Taking on the challenge of carbon neutrality
and a circular economy with the concerted
strength of the Toyoda Gosei Group
Global warming, resource depletion due to mass production and disposal, and waste problems have become shared issues worldwide. Under our slogan of “A Greener, Richer World for Our Children,” Toyoda Gosei is accelerating its efforts by bringing together the entire Group to realize carbon neutrality and a circular economy as soon as possible by maximizing its strengths in rubber and plastic polymer technologies 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 long-term targets in the TG2050 Environmental Challenge, and have set milestone targets to be reached by 2030. We have also formulated a 5-year action plan in which activity items and targets are set and are carrying out activities to preserve the environment.
Globally, we have placed integrated environmental functions in the regions of the Americas, China, ASEAN, 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 efforts are made in conjunction with government agencies, customers, and suppliers.
1.Environmentally-friendly business activities
We are keenly aware that all stages of our business relate deeply to the environment, from development, production, and sales to end-of-life disposal. The Toyoda Gosei Group, including all internal departments, domestic and international affiliates, and suppliers, conducts all business activities with concern for the environment in cooperation and coordination with customers, government authorities, 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 initiatives, we listen to the opinions of people at all levels of society and work to improve our initiatives wherever we can.
TG2050 Environmental Challenge
The Toyoda Gosei Group specializes in the field of rubber and plastic polymers. 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, the TG2050 Environmental Challenge sets six challenges to strengthen our environmental efforts with a long-term view to the year 2050.
As a roadmap to achieve this goal, Toyoda Gosei formulated and is working on a 5-year Environmental Action Plan.
In August 2023, the company declared that it would move up the timing for achieving carbon neutrality (Scopes 1 and 2) from 2050 to 2030, in order to strengthen its response to climate change issues.
TG2050 Environmental Challenge (6 Challenges)
Medium- to Long-Term Scenarios for Achieving the TG2050 Environmental Challenge
Seventh Environmental Action Plan (FY2021-FY2025)
The Seventh Environmental Action Plan formulated, laying out targets for 2025 on the way to achieving the TG 2050 Environmental Challenge and 2030 milestones.
Environmental Organization
Our medium- to long-term policy and key action items are discussed and decided in a Carbon Neutrality and Environmental Committee chaired by the company president. The Carbon Neutrality and Environmental 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 enhance environmental initiatives over the entire manufacturing process. Working groups are established as subordinate organizations under the subcommittees, and are pursuing activities to reduce and prevent environmental impacts through lower energy and water usages, improved energy and water efficiency, and reduced waste and water intake volumes.
■Environmental Organizational Structure
Carbon Neutrality Project
Led by the president, with outside directors serving as advisors and relevant department heads as core members, we have launched a cross-departmental carbon neutrality project. This project enables swift decision-making and action across the entire product lifecycle.
【System】With the president at the top, the project leader is the vice president, and the core members consist of department heads and above. This is a system that enables speedy and immediate managerial decisions and their implementation.
【Initiative】Each task is led by the head of the relevant department to carry out the initiative.
Strategy on Carbon Neutrality and Circular EconomyMaterialsDesignManufacturingCollection/recycling
We have established a strategy for carbon neutrality and a circular economy over the entire product lifecycle, and are implementing initiatives to achieve it. We have set Sustainable Materials, Sustainable Design, Zero Emission Challenge, and Resource Circulation as our goals, and have incorporated them into specific content from four perspectives. In this way, we aim to achieve carbon neutrality and a circular economy and link it to viable businesses.
In 2023, we began participating in a partnership called “Circular Partners” to promote industry-government-academia collaboration with the aim of achieving the circular economy formulated by Ministry of Economy, Trade and Industry, and have been making efforts to that end.
【Materials】We will strive to procure recycled materials for also ensuring stable supply and expand the use of bio-materials.
【Design】We will strive to develop lightweight designs, easily disassembled designs, compact designs, and other improvements.
【Manufacturing】In addition to day-to-day improvements, we will also study the adoption of innovative processes, such as process downsizing and reduction of heat energy, as well as the use of hydrogen.
【Collection/recycling】We will systematically minimize waste in our plants and build a system to collect parts from the market.
■Strategy on Carbon Neutrality and Circular Economy
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.
Toyoda Gosei’s FY2023 environmental protection costs prioritize research and development, internal 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. When upgrading facilities, Toyoda Gosei has introduced internal carbon pricing (ICP) to try to facilitate a more decarbonized society.
■Environmental Protection Costs
(Unit: ¥100 million)
| Type of cost | Main content | Toyoda Gosei | Affiliates in Japan, total |
|---|---|---|---|
| Research and development costs | Costs for research and development of products that reduce environmental impact | 18.9 | 0 |
| Costs within business areas | Costs to reduce environmental impacts from production, including pollution control, reduced energy consumption, and waste disposal | 32.3 | 3 |
| Management activity costs | Costs for management, including education, maintenance of the environmental management system, and measurements | 1.9 | 0.3 |
| Social activity costs | Costs for such measures as tree-planting and beautification | 1.8 | 0.1 |
| Environmental damage costs | Costs for dealing with environmental impacts from business operations | 0.2 | 0 |
| Total | 55.1 | 3.4 |
■Economic Effect*3
(Unit: ¥100 million)
| Item | Toyoda Gosei | Affiliates in Japan, total |
|---|---|---|
| Energy expenses | 3.3 | 1 |
| Waste-processing expenses | 1.5 | 0.3 |
| Total | 4.8 | 1.3 |
- *3 The economic effects calculated here are those that can be ascertained based on solid evidence.
■Quantitative Effect*4
| Item | Effect |
|---|---|
| Global warming prevention (CO2 reduction) | 6,432t-CO2 |
| Waste reductions (amount reduced) | 742t |
| Legal compliance |
- *4 Amounts are calculated for Toyoda Gosei alone.
- 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