Environmental Report

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We are pleased to present Toyota's 2004 European Environmental Report Update, for the fiscal year running from April 2003 to .... Toyota Land Cruiser. 5- door.
European

Environmental Report 2004 Update

TOYOTA

01

Introduction Dear Reader,

We are pleased to present Toyota’s 2004 European Environmental Report Update, for the fiscal year running from April 2003 to March 2004. This update aims to provide you with a clear and succinct follow-up of the Environmental Key Performance Indicators presented in Toyota’s 2003 European Environmental Report. The next complete and detailed Toyota European Environmental Report will be issued in July 2005, covering the 2003 and 2004 fiscal years. In addition to the further improvements in our environmental performance contained in our European Environmental Report Update, our environmental technology has also enjoyed terrific success. A prime example has been the growing sales of the new Toyota Prius hybrid. Cumulative global sales of the Prius have now surpassed 230,000 units, since its launch in 1997. With over 260,000 hybrid vehicles sold to date, Toyota is the leader in the world-wide hybrid vehicle market. Alongside the continued sales success of our vehicle line-up in Europe, and increased market share, Toyota’s commitment to the environment remains steadfast. When discussing the developments that affect the automotive industry, we at Toyota believe that none will shape us more than the need to achieve genuine and profitable sustainable mobility. Our company recognises the link between mobility, a sustainable environment and economic growth, and believes that the growth of our business depends on the success of sustainable mobility. We hope you enjoy our 2004 European Environmental Report update, and thank you for your interest.

Environmental Affairs & Corporate Affairs Toyota Motor Europe

02

1. Environmental Management ISO 14001 Certification

Certified

Planned

No Plan

Production Plants (5 plants)

5

0

0

5

Logistic Hubs (owned by Toyota Motor Europe: 15 sites)

10

5

0

15

NMSC (subsidiaries: 19 NMSC) Suppliers (307 companies)

Total

5

14

0

19

253

37

17

307

ISO 14001 Certification

Production Plants (5 plants) % certified Logistic Hubs (owned by TME: 15 sites) % planned certification NMSC (subsidaries: 19 NMSC) % no plan Suppliers (307 companies)

0

20

40

60

80

100 %

Production Plants The new transmission plant in Walbryzch, Poland, was the latest plant to be certified to ISO 14001. It achieved certification in October 2003, which means that all plants in operation in Europe are now certified to ISO 14001.

Logistics Hubs In addition to the previously certified logistics hubs, the following hubs achieved certification in FY 2003: Vehicle Logistics in Derby, UK

November 2003

Certified

Planned

No Plan

Vehicle Logistics in Grimsby, UK

November 2003

5

0

0

Total 5

Vehicle Logistics in Valenciennes, France

November 2003

10

5

0

15

Parts Logistics in Vienna, Austria

March 2004

5

14

0

19

Parts Logistics in Le Pouzin, France

March 2004

253

37

17

307

NMSC (National Marketing & Sales Companies) Toyota’s NMSCs in France, Italy and the Netherlands joined Sweden and the U.K. in being certified to ISO 14001. They were certified in December 2003.

Suppliers By the end of March 2004, over 80% of Toyota’s suppliers (that are subject to the Toyota Environmental Purchasing Guidelines) had achieved ISO 14001/EMAS certification – up from 66% last year.

03

2. Product Vehicle Environmental Impact Data The table below presents data for a sample of Toyota and Lexus vehicles available on the European market. The models presented were the best-selling variant for the best-selling models in 2003, as well as the new generation Toyota Prius. For details on other models please consult local retailers or: Toyota’s European website: www.toyota-europe.com Lexus’ European website: www.lexus-europe.com In comparison to 2002, one can see that ongoing improvements have led to reductions in average CO2 emissions and fuel consumption, as well as an increase in the number of engines complying with higher Euro standards. These improvements are due to efforts in technology and reducing the size and weight of the vehicles.

Percentage of engines complying with Euro IV standards: 2002

2003

Toyota

26%

63%

Lexus

16%

55%

Model

Model type

Engine

Fuel type

Fuel consumpt (combined) [l /100 km]

CO2 [g/km]

European Emission Standard

Noise Drive-by [dB-A]

Toyota Prius

Sedan

1.5 VVT-i Hybrid

Petrol

4.3

104

Euro IV

69

Toyota Yaris

HB - 5-door

1.0 VVT-i 5M/T

Petrol

5.6

134

Euro IV

70

Toyota Yaris

HB - 5-door

1.4 D-4D 5M/T

Diesel

4.2

113

Euro III

69

Toyota Corolla

HB - 5-door

1.4 VVT-i 5M/T

Petrol

6.7

159

Euro IV

73

Toyota Corolla

HB - 5-door

2.0 D4D 5M/T

Diesel

5.6

151

Euro IV

73

Toyota Avensis

Liftback

1.8 VVT-i 4A/T

Petrol

7.7

187

Euro IV

71

Toyota Avensis

Wagon

2.0 D-4D 5M/T

Diesel

6.0

158

Euro IV

72

Toyota RAV4

5-door

2.0 VVT-i 5M/T

Petrol

8.8

211

Euro IV

72

Toyota RAV4

5-door

2.0 D-4D 5M/T

Diesel

7.1

190

Euro III

73

Toyota Land Cruiser

5-door

4.0 V6 VVT-i 4A/T

Petrol

13.5

320

Euro III

72.2

Toyota Land Cruiser

5-door

3.0 D-4D 5M/T

Diesel

9.5

253

Euro III

74

Lexus IS200

Sedan

2.0 VVT-i 6M/T

Petrol

9.8

231

Euro III

72

Lexus RX300

5-door

3.0 VVT-i 5A/T

Petrol

12.2

288

Euro IV

79

04

3. Remanufactured Parts Toyota’s remanufactured parts programme has been further expanded. Three new product ranges were introduced on the European market in August 2003: Engines, Shortblocks and Cylinder Heads. Sales of remanufactured starters and alternators have decreased slightly. However, there has been a significant increase in the sales of Air Condition Compressors and Power Steering Racks.

Sales of remanufactured parts (in units)

Remanufactured Part ATM (Automatic transmission) Starter

2001

2002

2003

206 10,495

281 9,750

325 9,345

Alternator

9,256

8,538

8,020

Clutch Kit AC Compressor Power Steering Rack

24,341 144 0

23,976 354 1,450

25,048 986 7,397

Engine*

0

0

2

Shortblock* Cylinder Head*

0 0

0 0

26 23

* Introduced August 2003

*Engine

*Shortblock

*Cylinder Head

05

4. Production The consolidated data and key performance indicator (KPI) updates in this section represent the following plants:

Toyota Motor Manufacturing UK (TMUK) Toyota Motor Manufacturing Poland (TMMP)

Engine Manufacturing

Transmission Manufacturing Toyota Motor Manufacturing UK (TMUK) Vehicle Manufacturing

Toyota Motor Manufacturing France (TMMF)

Toyota Motor Manufacturing Turkey (TMMT)

Volatile Organic Compounds (VOCs) – g/m2

Energy Use – kWh/car kWh/car

g/m2

3000 50 2500

45 40 35

2000

30 25

1500

20 15

1000

10 5 0

500 1999

2000

2001

2002

0

2003

Consolidated Data Fiscal Year Number of Plants Included

1999

2000

2001

2002

2003

Consolidated Data

1999

2000

2001

2002

2003

1

1

3

3

3*

VOC emissions from the production plant paint shops fell to an average of 35.6 g/m2 in FY 2003. The further reductions in total VOC emissions are mainly due to the reduction of the solvent usage for cleaning in the paint shops. * Toyota only operates three paint shops in Europe.

Fiscal Year Number of Plants Included

1999

2000

2001

2002

2003

2

2

4

5

5

In 2003, a focus on reducing compressed air usage and the installation of quick-shutter roller doors to improve HVAC efficiency resulted in a 13% reduction to 1,697 kWh/car.

06

Water Use – m3/car

Waste to Landfill – kg/car kg/car

m3/car

20

5

15

4

10

3

5

2

0

1 1999

2000

2001

2002*

2003 0

Consolidated Data Fiscal Year Number of Plants Included

1999

1999

2000

2001

2002

2003

2

2

4

5

5

2000

2001

2002

2003

Consolidated Data Fiscal Year Number of Plants Included

1999

2000

2001

2002

2003

1

2

4

5

5

In 2003, enhanced waste segregation and recycling resulted in further reductions, reaching 2.4 kg/car.

Toyota’s conservation efforts have been maintained in all plants resulting in a reduction of water use down to 2.91 m3/car, compared to 3.19 m3/car in 2002. The

* 2002 data has been revised to 2.8 kg/car

decrease in water use in 2003 was mainly due to the effect of increased production volumes and improvements in the efficiency of reverse-osmosis units.

Key Environmental Performance Indicators Key performance indicators have been selected, representing the significant environmental aspects of Toyota’s plants and to track performance. Consolidated targets will be set and published in a future report. Absolute figures have increased due to higher production. However, looking at the per vehicle data on the previous pages, one can clearly see that efforts in environmental performance are being made. Absolute Emissions & Other Indicators Absolute Emissions Total Energy Usage (MWh) Total Waste to landfill (tonnes) Total Solvent Emissions (tonnes) Total Water Usage (1,000 m3)

FY 2002 (1) 817,943 1,179 1,368 1,337

FY 2003 874,051 1,252 1,665 1,496

Other indicators Total CO2 (1,000 tonnes) Total Waste (tonnes) (2) Total Number of complaints

FY 2002 (1) 203 11,272 0

FY 2003 234 13,784 2 (3)

Legal Compliance Total Number of Fines Total Number of Prosecutions

FY 2002 (1) 0 0

FY 2003 0 0

(1) FY 2002 is 12 months at all plants except France where performance data has been calculated using data from January 2002 to March 2003. (2) excludes scrap steel at all plants and some recycled wastes for which revenue was gained. (3) one noise complaint and one odour complaint.

Toyota Motor Europe Avenue du Bourget 60 – 1140 Brussels, Belgium Tel + 32.2.745.2111 / Fax +32.2.745.2068 Corporate Affairs: [email protected] Environmental Affairs Coordination Office: [email protected]