Environmental Management
Toyota Tsusho Group Environmental Policy
Based on our Corporate Philosophy of "living and prospering together with people, society and the globe," 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.
In order to pass down a better global environment to the children of the future, as a responsible corporate citizen, we promote environmentally considerate business activities, work to solve environmental issues, and contribute to the realization of 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. Address for Environmental Issues
2-1. Response to 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 reduce greenhouse gas emissions (Scope 1, 2) up to 50% compared to 2019 and work towards achieving carbon neutrality by 2050, in accordance with our "Carbon Neutral Roadmap 2030."
- 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 wastewater treatment and water recycling
- Design and provision of products and services that use less water
- Provision of safe water and hygienic toilets
2-3. Response to Biodiversity
Toyota Tsusho Group, recognizing that biodiversity is a prerequisite for the continuation of corporate activities, work towards no-deforestation, no-conversion of natural ecosystems, and no development on peatlands by target dates. We also collaborate with stakeholders on a global and long-term basis to conserve biodiversity on land and underwater. Furthermore, we conduct risk assessments through business creation and activities, ensure traceability, and aim to balance biodiversity conservation with business activities in line with the Kunming-Montreal Global Biodiversity Framework.
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 contributes to the realization 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, contributing to the creation 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.
Environmental Management Promotion Structures
The Toyota Tsusho Group's environmental management systems conform to ISO 14001 standards in Japan outside Japan, the systems are operated and managed in accordance with the Group's environmental management rulebook - a set of voluntary standards. Both in Japan and overseas, the Group implements regular internal audits with the aim of improving its standards of environmental management. The Toyota Tsusho Group holds an annual Global Safety & Environmental Promotion Meeting to report on the Group's environmental conservation activities, discuss 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.
Environmental risks including climate change, biodiversity, preservation of forests, and water issues are discussed by the Sustainability Management Committee, which is chaired by President&CEO, and matters that meet certain conditions are reported to the Board of Directors for consideration of responsive measures.
The Toyota Tsusho Group passed its ISO 14001:2015 certification renewal audit in 2023, and its current certification is effective until December 31, 2024. The number of Group business subsidiaries that have acquired ISO 14001 certification stands at 70 in Japan and 139 outside Japan, accounting for approximately 27% of all subsidiaries.
In addition, for companies that have not obtained certification but which we deem necessary, we practice environmental management based on the environmental management rulebook (voluntary control standard), accounting for approximately 29% of all subsidiaries.
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) | 33 departments | 21 companies |
| Second-party audit (internal) | - | - |
| Third-party audits (external) | 33 departments | 24 companies |
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 (Toyota Tsusho Group’s Environmental Policy, Biodiversity Guidelines, enforcing energy conservation) are available on the Group intranet to help employees learn about environmental issues (problems).
| Contents | Implementation period | Number of participants |
|---|---|---|
| Principles for Energy Conservation Promotion | April 2023 to March 2024 (6 times a year) | Average of 3,800 persons（Total 23,000 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 | 326 persons |
| Pre-assignment training for new expats (environmental preservation) | 53 persons |