Building a Decarbonized Society

Basic Philosophy

To achieve the Paris Agreement’s goal of limiting the global average temperature increase to 1.5℃ above pre-industrial levels, greenhouse gas emissions must be reduced to virtually zero by 2050. Toyoda Gosei has set the new goal of achieving carbon neutrality in CO₂ emissions generated from its own production operations (Scopes 1 and 2) by 2030, twenty years earlier than 2050. Targets for CO₂ emissions materials and parts procurement and other activities (Scope 3) have also been set. The company has received SBT certification, an international certification for decarbonization, and is working to decrease CO₂ throughout its entire value chain.

Endorsement of TCFD Recommendations

In May 2019, we expressed our endorsement of the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and conducted a scenario analysis of risks, opportunities, and responses based on the Guide. We are accelerating our efforts across our business activities and proactively disclosing relevant information, including incorporating the results in our 2030 Business Plan and reviewing our TG2050 Environmental Challenge and 2030 milestones.

Please visit our website to see the results of our scenario analysis. >>>

Moved up the Timetable for Carbon Neutrality to 2030

In 2023, Toyoda Gosei established a new target to achieve carbon neutrality for CO₂ emissions (Scopes 1 and 2) generated from its production operations. This target is 20 years earlier than the previous target, which has been moved up from 2050 to 2030. For that purpose, we are accelerating daily improvements and production technology innovations more than ever to minimize energy consumption. When updating equipment, we are actively making environmental investments by introducing Internal Carbon Pricing (ICP) to facilitate the transition to a decarbonized society. Also, we will utilize renewable energy sources, such as green power, to meet necessary energy demands.

■Initiatives to Achieve Carbon Neutrality

Obtained International Certification for Decarbonization (SBT Certification)

In November 2023, we obtained certification from the Science Based Targets initiative (SBTi), an international initiative, recognizing our 2030 targets as being aligned with the Paris Agreement’s objectives.

SBT-Certified Targets: Our FY2030 CO₂ Reduction Targets (Compared to FY2019 levels)		SBT Standard
Scope1+2	−46.5%^*1	-46.2% or more (1.5°C level)^*2
Scope 3 (Category 1)	−27.5%%	-27.5% or more (WB2°C level)^*2

*1 The 2030 target aims to achieve carbon neutrality by combining renewable energy and other measures.
*2 Refers to CO₂ reduction levels aligned with global warming targets, where “1.5°C level” means keeping temperature increases below 1.5°C, and “WB2°C level” means well below 2°C.

Reducing CO₂ Emissions

To achieve our 2030 target, we are reducing CO₂ emissions throughout the entire product lifecycle (Scopes 1, 2, and 3) by improving productivity and efficiency of logistics, in addition to more lightweight designs for products leading to even higher vehicle fuel efficiency.

■CO₂ Emissions (Scopes 1 and 2)

■CO₂ Emissions (FY2023 Results) (Global)

Data for the past three years >>> Environmental Data

Product Development Stage: Environmentally-Friendly Product Development

Materials
Design

In the product development stage, we are making headway in providing products for environmentally-friendly, next-generation vehicles and developing products with lighter weight for greater fuel efficiency and lower energy consumption and CO₂ emissions across the areas of materials technology, product design, and production technology. Examples include the development of high-pressure hydrogen tanks for FCEVs and efforts to switch materials (e.g., from metal or rubber to plastic), reduce the number of components, integrate functions, and use more lightweight designs while ensuring quality for the strength and other properties of instrument panel peripherals and other interior and exterior components and of functional parts such as hoses. We are also actively working with suppliers to develop materials with low CO₂ emissions, such as bio-materials and recycled materials.

Examples:(1) Decarbonization efforts_Product development stage_Case examples

Production Stage: Reductions with Development of New Processes, Daily Improvements

Manufacturing

We have set a 2030 milestone for achieving zero CO₂ emissions at our plants, and are rigorously reducing energy consumption through day-to-day improvements at plants, production technology innovations, utility efficiency enhancements, and more. Remaining energy needs are being addressed through the expansion of renewable energy, such as installing solar power systems and purchasing green electricity. In particular, renewable energy initiatives are underway with the goal of converting all electricity to renewable energy by FY2030.

■Renewable Energy Adoption Rate (Global)

Examples:(2) Decarbonization efforts_Production stage_Case examples

Logistics Stage: Improving Loading Efficiency

Design
Manufacturing

In collaboration with logistics companies, we are reducing CO₂ emissions by improving truck loading capacity and logistics efficiency through the use of AI and other means. We are also conducting demonstration tests of renewable diesel fuel^*3 as an alternative to diesel fuel and are studying its full-scale implementation.

*3 Renewable diesel fuel: Fuel made from waste cooking oil and other materials, reducing CO₂ emissions by 90% compared to petroleum-based fuels.

Examples:(3) Decarbonization efforts_Distribution stage_Case examples

Materials and Parts Procurement Stage: Emission Reduction through Collaboration with Suppliers

Materials
Manufacturing

We implement CO₂ reduction by sharing good practices with suppliers through the Energy Saving Dojo and supporting actual data measurements.

Examples:(4) Decarbonization efforts_Materials/parts procurement stage_Case examples

■Initiatives to Reduce CO₂ Emissions in the Value Chain

*4 GHG emissions in the supply chain indirectly emitted by the company (e.g., raw material production, transportation, business trips, commuting)
*5 GHG emissions directly emitted by the company itself (e.g., fossil fuels, natural gas)
*6 GHG emissions indirectly emitted by the company (e.g., purchased electricity)

Reduction of Greenhouse Gas (6 gases)^*7 Emissions

Of the six greenhouse gases, Toyoda Gosei uses three (HFC, PFC, SF₆) and is conducting initiatives to reduce all of them. By FY2015, we had completed a switch to alternative gases with a low environmental impact for the shield gas and other gases used in the production of steering wheel cores. We will continue these reduction initiatives going forward.

*7 Hydrofluorocarbon (HFC), perfluorocarbon (PFC), sulfur hexafluoride (SF₆), methane (CH₄), nitrous oxide (N₂O), nitrogen trifluoride (NF₃)

■Greenhouse Gas (6 gases) Emissions (CO₂ equivalent) (non-consolidated)

Data for the past three years >>> Environmental Data