Relations based on trust Public authorities and the community

One means of consolidating one of the thrusts of the 2050 Environmental Challenge, promoting a positive impact, is to ensure that the company maintains open dialogue with public authorities, industry associations and auto industry regulatory agencies. Maintaining close relations with neighboring communities is equally important and involves the ongoing promotion of social and environmental projects on a local and national scale.

Through its Government Affairs area, TDB strives to ensure alignment between company strategy and the solution of important challenges for the country – such as control of vehicle emissions in urban areas, economic development, environmental licensing and vehicle regulations.

In fiscal 2015/2016, the company maintained the same public agenda as in previous years, addressing and discussing issues such as urban mobility, tax incentives for hybrid vehicles and boosting the volume of vehicle parts and components made in Brazil - in line with the Inovar-Auto program –  with the different spheres of government and with other industry players.

Another critical issue is the deceleration of the economy and its enormous impact on the automotive industry. The retraction in vehicle production and sales in 2015 resulted in the sector having one of the highest layoff rates (read more in Business performance) in the country. Committed to its human capital, in 2015 TDB issued a declaration to protect jobs and drive sustained growth at its São Bernardo do Campo unit in São Paulo's ABC region. Signed  jointly with the ABC Metalworkers' Union and the São Paulo government, the agreement provides the employees with job security based on a long-term perspective and confidence in the recovery of the country's economy. G4-EC8

Relations with public authorities are conducted in two ways: with direct action on the part of the company in the case of the implantation of local social and environmental projects and the negotiation of incentives for new industrial units, or through industry associations for broader questions affecting the sector as a whole. In the latter case, the most significant representative bodies are the auto industry association Anfavea (Associação Nacional dos Fabricantes de Veículos Automotores), the Brazilian Automotive Engineering Association (AEA) – which TDB presides – and the Brazilian Electric Vehicle Association (ABVE or Associação Brasileira do Veículo Elétrico). G4-16

Driving low impact fuels: developing Brazil's Fuels, Vehicle Technologies and Emissions Program (PCVE)     G4-15

A major event in the industry in 2016 was the signature of a technical cooperation agreement between the Automotive Engineering Association (AEA); the Ministry of Mines and Energy's Department of Petroleum, Natural Gas and Renewable Fuels; the National Petroleum, Natural Gas and Biofuels Agency and the Environmental Agency Ibama to formalize the Auto Oil program - now denominated the Brazilian Fuels, Vehicle Technologies and Emissions Program or PCVE (Programa Brasileiro de Combustíveis, Tecnologias Veiculares e Emissões).

The objective of the initiative is to coordinate discussions about the effects of the fuels and the vehicle technologies in use in Brazil on atmospheric emissions, with a view to mitigating impacts on air quality, systematizing data and building scientific knowledge in this area.

The program, which involves companies, regulatory agencies and institutions such as the University of São Paulo (USP) and the Federal University of Paraná (UFPR), had already been engaged in tests on vehicles and engines using different energy sources, with Toyota participating via the AEA.

Up to fiscal 2015/2016, the Instituto Lactec had undertaken 1,174 tests on 50 vehicles, 23 motorcycles and 9 engines – corresponding to 89% of the tests provided for under the former Auto Oil program. During the year, a further 300 tests were conducted, in addition to the measurement of air quality in tunnels in the city of São Paulo. TDB is involved in coordinating the PCVE executive and technical committee, responsible for implanting working groups, strategies and development plans.

Fundação Toyota do Brasil         G4-SO1, G4-EC8

Founded to drive Toyota's positive social impact measures in Brazil, the foundation focuses on defending the environment and specific biomes in the country, as well as on promoting education, environmental responsibility and civic awareness.

In 2015, the foundation invested R$ 3,978,000 in projects with a local and national scope. The activities undertaken during the year were funded using resources from the previous year.

APA Costa dos Corais

Initiated in 2011, this is currently the main national project undertaken with Fundação Toyota do Brasil direct funding. Organized in partnership with the Instituto Chico Mendes de Conservação da Biodiversidade (ICMBio) and the Fundação SOS Mata Atlântica, the project aims to reinforce the conservation of coral reefs, to protect mangrove swamps and to preserve the habitats and ecosystems associated with the marine manatee, as well as promoting the sustainable development of the Costa dos Corais Environmental Protection Area.

This environmental protection area covers more than 413,000 hectares in ten municipal districts in the state of Alagoas and three in Pernambuco. Worthy of note during 2015/2016 was the development of closer relations with local institutions in the Brazilian Northeast. Two new institutions joined the project: the Associação Milagrense de Turismo Sustentável (Amitus) and the Instituto Yandê. The second phase of the ICMBio communication plan was also initiated.

Regarding the protection of the marine manatee, five animals were released into the Tatuamunha river in Porto de Pedras (Alagoas), totaling 43 animals reintroduced into nature since 1994 when the program was initiated.

During the year the Toyota APA Costa dos Corais project created a Marine Life Preservation Zone in Maragogi (Alagoas) and initiated work on another zone in Japaratinga (Alagoas). No human activities are permitted in the these protection areas, with the exception of scientific research.

In São Paulo,  the first collaborative workshop was held to discuss priorities and decide on activities for the year in alignment with the APA Costa dos Corais stewardship plan.

Blue Macaw

In place since 1989, Toyota's oldest environmental project is aimed at preserving the Blue Macaw species and protecting the Pantanal biome in Mato Grosso do Sul. Threatened with extinction for years, the support provided by the Fundação Toyota do Brasil enabled the bird to be removed from the threatened species list in 2014, according to ICMBio.

In 2015, the total number of nests registered was 715 on 57 farms in the region. The number of birds monitored is the same as in the previous year: 3 thousand.

The foundation has sought to support the Instituto Arara Azul and its Sustainability Center located in Campo Grande (Mato Gross do Sul) – raising funds and establishing partnerships to drive tourism and scientific research and ensure the sustainability of the project.

Fundraising and the formation of partnerships reached 58% of target. This shortfall was due to the economic situation. To help ensure the continuity of programmed activities, the Toyota foundation provided some emergency funding. In parallel, there was an increase in the number of voluntary services provided for the institute.

Social responsibility at TDB

In addition to its private social investment, TDB contributes indirectly to society by means of tax incentive laws. In 2015, R$ 2.4 million was invested in the Cultural Trails project in Porto Feliz (São Paulo) and Guaíba (Rio Grande do Sul), with a further R$ 750,000 raised for the Citizen Sport project in Indaiatuba (São Paulo).

Cultural Trails

Toyota conducts this project in partnership with municipal governments, valuing local traditions by supporting music, theater and dance activities, as well as workshops and art shows. In Porto Feliz (São Paulo), the Music and Arts project was sponsored by Toyota do Brasil and Banco Toyota, with support from the Porto Feliz Education, Culture and Sports department, involving more than 8,000 people in 10 hours of continuous activities. Also using Rouanet funding, for the ninth year running TDB organized the Body and Soul project. The event held in the Parque da Juventude benefited more than 15,000 people.

Esporte Cidadão

Promoted in Indaiatuba (São Paulo) in partnership with the municipal Sports Department, the project aims to encourage children aged from 6 to 17 years to participate in 20 different sports offered free of charge in 18 centers. In 2015, the project acquired 1,378 pieces of sporting equipment and 32,1oo uniforms for participants. A survey conducted during the year demonstrated a 98.3% satisfaction rate with the program.