5

I INTRODUCTION
Message from the Presidents
We are pleased to present the second edition of Toyotas European Environmental Report, for
the fiscal year running from April 2001 to March 2002. As Toyota continues to grow in Europe,
becoming a more significant market player, we believe it is essential for us to fulfil in equal
measure our role as a responsible corporate citizen. That means, among others, engaging in
open dialogue with societys stakeholders, accounting for the activities we undertake and
making a positive contribution to the economies and societies in which we do business. For
an automotive manufacturer today, there is perhaps no area where this is more relevant than
the environment.
The following Report aims to provide a clear and succinct overview of the environmental
dimensions and implications of all our activities in Europe: from environmental management,
to products and technology, manufacturing and distribution, end-of-life issues and social
contributions. A series of performance indicators has also been included for a better under-
standing of the impact of some of these areas.
Through this presentation, we hope that the depth of our environmental commitment will
become apparent. It is based on our conviction that there can be no growth without high
levels of environmental response, and it permeates our entire organisation, fully integrated in
our management practices and clearly explained to all of our staff.
A good symbol of this approach is the Prius, the worlds first mass-produced hybrid car, of
which over 100,000 have been sold worldwide since its launch in 1997. Through such
continuous innovation in all areas and the development of high quality products, we hope to
contribute meaningfully to motorised society, minimising negative impacts and bringing
increased benefits to all.
Dr. Shuhei Toyoda Akira Imai
President and CEO President and CEO
TOYOTA MOTOR EUROPE TOYOTA MOTOR MARKETING EUROPE
TOYOTA MOTOR ENGINEERING & MANUFACTURING EUROPE Executive Vice-President
Chairman TOYOTA MOTOR EUROPE
TOYOTA MOTOR MANUFACTURING UK
4
Akira Imai Dr. Shuhei Toyoda
7 6
So, just how does Toyota ensure that its environmental objectives and beliefs are understood
and put into practice? Toyotas Guiding Principles, the cornerstones of our corporate
management philosophy, are implemented thanks to a set of values, beliefs and business
methods which are collectively known as The Toyota Way. The Toyota Way transcends
languages and nationalities, seeking commonality through the concepts of continuous
improvement and respect for people. This means Toyotas employees are never satisfied with
where they are, but rather, think constantly about how they can improve further. Toyotas
success is also crafted by both individual efforts and good teamwork, underpinned by a
healthy respect for one another.
This same approach applies to the environment. Toyota is determined to do as much as it can
toward achieving sustainable development a term we understand to be a form of progress
that meets the needs of the present without compromising the ability of future generations
to meet their own needs, (World Commission on Environment and Development, the
Brundtland Commission, 1987).
To establish a comprehensive approach to global environmental issues, Toyota has developed
what we call the Toyota Earth Charter. It outlines Toyotas basic policy and action guidelines
toward effective environmental management and improvements.
Consolidated Environmental Management System
In order to ensure the guidelines laid out in the Toyota Earth Charter are implemented
throughout our organisation, Toyota introduced a Consolidated Environmental Management
System. This established a common direction with regard to the environment, and outlined
the promotion of environmental management by Toyotas consolidated subsidiaries,
production companies and National Marketing and Sales Companies. This results not only in
improved environmental performance, but helps to create a stronger environment-oriented
corporate culture.
II AN INTEGRATED APPROACH
Environmental Management Overview
9
have been requested to obtain ISO14001 certification by 2005. In effect, the EMS encom-
passes all environment management requirements, providing a structured development
programme and allows for measurement, analysis and continuous improvement. Indeed, our
aim is to have the complete life cycle of Toyota cars under environmental management
systems compliant with ISO14001. The ISO14001 certification was awarded to Toyota in
Europe in October 2001, including our Marketing, Logistics, Sales, After-Sales and, more
uniquely, our Research and Development activities. Also our suppliers of parts, components,
raw materials, service parts and accessories have been requested to obtain ISO14001
certification within 2003 (2005 for suppliers to our plant in Turkey).
Every Toyota and Lexus car sold on the European market has been produced in factories that have
achieved the ISO14001 certification. Toyotas production plant in Valenciennes, France, attained
ISO14001 certification in March 2002 being the most recent of our manufacturing plants.
Since June 2001, all new employees at our offices and sites throughout Belgium are given an
introduction on global environmental issues and the environmental impact of Toyotas job-
related activities. Employees are introduced to Toyotas Environmental Management System
and asked to participate in it, and environmental news and information is also distributed each
month to all employees at Toyotas European headquarters in Brussels via a newsletter.
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The basic requirements of the Consolidated Environmental Management System are:
Production Companies Sales and other business
1. Adopt the Earth Charter and draft 1. Adopt the Earth Charter.
individual environmental policies.
2. Draft individual environmental
2. Draft and promote Environmental policies.
Action Plans, based on Toyota Guidelines
for the reduction of CO2 and substances 3. Set up an environmental
of environmental concern, reduction management system, reduce
of waste, conservation of natural environmental impact and make
resources, etc. social contributions.
3. Attain a top level environmental 4. Attain a top level environmental
performance based on actual conditions performance based on actual
in each region and country. conditions in each region and country.
Reaching Our Goals
To control and monitor environmental policy goals, and ensure full legal compliance and
integration of environmental performance throughout the business process, Toyota in Europe
has established an Environmental Committee and Working Groups.
The Environmental Committees role is to promote activities that control environmental impact
throughout the complete vehicle life cycle. The committees principal responsibilities cover the
implementation of the Environmental Policy, approval of Environmental Action Plans and the
monitoring of their implementation. From there, a number of Working Groups prepare and
implement specific action plans, and report the status of their activities to the Environmental
Committee. These Working Groups are made up of delegates from internal divisions within
Toyota. They also communicate the decisions made by the Committee to all working-level
divisions and ensure that policies are implemented and goals achieved. Working Groups
address issues such as recycling, CO2 and emissions, substances of environmental concern,
hazardous materials and the environmental management system.
Putting Environmental Management Systems In Place
Toyota is striving to have all of its subsidiaries achieve the ISO14001 international standard
certification for their EMS. For example, all of our National Marketing and Sales Companies
"C
onsider this: the availability of fossil fuels will dramatically decrease in the future.
Despite this harsh reality, Toyotas aim is to try and offer a means of transportation for
everyone on this planet. To this end, Toyota has embarked on an ambitious and com-
prehensive project to develop the ultimate eco-car, using a number of different approaches.
Given that petrol and new fuel sources will exist side by side for some time, Toyota has
developed hybrid technology that maximises the potential of both current and future
technologies. Cars like our Prius model, for instance, combine the electric motor and the
internal combustion engine. An even larger variety of hybrid technologies already exist, and
are under continuous development by Toyotas world-wide team of engineers and technicians.
You see, Toyota isnt just trying to develop different hybrid technologies, it is also working on
improving the environmental performance of all its petrol and diesel engines. A countrys fuel
delivery infrastructure and status of development will play a key role in determining which
Toyota technology is appropriate. The solution will also vary depending on the vehicles usage,
or purpose. So, there may not even be a best single solution for one particular country.
A further example of this is hydrogen-fuelled cars. Toyota started marketing its Fuel Cell Hybrid
Vehicle (FCHV) on a limited basis in the U.S. and Japan around the end of 2002. Its possible
that in some countries, hydrogen-refuelling stations may be put in place over the next 10-20
years, but not every country will have the same level of infrastructure. The support behind this
new technology is very important too; service, repair and maintenance will inevitably vary
from country to country.
Beyond alternative fuel technologies, Toyota engineers and our materials suppliers are also involved
in the development of completely new natural materials for use in our cars. Were not only looking
for environmentally friendly material, but also for lighter material. With all the different things that
people want in a car nowadays, you have to look for ever-lighter materials to compensate for the
additional mass of the features, and at the same time achieve the best possible fuel consumption.
In any case, Toyota cars are designed from the outset to facilitate recycling and recovery.
Whatever form the ultimate eco-car takes, Toyota believes that selecting an environmentally
friendly car shouldnt force owners to make choices between good fuel economy or low exhaust
emissions, good functionality or good performance. We must be able to provide all of them."
11 10
Tsuneo Uchimoto
Executive Vice-President Research & Development
TOYOTA MOTOR ENGINEERING & MANUFACTURING EUROPE
III GETTING THERE
Products & Technology
13 12
Toyota D-4D common rail diesel engines equipped with Toyota D-CAT have the potential to
achieve emission levels well below the Euro IV standards for diesel engines.
In order to test Toyota D-CAT further, a fleet of 60 Avensis 2-litre D-4D models equipped with
the system has been offered to selected customers in some of the major European markets.
The field trials will enable Toyota to test the effectiveness and robustness of the system under
real-world conditions.
Subject to the success of these field trials, mass production of diesel Toyotas equipped with
Toyota D-CAT is scheduled to begin in 2003. However, to enjoy the full potential of the system,
and avoid catalyst deterioration, Toyota D-CAT requires the use of diesel fuel with less than 10
parts per million of sulphur.
Lowering Emissions
The European Union has established strict limits for car exhaust emission
1
levels, commonly
referred to as the Euro standard. Euro III limits were introduced on Jan. 1, 2000 and Euro IV
limits will be introduced from Jan. 1, 2005. Toyota is progressively introducing petrol engines
compliant with the tough Euro IV limits.
Intake Air
Exhaust Gas
New Common Rail System
2
nd
Generation 180MPa
EGR Cooler
Pressure Difference Sensor
Diesel Throttle
ERG Valve
Inter-Cooler
DPNR CATALYTIC
CONVERTER
Turbo Charger
Air Flow Meter
Exhaust Port
Injector
Air Fuel ratio Sensor
Oxidation Catalytic Converter
Exhaust Gas
Temperature Sensor
1
Emissions concerned are CO, NOx, HC and PM
The question of how best to balance civilisations growth with the planets finite resources is a
delicate and complicated one. But just as many answers exist to this vital question, so too do
many possibilities exist for present and future forms of transport.
Toyota is fully aware that automobile manufacturers have a social responsibility to develop vehicles
that offer ever-improving energy efficiency, lower emissions and recyclability, thereby lessening
the burden on the environment. But Toyota also believes there is no one best form of transport,
or fuel source. A variety of solutions can be used, depending on an individual country, its infra-
structure and particular needs permitting maximum flexibility for consumers and governments.
Toyota believes it must not only offer consumers the best cars it can, but further improve the
diesel and petrol technologies that exist, and expand and further explore alternative
technologies such as hybrid and fuel cell-powered vehicles.
The environmental improvement of Toyotas conventional fuel engines diesel and petrol
can only take place through lowering emissions and improving fuel economy.
However, lowering emissions poses a number of problems. For instance, the increasingly
popular diesel engine has a high level of thermal efficiency, meaning it emits less CO2 (Carbon
Dioxide). But, this comes at the expense of higher Particulate Matter (PM) and NOx (Nitrogen
Oxide) levels. The problem is reversed with petrol engines, which have lower levels of PM but
are less efficient in terms of CO2 emissions per kilometre driven.
Cleaner Diesel
Toyota has a long history of developing technology for cleaner diesel engines. This has been
accomplished through the use of catalytic converters and improved combustion technologies
such as direct fuel injection, electronically controlled exhaust gas recirculation (EGR) and high-
pressure common-rail fuel injection, which Toyota was the first to develop. Furthermore, in early
2002, Toyota launched the Diesel Clean Advanced Technologies (D-CAT) concept, a revolutionary
diesel emissions purification system. The most notable feature of Toyota D-CAT is Toyotas DPNR
(Diesel Particulate and NOx reduction system), a world first single-catalyst system that allows
simultaneous reduction of particulate matter and nitrogen oxides in diesel exhaust emissions
without the use of any additives.
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From the Present to the Future
Toyota D-CAT system
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produced petrol, electric-four-wheel-drive hybrid vehicle. It was introduced in Japan in 2001.
Consuming just 5.5 litres/100 km (in the Japanese test cycle), the Toyota Estima Hybrid
manages to rival the fuel efficiency of compact cars.
For a wider application of the THS, Toyota has also developed the Toyota Hybrid System-Mild
(THS-M). The THS-M is a simple, easy-to-adapt hybrid system that can be fitted to existing,
normal engines. It is comprised of three main components: a small motor/generator
connected via an auxiliary belt to a high-efficiency petrol engine; a compact 36v secondary
battery for power supply to the motor and a control unit.
When a vehicle equipped with THS-M comes to a stop, it enters an idling stop mode and
shuts down the petrol engine completely. When the driver wants the car to move again, it is
the electric motor that provides the initial drive force. Once installed, THS-M offers a significant
reduction in fuel consumption and ensures zero-emissions when stopped at idle. Toyota has
already applied the THS-M in its Crown model on sale in Japan since 2001.
Better And More Recyclable Materials
The engine, however, is only one part of a car. The composition of the many other components
in automobiles and their recyclability are key factors in determining what impact they will have
on the environment in the long-term.
The European Union has implemented legislation (the so-called End-of-Life Directive) which
requires that all cars homologated for the European market from early 2005 be at least 85%
recyclable in weight and 95% recoverable.
According to EU law, preventive measures to reduce and control the use of hazardous substances
in vehicles like Lead, Cadmium, Mercury and Hexavalent Chromium must be applied from the
design phase of the vehicle onwards. This is done in order to prevent the release of these hazardous
materials into the environment, facilitate recycling and avoid the disposal of hazardous waste.
Toyota is currently developing a variety of solutions to reduce the use of hazardous substances
at all levels of the car manufacturing process. Meanwhile, the use of lead has been greatly
reduced in the new Toyota Corolla and Lexus LS430 luxury sedan. Toyota is also dramatically
reducing the use of PVC in its automobiles. For instance, the 2002 Corolla has less than 50%
of the PVC contained in the 1996 model.
For example, 1.4 litre VVT-i and
1.6 litre VVT-i petrol engines in
the Corolla are classified as Euro IV.
Even some of our largest luxury
vehicles, such as the Lexus LS430,
SC430 and GS430, are already
Euro IV compliant. In the near fu-
ture, the Avensis and Yaris models
will be available with a wide range
of Euro IV compliant engines.
The Hybrid Approach
The Toyota Hybrid System (THS) combines the power of the petrol engine with the efficiency
of an electric motor the latter being powered in the Prius model by a high-voltage nickel-
metal hydride battery pack. It is, in fact, the most efficient way of blending the old with the
new; keeping the performance benefits of petrol, while enjoying the environmental
advantages of clean, electric power.
Toyota was the first automobile manufacturer in the world to produce and sell a mass-
production hybrid car the Prius and now holds the highest world market share for hybrid
vehicles. We have sold 120,000 hybrid vehicles so far, and aim to sell 300,000 annually by 2005.
Toyota currently sells four hybrid models on the world market: the Prius, Estima Hybrid, Crown
Mild Hybrid and Coaster Hybrid. Our technological expertise in the area of hybrid technology
has led to agreements with other car manufacturers. On September 2, 2002, Toyota signed an
agreement with Nissan for long-term cooperation on hybrid systems, including technical
cooperation. As part of the agreement, Toyota will supply state-of-the-art hybrid system
components to Nissan.
A key aspect of the THS is the precise computer management system which automatically
calculates which mix of petrol/electrical power is required depending on speed and driving
conditions. Hybrids enjoy low emissions and improved fuel consumption compared to
traditional petrol engines.
The Toyota Estima Hybrid, for instance, is an innovative minivan, being the world's first mass-
Lexus SC430
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III
On the combined European cycle, fuel consumption for the Toyota Yaris Linea Eco is 5.0
litres/100km, and can be up to 18% more efficient than a standard Yaris 1.0 litre in traffic jams
(with two stops per kilometre of 10 or more seconds). Therefore, the average saving in fuel
consumption over a mixed driving route is around 10%. The Toyota Yaris Linea Eco was also one
of the first conventional petrol cars in the world to emit less than 120g of CO2 per kilometre.
Corolla
The Toyota Corolla, launched at the beginning of 2002, is another of Toyotas best selling
models. Despite being heavier than its predecessor, the Corolla has achieved emission results
which are well below the limits established by Euro IV. NOx emissions were reduced by 40%
in the 1.6 litre Corolla and by 70% in the 1.4 litre
2
, emissions of hydrocarbons were slashed
by 50% in the 1.6 litre and by almost 40% in the 1.4 litre.
Advances have also been made in the field of recyclable materials, particularly plastics, in the
new Corolla. Toyota Super Olefin Polymer (TSOP) is now utilised as a substitute for poly-
propylene, while thermoplastic olefin (TPO) replaces polyvinyl chloride (PVC). Both TSOP and
TPO offer far better recyclability than other plastics.
Some recycled plastic materials are now used in the Corolla, in places like the radiator cover, the
engine undercover, the floor undercover, the deck floor box and front-side panel protector.
In line with Toyotas policy of progressive elimination of substances of concern, the use
of lead has been reduced through
the development of lead-free parts,
such as the radiator, heater core,
wire harness, and window glass black
ceramic coating.
The amount of lead used in the
Corolla has been cut to some 25%
of the average amount of lead used
in the 1996 model, and the com-
plete elimination of lead from the
Corolla is now in progress.
In a bid to improve the use of recycled materials in
automobiles, Toyota has defined and applied specific
criteria for the selection of parts where recycled
materials can be used. Recycled plastic parts should
be preferably non-functional components of auto-
mobiles, preferably unpainted and injection-moulded.
Recycled materials are currently used in the Avensis and Corolla, in parts like the deck floor
box, the engine undercover and front fender liner.
Organic materials have recently been introduced in Toyotas Lexus models. The wood chips
previously used in car door trim have been replaced with fibres derived from the stem of non-
wood kenaf a type of hollyhock that grows quickly and produces two crops a year.
Polypropylene fibres from end-of-life bumpers are mixed with kenaf to form a base material
which is not only light, but has very good soundproofing characteristics.
The Final Products
Yaris
In 2001, Toyotas top-selling Yaris model made up 35% of all of our European sales. This offers us
a valuable opportunity to implement advances in emissions and fuel consumption on a wide scale.
A new generation of petrol engines was unveiled at the Toyota Yaris launch in 1999. Lighter
and smaller for greater fuel savings, these engines also feature VVT-i (Variable Valve Timing-
intelligent) technology, helping to reduce exhaust emissions further. The standard Yaris not
only combines good fuel economy and performance, but emissions are impressively low too,
particularly when equipped with the 1.0 litre, 68-horsepower petrol engine.
The Toyota Yaris D-4D diesel, launched in January 2002, is equipped with a 1.4 litre common-
rail, direct injection engine. An exhaust gas re-circulation unit helps reduce NOx emissions.
Toyota also developed the Yaris Linea Eco. This pioneering car is equipped with the Stop and
Go system particularly suitable for city driving and traffic jams. The Yaris Linea Eco switches
off its own engine when the car is stationary, reducing needless fuel consumption and harmful
emissions, and restarts when the driver is ready to move on.
2
Models homologated in 2001 compared to models homologated in 1999
Deck floor box
Battery
tray
Radiator cover
Engine undercover Floor undercover Front fender liner
Front-side
panel protector
Kenaf fibres
Use of plastic recycled materials in the Corolla
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AND THE FUTURE?
Fuel Cell Power
Toyotas firm belief in the potential of fuel cell
technology has led us to become one of the
world leaders in the development of fuel cell-powered vehicles.
Toyota began full-fledged development of fuel cell-powered vehicles in 1992 and, unlike other
car manufacturers, has worked to create its own fuel cell stack. In 1996, Toyota presented the
FCHV (Fuel Cell Hybrid Vehicle). The following year, at the 1997 Frankfurt Motor Show, Toyota
gave the world its first look at a fuel cell vehicle featuring a methanol reformer for the on-board
creation of hydrogen. This vehicle boasted a range of up to 500 kilometres on a single tank of
methanol, and the reformer was entirely developed by Toyota.
Toyotas next chapter in fuel cell vehicle development involved control systems that manage
energy flow and other efficiency-enhancing techniques, such as regenerative braking. In a fuel
cell vehicle, the two sources for energy flow are the fuel cell, which creates electricity, and a
secondary battery, which stores and supplies electricity for propulsion. In other words, Toyotas
latest fuel cell vehicle prototypes are all hybrid vehicles.
Fuel cells work on the principle of reverse electrolysis. Just as an electric current can be applied
to water to split it into hydrogen and oxygen, this process can be reversed to create electricity.
Because this process involves only a chemical reaction, there is no mechanical loss and only
minimal heat loss. This makes fuel cells extremely efficient, and the only by-product of the
entire process is water - formed when the electric current generated is applied to the ionised
hydrogen and oxygen.
Toyota is currently running seven Fuel Cell Hybrid Vehicles (FCHVs), supplying valuable data for
future use thanks to real-world tests. The results of these tests led to the decision to market FCHVs
on a limited basis in Japan and U.S. by the end of 2002. The FCHV model which will be marketed
in the U.S. and Japan will be newly developed, featuring conventional-vehicle-like performance
based on improvements to the FCHV-4's reliability, cruising distance, functionality and other
aspects. The FCHV-4, developed in 2001, has approximately three times the fuel-efficiency of a
petrol-powered car; a maximum speed of more than 150 kilometres per hour and a cruising
range of around 250 km. To maximise the interior utility of the vehicle, the high-pressure
AVOID CONGESTION CHARGING IN LONDON WITH TOYOTA PRIUS
London commuters driving in and out of the centre of London should be able to save 1,250 in congestion charges
from February 2003 by driving the Prius. The very cleanest green vehicles, including the Prius, will be exempt
from the 5 a day charge under London Mayor Ken Livingstones forthcoming congestion charging scheme.
TransportAction PowerShift (The Energy
Savings Trust), the U.K. government-funded
initiative which aims to promote cleaner
motoring, supports Prius through the Power-
Shift grant. This awards a 1,000 grant to
Prius customers.
In addition, Prius drivers now benefit from a
reduced Vehicle Excise Duty. The govern-
ments 2002 budget encourages cleaner
vehicles with carbon dioxide emissions of less
than 120g/km, including Toyota Prius and
Yaris D-4D, by offering them a discount of
up to 100 from the annual licence fee.
Prius
As the worlds first mass-produced production hybrid car, the Toyota Prius is the most energy
efficient family car available in Europe today. Overall, fuel consumption is 5.1litres/100km in
the EC combined mode
3
, corresponding to an emissions value of 120g CO2/km. In urban
traffic, real-life fuel consumption is about half that of a similar-sized, conventional vehicle
with a comparable powertrain (e.g. 1.8-litre engine with automatic transmission).
Not only is customer awareness of the hybrid technology displayed in the Toyota Prius
growing, the hybrid car has also been actively supported by governments throughout
Europe. In Germany, a tax incentive equivalent to four years of road tax exemption is given
to all Prius buyers. Buying a Toyota Prius in the Netherlands means the government doesnt
levy its habitual luxury tax which represents about 25% of the cars selling price including
taxes. And purchasing a Prius in France translates to a tax incentive of over 1,500.
19
ELECTRICITY FLOW
HYDROGEN FLOW
Power Control Unit High pressure
hydrogen storage
tank
Toyota FC stack
Hydrogen refilling valve
Secondary battery
Drive motor
FCHV-4 system diagram
3
Combined Cycle (Extra urban- urban- combined); ref. 1999/100 EC
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VEHICLE ENVIRONMENTAL PERFORMANCE DATA
Vehicle performance data for a sample of models launched on the European market by Toyota in 2001,
or introduced in the previous section. For details on other models please consult local dealers, or Toyotas European
website at: www.toyota-europe.com
MODEL
Prius
Yaris
HB
Yaris
HB
Corolla
HB, MT
Corolla
Sedan
Corolla
Sedan/HB
(81 kW)
Avensis
MT
Avensis
Verso
MT
Avensis
Verso
MT
Lexus
SC430
Convertible
AT
ENGINE
1.5
1.4 D4D
1.0 VVT-i
1.4 VVT-i
1.6 VVT-i
2.0 D4D
2.0 D4D
2.0 VVT-i
2.0 D4D
4.3 VVT-i
FUEL TYPE
Petrol
Diesel
Petrol
Petrol
Petrol
Diesel
Diesel
Petrol
Diesel
Petrol
FUEL
CONSUMPTION
(COMBINED)
[l/100km]
5.1
4.4
5.7
6.7
7
5.8
5.9
8.6
6.5
12
CO2
[g/km]
1
120
117
137
159
168
154
158
202
173
287
EURO
STANDARD
2
IV
III
III
IV
IV
III
III
III
III
IV
NOISE
DRIVE-BY
3
[dB-A]
71.0
70.1
69.0
70.0
71.0
72.0
73.0
73.1
73.7
71.5
1
Fuel consumption: combined cycle ref. 1999/100/EC
2
Euro standard: ref. 1998/69/EC, 1998/77/EC, 1998/69/EC
3
Noise: ref. 1999/101/EC
MT = manual transmission, AT = automatic transmissions, HB = Hatchback
hydrogen tanks are installed under the rear floor. And to further decrease the use of hydro-
fluorocarbons (HFCs), the vehicle has a newly developed heat pump air-conditioning system that
uses CO2 as the refrigerant, representing another right step in the prevention of global warming.
In the long-term, Toyota expects full-scale commercialization of fuel cell vehicles to begin in
2010 at the earliest, once the necessary standards and infrastructures and a deeper public
understanding of hydrogen fuel are in place.
ES
3
(Eco Spirit Cubic)
Before the full-scale introduction of fuel cell cars, the combined technology in the ES
3
concept
car could represent one of the next step alternatives for vehicles which use internal
combustion engines. It was presented to the public for the first time at the Frankfurt Motor
Show in 2001. The ES
3
is a small car designed to showcase Toyotas environmental technolo-
gies, namely high fuel efficiency, clean emissions and recycling.
ES
3
uses a diesel engine with common rail system and other technologies to achieve fuel-
injection control that maximizes emission reduction and fuel efficiency. Fuel consumption is
only 2.7 litres/100km in the EC combined mode, with just 10 seconds needed to go from
0-100 km/h. The ES
3
is also made essentially of aluminium and plastic, including bio-
degradable plastics made from plant starch a world first. And though the ES
3
weighs a mere
700kg, it is designed to comply with demanding crash-test regulations.
21
Clockwise from upper left:
Toyota Estima Hybrid,
Toyota Crown Mild Hybrid,
Toyota Prius,
Toyota FCHV-4.
Centre: Toyota ES
3
manual transmissions for the Toyota Yaris models manufactured in France, and will eventually
make transmissions for the Corolla and Avensis produced by Toyotas manufacturing operations
in the U.K. and Turkey. The production volume for the plant in Poland will grow from 250,000
units per year to 550,000 units per year when it begins supplying transmissions and engines to
Toyotas joint vehicle plant with PSA Peugeot Citron in the Czech Republic in 2005.
Toyota has entered into an agreement with PSA Peugeot Citron to manufacture compact
vehicles at a new car manufacturing plant to be located in Kolin, Czech Republic. The new
vehicle will be a modern four-seat model featuring the latest technologies in the areas of safety,
reliability and environmental protection. Beginning in 2005, the Czech plant will manufacture
about 300,000 small cars a year.
In response to these rapid manufacturing developments in Europe, consolidated environ-
mental management across all the European Manufacturing Companies, or EMCs, is being
co-ordinated and supported by a new central environmental function within the regional
manufacturing headquarters at Toyota Motor Engineering & Manufacturing Europe.
The 2001 fiscal year European environmental report has therefore been extended to reflect the
rapid changes in the organisation, by including the consolidation of environmental perfor-
mance data for the operational companies included under TMEMs organisation.
The Toyota Production System
The Toyota Production System, or TPS, which is implemented at all of our plants, has long
been the foundation of Toyotas success as a manufacturer and company. The main goal of TPS
is to eliminate all waste, overburdening and unevenness in all production areas, which applies
as much to environmental performance (such as reducing energy usage, or minimising raw
material consumption) as it does to quality, cost, production and safety.
The key elements of TPS are standardisation by applying the best practices possible and
kaizen, the concept of continuous improvement. This is supported by jidoka, which signi-
fies building-in quality (thereby reducing waste) and just-in-time (Toyotas efficient
pull-based ordering system). The effectiveness of TPS implementation is ensured through
the active involvement of flexible and motivated employees.
23
I
We are pleased to present the second edition
of Toyotas European Environmental Report, for the fiscal year running from April 2001
to March 2002. As Toyota continues to grow in Europe, becoming a more significant
market player, we believe it is essential for us to fulfil in equal measure our role as a
responsible corporate citizen. That means, among others, engaging in open dialogue
with societys stakeholders, accounting for the activities we undertake and making a
positive contribution to the economies and societies in which we do business. For an
automotive manufacturer today, there is perhaps no area where this is more relevant
than the environment.
The following Report aims to provide a clear and succinct overview of the
environmental dimensions and implications of all our activities in Europe: from
environmental management, to products and technology, manufacturing and
22
IV MAKING THINGS
Manufacturing Operations
Toyota has always believed that localising production and operations close to the customer is
a key factor in understanding and responding to customer trends and expectations and
expanding our presence in markets throughout the world. This policy is also building an
operational structure that is less vulnerable to currency fluctuations, and is the best way to
make a tangible contribution to the societies in which we do business.
As a result of this policy, Toyotas European production operations continue to grow. In the
2001 fiscal year, Toyotas manufacturing plant in Turkey began production of the new Toyota
Corolla, while production of the Toyota Yaris began in France. Toyotas manufacturing plant in
Adapazari, Turkey, was established in 1994 and is now included under the organizational
umbrella of Toyota Motor Engineering & Manufacturing Europe (TMEM) for the first time.
Toyotas car and engine manufacturing operations in the U.K. also continue successfully, since
their launch in 1992.
In support of all of the European car manufacturing plants, Toyotas first European transmission
plant in Walbrzych, Poland, began manufacturing in April 2002. This plant manufactures
22
Manufacturing of new Corolla at Turkey plant
1
25
of initial planning, accumulated knowledge and the cooperation of our suppliers and
employees. I hear comments from people visiting the plant such as the plant is so clean and
I was impressed by the strict sorting of the waste. Even so, the acquisition of ISO certification
is just the first step towards further improvements in our environmental performance.
Supply Chain Management Environmental Purchasing Guidelines
Parts and components procurement is an important part of the vehicle life cycle. Toyota is
committed to sharing its responsibilities with its suppliers when it comes to the type of
materials used and procurement logistics.
Toyota has asked all of its business partners to join it in making environmental protection a top
priority, by issuing the European Environmental Purchasing Guidelines in early 2001. These
guidelines explain the initial steps suppliers need to take, and cover key issues including
obtaining certification to ISO14001/EMAS, implementing a banned chemicals list, and
standardising the environmental control of packaging.
A positive response has been received from our manufacturing suppliers: already 41% of our
suppliers have achieved ISO14001/EMAS certification.
The Quest for Continuous Improvement
France Plant & Zero Waste to Landfill
Traditionally, vehicle manufacturing generates
a large variety of waste types. In the assembly
shop for example, 98% of the parts assembled
on the car body come from external suppliers.
All of these different parts can be delivered
in many different types of packaging all
potential sources of waste which are com-
monly disposed of using a landfill.
Toyotas French manufacturing operations,
however, have achieved the ambitious goal of
Zero Waste to Landfill. This objective has
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Standardising Environmental Management
5-year Action Plan
Toyotas 5-year Action Plan for 2001 to 2005, (published in last years environmental report),
sets out guidelines for Europe which require the development of plant-specific performance
improvement plans. Each plant has completed the preparation of its own Action Plan, which
was required to set performance targets for energy/CO2, Volatile Organic Compounds, water
and waste. Based on these plans, consolidated targets will be set for Europe during the 2002
fiscal year and published in future reports.
Environmental Performance Indicator (EPI)
To monitor and measure progress of the key environmental performance indicators against the
targets set in individual Action Plans, a global intranet based system has been developed for
each plant to report their latest performance data on a monthly basis. Definitions for each key
performance indicator have been standardised so that direct comparisons and benchmarking
can be done with other European and global plants, enabling further performance improve-
ments and best practices to be easily identified. This system has already been implemented by
Toyotas plants in the U.K. and Turkey during the 2001 fiscal year, and will be further extended
to the other European plants during the 2002 fiscal year.
ISO14001 Certification Success For France Plant
Within its first full year of production, Toyotas manufacturing operations in France have
achieved certification to the international standard for environmental management systems
ISO14001. This is a strong reflection of the commitment to the environment displayed by our
employees, who commented that although the goals were ambitious, they learned that the
activities designed for acquiring ISO certification lead directly to the conservation of raw
materials, energy, and water, as well as improvements in productivity and competitiveness.
The president of Toyotas French manufacturing operations, Toshiharu Takasu, added: the
acquisition of ISO 14001 certification just 15 months after the start of operations is the result
24
Robot assembly at France plant
Eliminate Eliminate Overburdening Overburdening
Uneveness Uneveness
All Waste All Waste LOWER ENERGY CONSUMPTION LOWER ENERGY CONSUMPTION
LOWER WATER USAGE LOWER WATER USAGE
LOWER SOLVENT EMISSIONS LOWER SOLVENT EMISSIONS
WASTE REDUCTION WASTE REDUCTION
The Toyota Production System (TPS)
1
27 26
concept, resulting in the use of smaller buildings, shorter production lines and more energy
efficient production equipment. For example, hot water boilers are used instead of steam boilers,
and the paint shop spray booth air-conditioning system uses a total heat exchange system.
Day to day focus on minimising energy usage supports our efforts to reduce emissions of
CO2. Concrete examples of the Kaizen concept, or continuous improvement, have ranged
from introducing skylights at Toyotas plant in Turkey to improve the natural lighting, to
eliminating compressed air availability at non-production times such as weekends at
Toyotas manufacturing operations in both the U.K. and France. Further initiatives at
Toyotas plant in Turkey involved switching off local extract ventilation systems in between
cars when the extraction is no longer required, and reducing the amount of time it takes
to heat up and shut down paint curing ovens.
In the 2001 fiscal year, the average consumption of energy at both the vehicle assembly and
unit production plants was 2,424 kWh/car. In terms of total CO2 emissions, this equates to
152,583 tonnes per year.
The energy performance in the 2001 fiscal year reflected the exceptional circumstances at our
European plants during the year, such as the national economic crisis in Turkey, and the start
of production at the new plant in France.
Water Saving Valuable Resources
With water being such a valuable natural resource, efforts have continued across the plants to
reduce water consumption. Prime examples of this have been the recycling of cooling water
at our manufacturing operations in France, where as a result, industrial water consumption has
been reduced by 10%. Improvements have also been made in the efficiency of the raw water
treatment (reverse osmosis), where the efficiency has been improved from 58% to 65%
resulting in a water consumption saving of around 1,000m
3
/week.
For the new Toyota 2001-2005 Action Plan, the performance indicator for water has been
standardised globally, so that water usage is now reported instead of wastewater discharge
volume. For the 2001 fiscal year, water consumption averaged 3.4 m
3
/car compared with
2.2 m
3
/car in the 2000 fiscal year. This is a result of consolidating the data from all the
manufacturing operations across Europe as well as increasing some of the sanding operations
in the U.K.
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been achieved through the imple-
mentation of a 5R programme:
Refine, Reduce, Re-use, Recycle
& Retrieve energy. For example,
our manufacturing activities in
France eliminated all packaging
waste going to a landfill by
ensuring that only returnable
and recyclable packaging is used.
No landfill waste is generated from
the production process either,
with waste such as Toyota Super
Olefin Polymer plastic bumpers
being re-used in-house. Employee involvement has been another key element to success, as
through employee efforts to selectively segregate waste, it has been possible to reuse or recycle
wastes such as paper, cardboard, metal, plastic, solvent and wood.
As a result of segregating waste at the source and improving recycling at all of Toyotas
European plants, an overall reduction of waste to landfill of 23% (to only 8.2 kg/car in the
2001 fiscal year) has been achieved compared to the 2000 fiscal year.
At Toyotas U.K. casting plant for example, the waste sand generated from the moulds into
which molten metal is poured for making engine components, is now being recycled as road
aggregate, supporting Toyotas U.K. manufacturing operations continued advances towards
Zero Waste to Landfill.
Energy Minimisation to Reduce Global Warming
Energy consumption, including electricity and other fuels such as gas, is related to emissions
of CO2 and other greenhouse gases, created during fuel burning on-site, or during electricity
generation from the electricity supply chain. And emissions of greenhouse gases contribute to
global warming and climate change.
Building energy efficiency into the design of new plants is a key element of our current environ-
mental activities. Toyota's manufacturing operations in France were designed using a lean
Reusable containers at France plant
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At Toyota, careful attention has been paid to ensure that plant design fully takes the environ-
mental risk of its manufacturing plants into consideration. For example, all chemicals that need
to be stored in bulk are kept in fully bunded areas, which can contain any spillage or leakage
from the bulk tank in the unlikely event of an accident. Surface water drainage systems have
been designed so that spillages in high-risk areas such as chemical delivery points are diverted
to the wastewater treatment plant, rather than being discharged directly to a local
watercourse. Employee car parks have also been designed to ensure that in the event of a
petrol or oil leakage, local watercourses are not at risk.
Good process operation and maintenance is another important element of reducing the
environmental risk of manufacturing processes. At Toyotas manufacturing operations in
Turkey for example, improvements in the identification of oil leakage from presses has enabled
any necessary repairs to be rapidly identified and implemented, resulting in both a reduction
in oil usage and the collection frequency of waste oil.
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29
Yaris assembly at France plant
Controlling Organic Solvents
Volatile Organic Compounds (VOCs) are released into the air when organic solvents evaporate.
Solvents are a constituent of many paints and adhesives used in vehicle manufacturing. Some
VOCs may cause ground level ozone to form thereby contributing to the formation of smog.
In order to reduce emissions, the best available technologies are used. These include: water-
based paints; the introduction of cartridge robots
1
at Toyotas French manufacturing opera-
tions, which reduce the amount of cleaning solvents used; as well as effective daily
management and control of solvent usage and recovery. As a result, Toyota has achieved a 6%
reduction in paint shop VOC emissions across our European vehicle manufacturing plants.
The consolidated average for the paint shops in the U.K., France and Turkey was 37.7 g/m
2
in
the 2001 fiscal year, well below the latest European legal standard for new paint shops of
45 g/m
2
. The g/m
2
emissions have been calculated in terms of the mass of VOC emitted to the
air per square metre of car painted.
Reducing Environmental Risk
Soil and groundwater contamination is a potential risk unless suitable preventive measures are
taken into account in the design and operation of most types of manufacturing plants.
28
Cartridge robots at France plant
1
A cartridge robot uses a paint sprayer equipped with a cartridge-type tank that uses water-based paints.
The amount of paint thinner needed to clean the inside of the equipment during color changes is one tenth
of that used in conventional painting systems.
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31 30
ABSOLUTE EMISSIONS
& OTHER INDICATORS
FY 2001
1
Total Energy Usage (MWh) 670,039
Total Waste to Landfill (tonnes) 2,268
Total Solvent Emissions (tonnes) 939
Total Water Usage (1,000m
3
) 946
OTHER INDICATORS FY 2001
1
Total CO2 (tonnes) 153,000
Total Waste (tonnes)
2
8,772
Total Number of Complaints
3
1
LEGAL COMPLIANCE FY 2001
Total Number of Fines 0
Total Number of Prosecutions 0
1
FY2001 is 12 months at all plants except U.K. plants
where performance data has been calculated using
data from January 2001 to March 2002.
2
Excludes scrap steel at all plants and some recycled
wastes for which revenue was gained.
3
Odour complaint at U.K. plants was fully investigated
but no plant or equipment was found to be operating
abnormally. Immediate same day boundary checks did
not identify any odour. The source remained unverified
and there were no subsequent complaints and plant
and equipment continued normal operation.
CONSOLIDATED ENVIRONMENTAL PERFORMANCE DATA - FY2001
PRODUCTION INFORMATION
2,956
2,434
2,206
2,013
2,424
0
500
1000
1500
2000
2500
3000
1997 1998 1999 2000 2001
Energy (kWh/car)
21.4
15.2
13.0
10.3
8.2
0
5
10
15
20
25
1997 1998 1999 2000 2001
Waste to Landfill (kg/car)
55.4
53.1
42.5
40.3
37.7
0
10
20
30
40
50
60
1997 1998 1999 2000 2001
Solvent Emissions VOC (g/m
2
)
4.13
3.12
2.24
3.4
0
1
2
3
4
5
1998 1999 2000 2001
Water Usage (m
3
/car)
KEY ENVIRONMENTAL PERFORMANCE INDICATORS
Key environmental performance indicators have been selected which represent the significant
environmental aspects of the plants and to track performance. 2001 data
1
has been
consolidated for the first time with the inclusion of performance data for Toyotas
manufacturing plants in France and Turkey. Consolidated targets will be set and published in
a future report.
PLANT LOCATION
PRODUCTION
START OF PRODUCTION
NUMBER OF EMPLOYEES
ISO 14001
CERTIFICATION
PLANT LOCATION
PRODUCTION
START OF PRODUCTION
NUMBER OF EMPLOYEES
ISO 14001
CERTIFICATION
Valenciennes, France
Yaris (62,128 units)
2001
2,083
2002
Adapazari, Turkey
Corolla (2,865 units)
1994
1,209
1999
Burnaston, U.K.
Avensis & Corolla (214,450 units)
1992
3,300
1996
Deeside, U.K.
Engines (241,970 units)
1992
600
1996
V THE FLOW
Logistics, Distribution, Sales & After-Sales
Logistics
Toyota continues to expand its operations in Europe, and with this comes an increasing need
for a wider and more comprehensive logistics network. This ensures that our customers receive
Toyota and Lexus cars and parts in a timely and effective manner the primary functions of a
logistics hub.
In 2001, Toyota had main logistics hubs located in the U.K., Belgium, France, Turkey and
Sweden. In addition to the creation of new logistics hubs like our Nordic vehicle hub in
Sweden existing hubs are being reorganised. These developments streamline operations and
optimise our logistics hubs and transport facilities, which in turn lessen the environmental
impact of our operations, reduce overall logistics costs and maximise customer satisfaction.
Toyotas Zeebrugge Vehicle Logistics Centre, on the Belgian coast, was inaugurated on July 5,
2001, and selected because of its excellent existing shipping, road and rail transport
connections. More recent developments in the field of logistics include the February 2002
signing of a 25-year lease contract for a dedicated Vehicle Logistics Centre in the port of
Malm, Sweden. The Malm Nordic Vehicle Hub will begin operations in January 2003,
serving as Toyota's new Nordic vehicle hub for Sweden, Denmark, Norway and Finland. And
a parts logistics centre was inaugurated in Le Pouzin, in the south of France, on March 2002.
It will handle order processing, warehousing and delivery of service parts to dealers in the
south of France, Corsica and Andorra.
Parts & Packaging
When it comes to parts distribution, Toyota has sought to minimise waste by maximising
the use of reusable packaging and optimising the sorting of non-reusable packaging at our
distribution centres.
In 2001, the Toyota Parts Centre Europe (TPCE), located in Diest, Belgium, won an award for
environmental efforts from the Leuven Chamber of Commerce. In 2000, TPCE (Toyotas
European main parts distribution centre) succeeded in substantially reducing total quantities
of wood and cardboard waste compared to 1999, even though the number of parts it hand-
led increased by almost 15% over the same period. In 2001, TPCEs production of wood waste
32
decreased further while the
production of cardboard waste
increased somewhat due to
the buying-back of stock returns
from dealers after substitution
with returnable packaging.
For 2002, TPCE has initiated
three projects related to the
control of hazardous materials
distributed in Europe such
as chemicals and pyrotechnic
devices (e.g. airbag inflator,
seatbelt pretensioners) and
achieving further improvements in the recycling of packaging.
The use of returnable packaging in Toyotas pan-European distribution activities has been
further improved too. From 2000 to 2001, the number of metal pallets in use for body parts
and windshields increased 70%, while the utilisation of plastic boxes for small parts climbed
40%. This has lead to a healthy reduction in the use of wood and carton pallets and containers
at Toyota dealers, reducing waste levels further.
33
0,00
0,20
0,40
Wood Scrap metal Cardboard Paper Polyethylene
1999
2000
2001
0,10
0,30
0,50
0,70
0,60
0,80
Relation waste/sales volume (kg/m
3
) at TPCE
Reusable containers at the Toyota Parts Centre Europe
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Sales and After-Sales
Toyotas drive to establish itself as a leading environmentally-conscious company rests, in large
part, on the support of its local networks throughout Europe. More specific requirements of
the Consolidated Environmental Management System require Toyotas National Marketing
and Sales Companies to:
- Appoint a specialist for environmental matters
- Issue the Dealer Environmental Guideline in Service Area
- Set up a comprehensive Waste Management System for their dealer network
- Continuously promote and support environmental awareness and communication among
employees and dealers
As required by Toyotas Consolidated Environmental Management System, our National
Marketing and Sales Companies (NMSCs) draft their environmental policy and 5-Year Action
Plans to define specific actions to take to address environmental issues. Key performance
indicators to monitor the implementation of action plans are now under development at a
corporate level.
Waste management is a key focus of NMSCs Action Plans, evidenced by the continuing establish-
ment of waste management systems for Toyota dealers. Some mandatory categories for
collection now include batteries, tires, waste oil, oil filters, brake fluid, paint and solvents. The
result has been very positive. In Germany, over 230,000 oil filters and 25,000 car batteries were
collected in 2001 and sent for recovery. While in France, some 50,000 oil filters and almost
3,000 batteries were collected and processed. In 2001 alone, eight out of nineteen National
Marketing and Sales Companies including Germany, France, Portugal and the Scandinavian
countries had a dealership waste management system in place. It covers all of these countries
dealers, and ensures their waste is collected by authorised service providers.
Another issue targeted by Action Plans is the control of hydrofluorocarbons (HFCs) at Toyota
dealers, given that HFC leakages from vehicles air conditioning units may contribute to
increased levels of greenhouse gases. Toyota has put in place a subsidy program for HFC
recovery and recycling at our dealers. The programme has reached the complete coverage of
dealers in some countries and is being finalised in the other European countries, 70% of dealers
being already covered.
34
Toyota Motor Italy
Supporting Cleaner Car Sales
The Toyota Yaris, one of the most fuel efficient cars on
the car market today, is Toyota Motor Italys best-selling
model. TMI sold 63,700 Yaris in 2001, 70% of which
were the 1.0 litre petrol
model with very low CO2
emissions of 137g/km.
Sharing Toyotas concerns for the environment, the
Italian Government has granted a 60% sales price
reduction to any public authority which buys a an
environmentally friendly car such as the Toyota Prius.
Italys government is taking its support one step further
by studying the possibility of extending this environ-
mental incentive to private citizens.
Toyota (GB) PLC
Building a Strong Management System
After a thorough external audit, Toyota (GB) PLC has
been awarded a certification for 3 international standards
(ISO 14001, OHSAS 18001, ISO 9001) across all five of
its UK sites. These internationally recognised standards
formalise the Management System that the company
uses to govern all Health, Safety, Environment & Quality
practices and procedures. The system provides better
cohesiveness and management control and stimulates
opportunities for rationalisation and business improvement.
Toyota Deutschland GmbH
Maximising Battery Collection
German law requires companies who place consumer
batteries into circulation to establish, or participate in, a
system which takes back used batteries from consumers
free of charge. In July 2001, TDG signed a contract for
a joint collection system for consumer batteries entitled
"GRS-Batterien" (Gemeinsames Rcknahme-System).
TDG pays a contribution for each battery it sells and
benefits from participation in an effective nation-wide
collection system. GRS delivers battery-collection boxes
and information material to all Toyota dealers, and the
boxes, as well as the dispo-
sal of batteries are free of
charge for both dealers and
customers.
Toyota France
Supporting Dealers
Toyota France is pursuing a successful programme of
waste collection at its dealers, by recommending that
dealers join the AutoEco network, assuring collection of
all kinds of waste. The quantity of batteries and oil filters
collected through the AutoEco network have doubled
from 2000 to 2001, with battery collection climbing
from 20.5 tonnes to 44.2 tonnes and oil filter collection
rising from 22.3 tonnes to 42.5 tonnes. The collection
of aerosols has also begun. Environmental training be-
gan in 2001, and an audit program covering all dealers
has already been drafted and
will be carried out with the
support and supervision of lo-
cal environmental authorities.
Through initiatives like our Design for Recycling (DFR) program, Toyota is simplifying the task
of dealing with ELVs. Marking plastic components, for instance, facilitates sorting during end-
of-life recycling. In addition, the number of different materials used in a car are minimised to
facilitate separation and sorting during the dismantling of the ELV. The design of components
is also closely examined to render dismantling of undeployed airbags, for example less labo-
rious. The minimisation of hazardous substances in components (e.g. reduction of lead and
hexavalent chromium usage) is also a priority.
DFR techniques were extensively used in developing our lightweight ES
3
concept car. Special
emphasis was placed on the researching of materials that are acceptable by a variety of recy-
cling methods, like the materials used in bumpers and outer panels. To further minimise the use
of hazardous materials, the amount of lead used in the ES
3
light bulbs, paint and other items,
was reduced to a minimum, while polyvinyl chloride, or PVC, was even eliminated from the wire
harness covers.
Meanwhile, Toyotas Automobile Recycle Technical Centre in Japan established in 2001 is also
working on lowering the high costs associated with recycling and recovery. The centre focuses
on improving development and information disclosure on easy to dismantle vehicle structures
and effective dismantling technologies, and providing feedback on easily recyclable vehicle
designs to the research and development divisions of Toyota.
Together with many partners, Toyota is researching and developing better means to aid
the recycling and recovery of automotive shredder residues, which in turn avoids further
landfill waste.
Many collection networks for end-of-life vehicles are currently being established throughout
Europe, and Toyota is doing its part by locally supporting all of its National Marketing and
Sales Companies in the establishment of their own collection networks. In the Netherlands, for
example, Toyota supports the ARN-Auto Recycling Nederland-structure of collection and
treatment of ELVs. In Germany, Toyota has established its own acceptance/collection network
for ELVs with the support of the Multi-Manufacturer Automobile Recycling Initiative, or MARI.
Toyota also relies on MARIs accredited ELV dismantlers, to comply fully with German ELV
legislative requirements.
37
VI PUTTING THE END FIRST
End-of-Life: Recovering & Recycling
Sometimes, it pays to think of what will happen in the end first. This is the task faced by
Toyotas many engineers at the earliest stages of vehicle development, as they consider what
will happen to a car once it has reached the end of its useful life. Referred to as end-of-life
vehicles (ELVs) these cars pose a serious threat to the environment if they are not properly
disposed of and treated.
As can be imagined, ELVs contain many different parts and liquids that must be dealt with in a
variety of ways. Oils, liquids, batteries, engines and other parts are usually removed and then
re-used (for original purposes), recycled as material, or thermally recovered for energy. Then,
the ferrous and non-ferrous metals that remain are sorted and recycled. The residual materials,
known as automobile shredder residue (ASR), are generally disposed of as landfill waste.
In October 2000, the European Union adopted the ELV Directive which seeks to prevent and limit
waste and improve the re-use, recycling and recovery of ELVs and their components. The ELV
Directive also promotes eco-design, the usage of recycled materials and the improvement of the
environmental performance of all of the economic operators involved in the vehicle life-cycle.
The ELV Directives targets for re-use, recovery and disposal include:
- A minimum of 85% in weight of ELVs should be recovered as of 2006, including a maximum
of 5% energy recovery, and, from 2015, a minimum of 95% in weight, including a maxi-
mum of 10% of energy recovery.
- Banning the use of hazardous substances, such as lead, mercury, cadmium and hexavalent
chromium for new vehicles as from July 2003, excluding the essential use.
Toyota is actively working with its National Marketing and Sales Companies to meet the
challenges raised by the ELV Directive. Given the vital role they play, Toyota is also working in
close co-operation with recycling and shredding companies to develop better and more
efficient solutions for dealing with ELVs.
Given that automobiles are made up of so many kinds of materials and parts, it is evident that
vehicle recycling and recovery are not only technically, but economically difficult. In a bid to
reduce these difficulties, Toyotas engineers are working diligently on ways to maximise
solutions for the recoverability and recyclability of ELVs.
36
Dialoguing with communities particularly youngsters living in the areas surrounding our
manufacturing plants are located is also of great importance. In the U.K., Toyota has a part-
nership agreement with Conkers, a unique woodland attraction for families which promotes
environmental messages in an innovative and interactive way. From touching a toad to travel-
ling in a woodland time machine, the exhibits at Conkers are designed to both involve and
entertain children. Meanwhile, in France, Toyota has successfully started the cooperation with
Nord Nature Chico Mendes, involving the creation of different ecological sites near the
Valenciennes manufacturing plant. One of the most successful projects of the co-operation,
the Bruay-sur-lEscaut project, was inaugurated in June 2002 and contains over 40,000
different trees and plants and 3,000 different kinds of aquatic vegetation.
39
VII A STEP FURTHER
Society & Environmental Responsibility
Toyotas responsibilities as the worlds third-largest car manufacturer dont just end with our
products. While Toyota customers expect cars of superior quality, they also expect Toyota to
adopt a similar attitude toward wider social and environmental issues. Beyond our factories
and offices, we are keenly aware of the responsibilities we bear toward society at large, and
the nature in which we all live.
Toyota has taken two major steps toward establishing a more comprehensive business
strategy which incorporates greater social and environmental responsibility. Firstly, Toyota is
supporting a number of environmental initiatives in local communities throughout Europe.
And secondly, we are working to increase the awareness of all Toyota employees toward how
our company relates to the environment.
Promotion of a Greener Environment
To help promote greater environmental awareness among the youth of today, Toyota also
supports the Regional Environmental Centre for Central and Eastern Europe (REC). Under the
Environmental Activities Grant Programme, Polish schools receive an innovative multimedia
educational Green Pack, which contains information on key environmental issues like our
planets ecosystem, the challenges of the urban environment and global environmental
challenges. For the 2003 fiscal year, students in Bulgaria and Hungary will receive a similar
tailor-made environmental education package.
In Poland, where Toyota has a manual transmissions manufacturing plant in Walbrzych, we
support Polands branch of the World Wildlife Fund. Two of the main WWF programmes
supported by Toyota are the preservation of the Vistula River and the Biebrza Beaver, and the
preservation of local wildlife.
In June 2001, Toyota in Europe announced the creation of the Toyota Foundation in France,
which is actively involved in an environmental programme called Cultivating Nature
Together. This programme was launched in 1997 throughout France, where it supports local
initiatives to create more open spaces and green areas. The co-operation between Cultivating
Nature Together and Toyota has lead to the creation of parks, agricultural projects in urban
areas, educational gardens as well as gardens created for therapeutic purposes.
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VIII MAP OF TOYOTAS EUROPEAN
OPERATIONS & FIGURES
40
TOYOTA AND LEXUS EUROPEAN SALES
AND MARKET SHARE (CALENDAR YEAR)
TOYOTA & LEXUS EUROPEAN SALES
BY MODEL - PASSENGER VEHICLES
(CALENDAR YEAR)
TOYOTA VEHICLE PRODUCTION DATA
PASSENGER AND COMMERCIAL VEHICLES
(CALENDAR YEAR)
2001 2000
Total Unit Sales
1
666,035 655,823
Passenger Vehicles 621,860 601,137
Market Share for Passenger Vehicles
2
3,72% 3,68%
GLOBAL SALES 5,261,853 5,154,318
2001 2000
Avensis 115,446 115,996
Avensis Verso 9,299 -
Camry 3,495 3,443
Celica 13,154 18,996
Corolla 95,238 121,573
MR2 6,363 8,812
Picnic 4,937 14,637
Previa 10,927 6,912
Prius 2,320 709
Rav4 63,071 28,188
Yaris 210,967 194,817
Yaris Verso 30,069 37,268
Land Cruiser 34,108 32,749
4Runner 26 71
Lexus LS400 1,959 837
GS300 2,582 2,349
SC430 717 -
IS200 11,381 13,249
RX300 7,198 1,741
2001 2000
Worldwide Vehicle Production 5,134,676 5,180,524
European Production
(excluding Turkey) 216,952 173,330
1
European Sales figures include all passenger and commercial vehicles
in 16 Western European countries, Poland, Hungary,
the Czech Republic, Cyprus, Malta, Iceland, Slovenia, Gibraltar, Russia,
Ukraine, Kazakhstan, Uzbekistan, Azerbaijan and Macedonia.
2
Source: Newreg. * TMME market share figures include all
passenger and commercial vehicles in 16 Western European countries,
Poland, Hungary and the Czech Republic.
Toyota's European subsidiaries employ approximately 56,000 people (directly and through dealer channels).
Salvador Caetano IMVT S.A.
Toyota Motor Manufacturing France (TMMF)
Toyota Logistics Services France (TLSFR)
Toyota Motor Manufacturing UK (TMUK)
Engine Manufacturing
Toyota Motor Manufacturing UK (TMUK)
Vehicle Manufacturing
Toyota Head Office - Brussels
Toyota Motor Manufacturing
Poland (TMMP)
Transmission Manufacturing
Zeebrugge Vehicle Logistics Centre
Grimsby Logistics Centre
Derby Logistics Centre
Toyota Technical & Training Centre
Toyota Parts Centre Europe (TPCE)
Toyota Parts Centre South of France (TPCSF)
Toyota Europe Design Development (ED
2
)
41
Toyota Motor Manufacturing Turkey (TMMT)
Toyota Logistics Services Austria (TLSAT)