Environmental Management
Initiatives toward Nature Positive / CNCENP Integrated Strategy
The Toyota Tsusho Group aspires to be a "Leading Circular Economy Provider" and, through its businesses, contributes to carbon neutrality and nature positive initiatives, passing on a better Earth to the children of the future.
Toyota Tsusho Group Environmental Policy
Based on our mission of "passing on a better Earth to the children of the future", the Toyota Tsusho Group has established the Toyota Tsusho Group Environmental Policy and takes action to respond to climate change, preserve forests and biodiversity, curb the use of resources and energy, use water effectively, and reduce water consumption in areas experiencing water stress.
The establishment and revision of this policy is approved by the Sustainability Management Committee, chaired by the Representative Director, President and CEO, and the results were reported to the Board of Directors meeting.
To pass on a better Earth to the children of the future, we promote carbon neutrality, circular economy, and nature positivity in an integrated manner as a good corporate citizen, strive to solve environmental issues, and help create a sustainable society.
1. Compliance
1-1. Compliance with Laws and Regulations
Toyota Tsusho Group complies with international declarations, conventions, treaties, and the laws and regulations of the countries and regions where we operate, as well as other industry standards. In addition, we conduct due diligence to identify and appropriately address potential environmental risks when expanding our business through mergers and acquisitions.
2. Environmental Initiatives
2-1. Addressing Climate Change
Toyota Tsusho Group contributes to the transition to a decarbonized society by utilizing clean energy, such as renewable energy, and innovative technologies to reduce greenhouse gas emissions from vehicles, factories, and plants. We aim to achieve a carbon-neutral society in line with the Paris Agreement by promoting emission reductions not only in our own business activities but also across the entire supply chain.
- Realization of Carbon Neutrality
We aim to reduce greenhouse gas emissions by up to 50% for Scope 1 and 2, and by up to 27.5% for Scope 3, by 2030 compared to 2019, and to achieve net-zero emissions (Scope 1, 2, and 3) across our entire value chain by 2050.
- Investment Stance on Fossil Fuel-Related and Green Energy Businesses
We will not make new investments that lead to fossil-fuel expansion and will proceed to withdraw from existing coal, heavy oil, and gas-fired power generation businesses, while strengthening investments in green energy.
- Adaptation to Climate Change
We use technologies that adapt to future climate change to ensure the continuity of our business.
2-2. Water Resource Management
Toyota Tsusho Group manages the followings for the sustainable procurement of water resources in our operations and along the upstream and downstream value chain:
- Reduction of water withdrawal and consumption in direct operations in regions with high water scarcity risks
- Appropriate discharge water treatment and water recycling
- Design and provision of products and services that use less water
- Provision of safe water and hygienic toilets
2-3. Efforts to Achieve Biodiversity and Nature Positivity
Recognizing that natural capital-including biodiversity-is a prerequisite for the continuation of corporate activities, the Toyota Tsusho Group work towards no-deforestation, no-conversion of natural ecosystems, and no development on peatlands. We also collaborate with stakeholders on a global and long-term basis to conserve biodiversity on land and underwater. Furthermore, we conduct risk assessments for both new and existing businesses and ensure appropriate responses in line with the mitigation hierarchy and traceability. Through these efforts, we aim to conserve biodiversity while conducting business activities in alignment with the Kunming-Montreal Global Biodiversity Framework and help achieve nature positivity.
2-4. Control, Reduction, and Elimination of Air Pollution, Water Pollution, and Soil Contamination
Toyota Tsusho Group identify impacts, risks, and opportunities related to air pollution, water pollution, and soil contamination, and strive for their prevention and management. We also set our own standards at 80% or less of the standard values defined by environmental laws and ordinances, and through daily management and internal audits, we ensure compliance. In addition, we work to prevent and mitigate the impact of water pollution by properly treating wastewater resulting from business activities and reducing the use of water-polluting substances. We also verify the implementation status throughout the entire value chain. While preventing incidents and emergency situation, in the event of such issues, we quickly control and minimize their impact on people and the environment.
2-5. Chemical Substance Management
Some substances used in industrial products may cause environmental pollution or health hazards. Toyota Tsusho Group complies with various regulations regarding the use and management of these hazardous substances, minimizes their use, and progressively phases them out.
2-6. Resource Circulation and Waste Management
Toyota Tsusho Group helps creates of a circular economy through the effective use of resources and the reduction of waste. We promote circular business models that reuse waste as resources, such as recycling scrap from end-of-life vehicles and factories, securing resources from urban mines, and reusing used cars and parts. We actively promote environmentally friendly businesses in cooperation with suppliers and related companies, helping to create of a sustainable society. We also strive to reduce the use of natural resources in our own business activities and work towards substituting them with recycled resources. By circulating resources, we suppress the generation of waste.
3. Stakeholder Engagement
3-1. Establishment of Environmental Management Systems
Toyota Tsusho Group implements environmental conservation activities through the establishment of environmental management systems, and aims for continuous improvement through reviews and use of creativity.
3-2. Environmental Education
Toyota Tsusho Group educates all employees and external stakeholders about our environmental policy through initiatives such as briefings. By sharing the impact of our business activities on the environment and issues and measures related to energy use, we aim to enhance environmental awareness.
3-3. Collaboration and Cooperation with Society
Toyota Tsusho Group promotes understanding through dialogue with local residents, indigenous peoples, institutional investors, and NPOs, and strengthens stakeholder engagement and capacity building on environmental issues by deepening our endorsement and collaboration with initiatives. We will not provide funding towards climate-denial activities or lobbying activities against climate regulations.
3-4. Information Disclosure
Toyota Tsusho Group regularly discloses information on environmental performance and environmental issues and shares it widely with society.
3-5. Addressing the Multifaceted Nature of Environmental Issues
Toyota Tsusho Group carefully evaluates expected synergies and trade-offs when addressing environmental issues and proceeds with initiatives considering the multifaceted nature of environmental challenges.
Toshimitsu Imai
President & CEO
Formulated in January 2000
Revised in July 2025
Environmental Management Promotion Structures
Under the supervision of the Board of Directors, the Toyota Tsusho Group promotes environmental management through the Sustainability Committee, the Safety and Environmental Conference, and the Carbon Neutrality Promotion Meeting.
The Sustainability Committee makes decisions based on status reports regarding initiatives addressing overall ESG-related materiality. The Safety and Environmental Conference reviews the progress of environmental targets and compliance with laws and regulations, while the Carbon Neutrality Promotion Meeting focuses on initiatives related to climate change issues. Under this cross-functional environmental management promotion structure, decisions are made through discussions from various perspectives and are reflected in the business strategies of each sales division.
In addition, the Toyota Tsusho Group has introduced an environmental management system. In Japan, the system conforms to ISO 14001 standards, while overseas operations are managed based on an internally developed Environmental Management Rulebook - a set of voluntary standards. Each company identifies its environmental issues and implements the PDCA cycle to continuously improve its environmental management practices.
The Toyota Tsusho Group holds an annual Global Safety & Environmental Promotion Meeting to report on the Group's environmental conservation activities, communicate changes to laws and regulations, and to share information. As far as environmental accidents are concerned, a Safety Management Enhancement Committee-attended by executives-is held once a month, and reports of case studies and countermeasures are shared to prevent reoccurrences.
The Toyota Tsusho Group passed its ISO 14001:2015 certification renewal audit in 2025, and its current certification is effective until December 31, 2027.
The number of Group business subsidiaries that have acquired ISO 14001 certification stands at 204, of which 160 subsidiaries acquired the certification for their manufacturing sites (representing an acquisition ratio of 89.3% among manufacturing sites).
In addition, even for companies that have not obtained ISO 14001 certification, all manufacturing sites have introduced environmental management based on the Environmental Management Rulebook-a set of voluntary standards-and have established an audit and verification system reflecting these standards (representing an introduction ratio of 100% among manufacturing sites).
Initiatives to Reduce Our Impact on the Environment
For our current business framework, we quantitatively evaluate the degree of risk of environmental pollution being caused by our business operations including all equipment and the level of worksite control to reduce our risk of environmental pollution. We also evaluate our adherence to environmental laws and regulations every six months and implement double checks on legal observance for key issues through internal and external audits.
For any new investment projects, we make efforts to conserve the environment and reduce our impact on it by investigating and evaluating the possible environmental effects of such investment in advance.
Toyota Tsusho assesses and discloses the following.
| Toyota Tsusho (non-consolidated) | Japanese Group Companies | |
|---|---|---|
| First-party audit (internal) | 35 departments | - |
| Second-party audit (internal) | - | 23 companies |
| Third-party audits (external) | 35 departments | 33 companies |
In addition, we broadly collect data on energy efficiency, such as GHG emissions and energy consumption, as well as on the efficient use of water, such as water withdrawal and water consumption, from Group companies in Japan and overseas. By analyzing and evaluating this data, including making year-on-year comparisons, we identify opportunities to improve energy performance and work to conserve the environment and reduce our environmental impact.
Environmental training and environmental awareness
1.Raising employees' environmental awareness
We use e-learning and Environment Month to raise the environmental awareness of employees of the Company and Group companies. E-learning programs on ISO 14001 standards and the environment are available on the Group intranet, Specifically, those focus on a wide range of environmental issues such as the Toyota Tsusho Group's Environmental Policy, various environmental laws and regulations including biodiversity, water resource and waste reduction to help employees enhance their environmental knowledge and awareness.
| Contents | Implementation period | Number of participants |
|---|---|---|
| Revision of the Toyota Tsusho Group's Environmental Policy | December 2024 to March 2025 | 3,443 persons |
| Biodiversity Course | April 2024 to March 2025 | 246 persons |
| Environmental Laws and Regulations Course (Industrial Waste, Fire Service Act, Act on Rational Use and Proper Management of Fluorocarbons, Soil Contamination Countermeasures Act) | April 2024 to March 2025 | 1,122 persons |
2.Human resources development for environmental management promotion
In Japan, the Group undertakes environment management through environmental management systems compliance with ISO 14001 and holds various e-learning for Group employees.
| Contents | Number of participants |
|---|---|
| ISO seminar for executives | 454 persons |
| Pre-assignment training for new expats (environmental preservation) | 56 persons |