Toyoda Gosei Co., Ltd. Toyoda Gosei Co., Ltd.


Information disclosure in line with TCFD proposals

Toyoda Goseiannounced its support for the Task Force on Climate-Related Financial Disclosures (TCFD) in May 2019, and held up the materiality (important issue) of creating a decarbonized society by reducing CO2 emissions as a measure to combat climate change.

Based on the thinking of the TCFD, a scenario analysis was used to identify risks and opportunities in our business activities and we implemented activities integrated into our management strategy. We will enhance these efforts in the future, including verification of the effects on finances.


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

■Physical risks Risks related to physical influences, such as disasters due to climate change
Matters that affect us Risk Opportunity Response
  • Large-scale disasters from abnormal weather
  • Production difficulties due to river flooding, super typhoons, water shortages, etc.
  • Stronger business continuity planning (BCP) will lead to customer trust and increase orders received
  • Strengthened BCP resilience system
  • Ensuring emergency power sources (ensure backup power sources and utilize our own power generation equipment)
  • Ensuring land for building and ensuring and improving building durability
  • Planning and developing products with superior durability, water resistance and heat resistance
  • Rising temperatures
  • Changing precipitation and weather patterns
  • Quality defects from insufficient product durability with warming temperatures
  • Increasing added value with enhanced product durability, and increasing revenue
■Transition risks Risks that will occur in the transition to a decarbonized society
Matters that affect us Risk Opportunity Response
Policy and regulations
  • Measures to promote electrification (Zero emission vehicle (ZEV),*3 fuel economy, gasoline vehicle regulations)
  • Government carbon neutrality declaration (Carbon pricing (CP)*4 regulations, expansion of subsidies)
  • Acceleration of customer eco-car development
  • Declining sales of gasoline vehicle parts
  • Introduction of carbon tax, declining profits
  • Developing products for ZEVs*3 (BEVs, FCEVs) and increasing sales
  • Developing products and manufacturing methods using government support (subsidies, etc.) and rising profits
  • Lighter weight for improved fuel efficiency (electricity consumption)
  • Increasing sales of lightweight plastic and rubber products from growing needs
  • Developing products and parts for BEVs, FCEVs (hydrogen tanks, EV battery packs, etc.)
  • Plastic instead of metal, lighter weight plastic and rubber products, lower carbon
  • Zero energy building (ZEB)*5 of plants and offices with energy savings and energy creation
  • CASE, MaaSmarket expansion
  • Energy-saving products, life solutions market expansion
  • Declining sales of conventional products with changes in vehicle value and how they are used
  • Boycott of products with a large environmental impact
  • Increasing sales of disinfection/antibacterial products with increasing car shares
  • Growing business, increasing profits with development of energy saving products
  • Development of disinfection/antibacterial products
  • Development and commercialization of e-Rubber, GaNpower devices
  • Promoting use of nature-derived materials and improvement of bioplastic usage technology
  • Energy conversion
  • Progress and spread of renewable energy technology
  • Spread of energy-saving technology
  • Rising costs and financial burden in dealing with production technology for energy conversion
  • Late to spread technology and declining profits with carbon tax, etc. from failure to reduce CO2
  • Energy savings in the manufacturing stage and rising profit from development of low-cost production
  • Establishment of environmentally-friendly production processes using renewable energy and energy-saving technology, and rising profits
  • Promotion of plant energy optimization
  • Active introduction of renewable energy
  • Establishment of energy-saving production and processes with use of IoT
  • Promotion of decreased burden over product lifecycle
  • Hydrogen introduction and development of electricity storage parts
  • Changes in customer evaluations
  • Changes in reputation among investors
  • Low environmental impact (decarbonization, etc.) has become a condition for getting product orders; orders are lost from not dealing with this
  • Successful development of decarbonized products will increase advantage over competitors, grow orders
  • Development and commercialization of carbon zero products (environmentally-friendly materials development, easy-disassembly product design)

*3 Zero emission vehicles include BEVs and FCEVs that do not emit CO2 or other gases when driven.

*4 Carbon pricing is done with carbon taxes and emissions trading.

*5 Net zero energy buildings are buildings that achieve zero annual primary energy balance with high-efficiency equipment and the introduction of renewable energy.

Risk management

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.

Indicators and targets

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.

■Toyoda Gosei’s medium- and long-term targets
Efforts Target year Target value
7th Environmental Action Plan 2025 Scope 1 + Scope 2*6 CO2 emissions reduced 25% compared with FY2015
2030 milestones
(Targets 50&50)
2030 Scope 1 + Scope 2 CO2 emissions reduced 50% compared with FY2013
TG 2050 Environmental Challenge 2050 Zero Scope 1 + Scope 2 CO2 emissions
Contribution to an environmental society with product technology

*6 Scope 1: CO2 emissions from use of fuel by business itself
Scope 2: CO2 emissions from use of electricity, etc., provided by other companies

TCFD Index

Toyoda Gosei agrees with the proposals of the Financial Stability Board Task Force on Climate-related Financial Disclosure (TCFD), and refers to its disclosure recommendations when disclosing relevant information. The company’s website and annual report (Toyoda Gosei Report) present information that is aligned with these disclosure recommendations.

Governance TCFD recommendations Publication Location Website
Overseeing the Board of Directors meetings on climaterelated risks and opportunities P66-71 Corporate governance
Role of management in evaluation and management of climate-related risks and opportunities
Strategies TCFD recommendations Publication Location Website
Short-, medium- and long-term climate-related risks and opportunities identified by the organization P20-25 Carbon neutrality strategy
P40 Risk and opportunity associated with climate change and resource depletion
The impact of climate-related risks and opportunities on the business, strategies and financial plans of the organization
Resilience in business strategies, taking into account different climate-related scenarios including the 2°C or lower scenario
TCFD recommendations Publication Location Website
Processes for identifying and evaluating climate-related risks P39 Environmental organization
Organizational processes for managing climate-related risks
Integrate identification, evaluation and management of climate-related risks into our risk management throughout our organization
TCFD recommendations Publication Location Website
Disclose measurement standards used for evaluation of climaterelated risks and opportunities according to our own strategies and risk management P20-25 Carbon neutrality strategy
P38 TG 2050 Environmental Challenge
P41 Environmental action plan
Disclose GHG emissions and related risks for scopes 1, 2 and 3 P40 Environmental impact in the value chain
Targets used by the organization to manage climate-related risks and opportunities, and the performance of these P20-25 Carbon neutrality strategy
P38 TG 2050 Environmental Challenge
P41 Environmental action plan