Sustainability Report 2020 - Toyota Australia
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Sustainability Report 2020
Toyota Sustainability Report 2020 | 1
Contents About Toyota Australia
About Toyota Australia 1 Enriching Communities 40 Toyota believes that anything is possible when we’re free to move. We have
Community investments and partnerships 41 been advancing vehicle technology in Australia for 60 years, but we’re only
About this report 1
Toyota Community Trust 42 getting started. At Toyota Australia, our vision is to create innovative mobility
President and CEO Statement 2 Toyota Community Foundation 43 solutions for all Australians. We’re here to help you start your impossible.
Sponsorships and partnerships 46
Toyota celebrates 60 years of helping Toyota Motor Corporation Australia Limited (‘Toyota About this report
build Australia 3 Wide-reaching economic impacts 48 Australia’ or ‘TMCA’) is a wholly owned subsidiary
of Toyota Motor Corporation (TMC), a public listed This is Toyota Australia’s 14th Sustainability Report. It
Business performance 49 details our business and environmental performance
Our sustainability context 4 company and Japan’s largest vehicle manufacturer.
Dealer engagement 50 TMCA’s structure comprises three operating arms: for the 12 months from 1 April 2019 to 31 March 2020,
Aligning to UN Sustainable Development Goals 5 corresponding with the Japanese financial year, also
Supply chain sustainability 52 National Sales and Marketing Operations, Product and
How we create value 6 Corporate Operations, and Regional Operations. Lexus referred to as the reporting year.
Toyota 2019/2020 Performance 8 Australia is managed as a separate division.
Developing and supporting our people 54 This report focuses on the activities and performance
Our presence in Australia includes ten offices in of Toyota Australia and includes Lexus Australia as
Employee health, safety and wellbeing 55
Our approach to sustainability 10 mainland Australian states except Western Australia, a division of Toyota Australia. The operations of our
Employee engagement 56 with our corporate headquarters located in Port dealerships are not covered in the report, nor are the
Overview of sustainability at Toyota Australia 11
Melbourne, Victoria. In Western Australia, TMCA operations of Toyota Financial Services Australia, which
Diversity and inclusion 56
Governance 14 is a separate entity. There were no changes to the
distributes Lexus-branded vehicles, but Toyota-
Employee planning and development 59 ownership of TMCA during the reporting period.
External codes and charters 15 branded vehicles are distributed on our behalf by an
Labour relations 59 independent company.
Industry associations and memberships 15 This report references the Global Reporting Initiative
The vehicles we sell in Australia are imported from (GRI) Standards 2016, as detailed in the GRI index
Delighting our customers 60 (p. 76). Elements of the International Integrated
Our material sustainability topics and our Toyota affiliates overseas. Our customer base is
stakeholders 16 Customer engagement and satisfaction 61 varied and includes private, rental, government fleets Reporting Framework (IR) have also been drawn on to
and private buyers known as ‘guests’. We support our complete this report.
Our materiality process 17 Product safety and quality 64
customers through our extensive network of skilled
Our value chain 18 Data privacy and security 65 We released our previous Sustainability Report in
dealers, which are independently owned under
October 2019 for the period 1 April 2018 to 31 March
Our stakeholders 20 franchise agreements.
2019. There are two restatements from our 2019
Managing our environmental impacts 66
Sustainability Report. These can be found in the data
COVID-19 impacts 21 tables section of this report. Copies of previous reports
Data tables 68 are available on our website and questions can be
Helping create a zero-carbon society 22 directed to sustainability@toyota.com.au.
Assurance statement 74
Challenge 1: New vehicle zero CO2 23 A statement from our external assurance provider is
located on p. 74.
Challenge 2: Lifecycle zero CO2 31 GRI index 76
Challenge 3: Plant zero CO2 32
Developing mobility solutions 34
Automation and intelligent transport systems 34
Sharing services 39
Collaboration and advocacy 39
NOTICE: The information in this report is provided for general information purposes only. While Toyota Australia uses its best endeavours to
ensure the information in this report is accurate and up-to-date at the time of publishing, it is not necessarily comprehensive and may change
over time. To the extent permitted by law, Toyota Australia is not liable for any damage or loss suffered from relying upon the information
contained in this report whether by way of negligence or otherwise. Toyota Motor Corporation Australia Limited ABN 64 009 686 097
155 Bertie St, Port Melbourne Vic 3207. Published 30/10/2020.
© 2020 Toyota Motor Corporation Australia Ltd - no part of this publication may be copied, reproduced or distributed without consent of Toyota
Australia.
2 | Toyota Sustainability Report 2020 Toyota Sustainability Report 2020 | 3
President and CEO Statement Toyota celebrates 60 years of helping
build Australia
There is no doubt 2020 has been a challenging year, with the COVID-19 global Toyota celebrated 60 years of operations in Australia in 2019, marking the 60th anniversary
crisis having a significant impact on business, retail, our working lives, and of the first official imports of Toyota vehicles into the country by Thiess Toyota.
most importantly, to family and friends. We are navigating through uncharted
waters, where the situation is fluid and little is certain. In 1959, Thiess, a subsidiary of construction company Hydro-Electric Scheme. The company’s owner,
Thiess Holdings, became the official Queensland Leslie Thiess, had privately imported about a dozen
distributor for Toyota commercial vehicles - making LandCruisers to use on the site. He was so impressed
Amidst the challenges of COVID-19, Toyota Australia We have a leading role in the transition to a
Australia the first official export market for the Japanese with the vehicle’s capability in the harshest terrain that
has reached a significant milestone this year, decarbonised future, and the recent announcement of
brand. he applied to Toyota in Japan to become an official
celebrating 60 years of operations. From unassuming a new voluntary CO2 standard by the Federal Chamber
distributor.
beginnings when we sold 69 cars in the first nine of Automotive Industries confirms our commitment To commemorate this proud heritage, Toyota Australia
months of trading, to being the only car company to electrification, strongly aligning to Toyota’s embarked on a year-long social history project to The LandCruiser’s tough capability set the scene for
in Australia to have sold 200,000 cars in a single environmental action plans and our pursuit of growth in tell the stories of the pioneers, the innovators, the its ongoing role in helping Australia grow and thrive.
year. We have maintained our position as the top hybrid vehicles. adventurers, the communities and everyday Australians The vehicles proved their mettle in some very extreme
selling automotive company in Australia for the 17th that built post-war Australia into what it is today - with a conditions and word quickly spread, particularly
consecutive year and we are transforming to become Whilst we currently find ourselves in uncharted territory,
helping hand from Toyota. in regional areas. Toyota vehicles helped enable
the most admired mobility business. our focus remains on our people. We are placing
entrepreneurs and explorers in a range of human
emphasis on our employee’s and dealer’s mental health, These are stories of enduring hardship on the land, of endeavour from agriculture to science, tourism and
It was back in 2016 when we introduced our 2025 along with supporting our customers as they face exploration into new territories, of determination to be construction build businesses and operations in the
vision, “Creating Innovative Mobility Solutions for All challenges as a result of COVID-19. the fastest on the track, of innovation to build the best some of the harshest environments and remotest
Australians”. Since then, we have been adapting our and they will be told by those who were there.
I am confident that through the strength of One Toyota corners of this country. In 2018, Toyota sold its one
strategies to reduce CO2 targets to fulfil our customers
that we will come out of this storm stronger. COVID-19 millionth LandCruiser in Australia, and their popularity
environmental aspirations, and ultimately our Toyota’s origins in Australia began in 1958, after
will pass, and we will get through this together. has been such that the Toyota LandCruiser Club
responsibility as corporate citizens. Thiess became the first Australian company to win a
celebrates its own 50th anniversary this year.
construction contract on the huge Snowy Mountains
At Toyota, we are at the cutting edge of electrification,
with our strategy built on hybrid vehicles and
other alternative powertrain technologies such as
hydrogen-powered fuel cells. In the current day, hybrid
models play into the mindset of the consumer by
offering competitive pricing, fuel savings and vehicle
performance across a number of our model range,
and in 2020 alone we have sold over 37,000 hybrids
September year to date.
This year we also completed the first stage of our
Hydrogen Centre at the Toyota Centre of Excellence
in Altona, Melbourne. This centre is a step towards
us meeting our target of zero CO2 emissions from our
sites and vehicles by 2050 and aligns with our drive to
promote sustainable mobility.
Globally, Toyota has also been refocusing on mobility
and emphasising on new technologies. Developments
such as Woven City, a fully integrated and connected
ecosystem powered by hydrogen fuel cells, will allow
us to maintain our leading position in the automotive Matthew Callachor
sector. Here in Australia, we will take elements of President and CEO
this work and procure the components that suit our Toyota Australia
customer’s needs.
4 | Toyota Sustainability Report 2020 Toyota Sustainability Report 2020 | 5
Our sustainability context
The automotive industry is experiencing a pivotal transition, propelled by Aligning to UN Sustainable Development Goals
a variety of disruptive forces. Demographic trends, increased congestion in
The UN Sustainable Development Goals (SDGs), agreed by 193 countries in September 2015, set out the key
cities, environmental and climate impacts, are influencing how consumers challenges for the global community to address in the coming decade. These challenges include issues related
interact with vehicles. Market disruptors such as rideshare services are to poverty, inequality, climate change, environmental degradation, peace and justice.
growing and provide consumers with a convenient alternative to vehicle
Toyota Japan is working on initiatives that contribute to the sustainable development of a global society through
ownership. Technological innovations are spurring competition to achieve all its business activities. Toyota Australia business activities are aligned to these initiatives.
the most environmentally sustainable and connected mobility products.
Throughout the report we highlight how Toyota Australia initiatives, directly and indirectly align with particular
Toyota is committed to being a leader in not just responding to, but shaping
SDGs.
these trends towards a low-emission mobility future.
Some of the trends shaping our future direction include: Through businesses
Improving value by adopting our CASE framework. Connected, Autonomous/Automated, Shared and Electric.
The sharing economy
Many customers are looking to the ‘sharing economy’ for mobility solutions. In cities Safe and reliable Environment
in particular, more options are becoming available for short-term vehicle use, or
ridesharing. These alternatives appeal to customers as affordable options that reduce Zero deaths and injuries from Zero CO2 emissions
the strains of vehicle ownership in built-up areas. traffic accidents
Recycling/reuse of
Comfortable and congestion-
resources
free travels
Customer preferences
Accessibility to means of
Online purchasing is becoming increasingly popular, and this has been accelerated transportation for all
by the impact of COVID-19. However, we find that most customers still want an in-
Spread of cars serving also as
person interaction when purchasing a vehicle. Our dealers are the touch point for our
power sources
customers, and our partners in providing ideal mobility solutions for our customers.
Meanwhile, our customers now live in a world of constant connectivity through devices Use of hydrogen to promote
and apps that are seamlessly integrated in vehicles. energy diversification
Connected, autonomous vehicles By social contribution activities
Vehicles with autonomous capabilities are developing rapidly and have the potential Aiming to become a reliable corporate citizen
to increase safety on the roads. While not a current reality in our product range,
connected, autonomous vehicles are a constant in our forward-thinking.
Life cycle environmental impacts
We recognise the need to address climate change and other pressing environmental
challenges. We understand how vehicles contribute to these challenges. Therefore,
Toyota is driven to apply our skills in design and innovation to reduce emissions and
other impacts from vehicle production, use, and end of life.
Enhancing environmental, social and corporate governance
Large and unique fleet market Tackling human rights issues
Around half of our sales are to government and business buyers. With sustainability Promoting diversity
goals of their own, these customers are important partners in accelerating the take-up
of innovative vehicle technologies.
How we create value
What we draw on What we do The value we create
Designing the future
Our vehicles’ emissions (and their production and
KEY TRENDS disposal) contribute to climate change and other
Technological innovation Social shifts environmental impacts. In line with the Toyota
Environmental Challenge, we work constantly
to minimise these impacts. Through innovation,
partnership, advocacy and education, we are helping
Pricing landscape Climate change to realise a future of Connected cars, Autonomous/
Automated driving, Sharing and Electric (‘CASE’).
Ever better vehicles
We deliver the vehicles Australians need, with more
Our brand Toyotas on the road than any other vehicle. Our
vehicles create Toyota fans for life, because of our
SECURING OUR BRAND
ability to develop and manufacture vehicles with
FOR TOMORROW
technological features that meet the needs of our
Develop mobility solutions customers. Our customers and their needs are
Our customers
always our focus.
Help create a zero carbon society
ONE Toyota
MAINTAINING OUR
partners, Toyota Enriching communities
BRAND TODAY
affiliates and our
dealer network Toyota Australia is embedded in the Australian
Engage with and support the community
community through trust in our vehicles, and wide-
Develop our people ranging engagement. We support grassroots to
Our people,
elite sport; local communities and not-for-profits.
culture and
Delight our customers with the right product Our vehicles are also involved in congestion and
capabilities
in the right place at the right time traffic accidents, so we constantly work towards safer
vehicles and a future of equal access to mobility.
Our vehicles
Building capabilities
We build skills and careers. Our work on building
capabilities internally is reflected in our community
investment, with a focus on sharing our knowhow
Governance Education &
with Australian not-for-profits and small businesses
advocacy
through the Toyota Production System Support
Centre (TSSC), and building the STEM skills that we
will depend on in our future employees.
ENAB
Partnerships LERS: HOW WE WORK R&D, Innovation
Wide-reaching economic impacts
Our business is at the heart of an ecosystem of
dealers, suppliers and partners. Our vehicles keep
thousands of Australian businesses on the road,
with a low total cost of ownership. Our community
investment contributes to the not-for-profit economy.
We are helping to build the skills and technologies
for the economy of the future.
Toyota 2019/2020 Performance
Designing the future Ever better vehicles Enriching communities Wide-reaching economic impacts
100,000+ 215,722 RAV4 $2.8 million 60 years 224
Australian hybrid vehicle sales Toyota vehicle sales CarsGuide 2019 Car of the Year Community contributions Toyota operations in Australia Toyota and Lexus dealerships
(cumulative)
Car Service Building capabilities
13,501
Gold Winner
Toyota and Lexus dealer employees
Reader’s Digest Quality Service
1,722
Award 2020
Toyota employees
8.23
(headcount of full-time, part-time, Dealer satisfaction index
employees and contractors)
Toyota
17% Hybrid RAV4 82.6 78 $8.37 billion
Australian hybrid vehicle sales (%) Drive Car of the Year Net Promoter Score – sales Employee engagement score Net sales
10 vehicles Ranked #1 65 $129 million
Hydrogen fuel cell vehicle – Most trusted automotive company – Annual Trusted Brand Survey Employee enablement score After-tax profit
Mirai demonstration model
Stage 1 complete 29% $1.2 billion
Female representation in workforce Supplier spend
Hydrogen Centre
1,156kW 21 1,456
Solar capacity – Australia wide Lost time injuries Number of suppliers
Toyota Sustainability Report 2020 | 11
Our approach
to sustainability
Since its foundation in 1937, globally, Toyota has strived to contribute Overview of sustainability at Toyota Australia
to the sustainable development of society and the planet through
its business operations. It’s a principle that we have continued since
Toyota Australia started in 1963 and has helped to cement our position
Toyota Global Vision
as Australia’s leading automotive company.
Motor vehicles greatly expand the freedom of mobility. However,
Toyota will lead the future Through our commitment We will meet
we recognise that they also have some less desirable impacts on mobility society, enriching to quality, endless challenging goals by
our society and the environment. With this in mind, sustainability is lives around the world innovation, and respect engaging the talent and
embedded throughout Toyota Australia’s approach, from our vision with the safest and most for the planet, we strive to passion of people who
responsible ways of exceed expectations and be believe there is always a
to our Company Hoshin.
moving people. rewarded with a smile. better way.
Toyota Guiding Principles
Toyota Way
Toyota Global CSR Policy
Toyota 2050 Environmental Challenge
Toyota Australia Vision
Creating innovative mobility solutions for all Australians
2025 Direction Mid-term Company Hoshin TMCA Environmental
Business Plan Action Plan
10 | Toyota Sustainability Report 2019
12 | Toyota Sustainability Report 2020 Toyota Sustainability Report 2020 | 13
Our Guiding Principles The Toyota Way Toyota Global Corporate Social Responsibility (CSR) • xpanding the positive customer experience and
E
The decisions we make, the way we treat our We apply these principles to every aspect of our day-to- Policy offering mobility solutions
employees and customers, and our involvement in local day work through our simple framework ‘The Toyota Way’: In 2005, TMC announced the ‘Contribution toward • Leveraging our brand strengths.
communities are all informed by the Toyota Guiding Sustainable Development’, an interpretation of
Principles. These principles, which have been in place the Guiding Principles at Toyota that takes into In order to translate our vision into action, we have
Continuous improvement
since 1997, build on the five main principles set down by consideration Toyota’s relations with stakeholders. This established key performance indicators (KPI) with
Challenge When we embrace a challenge, we also targets for each financial year. These targets are
our founder, Sakichi Toyoda, in 1935. was revised in 2008 to become a CSR Policy. The policy
commit ourselves to challenging what we monitored, measured and feed into our Mid-term
takes into account subsequent environmental changes
know and do to complete it. This means Business Plan and Company Hoshin.
and increased societal interest in CSR. TMC CSR global
we have to approach each challenge, not
Honour the language and spirit of the law policy feeds in to TMCA business activities.
The Mid-term Business Plan is our five year whole-of-
1. of every nation and undertake open and fair
only with creativity, but also with courage.
company action plan that outlines the product line-up
business activities to be a good corporate Kaizen Kaizen is the essence of continuous Toyota Environmental Challenge 2050 and the profit outlook for the business.
citizen of the world. improvement. It is a way of thinking which
In October 2015, Toyota set out a bold plan involving
encourages and empowers everyone Our Company Hoshin is TMCA’s annual strategy which
six challenges to achieve zero CO2 emissions and a net
to identify where and how even small outlines our objectives and targets and aligns with our
Respect the culture and customs of every positive impact on the environment and society by 2050.
changes can be made to benefit the 2025 vision. The 2020 Hoshin establishes activities and
nation and contribute to economic and In Australia, these translate in our TMCA Environmental
2. business, their team or their individual indicators against four key objectives:
social development through corporate Action Plan.
performance.
activities in their respective communities.
• People first and zero harm (safety)
Genchi “Going to the source” – is about checking
Genbutsu the facts yourself, so you can be sure you • Customer-focused organisation
Dedicate our business to providing clean
have the right information you need to • Business model for sustainable growth
and safe products and to enhancing the
3. make a good decision.
quality of life everywhere through all of our • ealise year 3 of 2025 Direction (product, customer,
R
activities. Respect for people brand).
Respect It is important everyone is respected both The Hoshin is widely communicated throughout
Create and develop advanced technologies for what they contribute and who they are. the organisation at the beginning of each financial
and provide outstanding products and
4. That includes their ideas and their cultural year, and guides the activities of all employees, from
services that fulfill the needs of customers and personal beliefs. Through ‘Respect’ management to frontline staff.
worldwide. we accept personal responsibility for
what we do and build mutual trust and
Foster a corporate culture that enhances understanding with those around us.
Governance
both individual creativity and the value of
5. Teamwork Successful teamwork is about everyone
Toyota Australia is overseen by a focused and
teamwork, while honouring mutual trust and understanding our goals and working
respect between labour and management. together to achieve them. Every member experienced Board, who brings combined experience
of a team is given the opportunity to of over 128 years with Toyota worldwide. The Board of
do their best and the accountability to directors comprises of two Toyota Australia executives
Pursue growth through harmony with
achieve results. We strive to give them Toyota Australia’s vision and two Toyota Motor Corporation executives.
the global community via innovative
6. stable employment and opportunities to Toyota’s Guiding Principles, the Toyota Way and the
management. The Board’s key functions are to:
develop their skills, responsibilities and global vision are the foundation of Toyota Australia’s
commitment as individuals and committed 2025 direction, which is our roadmap to ‘Creating • gree on TMCA’s strategic direction and ensure this
A
Work with business partners in research and team members. innovative mobility solutions for all Australians’. This is aligned with the interests and values of our parent
manufacture to achieve stable, long-term
7. growth and mutual benefits, while keeping
vision will be achieved through our three strategic company
priorities:
ourselves open to new partnerships. • versee TMCA’s risk management and its compliance
O
• reating an innovative product range that reduces
C obligations, guided by the Risk and Compliance
CO2 emissions Committee.
The Board met twice during the reporting period.
14 | Toyota Sustainability Report 2020 Toyota Sustainability Report 2020 | 15
Board membership as at 31 March 2020 Operational structure External codes and charters
Toyota Australia has three operating arms:
In addition to our internal values and policies, Toyota
Directors Role Appointment
1. National Sales and Marketing Operations Australia is aligned to various external charters and
principles, including:
Matthew John Callachor TMCA President and CEO 1 June 2016 2. Product and Corporate Operations
3. Regional and Guest Operations. • ccupational Health and Safety (OHS) National Audit
O
Tetsuo Mori TMCA Treasurer and Chief Coordinating Executive 1 January 2016 Tool for OHS Management Systems OHS ISO 18001
Each arm is led by a Vice President, and supported by
• Self-Insurance (Victoria)
Chief Coordinating Executive inpatriates from TMC, who
Nobuhiko Murakami TMC non-resident director 1 January 2018
provide close liaison between TMC and Toyota Australia. • nvironmental Management System ISO 14001 (Port
E
During the reporting period, a new Vice President was Melbourne Office and Melbourne Parts Centre, Altona)
Mitsuhiro Amo TMC non-resident director 1 January 2019
appointed to the Product and Corporate Operations arm.
• ederal Chamber of Automotive Industries (FCAI) Code
F
Lexus Australia is managed as a separate division. of Practice for:
Governance committees governance-related matters for TMCA. It maintains – Motor Vehicle Advertising
our risk register, in line with our risk management Compliance
TMCA Governance Committees are shown below. – Conduct of an Automotive Safety Recall
framework. The register is reviewed bi-monthly to One of Toyota’s Guiding Principles is to ‘Honour the
ensure TMCA are able to recognise and respond quickly language and spirit of the law of every nation and – Access to Service and Repair Information for Motor
While the Board sets the strategic direction for TMCA,
to any potential issues. The committee met six times undertake open and fair corporate activities to be a good Vehicles
implementation is led by our seven-member Executive
during the reporting period. citizen of the world’. TMCA views compliance activities as
Management Committee, which meets monthly and is – Technical Statement on EV Charging Standards for
chaired by the President and CEO. a vital part of running a safe and ethical organisation. Public Recharging Infrastructure
The Sustainability and Environment Committee oversee
Our Code of Ethics and Code of Conduct provides the
The Risk and Compliance Committee reports directly the Environmental Action Plan which stipulates how we • Australian Hydrogen Council:
basis for our approach to conducting our business
to the Board, and is comprised of six senior TMCA are tackling each challenge set out in the Environmental
ethically. These can be viewed on the TMC website. – Social Licence Principles
members, chaired by a TMCA director. The committee Challenge 2050. This committee meets bi-annually,
takes responsibility for all risk, compliance, ethics and is comprised of our Executive leadership team, and During the reporting period, TMCA did not record any – Regulatory Principles
reinforces the importance assigned to these topics. significant fines or non-monetary sanctions for non-
compliance with laws and regulations.
Industry associations and memberships
We strive to respond quickly and openly to any
TMCA Governance issues that may impact our customers or the broader We remain an active and supportive member of a range of
Committees community, in accordance with our principle of respect automotive industry associations and other groups, this
for people. We also seek to keep our customers and includes:
community well informed through our TMCA website, • Australian Industry Group
TMCA BOD which provides the latest news including recall updates.
The issues we addressed during the reporting period can • Committee for Economic Development of Australia
be found in more detail on p. 64. • Federal Chamber of Automotive Industries
Executive Management Committee
Toyota Australia is committed to encourage and • ictorian Employers’ Chamber of Commerce and
V
support ethical conduct and foster a positive and open Industry
Formal Constitution
Project/Operational Basis environment. Fraud and corruption are not tolerated, we • Committee of Melbourne
Charter from BOD
maintain robust global, and local policies and controls
to manage any issues ethically. We encourage the • Green Building Council of Australia
reporting of actual or suspected wrongdoing through • CitySwitch Green Office program
our whistleblower protection policy. The policy sets out
the kinds of reporting that are covered, the reporting • TAKE2 Signatory
mechanisms, and a free independent third-party phone • Australian Hydrogen Council
Risk & Executive Sustainability General Information Company 2025 Mobility line.
Compliance Finance & Environment Managers Security Quality Working Executive • ITS Australia
Committee Committee Committee Committee Management Meeting Group Committee TMCA is currently working on initiatives to ensure
• Pro Bono Australia
Committee employees within our supply chain are properly protected
in line with the Modern Slavery Act 2018 (Cth) (see further • Philanthropy Australia
p. 52).
Toyota Sustainability Report 2020 | 17
Our material
sustainability topics
and stakeholders Our materiality process
Each year we assess our material
Zero carbon transition
Operational environmental impacts
sustainability topics through a Vehicle life cycle
In accordance with our core principle of continuous improvement, we process guided principally by
the Global Reporting Initiative
focus on the environmental, social and governance issues that are most
Standards (GRI) 2016. We
important to our business and our stakeholders. conducted a desktop review of Community investments and partnerships
internal documents from Toyota Customer engagement and satisfaction
Australia, TMC, and external Dealer engagement
sources including our peers, the Indirect social and economic impacts
media, industry bodies and non-
Supply chain sustainability
government organisations (NGOs).
Through this process we identified
relevant topics and assessed their
relative importance to Toyota Mobility
Australia’s business performance
Automated driving and intelligent transport systems
and to its stakeholders.
Sharing services
We also assessed our impacts Data privacy and security
against the United Nations SDGs
Advocacy and lobbying
taking into account both our actual
and potential ability to either create
positive impacts or to mitigate
negative impacts. Product safety and quality
The resulting material topics
are outlined below, categorised
according to the ‘capitals’ of the
Integrated Reporting framework.
Our most material topics are shown
Employee health, safety and wellbeing
in bold.
Employee engagement
Diversity and inclusion
Employee planning and development
Labour relations
16 | Toyota Sustainability Report 2019Our value chain
We connect with our
TMC designs vehicles customers using many
appealing to customers, different tools and
focusing on quality, channels throughout
innovation and respect the lifecycle of a Toyota
for the planet. Investment vehicle. These tools
in innovation and enable consumers to be
research enables Toyota informed and educated
We work with our
to be at the forefront about the product they
distribution partners to TMC mitigates some
of current and future are using. Delivery is
move vehicles and parts environmental impacts
advances in vehicle TMCA promotes the through dealerships,
around the country to through its vehicle design
technology. Toyota and Lexus our Guest Experience
Toyota dealers. The and life cycle processes.
brand through Centre, and multiple
Although TMCA Toyota Production The Toyota Global 100
different marketing online platforms.
imports vehicles from System (TPS), provides Dismantlers project and
and communication Customers can now view
Toyota affiliates, we efficient processes Toyota Global Car-to-Car
channels. We also work vehicle specifications,
retain a strong hand in TMCA sources vehicles that also minimise the Recycle Project are two
closely with our dealers book a test drive and
designing, selecting and from Austria, Japan, carbon footprint of global projects initiated
to promote our brands. make purchases from
customising vehicles to TMC promotes the Thailand, and the United transporting vehicles. by TMC to minimise the
our dealers online.
meet the unique needs development and States, while parts are This system is supported Our primary sales environmental impacts of
of the Australian market. introduction of low- sourced internationally TMCA has four by sophisticated channel is through Toyota dealerships vehicle end of their life.
TMCA has a role to play in CO2 technologies, daily and locally. TMC warehouses located planning, alignment national dealerships, nationally provide TMCA has implemented
selecting models, taking kaizen, utilisation of and TMCA policies nationally for parts and cooperation while our customers vehicle servicing a Hybrid Vehicle Battery
into account Australian renewable energy and encourage sustainable storage. They are between TMCA and also have the option for our customers. Recycling Program and
legislation and industry use of hydrogen at all and efficient shipping equipped with systems our dealer network so of purchasing online. TMCA works with our most of our dealers work
regulations, customer production plants, in and logistics of our to bring in warehouse that our consumers can We serve our fleet dealers to manage with tyre recyclers that
preferences, and keeping in line with products and parts efficiencies, minimising access the right product customers directly and the environmental are members of Tyre
TMCA’s overall strategic Toyota Environmental to reduce our carbon both safety risks and when and where they via our specialised fleet impacts through their Stewardship Australia
objectives. Challenge 2050. footprint. damage to parts. require it. dealerships. operations. (TSA).
Product planning Logistics & Storage & Marketing Use &
Manufacturing Distribution End of life
and design transport processing & sales servicing
SDGs
Toyota Environmental
Challenge 205020 | Toyota Sustainability Report 2020 Toyota Sustainability Report 2020 | 21
COVID-19 impacts
Our stakeholders The COVID-19 crisis unfolded largely after the reporting period. However, given its
In accordance with our key pillar of respect for people, we believe in the importance of listening and responding to significant impacts, we address it briefly here.
the interests of our stakeholders. Toyota Australia endeavours to build and maintain sound relationships with our
stakeholders through open and fair communication. We expect our business partners to support our principles and
our efforts towards sustainable development. Our key stakeholders are outlined below. As the COVID-19 pandemic reached Australia, our Our workstyle (see p. 58) enabled us to rapidly change
number one priority was the safety and wellbeing of our ways of working on a large scale, so that 85% of staff
everyone in the TMCA family. We also took measures commenced working from home from mid-March 2020.
We work to provide our We have longstanding We engage with our Toyota to ensure the sustainability of our business by working Employees were provided access to office equipment
customers with high formal relationships with dealers through regular We communicate with through a number of business continuity plans. as required, and a complete workstation assessment
quality experience in all a number of community bulletins, forums and our our employees through and checklist was conducted by all employees to ensure
interactions with Toyota organisations across annual National Dealer forums, monthly Toyota TMCA’s crisis management team met frequently to everyone is working in a safe environment.
Australia. Our dealers are Australia, and also engage Conference, ‘Franchise Torque meetings, and discuss matters and develop contingency plans. The
the primary touchpoint directly with a wide range of the Future’ program the annual President’s team comprised of the TMCA executive committee, Mental wellbeing of our staff is currently a priority for
with our customers of organisations for and the National Toyota Address. Our intranet general managers, and representatives from key TMCA, and we are supporting our staff virtually, through
across Australia. TMCA’s specific interactions. Dealers Association. and employee bulletins business areas such as human resources, internal resilience programs, kids club activities and online
Guest Experience Centre keep employees up communications, marketing and public relations. physical programs. We are constantly communicating
Community Dealers
enables communication to date on all relevant with our employees encouraging them to take
We set up policies and procedures to respond to and advantage of our Employee Assistance Program that
by telephone, email information including
communicate about the impacts that COVID-19 would provides free access to, professional and confidential
and social media. In updates on product
have on our employees including: psychology service that can be used for any personal or
order to further engage launches and events.
with customers, we We aim to build work-related issues.
• ealth and safety protocols for access to each TMCA
H
have platforms such as capability through site and office The automotive sector, as many others, will face
the myToyota app, our forums, training, on-
• ealth and safety directions for staff working from
H unique hurdles in the new operating environment
Australian website and the-job development,
the office after the COVID-19 pandemic. Apart from the safety
our publication GoPlaces. and internal rotations.
and wellbeing of our staff, foreseeable issues include
Customers Employees • ravel ban for employees, including supplier and
T geographic discrepancies, supply chain challenges,
dealer visits talent issues, and larger macro-economic and social
• Employee wellbeing shifts in our community’s approach to mobility. Toyota
is confronting the uncertainty and potential long-term
• Staff sentiment surveys economic impacts of the pandemic. We are regularly
Toyota Motor Government
• Take-home meals and groceries shopping assessing how customer experiences will change, how
Corporation (TMC) Through our government the needs of the automotive sector may shift, and how
Toyota Australia is affairs team, we engage • Family violence and working from home
we can maintain and leverage our position as Australia’s
actively and constantly with the government • Smart working options. trusted automotive brand.
connected with our at all levels across
parent company. Two Australia through
Toyota global executives face-to-face meetings,
sit on our board, to stay connected on
and TMC ‘inpatriates’ Suppliers Environment current issues and
work alongside each Our most significant Our efforts to curb negative topics relevant to the
operational arm leader suppliers are Toyota environmental impacts automotive sector
to liaise with TMC. We affiliates. We directly engage are driven by The Toyota and Toyota Australia
work with TMC on policy with all suppliers regarding Environment Challenge 2050. activities. We also
development, strategy relevant issues. Our supplier Our efforts are reinforced by engage through the
and product planning selection process and affiliations with organisations Federal Chamber of
as well as sharing interactions are guided by including the Green Building Automotive Industries
best practice for our our procurement policy and Council of Australia, City (FCAI) and other industry
improvement. Purchasing Environment Switch Green Office program, bodies.
Handbook. TAKE2 and Planet Ark.
Preparing over 150 meals a day in the Toyota Kitchen for healthcare workers throughout Using our design, technology and production
Melbourne in partnership with Alex Makes Meals. expertise to protect the medical community
from the COVID-19 virus by developing and
manufacturing face shieldsToyota Sustainability Report 2020 | 23
Helping create a
zero-carbon society
Since the introduction of the Prius hybrid, Toyota has been leading the Toyota Australia recognises that climate change is both In Australia, as a sales and distribution company, our
shift to lower emission vehicles. We are driven by the Toyota Environmental a concern of our customers and other stakeholders, and focus is on Challenge 1. Vehicle tailpipe emissions are
a key responsibility of the automotive sector. Transport is the most material emissions source during the lifecycle
Challenge 2050 to reduce our vehicles’ emissions, from production, to
Australia’s third largest source of emissions, with roughly of our vehicles. While our vehicles are all imported,
use, through to end of life. In Australia, we are actively working to increase half those emissions coming from cars, so we have an TMCA has a role to play in selecting models, taking into
the share of hybrid sales, while also looking ahead to other forms of important role to play. account Australian legislation and industry regulations,
electrification, including hydrogen vehicles. customer preferences, and TMCA’s overall strategic
Our approach is guided by the global Toyota objectives.
Environmental Challenge 2050 (see p. 13). The first three
challenges relate to achieving zero CO2 emissions: We believe that hybrid vehicles are currently the best
way to achieve rapid reductions in Australia’s vehicle
emissions. Meanwhile, TMC is also working to reduce
the emissions from our conventional vehicles looking
CHALLENGE 1 at alternative options such as fuel cell electric vehicles.
New vehicle zero CO2 Electrification is a core pillar of our ‘CASE’ framework
for the future: Connected, Automated, Shared and
Electrified.
As of January 2020, Toyota have sold While we look to a zero-carbon future, our current reality
15m more than 15 million hybrid electric
vehicles worldwide since the launch of
Prius in 1997.
is that the majority of our customers continue to choose
vehicles powered by internal combustion. In July 2020,
the Federal Chamber of Automotive Industries (FCAI), of
which we are a member, announced a new industry-led
Approximately 40 hybrid models are reporting system, the FCAI CO2 Emissions Standard, which
now available from Toyota and Lexus sets out industry and brand CO2 emissions reduction
40
in Australia, and even more globally. targets at 2030. We are working to ensure that all our
Over 100 million fewer tonnes of vehicles comply with this standard, and as part of our
CO2 emissions since 1997 thanks to 2019 Mid-term Business Plan we have considered the
worldwide sales of hybrid electric financial implications, risks and opportunities of doing so.
vehicles.
Drivetrain technologies and supporting infrastructure
Conventional Hybrid Plug-in hybrid Battery electric Fuel cell electric
Drivetrain petrol/diesel (HV) (PHV) (BEV) (FCEV)
Infrastructure Petrol stations Electric charging stations Hydrogen
charging stations
Current Emerging Future
22 | Toyota Sustainability Report 201924 | Toyota Sustainability Report 2020 Toyota Sustainability Report 2020 | 25
Hybrid vehicles • Dealer capability: Increasing dealer power to sell
hybrids through dealer training and engagement, Toyota and Lexus hybrid range
Hybrid vehicles combine traditional combustion
engines with electric motors to reduce reliance on CO2 ensuring a hybrid focus with Toyota sales
intensive fuel use. Hybrids offer our customers lower consultants.
fuel costs over the life of the vehicle, while delivering • Customer brand power: We are building consumer
improved performance, and are supported by existing awareness of our hybrid vehicles through
infrastructure and regulations. mainstream media, leveraging key sponsorships with
sport and pop-up events, and putting a focus on PR All-New Yaris Corolla Corolla Sedan
by amplifying hybrid models in launches.
Hybrids obtain energy from petroleum but use an
In April 2019, Toyota celebrated the milestone of
electrical system to improve fuel efficiency.
100,000 Hybrid vehicles sold in Australia. In the same
month we launched our first Hybrid SUV in Australia the
RAV4 joining the Camry Hybrid, Corolla Hatch Hybrid,
Prius, Prius C and Prius V to form the broadest line-
up of electrified vehicles offered by any company in Camry Prius Prius v
Australia. We expect to add more hybrid models by the
end of 2020.
Motor
Current and projected Toyota hybrid sales mix for
Battery Australia
RAV4 C_HR
Engine 40
Fuel 35
Tank
30
25
20
Lexus RX Lexus LS Lexus CT
15
In 2017, Toyota Australia established targets to rapidly
increase hybrid sales. In 2019/2020, we achieved 17%
10
hybrid sales, and are on track to exceed our target of
20% this year. Our aim is to increase this to 40% by 2025.
5
Our approach to achieving our targets is threefold:
0
• Internal leadership: shining a light on hybrids and
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
making it a priority across Toyota, through a top-
Lexus IS Lexus ES Lexus NX
down approach across the whole organisation
and ensuring a strong and consistent message is
current projected
delivered to stakeholders.
Lexus LC26 | Toyota Sustainability Report 2020 Toyota Sustainability Report 2020 | 27
In August 2019, TMCA launched Toyota Hybrid Plug-in vehicles
Toyota hybrid journey
Cavalcade campaign, an Australia-wide series of Plug-in hybrids, supplement hybrid technology with a Battery Electric Vehicle have large battery packs
inspiring and educational events to bring Hybrid to store more energy from the electric power grid
2020
rechargeable battery. Renewable electricity can be used to
technology awareness to life. power the battery for everyday commutes, while a high- for longer range.
efficiency petrol engine enables longer driving range.
The Hybrid Cavalcade made its way through regional
2019
115,000 Toyota
Hybrids sold in Australian towns throughout the year, dispelling
Asutralia
common myths about Hybrid vehicles and providing Plug-in Hybrid Electric Vehicles store energy from
RAV4 Hybrid is information on the critical role these sustainable the electric power grid and can drive partly using
launched Motor
vehicles can play in shaping regional Australia’s electricity and partly using petroleum.
transportation needs.
2017
Approximately 77 million
tonnes of CO2 emissions
saved globally The launch involved events at dealerships and the Battery
Hybrid Cavalcade making appearance at a variety of
2016
Australian sales hit
80,000 and global major regional events as it made its way through rural
sales hit 10 million and regional areas. Each event had a collection of Motor
interactive, fun, educational and engaging activities
Corolla Hybrid is
launched designed to draw people into the Hybrid space, Battery
2014 enabling them to learn more about the Hybrid
technology and its benefits.
Engine
Approximately
2012
49 million tonnes
of CO2 emissions Fuel
Toyota is developing both these technologies but has
saved globally Tank
not yet introduced them into the Australian market.
Prius C and Prius V Public charging infrastructure across Australia has
increased by over 400% since 2017, now comprising
2010
are launched
1,930 electric vehicle charging stations. While this is
encouraging, the nation’s infrastructure, and supportive
Camry Hybrid is Battery electric vehicles (BEVs) are exclusively battery policy, acts as a barrier to the widespread deployment
2008
launched
powered and can produce zero emissions if charged of plug-in and battery electric vehicles, together with
using energy from renewable sources. the higher cost of the vehicles.
Australian sales hit
10,000
In October 2019, Toyota global announced the
2002 launch of an ultra-compact battery electric vehicle,
Global sales hit
2001 Hybrid Cavalcade launch in Townsville
to be available in Japan from late 2020. The next-
generation mobility solution is designed to provide
100,000 short-distance mobility, while limiting impact on
The Prius enters the
Australian market the environment. It is particularly aimed at Japan’s
ageing society, to provide freedom of movement
to people at all stages of life, in line with our aim to
1997 ‘Start your impossible’.
Meanwhile, the Ultra-compact BEV Concept Model
The Prius wins Car
1995
of the Year Japan for Business is designed for business applications
award that include repeated short-distance trips and
The Prius, the world’s parking. The vehicle serves as a ‘mobile office’ with
first mass produced Concept car
three modes to support travelling, working and
hybrid, is launched exhibited at the 1995
in Japan Tokyo Motor Show taking breaks using the vehicle.
Hybrid Cavalcade made its way on-field with a lap around the
ground prior to the NRL game between North Queensland Cowboys
and Brisbane Broncos28 | Toyota Sustainability Report 2020 Toyota Sustainability Report 2020 | 29
Hydrogen fuel cell vehicles participate. Toyota’s Senior Engagement and Education
Fuel cell electric vehicles (FCEVs) are powered by Specialist, Troy D’Souza explained, “Despite the
hydrogen, which can be derived from renewable advanced technology inside the Mirai, it drives just like a
sources. FCEVs are quiet and can be refuelled as quickly traditional vehicle. It is refuelled at a service station site
as a petrol or diesel vehicle. The latest models have a in the same way as a petrol or diesel vehicle, however
range of approximately 500 kms. Like plug-in vehicles, it uses hydrogen gas instead. Currently, our focus is on
they require specific refuelling infrastructure which is yet education and inviting people to our ARENA (Australian
to be developed in Australia. Renewable Energy Agency) supported Hydrogen Centre
in Altona will allow us to show how this technology
Toyota believes that hydrogen offers a compelling works, and how it can benefit communities locally
proposition for the mobility sector. It is highly efficient, and nationally. Visitors to the Hydrogen Centre will be
zero carbon, and emits only water. There are currently given an educational experience into this technology,
no commercially available hydrogen fuel cell vehicles which will provide to clear understanding of the
in Australia. However, Toyota is undertaking Australia’s safety and overall benefits of hydrogen fuel cells. We
first public fuel cell electric vehicle trial, the Mirai are also expanding our Mirai program into Western
Loan Program. The program is aimed to normalise this Australia, with another fleet of Mirai vehicles destined
exciting new technology through “real world” usage. for Fortescue Metals and ATCO Gas later this year.
A fleet of ten Mirai vehicles were available in Victoria This program will also support their own long-term
during 2019/20, providing a great opportunity for Toyota hydrogen projects and transition to zero emissions
to engage with a range of organisations on this new mobility. TMCA sees such work with government,
technology. Moreland City Council, Transurban and the industry and other stakeholders as an opportunity to
Australian Gas Infrastructure Group (AGIG) and many fast-track the development of the renewable refuelling
more organisations have benefitted from participating infrastructure required to support the widespread sale
in this program, with an increasing level of interest to of fuel-cell vehicles.
Fuel Cell Electric Vehicle refuel with hydrogen and
use a fuel cell to produce electricity to propel the
vehicle.
Toyota Hydrogen Centre
Motor
Hydrogen Centre Unfortunately, the Hydrogen Demonstration Plant
As part of our commitment to a hydrogen future, grand opening has been delayed due to COVID-19
Battery
Toyota has been developing a $7.4 million Hydrogen restrictions, however we are focused on maintaining the
Centre at our former manufacturing site in Altona. In interest and building momentum.” The remaining stages
early 2020, we unveiled the first stage, including an of the project will include a hydrogen production and
education facility that demonstrates how hydrogen refuelling centre that will be able to fill a vehicle in just
FC H2 fits into a future of mobility. Troy D’Souza, Senior three to five minutes.
Stack Tank
Engagement and Education Specialist highlighted,
The project is being supported by $3.1 million in
“These initiatives are all about building awareness and
funding from ARENA.
understanding of the technology rather than selling
vehicles. Our aim through these engagement activities Further information on the remediation of the Altona
Cnr Natalie Abboud, Moreland City Council, with the Mirai FCEV
is that we want to expose the technology to the public site can be found on p. 67.
to learn and experience hydrogen fuel cell technology.30 | Toyota Sustainability Report 2020 Toyota Sustainability Report 2020 | 31
Fuel efficiency We acknowledge that petrol and diesel vehicles also
Since vehicles with internal combustion engines still emit air pollutants such as nitrogen and sulphur oxides,
comprise the majority of our sales, we work constantly particulate matter and other hydrocarbons, and we aim
to improve the fuel efficiency of our range. In Australia, to minimise these through design.
we are constrained in this aim by the current fuel
standards.
CHALLENGE 2
TMCA has been working with FCAI on developing tailpipe
Lifecycle zero CO2
emissions standard for industry. Toyota Australia supports
a policy-led move to high-octane, low-sulphur fuel in line
with global standards. We also advocate for emissions
standards to distinguish between passenger cars and light We are working on more environmentally friendly
commercial vehicles as well as off-road SUVs. vehicle designs that use raw materials with lower
emissions. We are designing vehicles with fewer
Our position is that policies for low-emission vehicles
parts. We are making greater use of biomaterials from
should balance:
renewable sources and making our vehicles easier to
• CO2 and pollution reduction dismantle and recycle.
• hoice and support for consumers through
C By 2030, we aim to reduce CO2
25%
appropriate price signals emissions by 25% or more over the
• easonable timeframes to allow manufacturers to
R entire vehicle life cycle, compared
respond to 2013 levels.
Lifecycle zero CO2 emissions
Technological Design Value chain
development collaboration
Woven City, prototype city of the future
Recycling Resource consumption
As a flagship example of our actions to contribute towards a zero-carbon society, Toyota is developing
a prototype ‘city of the future’ at the base of Mt Fuji in Japan. ‘Woven City’ will be a fully connected city,
powered by hydrogen fuel cells.
Disposal Material/Parts production
Envisioned as a ‘living laboratory’, the city will serve as home to full-time residents and researchers who
will be able to test and develop technologies such as autonomy, robotics, personal mobility, smart homes
and artificial intelligence in a real-world environment. People, buildings and vehicles will connect and
communicate through data and sensors. Use Procurement/Logistics
The city looks to demonstrate the infrastructure potential behind developing technologies. The design will
be fully sustainable, with mostly wooden buildings, solar photo-voltaic rooftops, native vegetation and
hydroponics. Residences will be equipped with the latest in human support technologies, such as in-home Sales Vehicle production
robotics to assist with daily living. All vehicles will be fully autonomous and zero-emission, including the
Toyota e-Palette.
The site will initially house 2,000 people, with construction set to commence in 2021.You can also read
