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


Information disclosure in line with TCFD proposals

Toyoda Gosei announced 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.


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 suppliers, certifies our medium-and long-term goals, formulates scenarios to achieve those goals and reflects them in corporate strategy. The results are regularly reported to the Board of Directors and management meetings.


Toyoda Gosei has been making efforts to reduce CO2 based on its TG 2050 Environmental Challenge. Heeding the intensifying calls for action from society in recent years, higher targets were set that brought forward the timing for the achievement of zero CO2 emissions from 2050 to 2030, and the introduction of 100% renewable energy by 2030.

To achieve this, we considered the “4℃ scenario*1” and “1.5℃/2.0℃ 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 1.5℃/2.0℃ scenario: The scenario in which the rise in the earth’s average temperature at the end of the 21st century is kept to 1.5℃/2.0℃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 Impacts Opportunity Impacts Response
  • Large-scale disasters from abnormal weather
  • Production difficulties due to river flooding, super typhoons, supply chain disruptions, water shortages, etc.
  • Stronger resilience in business continuity planning (BCP) will help to ensure a robust production network and increase competitiveness
  • Strengthened BCP resilience systems and training
  • Ensuring key infrastructure during emergencies
  • Inspecting and upgrading land and buildings for durability and flood risks
  • Development of materials and new 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 Impacts Opportunity Impacts 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)
  • Declining sales of parts for gasoline vehicles with the accelerated development of BEVs
  • Developing products for ZEVs (BEVs, FCEVs) and increasing sales
  • Developing new products for BEVs, FCEVs
  • Increasing sales to BEV advance market/OEMs
  • High-durability, lighter weight, and decarbonization of plastics and rubber, by leveraging Toyoda Gosei’s knowledge of polymer materials
  • Accelerating efforts based on the introduction of ICP
  • Bringing carbon neutrality forward to 2030
  • Decreasing cost competitiveness with the introduction of a carbon tax
  • Ensuring competitiveness with expanded development of environmentally-friendly products and manufacturing methods using government support (subsidies, etc.)
  • Increasing sales of lighter weight products and parts for improved fuel efficiency (electricity consumption)
  • CASE, MaaS market expansion
  • Market expansion of new fields with green technology
  • Declining sales of conventional products with changes in user values and how vehicles are used
  • Increasing sales of disinfection/antibacterial products with the spread of car shares
  • Development of disinfection/purification products using Toyoda Gosei’s deep ultraviolet LED technology
  • Development and commercialization of GaN power devices
  • Development of new products for autonomous driving
  • Expansion of non-automotive businesses (healthcare, energy, etc.)
  • Declining sales due to boycotts of products with large environmental impacts
  • Expansion of businesses with the development of green technologies*6
  • Development and spread of energy production and conversion technology
  • Progress and spread of renewable energy technology
  • Spread of energy-saving technology
  • Increased production costs with adaptation to new energy resources
  • Energy savings in the manufacturing stage and rising profit from development of low-cost production
  • Optimizing plant energy
  • Saving energy with more efficient production processes utilizing IoT and digital technology
  • Active introduction of renewable energy
  • Promoting Car to Car recycling and decreased impacts over product lifecycles
  • Expanding hydrogen tank business
  • Decreased competitiveness with late start in technical dissemination (sluggish CO2 cuts, cost increases from decarbonization)
  • Rising profits with advances in developing environmentally-friendly products and setting up production processes
  • Changes in customer evaluations
  • Changes in reputation among investors
  • Decreased competitiveness from not being able to include environmental considerations (decarbonization, recycled materials, etc.) in ordering conditions
  • Improved competitiveness by developing green technologies*6 that lead in the field of rubber and plastic automotive parts
  • Environmentally-friendly product development and commercialization (development of high-function materials, biomaterials, and recycled materials)
  • *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
  • *6 Green technology: Products that help to resolve or mitigate environmental problems (for example, products that contribute to lighter weight and decarbonization)
Risk management

At Toyoda Gosei, climate-related risks (physical risks & transition risks) are managed by the Carbon Neutrality and Environmental Committee, Internal Control Committee (formerly, 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 is managed by the committees and others. Regular reports on major risks are made to the Board of Directors.

Indicators and targets

Toyoda Gosei has been working to reduce CO2 based on the TG 2050 Environmental Challenge. With recent societal demands, the timing for achieving CO2 emissions in the company’s own production activities (Scope 1, 2) has been brought forward to 2030 from the original 2050. The target year for adopting 100% renewable energy has also been revised upward to 2030. The development of environmentally-friendly production processes and equipment and other CO2 reduction activities are being undertaken 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 25% reduction in Scope 1 + Scope 2*7 CO2 emissions, compared with FY2015 levels
2030 milestones
(Targets 50&50)
  • Achieving carbon neutrality with combination of renewable energy, etc.
  • Renewable energy adoption rate 100%
  • 27.5% reduction in Scope 3*7 CO2 emissions, compared with FY2019 levels
TG 2050 Environmental Challenge 2050
  • Carbon neutrality in Scope 1 + Scope 2 + Scope 3*7
  • Contribution to an environmental society with product technology
  • *7 Scope 1: CO2 emissions from use of fuel by business itself
    Scope 2: CO2 emissions from use of electricity, etc., provided by other companies
    Scope 3: CO2 emissions over the entire product lifecycle except for CO2 emissions in the manufacturing stage

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 P70-77 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 P24-39 New Medium-Term Business Plan: The 2030 Business Plan
P58 Risks and Opportunities Related to Resource Recycling
P59 Risks and Opportunities Related to Biodiversity
P54-59 Contributing to Environmental Preservation through All Our Business Activities
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 P55 Environmental Organization
Organizational processes for managing climate-related risks P82-85 Risk Management
Integrate identification, evaluation and management of climate-related risks into our risk management throughout our organization