and Distribution Division                                                                                                                                          Eliminated over 60,000 truck transport loads since 2001
                                    consists of three key areas: export,                  The following table summarises the main
                                    logistics and order systems. Departmental             environmental impacts from Export and          Improved trailer configuration                              2003         Trailer capacity lifted from six passenger cars to seven              C02 emissions
                                    activities primarily cover vehicle                    Distribution activities.                                                                                                created additional efficiency gains through less
                                    distribution (via suppliers), and ordering.                                                                                                                                   truck movements

                                                                                                                                         Electronic Port Fitment Instruction (PFI) distribution      2003         Distribute all PFI documentation by email                             Paper usage
 Area                 Activity                         Environmental aspects                                               Impact
Export                                                                                                                                   Electronic kanban email system for PFI parts                2003         Eliminated need to mail kanban cards for parts orders.                Paper usage
                      Transit yard operations          Emissions - vehicle handling, yard/ferry vehicle, truck loading                                                                                            Replaced with email process
                      Altona                           Energy consumption - tunnel lighting, office operation              Medium
                                                                                                                                         Introduction of Autotainer (Rail) transport on domestic     2003/04      26% of interstate deliveries are now handled by rail -                C02 emissions
                                                       Paper - Vehicle Survey Report (VSR), case marking,                                interstate deliveries to dealers                                         replacing 2,434 trucks loads.
                                                       protective floor covers, key number                                                                                                                        Rail (approximately 21.7g C02/ton-km)
                                                                                                                                                                                                                  v. Truck (approximately 177.3g C02/ton-km)
                      Transport of export vehicles     Emissions - truck, vehicle unloading, vehicle handling
                      to wharf                         Paper – VSR paperwork                                               High          Improved Autotainer efficiency                              2004         Double stacking of Autotainer boxes in South Australia                C02 emissions
                                                                                                                                                                                                                  has resulted in greater Autotainer efficiency

                                                                                                                                         Introduction of a paperless delivery system                 2005         Eliminated four sheets of paper for every vehicle                     Paper usage
                      Export wharf operations          Emissions - truck unloading, vehicle handling                                     – Electronic Proof of Delivery – in August 2005                          transported. Since August 2005 implementation of
                                                       Energy consumption - site lighting, office operation                Low                                                                                    paper saving initiatives has saved 1,600 reams of
                                                                                                                                                                                                                  paper per year.


                      Shipping of export vehicles      Emissions - vessel loading, vessel sailing
                                                       Energy consumption - site lighting, office operation                High
                                                                                                                                         Key environmental focus areas for 2006                   The key focus for Toyota Australia is to            activities specifically focused on reducing
                                                                                                                                                                                                  establish a complete inventory of logistics         environmental impact.
                                                                                                                                                                                                  C02 emissions. This will form the                   This will be done according to the
Logistics                                                                                                                                                                                         foundation for a number of Kaizen                   following process:
                      Transit yard operations          Emissions - vehicle handling, yard/ferry vehicle, truck loading
                      Altona                           Energy consumption - tunnel lighting, office operation              Medium        Reporting:                               Awareness:                               Partnership:                           Planning:
                                                       Paper - VSR, case marking, protective floor covers
                                                                                                                                         In conjunction with suppliers            Raise awareness of environmental         In conjunction with suppliers          Develop annual Environment
                                                                                                                                         develop C02 emissions                    impact of operations                     identify key environment               Plan with key suppliers
                      Transport of vehicles to         Emissions - truck, vehicle unloading, vehicle handling                            reporting                                                                         initiatives
                      dealers (local and interstate)   Paper - VSR                                                         Very High



                      Processing facility operations   Emissions - vehicle handling, forklift, yard/ferry vehicle
                      (VIC, NSW, QLD, NT and SA)       Energy consumption - tools, lighting, hoists, office operation      Medium
                                                       Paper - VSR, case marking, protective floor covers


                      Vehicle storage operations       Emissions - vehicle handling, yard/ferry vehicle
                      (including vehicle repairs)      Paper – Ready For Transport (RFT) reporting                         Medium




Order systems
                      Compliance plate                 Energy consumption - compliance plate printing machine              Low
                      printing and distribution


All areas
                      Office administration            Energy consumption - PCs, printers, lighting                        Medium
                                                       Paper - printing, stationary, publications



21 Toyota Australia                                                                                                                                                                                                                                                Environment and Community Report 2006 22
03
                                                 e n v i r o n m e n t


                                                                                                                                                03
                                                                                                                                                                                                 e n v i r o n m e n t

                                                 S a l e s           a n d       M a r k e t i n g                                                                                               S a l e s         a n d        M a r k e t i n g



                                                 Below is a summary of the findings:             Parts distribution centres                     Pulpmaster                                       Improving waste management processes           • The pulp slurry taken from Pulpmaster is

         Sales and                               • Overall, the materials efficiency of the
                                                   parts and accessories investigated was
                                                                                                 Environmental Management Systems
                                                                                                 An Environmental Management System
                                                                                                                                                The Australian designed and manufactured
                                                                                                                                                Pulpmaster 3000 converts all types of
                                                                                                                                                                                                 and implementing the Pulpmaster has
                                                                                                                                                                                                 resulted in some significant benefits:
                                                                                                                                                                                                                                                  turned into renewable electricity at a
                                                                                                                                                                                                                                                  biogas-digester and this power is sold
                                                                                                                                                                                                                                                  into the electricity grid for distribution to
                                                   75%. That is, 75% of the total materials                                                     food waste into a pulp slurry, then pumps        • A reduction in the use of black plastic
         Marketing                                 (including packaging) delivered for parts
                                                   and accessories ends up as saleable
                                                                                                 (EMS) Coordinator was appointed in
                                                                                                 February 2006 to implement EMS into the
                                                                                                 five national parts distribution centres.
                                                                                                                                                it into a holding tank. Pulpmaster vacuum
                                                                                                                                                tankers extract the pulp from the tank and
                                                                                                                                                                                                   bin liners by 5,000 a year
                                                                                                                                                                                                 • A saving of up to $14,700 a year in
                                                                                                                                                                                                                                                  end users in the domestic, commercial
                                                                                                                                                                                                                                                  and industrial sectors.
                                                   product, but the remainder enters the                                                        transport it to a biogas-digester. Methane         disposal costs with all foods, fats and      The Department of Environment,
                                                                                                 The Sydney Parts Distribution Centre will
Reducing the impact of our                         waste stream
                                                                                                 be first to implement and certify an EMS,      gas generated by the pulped food waste             cooking oils now being disposed of           Conservation and Heritage has granted
sales and marketing operations                   • Oil filters had the lowest materials                                                         is extracted and burned to produce                 through the Pulpmaster                       Toyota Australia $15,000 for the final
                                                                                                 and the system will later expand to all                                                                                                        implementation into the Woolooware Bay
                                                   efficiency, but they generate a relatively    centres. The EMS will:                         electricity and organic fertiliser pellets are
Toyota Australia has 927 employees                                                                                                                                                               • Co-mingled bins for plastic, glass and       site. Plans are being developed to
                                                   small amount of waste                                                                        produced as a by-product.
based in Woolooware Bay, Sydney who                                                              • Deliver awareness training for ongoing                                                          metals, and the introduction of cardboard    implement this recycling system at Toyota
work in the Sales and Marketing operating        • Bull bars and air-conditioning units are        implementation of environmentally sound                                                         cages have reduced waste to landfill         Australia’s other catering facilities.
<None> Development, Domestic Sales,                the two largest sources of packaging            work practices in day to day operations
Customer Service, and Export and                   waste, producing an estimated 220 tonnes
                                                   and 105 tonnes respectively in a year         • Build on current environmental initiatives
Distribution.                                                                                                                                   Prius trialled by Sydney taxi company
                                                                                                   such as colour-coded waste segregation
                                                 • Proportions of each waste type                  and returnable modules.                      A Sydney taxi company is running a hybrid        minimising running costs and downtime. If      know more about the car. Another surprise
                                                   generated are roughly consistent across                                                      petrol-electric Toyota Prius in a bid to         there’s an alternative to the traditional      has been the storage capacity. For a car
                                                                                                 Returnable Modules
Dealer environment strategy                        dealerships of differing sizes.                                                              evaluate alternative fuel systems. Legion        vehicles that may benefit us, we’re obliged    that isn’t large externally, it can
                                                 Based on these findings, the report             The returnable modules project is a global     Cabs, with the approval of the NSW               to investigate it. If everything adds up,      accommodate a huge amount of luggage.
Toyota Australia is broadening
                                                 identified opportunities to improve             Toyota initiative to reduce packaging          Government, is conducting a two-year             there’s the possibility we could switch to     This is obviously useful when picking up
environmental management programs to
                                                 packaging efficiency and reduce waste           waste by implementing four returnable          study in a bid to assess more economically       hybrid technology.                             passengers from the airport. It’s only very
include dealers. As part of a regular self-
                                                 generation:                                     steel modules which can carry all Toyota       sustainable fuel systems for the taxis of                                                       early into the trial, but I’ve not had one
auditing program called Toyota Service                                                                                                                                                           The Prius has been excellent fuel-wise.
                                                                                                 parts and accessories. Australian              tomorrow.                                                                                       negative comment about the Prius to date.”
Marketing (TSM) dealers are required to          • By using more returnable packaging or                                                                                                         We’re achieving fuel consumption of less
                                                                                                 implementation is the third phase,             “We are researching how the hybrid
answer a series of environmental                   stillages/skids                                                                                                                               than six litres per 100 kilometres,” said Mr   During the two year trial period Legion
                                                                                                 following on from the United States and        technology of the Prius stands up
questions dealing with:                                                                                                                                                                          McPherson. “Everybody thinks it’s              Cabs expects the vehicle to travel up to
                                                 • By eliminating or recycling avoidable         Europe. During 2005 the strategy for           economically,” said John McPherson,              fantastic. Our driver loves it because every   400,000 kilometres.
• A public commitment to environmental             waste streams, like polypropylene             implementation of returnable delivery          general manager, Legion Cabs. “Vehicle           passenger is really interested and wants to
  improvement                                      bumper covers and steel rims                  modules, including module styles and           choice in the taxi industry is all about
• Legislative compliance with environmental                                                      return routes, was confirmed. These
                                                 • By encouraging the use of reusable seat
  regulations                                                                                    modules will allow a significant reduction
                                                   covers during servicing.
                                                                                                 in cardboard packaging and waste
• Resourcing for environmental initiatives       Bumper bar recycling from dealerships           throughout our supply chain. Initial
  and the appointment of an                                                                      implementation of returnable modules
  environmental representative                   The EcoRecycle Materials Efficiency project
                                                 confirmed anecdotal data from District          from Japan is to commence in April 2006
• Appropriate disposal of wastes and air         Sales Operation Managers and dealerships        and expanded to full rollout in March
  conditioning gases.                            that the removal and disposal to landfill of    2007. In conjunction with full rollout,
                                                 polypropylene bumper covers to allow the        Toyota Australia also plans to implement
In addition to this the following activities
                                                 fitting of bull bars was the cause of           domestic returnable modules. This will
will be undertaken:
                                                 substantial waste generation. Services for      further reduce cardboard packaging.
• Best practice case studies have been
                                                 the collecting and recycling of polypropylene   Waste Minimisation
  prepared and will be distributed to
                                                 bumper covers exist in Australia, provided
  provide demonstrative assistance to                                                            A review of solid waste management data
                                                 material types are known and they are
  other dealers                                                                                  will be completed for the Sydney Parts
                                                 relatively free of contaminants. Toyota
                                                                                                 Distribution Centre and reduction targets
• The Dealer Environment Guidelines will         Australia, in partnership with Nunawading
                                                                                                 for solid waste to landfill will be
  be promoted to dealers                         Toyota and Sims Plastics, has commenced
                                                                                                 established and reported as part of the
• Bumper bar recycling will be expanded          the collection and recycling of bumper
                                                                                                 Environmental Management System.
  to as many dealerships as possible.            bars from this dealership. This trial will be
                                                 expanded to include other dealerships in
The Environmental Policy Department will         metropolitan Melbourne.
continue to be a source of advice to
dealers through a web portal, and a series       Bumper bar recycling at
                                                 Nunawading Toyota.
of dealer site visits.
EcoRecycle Materials Efficiency project
As part of a joint funding partnership with
EcoRecycle Victoria (Sustainability Victoria),
URS Australia was commissioned by
Toyota Australia in February 2005 to
establish materials efficiency indicators for
selected parts and accessories. The report
provided insights into the logistics of parts
and accessories delivery and associated
waste issues at Victorian dealerships.

23 Toyota Australia                                                                                                                                                                                                                                         Environment and Community Report 2006 24
                                                c o m m u n i t y                  i n v o l v e m e n t


                                                                                                                                                         04
                                                                                                                                                                                                            c o m m u n i t y                  i n v o l v e m e n t




                                                Partnership with Conservation                   Conservation Connect enables volunteers                  Partnership Outcomes
                                                                                                to select from more than 2,000
                                                Volunteers Australia                                                                                     Objective                       Activity                          Outcomes
                                                                                                environmental projects Australia-wide and
                                                                                                immediately book their place. Volunteers                 Establish volunteer referral    Develop and maintain              In 2004 CVA and Toyota Australia launched the only online booking service for
                                                                                                receive a booking confirmation and                       service to match volunteers     Conservation Connect – online     volunteers, and since then the results have been impressive:
                                                                                                instructions on where to meet and what to                with conservation projects in   matching service for volunteers   • 8,026 online registrations in 12 months
                                                                                                bring to their chosen project.                           local communities across
                                                                                                                                                                                                                           • 4,504 online bookings in 12 months
                                                Conservation Volunteers Australia (CVA)                                                                  Australia
                                                                                                2. Certificate 1 in Active Volunteering –                                                                                  • More than 35,000 unique visitors to the CVA website a month with Conservation
                                                and Toyota Community Spirit are working                                                                                                                                      Connect the most popular page on the site
                                                together to connect more volunteers to          A formal qualification that details the
                                                environmental projects across the country.      competencies volunteers achieve through                  Recognise the skills gained     Develop and deliver Certificate   • 500 volunteers enrolled in the Certificate in Active Volunteering
                                                Toyota Australia provides promotional           volunteering on CVA projects.                            by volunteers when working      1 in Active Volunteering to CVA
                                                                                                                                                                                                                           • CVA commenced providing the Certificate in Active Volunteering in late 2004
                                                support, technical skills, expertise                                                                     on CVA projects                 volunteers
                                                                                                Through the                                                                                                                • CVA continues to be the only volunteer involving organisation in Australia to offer
                                                whenever possible, and financial support.       partnership with                                                                         Develop a Logbook to support
                                                                                                                                                                                                                             this qualification
                                                                                                Toyota Australia,                                                                        Certificate delivery. Update as
                                                The partnership aims to increase the                                                                                                                                       • Logbook updated in April 2005. Currently reviewing logbook as part of annual
                                                                                                                                                                                         required
                                                number of Australians participating in local    CVA is the first                                                                                                             review process
                                                environmental projects by making                organisation in
                                                                                                Australia to offer                                       Promote Conservation            Develop and implement             • CVA has distributed the Conservation Connect flyer, poster and display to more
Toyota Community Spirit, a                      volunteering easy and accessible. It also
                                                                                                Certificate 1 in                                         Connect and Certificate 1 in    communication plan and local        than 2,500 community organisations including schools, tertiary campuses,
                                                aims to recognise the skills volunteers gain
corporate citizenship program,                                                                  Active                                                   Active Volunteering to target   media campaign                      volunteer resource centres and local councils
                                                on CVA projects.                                                                                         audiences
develops partnerships that                                                                      Volunteering to                                                                                                            • CVA had identified 93 local media opportunities and generated more than 61
                                                The partnership has two key elements:
share Toyota Australia’s skills,                                                                participants,                                                                                                                pieces of media coverage
networks, expertise and other                   1. Conservation Connect –                       thereby                                                                                                                    • CVA and Toyota Australia highlighted as best practice partnership by the ‘Our
                                                An on-line registration and booking facility    recognising skills                                                                                                           Community Business Intelligence Report’, October 2005
resources within the                                                                            and experiences.
                                                for volunteers.                                                                                                                                                            • CVA provided InterCapital with more than 20 media opportunities and a media
community.                                                                                                                                                                                                                   spokesperson resulting in coverage in the Saturday ‘Age’ and ‘The Geelong
                                                Volunteers can register for environmental                                                                                                                                    Advertiser’
The program provides opportunities for          projects online through the CVA website
Toyota Australia to participate in the issues   and then simply click on the Conservation
                                                                                                                                                                                                                           • Conservation Connect with CVA and Toyota Australia a finalist in the 2005
and activities that benefit the Australian                                                                                                                                                                                   Banksia Awards
                                                Connect button to select the project in
community, and so build corporate               their neighbourhood.                                                                                                                                                       • CVA and Toyota Australia delivered paper on the Certificate in Active Volunteering
reputation and relationships.                                                                                                                                                                                                at the International Conference on Volunteering in Melbourne and at the Corporate
                                                                                                                                                                                                                             Social Responsibility Conference in Sydney in March 2006
The program provides financial and in-kind         http://www.conservationvolunteers.com.au
support for national and state community                                                                                                                                                                                   • CVA and Toyota Australia highlighted as a best practice partnership by the
partnerships and local community                                                                                                                                                                                             Department of Victorian Communities
programs. These partnerships deliver                                                                                                                                                     Develop and implement plan to     • Handbook for dealers prepared and distributed with letter from Toyota Australia
                                                                                                                                                         Encourage dealer
benefits to the community, and to                                                                                                                        participation in partnership    increase dealer awareness of        President and CEO, Ted Okada
community partners, and to the Company                                                                                                                   activities                      opportunities to participate in
                                                                                                                                                                                                                           • 77 dealers have expressed interest in participating in partnership
itself. The national program engages                                                                                                                                                     partnership activities
employees from Toyota Australia dealers                                                                                                                                                                                    • 42 of these dealers have actively participated in partnership activities such as
                                                                                                                                                                                         Support dealers to participate
                                                                                                                                                                                                                             presentation of Certificate 1 to graduating volunteers or displaying Conservation
as well as direct employees of Toyota                                                                                                                                                    in partnership activities
                                                                                                                                                                                                                             Connect promotional materials
Australia.
                                                                                                                                                         Increase Toyota employee        Seek and implement                • Presentations to employees at Altona, Port Melbourne and Sydney on
                                                                                                                                                         awareness of the partnership    opportunities to communicate        Conservation Connect
                                                                                                                                                         and activities                  with Toyota employees
                                                                                                Toyota Australia dealers are helping CVA to reach new                                                                      • CVA display at Toyota World Environment Day activities at Altona, Port Melbourne
                                                                                                volunteers and recognise current volunteers in their                                                                         and Woolooware Bay
                                                                                                local communities. Some dealerships have also
                                                                                                                                                                                                                           • CVA display at Toyota Australia Family and Friends Open Day
                                                                                                participated in events to recognise local graduates of
                                                                                                Certificate 1 in Active Volunteering.                                                                                      • Articles about partnership published in Toyota Today
                                                                                                                                                                                                                           • Toyota Australia hosted capacity building workshops in Melbourne and Sydney
                                                                                                                                                                                                                           • Toyota Australia representatives presented on generating local media coverage to
                                                                                                                                                                                                                             CVA staff workshops in each state between February to April 2006
                                                                                                                                                                                                                           • Toyota Australia staff involved in production of 2006 Conservation Calendar
                                                                                                                                                                                                                           • Toyota Australia staff involved in developing CVA Driver Safety Awards
                                                                                                                                                                                                                           • CVA expanded fleet of Toyota vehicles to more than 40




25 Toyota Australia                                                                                                                                                                                                                                                            Environment and Community Report 2006 26
04
                                                      c o m m u n i t y                   i n v o l v e m e n t


                                                                                                                                                           04
                                                                                                                                                                                                              c o m m u n i t y                        i n v o l v e m e n t




Partnership with Australia                             In this partnership, Toyota Australia is              Dealer and employee                           Partnership with Phillip Island                    2. Conservation:                                             3. Research:
                                                       providing promotional support, technical              participation in AbaF                                                                            Project Penguin Homes                                        Penguin tracking study
Business Arts Foundation                                                                                                                                   Nature Parks
                                                       skills, expertise where possible, employee                                                                                                             This project allows Toyota Australia                         This three year research project will help
                                                       volunteers and financial support.                     partnership
                                                                                                                                                                                                              employees to work alongside senior                           to determine factors affecting the long
                                                       Toyota Australia is also an AbaF Councillor           Toyota Australia is helping AbaF to                                                              rangers and the research team to improve                     term population levels of penguin colonies.
                                                       company. The AbaF Council comprises                   promote the business benefits of arts                                                            the homes and habitat of Phillip Island                      It will be the first time such a study will
                                                       senior Australian business leaders at the             partnerships to local businesses across                                                          Nature Park’s little penguin colony. It                      have been undertaken and will focus on
                                                       President/CEO level, including the Toyota             Australia.                                                                                       involves building penguin homes from                         four separate penguin colonies living on
                                                       Australia President and CEO, Ted Okada.               For each local program, a Toyota Australia                                                       timber materials, installing them into                       the Direction Islands off the east coast of
                                                       Councillors meet annually to discuss ways             representative speaks to arts and                                                                selected penguin habitat and assisting in                    Wilsons Promontory, Victoria. Using
Toyota Community Spirit and AbaF are                                                                                                                       In this partnership, Toyota Australia is
                                                       to encourage more support for the arts in             business participants on the advantages                                                          the re-vegetation of that area.                              satellite technology, researchers will track
working together to foster new                                                                                                                             providing technical expertise where
                                                       Australia, and to share ideas on ways in              that arts partnerships have delivered to                                                         The penguin homes provide an improved                        individual penguins to gain data on their
partnerships between local arts                                                                                                                            possible, employee volunteers, career role
                                                       which their own companies are engaging                Toyota Australia. Dealers are participating                                                      environment for the penguins to breed,                       foraging distances for food, and to
organisations and local businesses across                                                                                                                  models and funding.
                                                       with, and gaining benefits from, their arts           in the partnership by helping AbaF reach                                                         hatch and raise their chicks adding a                        determine to what extent food zones and
Australia.                                                                                                                                                 The partnership comprises three areas:
                                                       partnerships.                                         potential business participants in their                                                         significant benefit to the overall health of                 food sources are a limiting factor in
The partnership focuses on two main                                                                          communities, by showcasing their own          1. Education:                                                                                                   penguin colony size.
                                                                                                                                                                                                              the penguin colony.
activities:                                                        http://www.abaf.org.au                  local arts partnership programs, and by       Coastal Ambassadors Program
                                                                                                             attending the business seminar to learn                                                          Toyota Australia employees have
1. A 12 month training program to assist                                                                                                                   This is an environmental education
                                                                                                             more about the business benefits of arts                                                         participated in the project from 2003 to
   local Councils foster partnerships                                                                                                                      program for secondary and primary
                                                                                                             partnerships.                                                                                    2005.
   between local businesses and local arts                                                                                                                 schools students.
   organisations, to encourage arts
   donations.                                          Collingwood Community Cook Island Dance Group
                                                                                                                                                           The Coastal Ambassadors Program                     In this third year, 242 Toyota Australia employees and their families volunteered to help
                                                       at the launch of the AbaF and Toyota Australia                                                      encourages Year 9 students to become                build 110 penguin boxes. The event runs over a weekend.
2. Encouraging Toyota Australia                                                                                                                            ambassadors of the ocean environment in
                                                       partnership.
   employees to participate in AbaF’s                                                                                                                      their local communities. Participants learn
   volunteering programs: adviceBank and                                                                                                                   about environmental issues, as well as
   boardBank. AdviceBank provides pro                                                                                                                      leadership and teamwork, by working
   bono volunteering opportunities with                                                                                                                    alongside marine biologists and scientists
   arts organisations nationally, while                                                                                                                    at the Phillip Island Nature Park.
   boardBank connects volunteers
   interested in gaining Board experience                                                                                                                  Representatives from Toyota Australia’s
   with arts organisations looking for                                                                                                                     Environmental Policy Department give a
   Board members.                                                                                                                                          presentation to the students on how
                                                                                                                                                           Toyota Australia encourages improved
                                                                                                                                                           environmental performance in its products
                                                                                                                                                           and operations.




 Partnership Outcomes                                                                                                                                      Partnership Outcomes
 Objective                          Activity                         Outcomes                                                                              Objective                        Activity                            Outcomes
 To enable councils to develop      Development and                  AbaF is currently working with 19 councils in New South Wales, Queensland,            To increase primary and          Hold Coastal Ambassadors            Coastal Ambassador Camps were held from May 23-27 and November 7-11 in
 the capacity to facilitate         management of the Arts           Victoria and Western Australia. Four councils have completed the program              secondary students               Camps on Phillip Island             2005. A total of 90 secondary students attended these camps
 business arts partnerships         Connecting Communities                                                                                                 awareness of ocean                                                   A Toyota Australia representative gave three presentations to a total of 90 primary
 To encourage and equip local       (ACC) program                                                                                                          environments in their local                                          students taking part in the Coastal Club Program
 arts organisations and             Target: ten councils                                                                                                   communities
 businesses to develop
                                                                                                                                                           To increase Toyota Australia     Provide employee volunteering       On November 5-6, 242 Toyota staff and their families came to Phillip Island and
 successful partnerships
                                                                                                                                                           employee awareness of            opportunities at Phillip Island     constructed and installed 110 penguin homes as well as planting 500 plants
 To increase awareness that         Deliver report to AbaF           AbaF Councillors’ report included coverage of Toyota Australia and the ACC
                                                                                                                                                           ocean environments               Nature Parks
 Toyota Australia is the National   Councillor Forum                 program
 Principal Partner of the ACC       Toyota Community Award           Naming rights secured – Toyota Community Award presented by David Greenhalgh,
 program                                                                                                                                                   Determine factors that affect    Track penguin movements             Satellite devices were attached to 24 penguins from Phillip Island, 20 penguins from
                                                                     Divisional Manager, Corporate Planning and Environment, Toyota Australia
                                                                                                                                                           long term population levels of   during chick rearing and chick      Rabbit Island, and 13 penguins from Kanowna Island. These devices have proved
 To demonstrate Toyota
                                                                                                                                                           penguin colonies                 feeding stages                      successful in tracking penguin movements
 Australia’s commitment to
 the Arts
 To strengthen Toyota’s status
 as a Councillor company
 To increase dealer participation   Undertake the program and        Dealer handbook produced
 in Toyota Community Spirit         encourage Toyota dealer          Five dealers participating in program
                                    participation
27 Toyota Australia                                                                                                                                                                                                                                                                      Environment and Community Report 2006 28
04
                                                            c o m m u n i t y                        i n v o l v e m e n t


                                                                                                                                                                             04
                                                                                                                                                                                                                           c o m m u n i t y                    i n v o l v e m e n t




Partnership with Hobsons Bay                                Toyota Community Spirit gallery                              Reverse Garbage and Junk Love                       Support of major
City Council                                                The gallery, located in Toyota Australia’s                   Junk Love is an art and design competition
Toyota Community Spirit was originally                      Corporate Headquarters in Port                               run by the not-for-profit cooperative,              community events.
developed and piloted during 2001 in                        Melbourne, provides exhibition space for                     Reverse Garbage. It was created to
partnership with the City of Hobsons Bay,                   artists, especially emerging artists from the                provide an opportunity for artists and              Toyota Australia is committed to being
home of Toyota Australia’s manufacturing                    City of Hobsons Bay and the City of Port                     designers working with reusable materials           a major corporate citizen by supporting
plant. The principles piloted in Hobsons                    Phillip. The space is provided free of                       to showcase their work, while promoting             and sponsoring an array of
Bay now form the basis of this national                     charge, no commission is charged on                          an awareness of waste avoidance and                 community-based groups and sporting
program.                                                    sales, and Toyota Australia provides a                       reuse issues. Many of the exhibitors are at         organisations.
                                                            launch and develops a catalogue for each                     the cutting edge of contemporary art and
In July 2004, Toyota Australia announced                    exhibition. To date, the gallery has shown                   design, although there is also a children’s         Melbourne 2006
a landmark strategic alliance agreement                     works by more than 100 artists. Toyota                       section. Almost 90 exhibits have been               Commonwealth Games
with Hobsons Bay City Council. This                         Australia is currently working with                          shown in total, including clothing,
document now provides the framework for                     Hobsons Bay City Council, the City of Port                   sculpture, painting and jewellery.
the ongoing development and                                 Phillip and the Contemporary Sculptors’
implementation of community-building                        Association on this project. The Toyota
initiatives between Hobsons Bay and                         Community Spirit gallery opening hours
Toyota Australia.                                           are Thursday and Friday 1pm – 6pm, or
                                                            by appointment with the Curator. During
Community training workshops                                2005/06, five exhibitions were held:
Toyota Australia is working in partnership                  • Neomillenium, an exhibition exploring the                                                                      As an Official Partner, Toyota Australia
with the Hobsons Bay City Council to                          path to the future: February to end May                                                                        provided up to 1,350 vehicles for use by      Toyota Australia’s marketing team with Toyota ambassadors: L-R (back row) Paralympian Michael Milton,
                                                              2005                                                                                                                                                         Lee Kerrigan, Melinda Schneider, and Kerrie Anne Kennerley (front centre).
deliver a series of training workshops that                                                                                                                                  athletes, Games officials and staff. The
address the training needs and priorities of                • Urbantide, 20 emerging artists from the                                                                        locally manufactured Camry was the
                                                                                                                                                                                                                           National Tree Day,                                      World Expo Aichi Japan 2005
local groups.                                                 communities of Hobsons Bay, Port                                                                               signature vehicle for the Melbourne
                                                                                                                                                                             Games fleet. Toyota Australia employees       Sunday 31 July 2005                                     The World Expo Aichi Japan 2005 took
Originally piloted in 2002, the workshops                     Phillip and beyond: June to end August
                                                              2005                                                                                                           also supported the training of volunteer                                                              place from 25 March to 25 September
have continued to be delivered during                                                                                                                                                                                      Toyota Australia celebrated its sixth year
                                                                                                                          Scrap metal Emu sculpture, exhibited at            drivers.                                                                                              2005. The Aichi prefecture in Japan is the
2003, 2004 and 2005 due to community                        • Metaphysics, an exhibition of indoor and                                                                                                                     as major sponsor of National Tree Day,
                                                                                                                          Woolooware Bay, Sydney.
                                                                                                                                                                             Toyota Australia was also a Presenting                                                                home of Toyota’s headquarters and most
demand. During 2005/06 training                               outdoor sculpture exploring time, place                                                                                                                      with employees and dealers across
                                                                                                                                                                             Partner of the Games Volunteer program,                                                               of its car manufacturing plants. It is also
workshops targeting the specific needs of                     and the human condition: September to                      In this partnership, Toyota Australia                                                             Australia participating.
                                                                                                                                                                             Environment program, hockey and                                                                       the sister prefecture to the state of
environmental groups and kindergarten                         early December 2005                                        provides event management expertise,
                                                                                                                                                                             basketball.                                   The Altona manufacturing plant ran a                    Victoria. Toyota Australia was an official
committees were delivered. An evaluation                                                                                 logistics support, administration and
                                                            • Natural Selection, an exhibition by                                                                                                                          family tree planting day at Kororoit Creek              partner, along with the Federal
of the long term community benefits of the                                                                               funding.
                                                              Toyota Australia employees from Altona                                                                                                                       (located in Melbourne’s west). More than                Government, for Australia’s participation in
workshops was undertaken during 2005.
                                                              and Port Melbourne: December 2005 to                       Reverse Garbage collects more than                  Australian Football League                    200 people, including Toyota Australia                  the Expo.
                                                              February 2006                                              8,000 cubic metres of industry off-cuts             Premiership season                            employees, their families and the Friends               Both Toyota Motor Corporation and
                                                            • Post-Mod, an exploration in post-                          and waste every year to create a supply of                                                        of Lower Kororoit Creek joined in and                   Toyota Australia made significant
                                                                                                                                                                             Toyota Australia has been the naming
                                                              modernism: February to end May 2006.                       art materials. For 30 years, Reverse                                                              planted over 1,500 trees.                               contributions to the Expo. As part of this
                                                                                                                                                                             rights sponsor of the Australian Football
                                                                                                                         Garbage has provided teachers, artists,                                                                                                                   contribution, from April to June 2005,
                                                                                                                                                                             League since 2004. This sponsorship is in     167 Toyota Australia dealers actively
                                                                                                                         home renovators and the general public                                                                                                                    Toyota Australia ran an Environment
                                                                                                                                                                             addition to Toyota Australia’s sponsorship    participated in National Tree Day events,
                                                                                                                         with high quality industrial discards, off-                                                                                                               Improvement Ideas competition. Ten
                                                                                                                                                                             of the Adelaide Camry Crows.                  hosting planting sites everywhere around
                                                                                                                         cuts and over-runs for creative community                                                                                                                 prizes of a trip to Japan and Aichi Expo
                                                                                                                         use.                                                Lexus sponsors The Lexus Centre, the          the country from Sydney to Alice Springs                were awarded. Its purpose was to:
                                                                                                                                                                             official home of the Collingwood Football     in the Northern Territory.
                                                                                                                         After its public exhibition at the Addison                                                                                                                • Increase employees’ awareness of
                                                                                                                                                                             Club. The centre also houses the Victorian
                                                                                                                         Road gallery in Marrickville, a number of                                                         Overall one million trees were planted by                  environmental issues and the Expo
                                                                                                                                                                             Institute of Sport.
                                                                                                                         the Junk Love exhibition items were                                                               320,000 volunteers at 3,800 different sites.            • Allow recognition of individuals’
                                                                                                                         selected for a separate exhibition at
                                                                                                                                                                                                                                                                                     commitment to the environment
                                                                                                                         Toyota Australia’s Sales and Marketing              2006 Clean Up Fraser Island
                                                                                                                         offices in Woolooware Bay, Sydney.                                                                Australian Paralympic Winter                            • Facilitate environmental improvements
                                                                                                                                                                             Toyota Australia again partnered with                                                                   and awareness through both the
                                                                                                                                                                             Queensland Parks and Wildlife Service         Team                                                      competition entries themselves and the
                                                                                                                                                                             (QPWS) and the Queensland 4x4                 As a major sponsor of the Australian                      sharing of these ideas.
                                                                                                                                                                             Association to initiate the annual clean up   Paralympic Team, Australian athletes gain               World Expo Aichi Japan 2005 emphasised
                                                                                                                                                                             of Fraser Island over the Australia Day       opportunities to train and compete at a                 the close links binding humanity to nature
                                                                                                                                                                             long weekend in 2006.                         global level. The sponsorship also assists              in the 21st century through its theme of
                                                                                                                                                                             Volunteers collected nearly 40 cubic metres   in the development of young talent.                     Nature’s Wisdom. The Expo gave visitors
                                                                                                                                                                             of rubbish, with nine cubic metres suitable                                                           a chance to experience first-hand the
                                                                                                                                                                             for recycling. The clean up effort also                                                               leading-edge technologies, new social
                                                                                                                                                                             focussed on the awareness and removal                                                                 systems and future lifestyles that may
                                                                                                                                                                             of over 1,500 square metres of Easter                                                                 provide solutions to the many serious
Metaphysics was the first sculpture show at the Toyota Community Spirit gallery. Toyota Australia worked with the Contemporary Sculptors’ Association, Hobsons Bay City      Cassia weed from the Happy Valley area.                                                               issues now facing the world.
Council and the City of Port Phillip on this exhibition. Pictured is Konstantin Dimopoulos and his work ‘Firebird’. A similar work by Dimopoulos has been commissioned for
Melbourne Federation Square.

29 Toyota Australia                                                                                                                                                                                                                                                                              Environment and Community Report 2006 30
                                                        s t a t e m e n t                      o f        a s s u r a n c e




Toyota Australia is striving to continuously
improve its reporting and actively seeks
feedback from all stakeholders.
Feedback to the 2005 Environment and
Community Report has been incorporated                  Assurance Statement
in this report and we welcome further                   URS Australia Pty Ltd (URS) was commissioned by Toyota Motor Corporation Australia Limited
comments or suggestions.                                (Toyota Australia) to provide independent assurance of its Environment and Community Report
                                                        2006 (the Report). URS is a leading engineering and environmental consultancy with approximately
To provide feedback please email:                       29,000 personnel in 300 offices around the world, including specialists in the assurance of public
                                                        environment and sustainability reports.
            environment@toyota.com.au                  Scope
                                                        The independent assurance was undertaken during April-June 2006. Based on the three principles
                                                        of the Assurance Standard, AA1000, namely materiality, completeness and responsiveness, and the
                                                        URS Assurance Principles, the following elements were assessed:
                                                        • Data accuracy via data trails, back to original records where possible;
                                                        • Relevance of key statements made in the Report;
                                                        • Robustness of data collation systems including the integrity of processes, mechanisms and
                                                           controls in place for data capture, transcription and report preparation. Personnel (office-based
                                                           and operational) were interviewed and records reviewed;
                                                        • Transparency of performance reporting, that is the extent to which the Report reflects what is
                                                           happening on the ground at Toyota Australia, via site inspection, interviews with relevant
                                                           personnel and review of records. In addition, a senior manager was interviewed regarding his
                                                           level of commitment, understanding and involvement in sustainability; and
                                                        • Responsiveness to stakeholder needs via review of data and statements relating to Toyota
                                                           Australia’s partners (stakeholder groups), including interviews where needed.
                                                        URS Independence
                                                        URS has not been involved in the design or compilation of the Report or decisions regarding its
                                                        content (except by way of this assurance). URS, its parent companies and related companies have
                                                        previously been engaged by Toyota Australia. The average value of work carried out by URS
                                                        Australia on behalf of Toyota Australia over the three year period to the date of the statement was
                                                        less than 1% of annual URS Corporation gross revenue, based on our 2005 reporting year.
                                                        Opinion
                                                        On the basis of this independent assurance, URS is of the opinion that the Report truthfully and
                                                        fairly presents the performance of Toyota Australia with respect to sustainability for the reporting
                                                        period. Toyota Australia recognises that work remains to be done to achieve a complete
                                                        sustainability report covering all material issues, however progress is being made. Data accuracy
                                                        remains high and responsiveness to stakeholder needs again emerged as a strength in the Report.
                                                        Findings
                                                        Inconsistencies were noted for a proportion of the data audited. These inconsistencies were
                                                        conveyed to, and corrected by, Toyota Australia’s Environmental Policy Department prior to
                                                        finalisation of the Report. In addition, where statements could not be verified with appropriate
                                                        evidence, they were subsequently removed from the Report. URS will also provide a management
                                                        report to Toyota Australia with more detail on the assurance findings.
                                                        The Report satisfies the principles of AA1000, in particular the Report is more complete than in
                                                        previous years, with new coverage of company philosophy, Corporate Responsibility Index (CRI),
                                                        environmental performance, human resources and safety. The Report also demonstrates that Toyota
                                                        Community Spirit continues to deliver responsiveness via strong partnerships between stakeholders
                                                        and Toyota Australia. However, the following areas for improvement are highlighted:
                                                        • Report development process – inconsistencies could be avoided by increased internal verification
                                                          checks and better involvement of featured departments in drafting the Report;
                                                        • Data collation system – a framework outlining the source and responsibility for each data item
                                                          would improve the reporting process;
                                                        • Coverage of sustainability issues – work remains to achieve completeness via coverage of all
                                                          material sustainability issues, in particular health & safety data; and
                                                        • Reporting period – this Report represents a departure from calendar year to fiscal year reporting,
                                                          bringing specific challenges; greater clarity of the reporting period is expected in next year’s
                                                          Report.
                                                                             On behalf of the assurance team - 5 July 2006 - Melbourne, Australia

                                                                             Jo Cain, Senior Principal -
                                                                             Sustainability Strategy, URS

 Printed with   This report is printed with vegetable   Disclaimer. URS has prepared this statement for the use of Toyota Australia in accordance with generally accepted
                inks on paper stock made from 100%      practices and standards at the time it was prepared. No other warranty, expressed or implied, is made to the
SOY INK         pre and post-consumer recycled paper.   professional advice included in this statement. To the extent allowed by law, URS will not be liable for any reliance
                No oxygen or chlorine gas was used      which may be placed on this statement. Neither URS’s name nor the material submitted in this statement may be
                to bleach it.                           included in any prospectus or use in offering or representations in connection with the sale of securities or
                The printer, Print Bound Pty Ltd, is    participation interest to the public without URS’s prior consent in writing.
                ISO14001 certified.

								
To top