Toyoda Goseiconsiders responding to climate change and other environmental problems to be an important management issue. The TG 2050 Environmental Challenge, our long-term environmental activities plan, was formulated by the Carbon Neutrality and Environmental Committee (formerly, Environmental Committee) and announced in February 2016. The Toyoda Gosei Group is reinforcing its activities to achieve a sustainable society.

The Carbon Neutrality and Environmental Committee meets twice a year, with the company president serving as the chairperson. The committee discusses risks and opportunities related to climate change, including effects on our supply chain, and reflects these issues in our medium-and long-term business plans and corporate management. The results are regularly reported to the Board of Directors and management meetings.

Toyoda Goseihas been making efforts to reduce CO₂ based on its TG 2050 Environmental Challenge. Heeding the heightening calls for action from society in recent years, we set our Targets 50&50 in April 2021 to bring forward the timing at which we achieve zero CO₂ emissions. After review, we set higher targets of a 50% reduction in CO₂ emissions (compared with FY2013) and a 50% renewable energy usage rate by 2030.

To achieve this, we considered the “4℃ scenario^*1” and “2℃ scenario^*2” announced by the Intergovernmental Panel on Climate Change (IPCC) and identified the following climate-related risks (physical risks and transition risks) and opportunities for our business activities, for which we are taking action.

*1 4℃ scenario: The scenario in which the earth’s average temperature rises about 4℃ compared with pre-industrial revolution levels

*2 2℃ scenario: The scenario in which the rise in the earth’s average temperature at the end of the 21st century is kept to less than 2℃ compared with pre-industrial revolution levels

At Toyoda Gosei, the climate-related risks mentioned above (strategy) are managed by the Carbon Neutrality and Environmental Committee, Compliance and Risk Management Committee, and Management System (ISO 14001). In the risk management process, risks are identified and evaluated and then ranked according to their frequency and impact. After this, measures such as avoidance, mitigation, transference, or retention are determined, and progress management is done by the committees and others. Regular reports on major risks are made to the Board of Directors.

Among the environmental activities at Toyoda Gosei, we have set the target of zero CO₂ plant emissions by 2050 in the TG 2050 Environmental Challenge, our long-term targets. As a 2030 milestone for the medium term, we have also set the Targets 50&50, a 50% reduction in CO₂ emissions (compared with 2013 levels), and a 50% renewable energy usage rate. We are developing environmentally-friendly production processes and equipment and undertaking other CO₂ reduction activities across the company. We also formulate an “Environmental Action Plan” every five years and undertake activities that incorporate them into our company targets each year.