2008 North American Environmental Report Highlights

December 19, 2008
Energy & Climate Change:
Since 2003 Toyota's annual vehicle sales have climbed from 1.9 to 2.9 million units. Over that same period, we have been able to improve the estimated fleet average fuel economy of our new cars and trucks by 9% based on Toyota's overall Corporate Average Fuel Economy (CAFE) values for the 2003 and 2007 model years.
Toyota offers the most fuel-efficient products of any full-line manufacturer and the U.S. EPA's 2008 Fuel Economy Guide lists the Toyota Prius as the most fuel-efficient vehicle available for sale in the U.S.
Toyota's goal is to sell one million hybrids a year worldwide by mid-next decade and has sold more than one million Prius worldwide since the vehicle was first introduced. We estimate that the Prius vehicles in operation have helped avoid some 4.5 million tons of CO2 emissions.
Toyota is accelerating its global plug-in hybrid research and development program and plans to deliver hundreds of PHVs powered by lithium-ion (Li-Ion) batteries to a wide variety of global commercial customers in 2010, with many coming to the U.S.
Over the past 10 years Toyota has added four new manufacturing plants in North America as annual production has increased by 700,000 units. Over that same 10 year period, we have been able to reduce the amount of energy required to produce a vehicle by 27%. And, while energy consumption in North America has increased slightly over the past year, CO2 emissions have slightly decreased because some of the nonassembly plants experiencing increased energy use are being served by cleaner energy sources.
Recycling & Improved Resource Use: Toyota has been increasing use of renewable resources in our vehicle designs. For example, Toyota uses soy oil-based polyurethane foam for passenger seats in the Corolla, Matrix, RAV4 and the Lexus RX. Using soy lowers the amount of petroleum used for production and reduces the carbon footprint of each vehicle. And, Toyota is investigating expanding the use of PLA, a plastic made entirely from corn, and natural based fabrics for vehicle interiors.
Toyota has reduced nonsaleable waste (nonhazardous waste plus materials Toyota pays to have recycled) to just under 22 kilograms per vehicle, exceeding our original target of 30 kilograms per vehicle. In addition, our manufacturing plants in North America have maintained near-zero waste to landfill (defined as a 95% or greater reduction in waste to landfill from 1999 levels). And, as we ship increasing numbers of parts and vehicles each year, Toyota's sales and logistics division has managed to recycle over 89% of all waste generated in FY2008 and eight of our U.S. sales and logistics locations are zero waste to landfill facilities.
Toyota's parts operation uses over 30,000 reusable metal shipping containers in place of cardboard and wood pallets. Recently, we began using returnable containers to ship Sequoia and Corolla floor mats. Material savings from the Corolla alone add up to 22, 275 pounds of corrugated cardboard and 31,500 pounds of wood. In FY2008, the returnable container program saved 13.9 million pounds of wood, 4.4 million pounds of cardboard and $13.5 million.
Looking for opportunities to reduce water usage and reuse water in our manufacturing processes, Toyota conducted a "water blitz" this year at four of our plants. And, our new assembly plant in San Antonio, Texas was designed with a high-tech water filtration system that allows for 100% utilization of recycled water for its production line and 95% utilization for its overall operations, reducing the plant's demand for potable water from the local system by almost 292 million gallons each year.
Substances of Concern: Toyota is working to make vehicles easier to recycle by phasing out the use of certain substances of concern (SOCs) in parts and accessories. We have successfully reduced SOCs in North America to de minimis levels as outlined in the European Union Directive on End-of-Life Vehicles.* Toyota North America is also developing low volatile organic compounds (VOCs) technologies that will ensure our vehicle cabin interiors comply with Japan Automobile Manufacturers Association (JAMA) standards by 2011.*
Air Quality: Our efforts on improving air quality focus on improving technology in the vehicle design and manufacturing process, resulting in reduced tailpipe and manufacturing emissions.
With over 1,000 vehicles tested in both U.S. EPA and California Air Resources Board programs since 2000, Toyota's emission compliance rate continues to be a leader among major industry manufacturers. By introducing the latest design technologies and leading-edge electronic control technologies, Toyota has achieved high fuel efficiency and cleaner exhaust emissions.
Toyota's manufacturing operations exceeded their five-year target to reduce VOCs from painting operations to a corporate average of 14.0g/m2 by FY2011. We are currently at 13.5 g/m2. And, our facilities continue to find ways to reduce the VOC emissions from plastic painting operations. At our facility in Indiana, employees replaced solvent-borne primer with water-based primer for painting bumpers in early 2007, and as a result reduced VOC emissions by more than 37 tons.
Environmental Management: Toyota seeks to measure and improve a vehicle's environmental impact across its life cycle â?? from manufacturing and distribution through recycling and disposal. Toyota's Environmental Management Systems (EMSs) help us check that our activities comply with all applicable federal, state and local requirements, as well as our own internal requirements. Thanks to EMS, Toyota facilities in North America received zero notices of violation and zero complaints in environmental matters in FY 2008. In addition, our North American logistics sites achieved their tenth consecutive year with no hazardous materials/dangerous goods violations.
Toyota's manufacturing operations' "Sustainable Plant" activities make efficient use of resources and harmonize our operations with natural surroundings. We consider LEED® (Leadership in Energy and Environmental Design) certification guidelines during new construction and remodeling of our facilities. We also work with Toyota and Lexus dealerships to promote green building practices through our Image USA II program's architectural standards. And, Toyota works with suppliers to conduct treasure hunts that identify energy savings opportunities. One supplier to our Kentucky plant found that if they reduce the heating temperature in their facilities from 70 degrees to 66 degrees, they save an estimated $27,000 per year.
Cooperation with Society: Our corporate philanthropy focuses our environmental commitment to the community in two principal areas: environmental education and environmental stewardship. We partner with nonprofit and community organizations, schools, universities and other businesses to support programs with long-term sustainable results.
Some of Toyota's environmental education programs include support for the Donald Bren School of Environmental Science and Management at the University of California in Santa Barbara, the Toyota Earth Day Scholarship Program, the Lexus Eco Challenge, the National 4-H Council's Exploring Your Environment Program, the Toyota International Teacher Program and grants to the National Parks for environmental education.
In the area of environmental stewardship, we work with the Arbor Day Foundation, Friends of the Rouge Watershed, the National Audubon Society, Take Pride in America and the National Wildlife Refuge Association to reach a diverse array of audiences.
For more information, and a complete copy of the 2008 North American Environmental Report, please visit our website at: http://www.toyota.com/environment.
*North America has no current regulations or standards in this area.

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