Medium- to Long-Term Energy Conservation and Global Warming Prevention Countermeasures

Transcription

1 Energy/Global Warming Medium- to Long-Term Energy Conservation and Global Warming Prevention Countermeasures Toyota Plug-in HV Energy and global warming issues are some of the most important concerns facing all of humanity, and Toyota recognizes that overcoming these issues will require the transportation sector, which is responsible for 2% of global CO2 emissions, to play a major role. Demand for transportation is increasing globally, exemplified by significant increases in vehicle ownership especially in non-oecd member countries, and continuing increases in total distance traveled. Therefore, achieving sustainable development would not be possible without measures to alleviate global warming. Toyota is actively taking steps to reduce CO2 emissions through energy conservation. In the area of design and development, Toyota will strive harder to improve automobile fuel efficiency globally, develop and introduce next-generation automobiles, and achieve fuel diversification. In the area of production and logistics, Toyota is aiming to create low-carbon production plants by introducing innovative technologies, making continuous improvements, and utilizing renewable energy sources. In other words, Toyota will establish a global management structure and CO2 reduction goals, and take necessary actions in all stages of its operations, from vehicle development, design, production, and logistics, to sales, as well as in all of its business areas. To reduce the CO2 emissions from the road transport sector, it will be important to take a comprehensive approach that will include automobile fuel efficiency improvements, traffic flow improvements, fuel diversification, and efficient use of fuels. The most effective way to bring this about will be to build a framework that encourages the main players related to the government and the private sector to share best practices and work together. Toyota will also actively participate in the activities of the Japan Automobile Manufacturer s Association (JAMA), which is promoting various initiatives in the road transport sector on a global scale. Management Production and Logistics Further reduction of CO2 emissions in Toyota s global operations Promotion of the development of technologies to achieve the best fuel efficiency performance in each country and region Promotion of the development of clean-energy vehicles, and encouragement of their effective introduction to ensure wider market acceptance Development of technologies to respond to the diversification of energy and fuel sources Promotion of initiatives to improve traffic flows using a variety of network technologies Reduction of CO2 emissions in the production and logistics activities of each country and region /Management Global promotion of fuel efficiency improvement While responding to the trend toward energy diversification throughout the world, Toyota plans to also work on helping to solve energy and environmental issues by developing and producing cars that can simultaneously reduce CO2 emissions and make the air cleaner, based on the concept of the right vehicle at the right time in the right place. The many large and small walls shown in the figure represent the issues particular to individual alternative energy sources that must be resolved before they can come into wide use. By energetically working to innovate low-fuel consumption engine technologies, as well as develop and introduce next-generation automobiles such as hybrid vehicles, Toyota seeks to promote further fuel efficiency improvements globally, and achieve top-class fuel Scenarios for Response to Environmental and Energy Issues Hybrid technology Plug-in hybrid technology Light Duty Vehicle (LDV) Ownership Forecast Vehicle ownership (vehicles/1, people) North America OECD Pacific OECD Europe India Eastern Europe OECD members Former Soviet Union countries South America Non-OECD members China Source: WBCSD Mobility 23 (Full Report 24) Other Asian countries Middle East Africa Oil Natural gas Coal Biomass Nuclear energy Hydro, solar, geothermal energy, etc. Electrical storage technology for PHVs and small EVs Electricity generation Gas storage technology (double current volume) Gasification/ synthetic technology Obtain desired properties Hydrogen production Hydrogen storage technology Gasoline and diesel fuel (from conventional oil fields) Build infrastructure Technology utilizing cellulose Infrastructure development Drilling and refining CO2 reduction technology (thermal power station) Gasoline and diesel fuel (from deep-sea oil fields, oil shales, etc.) technology and cost CO2 reduction technology (during production of fuel) Stabilize supply Gaseous fuels Synthetic fuels (GTL/CTL/BTL) Bioethanol/ biodiesel Electrical storage technology for EV Electricity CO2 reduction Hydrogen technology (during hydrogen production) Infrastructure development Internal combustion engine EV FCHV 2

2 efficiency performance in each country and region. Out of the variety of available energy sources, Toyota must select those that can be easily used by automobiles, taking into account current situations and local characteristics, and develop powertrains that can achieve both reductions in CO2 emissions and cleaner exhaust emissions. Toyota will Superior Fuel Efficiency of Hybrid Vehicles in Europe CO2 emission (g/km) Large Japan, North America and Europe 1.2 Prius Camry HV GS45h Vehicle weight (ton) Gasoline Average Fuel Efficiency Trends for Toyota by Region (with a value of 1 assigned to the FY1997 level) Diesel Gasoline hybrid LS6h RX4h Heavy also develop vehicle technologies that will lead to fuel diversification in each region, supporting, for example, biofuels. Toyota is also working on developing technologies for manufacturing cellulosic ethanol, which does not compete with food use, and hydrogen-processed biodiesel, which has the same properties as regular diesel. Toyota s various development and design initiatives have led to steady vehicle fuel efficiency improvements in all regions, increasing the average fuel efficiency of new Toyota passenger vehicles, based on units sold in Japan, Europe and the U.S., by 17.4% between 1997 and 27. In the future, Toyota plans to promote fuel efficiency improvements, in addition to more closely gauging and displaying fuel efficiency values in other regions such as China and India. Furthermore, Toyota is also working on improving traffic flow using ITS technologies, installing the Eco Driving Indicator and Eco Driving Mode Switch to promote environmentally-sound driving practices, and carrying out educational activities such as distributing the Eco Driving pamphlet. Eco Driving Indicator installed inside the meter Eco Driving pamphlet Energy/Global Warming Environmental Aspects Sustainability Report Improvement of 17.4% Japan U.S. U.S. LDV* U.S. LDT* Europe (Model year) *LDV= Light Duty Vehicle, or passenger vehicle ; LDT Light Duty Truck, including SUVs and minivans (Vehicle category of U.S. Automotive Fuel Economy Program) 21

3 Production and Logistics Entire Toyota Group striving to achieve low carbon plants Number of Cars Produced (million vehicles/year) 1 8 Since 1973, Toyota has been actively promoting energy conservation throughout all of its group companies under the slogan, energy saving with full participation, and in 1978 with established of the Energy Division Assembly under the umbrella of the All-Toyota Production Technology Liaisons. Since 1998 when the All-Toyota Global Warming Prevention Council was formed (renamed All-Toyota Production Environment Conference in 2), all Toyota Group companies and affiliates have been taking action to reduce CO2 emissions. Meanwhile, overseas, Toyota developed regional guidelines in FY1997 with the aim of creating medium-term plans, requesting each affiliate to take voluntary action. Since 23, Toyota has worked to establish regional Environment Committees in an effort to strengthen the organizational structures for implementing environmental measures in individual regions, with the goal of creating low carbon plants throughout the world. Beginning with the First Toyota Environmental Action Plan ( ), Toyota established CO2 reduction goals that are reassessed every five years, and is currently proceeding with the Fourth Toyota Environmental Action Plan (26-21). Because the plan s 21 goal (2% reduction in CO2 emissions per unit of sales from the 21 level) was achieved and then surpassed ahead of schedule (32% reduction from the 21 level), Toyota endeavored to achieve the more demanding goal of 35%. At the plant level, all employees are taking a wide range of actions with the goal of improving energy efficiency and preventing increases in CO2 emissions. These actions include developing innovative production technologies, significantly improving productivity (through renovation of old production lines; new compact and streamlined plants; introduction of innovative technologies aimed at saving space, increasing speed, and shortening production process; and efficiency increases achieved by merging lines with reduced production volumes), introducing energy-conserving systems (small boilers, cogeneration systems, waste-heat recovery system, etc.), switching fuels to processed natural gas, and instituting daily improvements to completely eliminate waste (defect reduction, yield increases, work improvements, reduction in power usage during non-operational hours, etc.). Furthermore, Toyota is currently aiming to restrict its total global CO2 emissions from increasing any further, after which it will continue striving to achieve further reductions. With respect to global business activities, since the energy source (oil, coal, nuclear power, hydro, etc.) used to generate electric power varies from country to country, the volume of CO2 emitted in vehicle production also varies, even when the same amount of electricity is used. Production is also increasing in countries where the CO2 conversion coefficient for power generation is greater than in Japan. Taking these conditions into consideration, Toyota is implementing CO2 emissions reduction actions that are suited to the situation in each region CO2 Conversion Coefficient for Power Generation in Various Countries India Australia China Indonesia US Thailand UK Japan Vietnam Venezuela Argentina Japan Canada Brazil France Where power conversion coefficient is greater than in Japan Where power conversion coefficient is smaller than in Japan (t-co2/mwh) Source: CO2 Emissions from Fuel Combustion, 27 edition, IEA, Paris, France Note 1: Takes 21 as the base year for the conversion coefficient Note 2: The power CO2 conversion coefficient for the main production regions are listed; see P.54 for production companies Global Expansion of Sustainable Plant Activities Toyota is strengthening initiatives to reduce CO2 emissions, by for example, globally expanding its sustainable plant activities. Through these activities, Toyota seeks to create plants which make use of the natural environment and achieve harmony with nature by working to implement energy usage reduction, conversion to alternative energy sources, and tree planting at production plants. In terms of reducing energy usage, progress is being made on the development and introduction of low CO2 emitting production technologies. Toyota is striving to achieve significant reductions in the CO2 emissions at each production process through the actions described below. Stamping: Switching to simpler, more compact, energyconserving servo stamping machine Welding: Introducing slim robots to shorten the line length Painting: Switching to 3 wet paint to shorten the booth length and eliminating intermediate-coat drying ovens Assembly: Introducing the parts transfer system that uses SPS 1 and AGV 2 to shorten the line length 1. SPS: Set parts system 2. AGV: Automated guided vehicle 22

4 In the area of renewable energy sources, Toyota has been actively installing photovoltaic power generation systems, including one with a capacity of approximately 2, kw, the largest in the world for an automobile manufacturing plant, installed at its Tsutsumi Plant in March 28. Additionally, with the goal of creating environmentally considerate plants globally, Toyota plans to build model plants in other parts of Asia, North America and Europe. In Focus Participation in the Initiatives Being Promoted by the Entire Road Transport Sector An automobile s CO2 emissions are determined by four factors: catalog-specified fuel efficiency, driving coefficient, CO2 emissions coefficient of the fuel, and the total distance driven. Therefore, in addition to efforts made by automakers to improve their catalog-specified fuel efficiency, it is important for the government and the private sector to jointly work on such areas as improving traffic congestion and driving methods, which can adversely impact the driving coefficient (an expression of both actual driving fuel efficiency and catalog-specified fuel efficiency), switching to low carbon fuels, and efficiently utilizing transport resources through a modal shift. The Japan Automobile Rate of Reduction in Global CO2 Emissions per Unit (%) Rate of reduction in CO2 emissions per unit of sales revenue (%) Reference: Rate of reduction in CO2 emissions per unit of production (%) Goal in the Fourth Plan (21)* More demanding goal (21): 35% reduction* *per unit of sales revenue Manufacturers Association (JAMA) has estimated future CO2 emission levels from the world s combined road transport sector according to two scenarios: one in which the current level of measures is maintained and the other in which more comprehensive measures are implemented globally. The results show that if more comprehensive measures are implemented, the additional measures will have as great an impact on reducing CO2 emissions as fuel efficiency improvements, and that total global CO2 emissions could actually begin to decline starting around 225. Toyota is actively participating in comprehensive measures for the road transport sector through JAMA. Energy/Global Warning Environmental Aspects Sustainability Report 28 CO2 emissions from the road transport sector = [Certified fuel efficiency (km/l)] -1 [Traveling coefficient a ] [CO2 emissions coefficient (gco2/l)] [Total distance traveled (v-km b )] a. Traveling coefficient: the factor used in mathematical fomulae to represent the ratio of on-road fuel efficiency and certified fuel efficiency, based on averages of all in-use vehicles b. v-km: Vehicle-kilometers Estimated CO2 Emissions from the Combined Global Road Transport Sector (MtCO2) 1, (1) Scenario in which the current measures are maintained (2) Scenario in which JAMA-proposed measures are implemented CO2 emissions from the combined global road transport sector (MtCO2) 1, No further measures taken Fuel efficiency improvement No further measures taken Fuel efficiency improvement 8, Biofuels 8, 6, Traffic flow improvement Environmentally considerate driving practices (eco-driving) 6, Biofuels Traffic flow improvement Eco-driving Promotion of vehicle replacement 4, , Source: JAMA 23

5 Promotion of the development of technologies to achieve the best fuel efficiency performance in each country and region All Vehicle Weight Categories Have Continued to Clear 21 Fuel Efficiency Standards Since 25 In FY27, Toyota cleared the 21 Fuel Efficiency Standards in all vehicle weight categories, and the number of gasoline-powered passenger vehicles meeting the 21 Fuel Efficiency Standards reached 91% of total production (an increase of three points from FY26). Of the 12 vehicle series launched or redesigned in FY27, 11 series cleared the 21 Fuel Efficiency Standards. Further Increase in the Number of Vehicles with Fuel Efficient Engines The newly developed 2.-liter, direct-injection, Valvematic engine 3ZR-FAE has been installed in the Noah, Voxy, Premio, and Allion launched in FY27. This new engine employs a mechanism for controlling the intake system based on the lift of the intake valve while keeping the throttle opening constant, by combining the dual VVT-i (Variable Valve Timing-intelligent) with a device for continuously varying the intake valve lift. The resulting combustion efficiency has led to low fuel consumption and high engine performance. The newly developed 2.-liter, direct-injection engine 3ZR-FE installed in some Noah and Voxy models also adopts the dual VVT-i to optimally control the valve timing. Actual Fuel Efficiency of Toyota Vehicles in FY27 and 21 Fuel Efficiency Standards (km/l) Average fuel efficiency of Toyota vehicles in FY27 21 Fuel Efficiency Standards Best fuel efficiency among Toyota vehicles in each category Fuel Efficiency Comparison between Selected Old and New Models (km/l) 2 New model ,16-1,266-1,516-1,766-2,16-2,266 - (Weight category: kg) Models that Meet the 21 Fuel Efficiency Standards among FY27 New Models and those that Underwent Complete Redesign (Passenger Vehicles) Weight category (vehicle weight: kg) 828-1,15 Fuel efficiency standard (km/l) FY27 average fuel efficiency (km/l) Qualifying vehicle series of FY27 new models and those that underwent complete redesign 1,16-1,265 Premio, Allion, ist* 1,266-1,515 Premio, Allion, Corolla Rumion 1,516-1, Noah, Voxy, Vanguard* Mark X ZiO*, Crown* 1,766-2, ,16-2, LS6h 2, LS6h /LS6hL, Land Cruiser *Some vehicles of the qualifying vehicle series may not meet the standards depending on individual models and specifications Note 1:. indicates a category that has achieved the 21 Fuel Efficiency Standards Note 2: Vehicles that achieved the efficiency standards before FY26 are not included Note 3: All fuel efficiency values are based on the Ministry of Land, Infrastructure and Transport s 1-15 Japanese test cycle Old model Valvematic, a valve lift mechanism for new generation engines Expanded Introduction of High-efficiency Transmission Toyota has been gradually expanding the use of the Super Continuously Variable Transmission-intelligent (Super CVT-i), which improves fuel efficiency by increasing the transmission efficiency. The Super CVT-i was adopted in the following eight models launched in FY27: the Premio, Allion, Noah, Voxy, ist, Vanguard, Mark X ZiO, and Corolla Rumion. The Super CVT-i achieves high fuel efficiency by adopting a wide gear-ratio range and a torque converter that can lock up even at low speeds, in combination with integrated engine control. Prius and Lexus GS45h Achieve the New 215 Fuel Efficiency Standards The new Prius and GS45h launched in FY27 became two of the first vehicles to achieve the Japanese 215 Fuel Efficiency Standards, measured in the new JC8 test cycle. These standards, representing a new fuel efficiency goal, were drawn up based on the Japanese Law Concerning the Rational Use of Energy. 1 5 ist (1,5cc) Premio/Allion (1,8cc) Noah/Voxy Crown (3,cc) Land Cruiser 24

6 Premio Voxy Mark X ZiO LS6h Allion ist Corolla Rumion Noah Vanguard Crown Land Cruiser Expanded Use of Eco Driving Indicator; Eco Zone Indicator Also Introduced Since FY26, Toyota has been gradually expanding the use of the Eco Driving Indicator, a feature meant to encourage environmentally sound driving practices. It is hoped that the Eco Driving Indicator, which lights up when the vehicle is being driven in a fuel-efficient manner, will encourage drivers to use environmentally considerate driving practices, thereby contributing to improved fuel efficiency. In FY27, the Eco Driving Indicator was employed in the following eight models: the Premio, Allion, Noah, Voxy, ist, Vanguard, Mark X ZiO, and Corolla Rumion. The Crown adopted the Eco Zone Indicator, which indicates the current throttle opening and the environmentally sound driving range, in addition to the Eco Driving Indicator. Additionally, the LS6h/LS6hL, Premio, Allion, Noah, Voxy, ist, Land Cruiser, Mark X ZiO, IS F, Corolla Rumion, and Crown are equipped with fuel efficiency gauges. Eco Driving Indicator Promotion of the development of clean-energy vehicles, and encouragement of their effective introduction to ensure wider market acceptance Accumulated Total Sales of Hybrid Vehicles Exceeds 1.41 Million Units; 44, Units Sold Alone in FY27 In FY27, Toyota sold 85,268 clean-energy vehicles in Japan, which accounted for 5.5% of all Toyota vehicles sold in the country. Since the launch of the first generation Prius in December 1997, a cumulative total of over 1.41 million hybrid vehicles have been sold worldwide as of the end of March 28. In FY27 alone, 44, units were sold worldwide. In April 28, the Prius reached cumulative total sales of over 1 million units. Launched in the U.S. and Europe in 2, the Prius has been growing steadily in sales. Number of Toyota s Clean-energy Vehicles Sold in Japan Electric vehicles Hybrid vehicles CNG vehicles Total Percentage relative to all Toyota vehicles sold FY , ,25 2.4% FY24 FY25 FY26 Cumulative Number of Hybrid Toyota Vehicles Sold Worldwide (Thousand vehicles) 1,5 1,41, 1,4 1,29, 1,3 1,2 1,1 1, (year) (March end) 64, , % 57, , % 81, ,324 5.% FY27 85, , % New Hybrid Lexus LS6h and LS6hL Launched In May 27, Toyota launched its hybrid Lexus sedans, the LS6h and LS6hL. These vehicles adopted the world s first hybrid system combining a newly developed V8, 5.-liter engine and a high-output motor with an innovative full-time AWD system. The high-output motor is coupled with a two-stage motor speed reduction mechanism, making it possible to operate across a wide band of speeds from low to high within the motor s efficient range. These vehicles also employ regenerative brakes on all four wheels. Coordinated control of the front and rear wheels regenerative and hydraulic braking increases the energy recovery rate during deceleration and braking, cutting fuel consumption and helping to significantly reduce CO 2 emissions. Energy/Global Warming Environmental Aspects Sustainability Report 28 25

7 Test Drive Sessions of Plug-in Hybrid Vehicle Held In July 27, the Toyota Plug-in HV became the first Japanese plug-in hybrid vehicle to obtain official certification for operation on public roadways from the Japanese Ministry of Land, Infrastructure and Transport. The batteries of a plug-in hybrid vehicle can be recharged by connecting to an external power source, giving it a longer electric motor-only cruising range, and thereby enabling the reduction of CO 2 emissions. In conjunction with the official certification, Toyota invited reporters to participate in test drive sessions. Toyota Plug-in HV Toyota Environmental Forum Held: What We Can Do to Create a Low Carbon Society Toyota held the Toyota Environmental Forum at MEGA WEB on June 11, 28. Toyota announced its action plan for contributing to the creation of a low carbon society in the research and development, manufacturing, and social contribution activity fields. Since its foundation, Toyota has conducted its business based on the guiding principle of contributing to the development of a prosperous society through the manufacture of automobiles, said TMC President Katsuaki Watanabe, speaking at the Toyota Environmental Forum in Tokyo, where the action plan was unveiled. Toyota seeks to combine the power of people and technology to help create a society that maintains a balance between economic growth and environmental preservation. Toyota also announced upward revisions of its CO 2 reduction goals for FY21 and the establishment of the Battery Research Division to develop next-generation batteries. In Focus Prius Sales Top 1 Million Units In April 28, the cumulative sales volume of the Prius exceeded 1 million units. Launched in Japan in December 1997 as the world s first mass-production hybrid vehicle, the Prius has since been sold in other countries as well. The sales volume of the Prius has been growing steadily, exceeding a cumulative total of 1, units in 22 and 5, units in 25. Even the Toyota employees who had been involved in the development of the hybrid vehicle were surprised and ecstatic about these sales results, achieved despite the prevailing notion that it would be impossible to sell a high volume of hybrid vehicles. These employees also feel very proud of the fact that the vehicle they created is helping protect the environment. They are also becoming aware of the desire to convey the reliability of the Hybrid Synergy Drive throughout the world, and to utilize hybrid technologies to continue developing vehicles that excite customers. First Generation Prius Promotion of initiatives to improve traffic flows using a variety of network technologies From left: Masatami Takimoto, Executive Vice President; Takeshi Uchiyamada, Executive Vice President; Katsuaki Watanabe, President; Dr. Takao Kashiwagi, Professor, Integrated Research Institute, Tokyo Institute of Technology FCHVs Put to Use in Actual Commercial Delivery Operations Since April 27, Toyota has been a participant in the Japan Hydrogen & Fuel Cell Demonstration Project organized by the Ministry of Economy, Trade and Industry. With cooperation from Yamato Transport Co., Ltd., the Toyota FCHV began operating on public roads in and around the Central Japan International Airport (Centrair). The Toyota FCHV being used in the project has been registered as a commercial transport vehicle and loaned to Yamato Transport, which uses the vehicle in actual delivery operations between the company s Tokoname Shinkai Distribution Center and Centrair. Toyota will make use of data collected through such commercial operations to make fuel cell hybrid vehicles more viable. Traffic Information Monitoring Begins in Beijing In May 28, Toyota began monitoring and evaluating a car navigation system that is compatible with a traffic information service in Beijing, China. This navigation system, developed in cooperation with the Beijing Transportation Information Center (BTIC) and Cennavi Technologies Co., Ltd., can display RTIC*-based traffic information on car navigation systems. Currently, evaluation and monitoring is being carried out in preparation for launching the full-scale service. The newly developed system allows real-time traffic information obtained from BTIC s probe car information system to be delivered to car navigation systems by Cennavi using radio waves. Drivers can check the traffic conditions of any road on a map and search for the route that best avoids congested areas. This will be the first onboard device manufactured by an automaker compatible with a traffic information service to be provided in China. * Real-time Traffic Information of China 26

8 Production and Logistics Reduction of CO 2 emissions in TMC s production activities FY27 CO2 emissions reduction goal in the production area Reduce total CO 2 emissions volume per year to 1.66 million tons or less Reduction of CO 2 Emissions from Stationary Emission Sources In the production area, Toyota established a combined CO 2 emissions reduction goal for production and non-production sites, such as offices, and initiated several reduction activities. The measures implemented in FY26, described below, had a significant impact, achieving the reduction goal by helping to reduce total annual emissions to 1.58 million tons. Toyota plans to continue implementing CO 2 emissions reduction measures, such as introducing energy-conserving devices during plant upgrades, simultaneously promoting the introduction of technology being produced on an experimental basis at sustainable plants (see pages 6 and 7 for details). Key Measures that Were Effective in Reducing CO 2 Emissions Implementation site Calorific Energy Use Ratio at TMC Coke 1.1% LPG 2.2% Heavy oil A 6.2% CO 2 Emissions (Energy Sources) at TMC Production and Nonproduction Bases in Japan, and CO 2 Emissions per Sales Unit (Million tons) 2.4 CO2 emissions (energy sources) Myochi Plant Shimoyama Plant Shimoyama Plant Natural gas 28.8% Implemented measure Introduction of natural gas cogeneration system Switching of gas turbine fuel (from heavy oil to natural gas) Production line consolidation (ZZ engine, Line No. 3) (Tons/billion yen) 5 Total CO2 emissions from non-production areas Total CO2 emissions from production areas 4 CO2 emissions per sales unit Reduction volume (thousand tons) Kerosene.2% Electricity 61.5% 1.58 Note 1: For facilities in non-production areas for which FY199 emissions data is not available, the oldest subsequent data available is used for the graph Note 2: CO2 emissions volume covers both production and non-production divisions (excluding employee benefit facilities) CO2 emissions per sales unit Expanded Use of New Energy Toyota is energetically introducing new energy sources such as natural gas cogeneration. In FY27, the amount of electricity generated using new energy sources was 432,MWh, accounting for approximately 16% of Toyota s total electricity consumption. Use of New Energy by TMC (Thousand MWh) Note: Data for previous years has been revised due to a change in the calculation method In Focus Purchase of Green Power Toyota has concluded a Green Power Certification System agreement with Japan Natural Energy Company Limited, based on which it used 1.85 million kwh of wind-generated power in FY27. Toyota Receives the Minister s Prize from the Ministry of Economy, Trade and Industry for Reducing Energy Loss in Heat Treatment Processes Energy loss reduction activities at the Myochi Plant were awarded the Ministry of Economy, Trade and Industry s Minister s Award for the 27 Commendations for Outstanding Achievements in Energy Conservation. This is the second consecutive year that Toyota has won this award. The Myochi Plant, one of Toyota s leading unit plants, has won the Director-General s Prize from the Agency for Natural Resources and Energy three times for its energy conservation measures in casting and mechanical processes. The plant s measures to reduce energy losses in heat treatment processes were the subject of considerable praise. On the plant s lines for manufacturing mechanical parts, heat treatment processes consume the largest amount of energy, accounting for 27% of the total. The plant applied statistical quality control (SQC) methods to differential gear heat treatment processes to conserve energy by reducing the time needed to change heat treatment conditions, an area in which it had been difficult to implement measures in the past. The same heat treatment method was adopted for two different parts, eliminating energy losses resulting from changing the heat treatment conditions. In addition to promoting further energy conservation initiatives, the Myochi Plant plans to propagate these initiatives to other plants and sites within the Toyota Group Energy/Global Warming Environmental Aspects Sustainability Report 28 Award Ceremony during Energy Conservation Month 27

9 Production and Logistics Reduction of CO 2 emissions in the logistics activities in each country and region Emissions Reduction Goal Achieved through Logistics Efficiency Improvement In FY27, increases in production at distant plants (in Kyushu and Tohoku) would have increased Toyota s total CO 2 emissions by 11% from the previous year to 492, tons. However, by expanding the use of trains for shipments bound for Tohoku and Hokkaido, improving logistics efficiency by consolidating the ports used for marine transport, and making fuel efficiency improvements in cooperation with transport companies, Toyota was able to restrain this increase by 39, tons. As a result, total CO 2 emissions from logistics activities in FY27 were 453, tons, an increase of only 2% from FY26. CO 2 Emissions Volumes in Logistics (Japan) (Thousand tons) Reduction 39 Initial estimate FY27 CO2 emissions reduction goal in the logistics area Reduce CO 2 emissions volume to 483, tons or less In Focus Logistics Efficiency Improvement through Port Consolidation In the past, Toyota shipped vehicles produced in Toyota City and the Kansai region from the Kinuura Port to the Kanto region and from the Nagoya Port to other regions. However, by securing a vehicle yard at Nagoya Port, Toyota was able to consolidate Kanto-bound shipments there as well. This improvement shortened land and marine transportation distances as well as marine voyage time. The resulting increase in ship scheduling efficiency allowed Toyota to reduce its fleet requirement by one entire ship, which translated into a CO 2 emission reduction of 6,7 tons in FY27. Kansai Approx. 211 km Nagoya Kinuura Toyota Approx. 33 km Before improvement (includes shipments from Kinuura Port) Tahara Routes are served by Kanto 5 ships (Tahara Nagoya Kinuura Kanto: 585 km) Kansai Nagoya Approx. 177 km Kinuura Toyota Approx. 29 km Tahara Routes are served Kanto by 4 ships (Tahara Nagoya Kanto: 532 km) After improvement (shipments consolidated to Nagoya Port) Note 1: See P.54 for the CO2 conversion coefficient results Note 2: The CO2 conversion coefficient has changed for FY27 Note 3: Data for previous years has been recalculated to correct a previous error in the CO2 calculation Creation of Structures to Calculate and Determine CO 2 Emissions Worldwide Since FY24, Toyota has been promoting the creation of structures to calculate and determine CO 2 emissions volumes at overseas affiliates. In FY27, Toyota completed establishment of these structures and began monitoring emission volumes. In FY28, Toyota will successively set reduction goals for overseas affiliates based on their actual emissions volumes, and promote reduction initiatives. Toyota is also proceeding with calculating and determining CO 2 emissions volumes accompanying intra-region marine transport, and in FY27 completed emissions assessment for shipments leaving Japan. In FY28, this initiative will be expanded to cover transport that occurs between other regions. Results of CO 2 Emissions Reduction Activities Shift to a mode of transport with low CO2 emissions per unit Scope of CO 2 Emissions Calculations in TMC Logistics Within Japan Directly-shipped products Production parts Completed vehicle Parts distributor In-house in Japan production plant (assembly unit) Completed vehicle Service parts Production parts Logistics center (Packaging plant) Imported parts Scope of initiatives Current Promote enhancement of the management system Overseas Topic Product Details Reduction in CO2 Modal shift Use of large ships Production parts Service parts Completed vehicles Supplier Body manufacturer Parts center Completed vehicle Expanded railway transport for shipping parts to the Iwate Plant of Kanto Auto Works Switched to marine transport for shipping parts to the Iwate Plant of Kanto Auto Works Switched to railway transport for shipping parts to Toyota Hokkaido Parts Distributor Co., Ltd. Began using large, high-efficiency ships on the Kyushu and Tohoku routes Customer Japanese dealer Shipping port Unloading port Customer Overseas distributor Logistics center Supplier Plant 7,6 tons/year 2,8 tons/year 1,3 tons/year 4,2 tons/year Reduction of total transportation distance Reassessment of routes, etc. Completed vehicles Production parts Improved transport efficiency by consolidating shipments that used to leave from Kinuura Port, at Nagoya Port Promoted local procurement of parts for Toyota Motor Kyushu, Inc. 6,7 tons/year 3, tons/year Improvements in fuel efficiency All products Further promoted eco-driving through driver education, etc. Other Total reduction in CO2 emissions 5,7 tons/year 7,8 tons/year 39, tons/year 28

10 Global Production Environment Data (CO2) Toyota has set the goal of reducing global Toyota CO 2 emissions per sales unit by 2% compared to FY21 by FY21, and consolidated affiliates in Japan and overseas have been vigorously implementing measures to increase production and save energy, reducing consumption of electricity, gas, fuel oil and the like. As a result, Toyota achieved this goal ahead of schedule and has set an even more challenging goal (see pages 17 19). As such, Toyota plans to continue striving to make further improvements. Examples of Overseas Initiatives Launch of Toyota s First-ever Flex Fuel Vehicle Brazil Toyota do Brasil (TDB) In May 27, TDB launched Toyota s first-ever flex fuel vehicle (FFV). It is a next-generation vehicle that runs on gasoline, ethanol or any combination of the two. In Brazil, where sugarcane production is widespread, development and production of bioethanol began in the 197s, and currently FFVs represent 83% of all newly registered vehicles in the Brazilian market. TDB has launched the locally produced Corolla Flex and the Corolla Fielder Flex, which can both be run on 1% bioethanol. Because ethanol contains water, it was necessary to rust-proof metal parts. Special attention also had to be paid to protect the rubber parts from deterioration. In addition, a new cold start system was created to ensure that the vehicles can be started on cold days. In developing this system, TDB and TMC exchanged information regarding ethanol usage and engine parts, and CO 2 Emissions Volumes Total CO2 emissions (Million tons) Emissions per sales unit (Tons/billion yen) The rest of Asia, Australia, the Middle East, South Africa, and South America Europe China North America Japan (excluding TMC) TMC Note 1: Includes 12 companies including TMC and consolidated companies in Japan and overseas Japan: Consolidated subsidiaries listed in Groups 1-5 on P. 53 (including sub-subsidiaries; excluding Toyota Tsusho) Overseas: Production companies and production/sales companies listed on P. 54 (excluding TMMR (Russia)) Note 2: For those companies that FY21 data could not be determined, the oldest subsequent data is used Note 3: Affiliates in China have been included since FY25 Note 4: The CO2 conversion coefficient has been calculated with reference to the GHG Protocol (see P. 54) established a special development team. The team developed technology to ensure that the engine would start on cold days in the same way as a regular gasoline engine. In the period from the launch until April 28, approximately 35, of these FFVs have been sold, with an additional 35, expected to be sold by the end of the year Members of the TDB s FFV development team Energy/Global Warming Environmental Aspects Sustainability Report 28 Implementing more than 4 Energy Reducing Projects Employing Suggestions from Energy Usage Reduction Contest Thailand Toyota Motor Thailand (TMT) Inspired by TMC s Global Environmental Award, TMT took on the challenge to reduce energy consumption and held the Energy Usage Reduction Contest in 26. This contest stimulated and raised awareness for the environment by all employees working at the four plants of TMT under environmental management. As a result, in 26 and 27, TMT has initiated more than 4 energy usage reducing projects in both production and non-production areas, such as on production lines, in logistics and in administrative offices. The most effective improvement was the replacement of an air-cooling air conditioning system in the painting process to a shower type. Also in the painting process, pre-heated air from an oven was used to reduce energy consumption when drying the paint. The Energy Usage Reduction Contest evaluated suggestions directly from production lines 29