Toyota s s 5 year Environmental Action Plans: a case study

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Jeffry Carson
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1 Toyota s s 5 year Environmental Action Plans: a case study Environmental Preservation is a valid business case Miltos Tsoskounoglou/Toyota Hellas 1

2 The environmental challenges facing automakers Miltos Tsoskounoglou/Toyota Hellas 2

3 Climate Change is a major concern for society (perhaps the biggest challenge of all! ) Miltos Tsoskounoglou / Toyota Hellas 3

4 Transport is highly exposed as it is almost totally dependant on fossil fuels Lack of diversification of energy sourses for transport: - No available Plan B - Very sensitive to oil price changes Billion Tonnes Oil Equivalent Coal Gas Biomass & waste Hydro & Wind Oil Electricity Nuclear Other 1 0 Industry Transport Residential Power Generation Source: IEA, WEO 2008 Miltos Tsoskounoglou / Toyota Hellas 4

5 The rapid global increase in vehicles, will Source: Handbook of automotive industry 1999 Miltos Tsoskounoglou / Toyota Hellas 5

6 . further increase CO 2 emissions Definitely, we must do something about it! CO 2 density (ppmv) Industrial Revolution 450 ppm EU target (~2 Celsius) 379 ppm (2005) 280 ppm Source: IPCC report 2007 Miltos Tsoskounoglou / Toyota Hellas 6

7 Trasport is perhaps the hardest nut to crack EU 2007 vs 2006 emissions EU 2007 CO 2 equivalents emissions Transport Power & Heat Petroleum Cement Commercial Iron, Steel Residential Other Manufacturing Total CO Petroleum refining 4% Cement 2% Commercial 5% Residential 12% Iron, Steel 2% Manufacturing 15% Others 8% Power & Heat 29% Transport 23% Mt CO 2 Source: European Environment Agency Miltos Tsoskounoglou / Toyota Hellas 7

8 No wonder that the EU puts pressure on the transport sector with an Energy & Climate Change Package with legislated targets Energy crisis Temperature increase EU Climate Change Package % Renewable energy 20% Energy consumption reduction 20% GHG emissions reduction Miltos Tsoskounoglou / Toyota Hellas 8

9 Furthermore, Gap Between when Oil Discovery we consider and Production oil production, there is a real posibility of reaching peak oil in the near future 60 Prediction Billions of barrels/year Discovery Production Peak oil year Miltos Tsoskounoglou / Toyota Hellas 9 Reference:

10 This has a big impact on business, therefore Toyota must address these issues World Business Council for Sustainable Development Miltos Tsoskounoglou / Toyota Hellas 10

11 Facing the challenges through Environmental 5 year action plans a. Our whole Life Cycle approach Miltos Tsoskounoglou/Toyota Hellas 11

12 Toyota addresses these challenges throughout its business with its whole Life Cycle approach Miltos Tsoskounoglou / Toyota Hellas 12

13 In Product Design & Development.. 1. Product Design & Development Miltos Tsoskounoglou / Toyota Hellas 13

14 We are drastically reducing CO 2 emissions in existing models through technical innovation Legally required limit CO 2 Fleet Average -45% Miltos Tsoskounoglou / Toyota Hellas 14

while at the same time evolving new technologies to use

diversity Ultimate Eco-Car CO 2 reduction Hybrid

Biofuels Synthetic fuels Electricity Hydrogen The right

15 while at the same time evolving new technologies to use new energy sources (many routes to choose from ) Energy diversity Ultimate Eco-Car CO 2 reduction Hybrid technology Air quality Gasoline, diesel Gaseous fuels Biofuels Synthetic fuels Electricity Hydrogen The right car, the right place, the right time Miltos Tsoskounoglou / Toyota Hellas 15

16 Strategic choice for Toyota: Hybrid Technology (with applications in many future technologies) Using hybrid technology for PHEV, EV and FCHEV HEV Engine Fuel tank Motor PHEV EV FCHEV Battery Engine Motor Engine Motor Engine FC stack Motor Fuel tank Fuel tank H 2 tank Battery Battery Battery Miltos Tsoskounoglou / Toyota Hellas 16

17 Prius full hybrid heavy investment in hybrid technology (600 patents) launched in 1997 top selling hybrid globally currently top selling model in Japan ~50% of all hybrids worldwide are Prius Miltos Tsoskounoglou / Toyota Hellas 17

18 Toyota global hybrid sales are taking off Units 2,500,000 2,000, million 1,500,000 1,000, , Our aim: 1 million hybrid sales per year, early 2010s 1 hybrid option in every model, early 2020s Miltos Tsoskounoglou / Toyota Hellas 18

19 Efforts to date have significantly improved CO 2 performance H H1 09 (g/km) g/km -9% H g/km g/km Source : JATO - 21 countries Note : All figures are volume-weighted Miltos Tsoskounoglou / Toyota Hellas 19

20 At the same time, lot s of progress has been made to lower exhaust emissions and to improve air quality Miltos Tsoskounoglou / Toyota Hellas 20

21 In Production.. 2.Production Miltos Tsoskounoglou / Toyota Hellas 21

surroundings Sustainable Plant: TMUK 1 Renewable Energy 2 Planting trees on & around Sites

22 Toyota is transforming its existing plants into sustainable plants with benchmark performance Using the least natural resources whilst existing in harmony with the natural surroundings Sustainable Plant: TMUK 1 Renewable Energy 2 Planting trees on & around Sites 3 Leading- edge Environmental Performance Sustainable Plant: TMMF Miltos Tsoskounoglou / Toyota Hellas 22

Toyota Plants are Clean, Lean and Green Clean, Lean & Green Reach top level environnemental performance in each country Aim for the top level of environmental activity (Voluntary actions) Compliance

23 Toyota Plants are Clean, Lean and Green Clean, Lean & Green Reach top level environnemental performance in each country Aim for the top level of environmental activity (Voluntary actions) Compliance with laws (Proactive preventive measures) All 8 Toyota plants in Europe have ISO All plants have zero waste to landfill TMUK plants in Burnaston and Deeside Miltos Tsoskounoglou / Toyota Hellas 23

24 Energy use & CO 2 emissions per vehicle produced have been reduced by 38% since 2001 Energy consumption per vehicle CO 2 production emissions per vehicle Miltos Tsoskounoglou / Toyota Hellas 24

25 In Logistics.. 3. Logistics Miltos Tsoskounoglou / Toyota Hellas 25

26 CO 2 emissions in Production Parts Logistics are being reduced rapidly through kaizen Miltos Tsoskounoglou / Toyota Hellas 26

27 . together with emissions in Vehicle Logistics Miltos Tsoskounoglou / Toyota Hellas 27

28 In our Retailer Network 4. Sales/Use Miltos Tsoskounoglou / Toyota Hellas 28

29 Sustainable Retailer Strategy introduced To reduce CO2, water, waste emissions footprint of retailer facilities To provide tangible business benefits (reduce energy costs) Miltos Tsoskounoglou / Toyota Hellas 29

Sustainable Retailer Flagships built To set best practice examples within the network Next steps: yokoten to the rest of the network La

Opening Q1 FY10 Main Technologies: Geothermal / Solar panels / LED Lighting / Rainwater recycling Opening Q3 FY09 Main Technologies:

kwh/m2-100% reduction in NOx Environmental Improvement: - 90% CO 2 reduction - 80% water/car - 40% kwh/m 2 - Zero NOx emissions Miltos

30 Sustainable Retailer Flagships built To set best practice examples within the network Next steps: yokoten to the rest of the network La Rochelle - France Salzburg - Austria Maribor - Slovenia Opening Q1 FY10 Main Technologies: Geothermal / Solar panels / Micro wind Opening Q1 FY10 Main Technologies: Geothermal / Solar panels / LED Lighting / Rainwater recycling Opening Q3 FY09 Main Technologies: Solar panels / heat recuperation / triple glazing Environmental Improvement: - CO 2 neutral - 50% water consumption/car - 60% kwh/m2-100% reduction in NOx Environmental Improvement: - 90% CO 2 reduction - 80% water/car - 40% kwh/m 2 - Zero NOx emissions Miltos Tsoskounoglou / Toyota Hellas 30 Environmental Improvement: CO 2 neutral - 29% water consumption/car - 62% energy consumption/m 2-71% reduction in NOx emissions

31 Consumers/Users: promote Eco-Driving Miltos Tsoskounoglou / Toyota Hellas 31

32 At the end-of-life phase 5. Recycling Miltos Tsoskounoglou / Toyota Hellas 32

33 Recycling is a solid business case to conserve primary & secondary raw materials, and reduce emissions Increased used of recycled materials in new cars Miltos Tsoskounoglou / Toyota Hellas 33

34 Recycling of Hybrid Batteries has been organized Miltos Tsoskounoglou / Toyota Hellas 34

35 Facing the challenges through 5 year action plans a. Providing the means and management resources Miltos Tsoskounoglou/Toyota Hellas 35

36 In the 5 year Environmental Action Plans, through our Life Cycle analysis, specific projects are identified and goals are set Toyota s Global EMS is based on ISO Miltos Tsoskounoglou / Toyota Hellas 36

37 Supported by environmental investments & maintenance costs (total: 2,7% of net sales) Source: Independently verified by Japan Environmental Management Association for Industry(JEMAI) Miltos Tsoskounoglou / Toyota Hellas 37

38 Sustainability Reports are issued annually Miltos Tsoskounoglou / Toyota Hellas 38

39 Progress on KPIs, special projects and results achieved are reported annually Source: Independently verified by Japan Environmental Management Association for Industry(JEMAI) Miltos Tsoskounoglou / Toyota Hellas 39

40 We believe that the results or our co-ordinated efforts through our whole Life Cycle approach are visible in all our products & services CO 2 over the vehicle life cycle Index = 1 (for diesel vehicle at km) 1 0 Prius III 37% less CO 2 comparable diesel vehicle new Prius CO 2 emissions in production Mileage driven (km) Source: Independently verified by Japan Environmental Management Association for Industry(JEMAI) Miltos Tsoskounoglou / Toyota Hellas 40

41 Thank you for your kind attention! Miltos Tsoskounoglou/Toyota Hellas 41

Toyota. Stephen Stacey - General Manager Arjan Dijkhuizen - Senior Engineer. Government & Technical Affairs Toyota Motor Europe TOYOTA MOTOR EUROPE

Toyota. Stephen Stacey - General Manager Arjan Dijkhuizen - Senior Engineer. Government & Technical Affairs Toyota Motor Europe TOYOTA MOTOR EUROPE Toyota Stephen Stacey - General Manager Arjan Dijkhuizen - Senior Engineer Government & Technical Affairs Toyota Motor Europe Toyota Europe and UK Europe: Began selling cars in 1963 Over 6 billion invested