Taking on the challenge of carbon neutrality and a circular economy with the concerted strength of the Toyoda Gosei Group
Global warming and the problems of resource depletion and waste that result from mass production and disposal have become issues common to the entire world. Under the slogan of “A Greener, Richer World for Our children,” Toyoda Gosei is accelerating Group-wide initiatives to achieve a carbon-neutral and circular economy as soon as possible, fully leveraging our strengths in rubber and plastic polymer technology in both production and products.
Contributing to Environmental Preservation Through All Our Business Activities
Basic Philosophy
The Toyoda Gosei Group formulated its 1st Environmental Action Plan in 1993 based on its environmental policy, and since that time has been actively confronting environmental issues. In February 2016, we announced our TG 2050 Environmental Challenge, and have set targets to be reached by 2030 as milestones. We have also formulated a 5-year action plan in which activity items and targets are set, and are carrying out activities to protect the environment.
Globally, we have set integrated environmental functions in Japan and the regions of the Americas, China, Southeast Asia, and India. The Group is also making efforts as a whole with area control in five global regions, the above four plus Europe/South Africa. These initiatives are made in conjunction with government agencies, customers and suppliers.
1.Environmentally-Friendly Corporate Activities
We are keenly aware that all stages of our business relate deeply to the environment, from development, production, and sales activities to end-of-life disposal. The Toyoda Gosei Group, including all internal divisions, domestic and international affiliates, and suppliers, conducts all business activities with concern for the environment in cooperation and coordination with customers, government agencies, and others.
2.Good Corporate Citizenship
As a good corporate citizen, we participate in, support, and cooperate with environmental activities by many groups while also working on environmental activities in the community and broader society. We also provide education for all employees to support them in becoming involved in environmental activities as members of the community and society, and support social contributions and volunteerism.
3.While Spreading Information on These Activities, We Listen to the Opinions of People at All Levels of Society and Work to Improve Our Activities Wherever We Can.
TG 2050 Environmental Challenge
The Toyoda Gosei Group specializes in the field of high polymers—rubber and plastics. Our symbol is the benzene ring, a hexagonal hydrocarbon structure that is the starting point for polymers. Borrowing from the six sides of the benzene ring, we have set six challenges for our environmental preservation activities with a long-term view to the year 2050. As a roadmap to achieve that, we have set targets for 2030 (Targets 50 & 50) as milestones and formulated a five-year Environmental Action Plan to guide our initiatives.
TG 2050 Environmental Challenge (Six Challenges)
Medium- and Long-Term Scenario for Achieving Carbon Neutrality
Environmental Organization
Our medium- and long-term policy and key action items are discussed and decided in a Carbon Neutrality and Environmental Committee chaired by the company president. The Committee consists of three subcommittees in the areas of products, production, and quality. In the area of production, a production and environment subgroup has been established to strengthen environmental activities over the entire manufacturing process. The above subcommittees are further broken down into working groups that promote and manage areas such as reductions in energy use, waste products and preservation of the environment. In this way, environmental preservation and management activities are conducted from an expert perspective. Liaison meetings have also been established to share information with domestic and international Group companies.
A carbon neutrality project was started in FY2021 to accelerate initiatives over the product lifecycle. The project is headed by the president and with outside directors as advisors and the managers of related divisions as members.
■Environmental Organizational Structure
Carbon Neutrality and Circular Economy StrategyMaterialsDesignManufacturingRecovery/recycling
To help us achieve the TG 2050 Environmental Challenge, we have developed a carbon neutrality and circular economy strategy for the entire life cycle of our products. Our goal is to contribute to a carbon-neutral, circular economy by taking concrete actions in the four specific areas of sustainable materials (Materials), sustainable design (Design), a zero emission challenge (Manufacturing), and resource circulation (Recovery/ recycling).
【Materials】We will procure recycled materials and expand the use of biomass materials with a stable supply in mind.
【Design】We will seek designs for lightweight products, easy disassembly, and compactness.
【Manufacturing】In addition to daily improvements, we will continue to introduce innovative processes, including line downsizing and heat energy reduction, and explore the use of hydrogen.
【Recovery/recycling】We will systematically minimize the waste in our plants, while at the same time building systems to recover parts from the market.
■Carbon Neutrality and Circular Economy Strategy
Risk and opportunity associated with climate change and resource depletion
The risks and opportunities associated with climate change and resource depletion are recognized as an important management issue. From a global perspective based on laws, regulations and trends, we are strengthening our responses to the overall financial and social risks from the effects on economic and production activities of more drastic abnormal weather, changing precipitation patterns, droughts and floods.
| Risk | Opportunity | |
|---|---|---|
| Climate change | ||
| Resource recycling | Effects of water shortages and floods on production activities | Cost reductions from re-use and decreased use of water |
| Cost increases from difficulty in procuring materials, soaring material prices | Cost reductions from recycling technology, use of fewer materials | |
| Management (regulatory compliance) | Loss of trust in the company due to environmental problems, including legal violations, and insufficient efforts to protect the environment | Increase in brand strength from enhanced environmental activities |
| Biodiversity |
|
|
Resource utilization and environmental emissions in business activities
To lessen the amount of energy, material and other resource inputs, and maximum product output, we are utilizing our skills in product development, process development and workplace kaizen in efforts to improve through business activities.
The input resources we use include environmentally friendly materials and clean energy.
Environmental Protection Costs
Toyoda Gosei accurately monitors costs incurred for environmental protection in our business endeavors, and conducts appropriate environmental protection activities.
In Toyoda Gosei’s FY2020 environmental protection costs, priority is placed on research and development, business areas (switch to LEDs for high-ceiling lighting, recycling, greenhouse gas reductions), and social activities (Plant Afforestation). The economic effects include reduced waste disposal costs with measures to reduce waste production and increase waste recycling, thorough daily kaizen in workplaces, and lower electricity costs with increased efficiency in utility equipment.
■Environmental Protection Costs
(Unit: ¥100 million)
| Type of cost | Toyoda Gosei | Affiliates in Japan, total |
|---|---|---|
| Research and development costs*6 | 16.2 | 0 |
| Costs within business areas*7 | 25 | 3 |
| Management activity costs*8 | 1.5 | 0.3 |
| Social activity costs*9 | 1.8 | 0.1 |
| Environmental damage costs*10 | 0.2 | 0 |
| Total | 44.7 | 3.4 |
- *6 Costs for research and development of products that reduce environmental impact
- *7 Costs to reduce environmental impacts from production, including pollution control, reduced energy consumption, and waste disposal.
- *8 Costs for management, including education, maintenance of the environmental management system, and measurements.
- *9 Costs for such measures as tree-planting and beautification.
- *10 Costs for dealing with environmental impacts from business operations.
■Economic effect*11
（Unit: ¥100 million）
| Item | Toyoda Gosei | Affiliates in Japan, total |
|---|---|---|
| Energy expenses | 1.5 | 1 |
| Waste-processing expenses | 1.7 | 0.3 |
| Total | 3.2 | 1.3 |
- *11 The economic effects calculated here are those that can be ascertained based on solid evidence.
■Quantitative effect*12
| Item | Effect |
|---|---|
| Global warming prevention (CO2 reduction) | 6,609t-CO2 |
| Waste reductions (amount reduced) | 425t |
| Legal compliance |
- *12 Amounts are calculated for Toyoda Gosei alone.
Environmental Data
- Contributing to Environmental Preservation Through All Our Business Activities
- Environmental Action Plan
- Building Decarbonized Societies
- Building Circular Societies
- Environmental Preservation and Building Environmentally-Friendly Societies
- Environmental Management
- Collaboration with External Organizations
- Environmental Efforts at Affiliated Companies
- Environmental Data
- Third-Party Verification
- TCFD
- Third-Party Assessment