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

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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.

Carbon Neutrality Project

Toyoda Gosei is conducting initiatives to reduce CO2 emissions throughout the entire lifecycle of its products, from procurement of materials and parts to product development, production, use, and disposal.

【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.

■Reducing CO2 Emissions in the Value Chain
  • *1 Greenhouse gas emissions in the company’s supply chain that are not directly related to the company’s activities(raw materials manufacture, transport, business travel, commuting, etc.)
  • *2 Direct greenhouse gas emissions by the company itself(fossil fuels, natural gas, etc.)
  • *3 Indirect greenhouse gas emissions(purchase of electricity, etc.)

Moved up the Timetable for Carbon Neutrality to 2030

Toyoda Gosei has established a new target to achieve carbon neutrality for CO2 emissions (Scopes 1 and 2) generated from its production operations that is 20 years earlier than the previous target by moving it up from 2050 to 2030. This is a significantly shorter time frame for achieving carbon neutrality that reflects our responsibility as a company to contribute to solving climate change risks that are becoming more serious in various parts of the world.

The company is accelerating daily kaizen and production technology innovations to minimize energy usage. Internal carbon pricing (ICP) has been introduced when upgrading facilities to promote decarbonization, and the company is aggressively investing in its environmental efforts. It is moving toward the use of green energy to meet its energy needs. We will continue to implement initiatives to become a leading company in the environmental field.

■Initiatives to Achieve Carbon Neutrality

Initiatives to Achieve Carbon Neutrality
SBT certification targets
Toyoda Gosei’s 2030 CO2 reduction targets
(Both compared to FY2019)
SBT criteria
Scope 1 + 2 −46.5%*4 −46.2% or more
(1.5℃ level*5)
Scope 3 (newly formulated) −27.5% −27.5% or more
(WB 2℃ level*5)
  • *4 2030 target: Achieve carbon neutrality with combination of renewable energy and other measures
  • *5 Indicates the level of reduction in CO2 emissions, with the meanings of limiting the rise in temperature from global warming to “less than 1.5℃” and “well below 2℃,” respectively.
Toyoda Gosei Acquires SBT Certification for Decarbonization

In November 2023, the 2030 targets were certified by the SBTi international initiative as targets conforming to the Paris Agreement.

Reducing CO2 Emissions

To achieve the 2030 target, Toyoda Gosei is reducing CO2 emissions across the entire lifecycle of its products (Scope 1, 2, 3) by improving productivity and efficiency of logistics, in addition to more lightweight designs for products that will lead to even higher vehicle fuel efficiency.

■CO2 Emissions (Scopes 1 and 2)

■CO2 Emissions (FY2022 Results) (Global)

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.

Production Stage: Emission Reduction through Development of New Manufacturing Methods and
Day-to-Day Improvements, and Expansion of Renewable Energy Adoption Rate
  • Manufacturing

Toyoda Gosei has set a 2030 milestone for achieving zero CO2 emissions at its plants, and is working to achieve this goal through day-to-day improvements at plants, innovations in production technology, and higher efficiency in utilities to significantly reduce the amount of energy used, as well as the increased use of renewable energy by installing solar power facilities, and purchasing green energy to meet its remaining energy needs.

In particular, renewable energy initiatives are underway with the goal of converting all electricity to renewable energy by FY2030.

■Renewable Energy Adoption Rate (Global)
Logistics stage: Decreases Due to Improved Loading Efficiency
  • Design
  • Manufacturing

Toyoda Gosei is working with logistics companies to reduce CO2 by increasing truck loads and raising efficiency with the use of AI. The company has also conducted a field trial of renewable diesel fuel*6 as a diesel alternative and is considering its full-scale introduction.

  • *6 Renewable diesel: Manufactured from waste cooking oil and other sources, it cuts CO2 emissions by 90% compared with petroleum-derived fuel.
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.

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)