Environment and eco-efficiency In the operation: environmental management

TDB is committed to achieving world class levels of environmental excellence in its plants in Brazil. In fiscal 2015/2016, the São Bernardo do Campo, Sorocaba and Indaiatuba units maintained their ISO 14001 standard certification, attesting to superior levels of environmental management.

Working in the automotive industry, the company produces significant impacts in areas such as energy consumption and greenhouse gas emissions – in the manufacturing operations, in logistics and in the actual use of the vehicles –, in addition to waste generation, volatile organic compound (VOC) emissions and consumption of water and packaging materials.

Indicator panel

Choose between Results (fiscal 2014/15) or Targets (fiscal 2016/17), then select one of the items CO₂, Water, Waste or VOC) to find out more about our indicators in eco-efficiency

R$ 7.8 MILLIONwas the amount invested by TDB in environmental protection for its operations in 2015. In spite of the higher production volume it was possible to reduce waste disposal costs by controlling generation – which explains the decrease in investment.

Environmental protection investments and spending G4-EN31

	2013	2014	2015
Cost of waste disposal, emissions treatment and mitigation	4,466,929.77	4,647,719.05	4,607,272.26
Prevention and environmental management costs	1,213,458.51	5,384,810.14	3,190,515.87
Total	5,680,388.28	10,032,529.19	7,797,788.13

Low carbon economy

Controlling greenhouse gas emissions in production and logistics has been a priority for the company, resulting in energy efficiency and the acquisition of energy from renewable sources.

In production processes, the emissions per unit produced are a key indicator, showing reductions over recent years in spite of the increase in production due to the start up of the Sorocaba factory (inaugurated in 2012), the implantation of a third shift in São Bernardo do Campo in 2015, and the start up of operations in Porto Feliz.

In fiscal 2015/2016, TDB emitted 65.4 kg of CO2 per vehicle produced – a significant decrease compared with the 81.16 kg of CO2/vehicle in the previous period. Total energy consumption in the manufacturing plants was 508,108 GJ, lower than the 529,507 GJ consumed in fiscal 2014/2015, despite the increase in production.

In addition to reducing energy use, Toyota has sought to acquire renewable energy for all its plants.

Emissions intensity (kg of CO₂ per vehicle produced)G4-EN18

2013 93.6

2014 81.16

2015 65.4

Energy consumption G4-EN3, G4-EN4

2013	2014	2015
TDB	(GJ/Vehicle)	TDB	(GJ/Vehicle)	TDB	(GJ/Vehicle)
Natural Gas	210,587.91	1.5 GJ	219,371.95	1.3 GJ	212,038.39	1.21 GJ
LPG	12,351.30	.09 GJ	14,521.98	.09 GJ	14,264.45	.08 GJ
Total Scope 1	222,939.20	1.60	233,893.93	1.39	226,302.83	1.29
Electricity*	276,015	1.97 GJ	295,613	1.75 GJ	281,805	1.61
Total Scope 2	276,015	1.97 GJ	295,613	1.75 GJ	281,805	1.61

*Electricity sources: wind (14%), hydroelectric (23%) and biomass (63%).

Energy saved* (in GJ) G4-EN6

	2013	2014	2015
Conservation and energy efficiency improvements	4,708,896 GJ	11,289.89 GJ	9,125 GJ
Process redesign	2,024,997 GJ	8,411 GJ	355 GJ
Equipment modernization	4,002,302 GJ	305,413 GJ	2,422 GJ
Changes in employee behavior	4,110.1 GJ	117,656 GJ	2,960 GJ
Total	14,846,295 GJ	11,721,369 GJ	14,862,056 GJ

* Types of energy economized: natural gas, LPG and electricity

Total GHG emission reductions
(in metric tons of CO₂) G4-EN19

2013 187.3

2014 282.5

2015* 238.7

* Gas saved = CO₂ (scopes 1 and 2)

Kaizens G4-EN27, G4-EN19

Emissions

Indaiatuba
Project to reduce consumption of natural gas burned in an oven in the production process (P/TC), avoiding emissions of 145.45 tCO₂/year

Sorocaba
Decrease in energy consumption in the assembly process with rationalization measures, with savings of 6.12 tCO₂/year

São Bernardo do Campo
Reducing the frequency of refilling the forklift trucks enabled savings of 7,438.32 kg CO₂/year

Logistics emissions: new model, new operation

G4-EN19, G4-EN27

The company has sought to prioritize improvements in distribution processes with specific controls for each logistics stage, encompassing the distribution of finished products (such as the importation flow for the Hilux and the SW4) and the logistics for production components and spare parts. Currently, the main focus is on reducing distribution emissions, which accounted for 75% of the company's impact in 2015 (see charts).

During the year, most worthy of note in this area was the inauguration of the new Suape distribution center in the municipality of Cabo de Santo Agostinho (Pernambuco). Aimed at reducing the logistics environmental impact while reinforcing TDB's presence in the region, the project involved an investment of R$ 2.4 million and is expected to generate cost reductions of up to R$ 51 million a year, by centralizing the transportation of vehicles imported from Argentina and units produced in the plants in São Paulo in Suape.

With the new center, imported vehicles are transported from Argentina to the port of Suape by ship, resulting in a 1,600 metric ton annual reduction in the CO₂ emissions that would be generated by road transportation. The improved distribution of vehicles manufactured in Sorocaba and Indaiatuba also contributes to this indicator.

24%fewer emissions due to the Suape distribution center, equivalent to

A reduction of 1,600 metric tons in CO₂ /emissions per year; this is the same as the amount of carbon sequestered by

142,000 trees equivalent to a forest the size of 2,000 soccer fields

Logistics emissions (fiscal 2015/2016) - in 000's of metric tons/year

Emissions per stage of the logistics process

Orientation to recycling

The pursuit of a circular model is Toyota's major environmental challenge regarding water, solid waste and effluents. Diverse indicators are monitored, ranging from the consumption of resources in production to the use of materials in packaging and replacement parts – worthy of note being the recycling of practically 100% of the solid waste generated by the factories and the gradual ongoing reduction in the volume of water consumed per unit produced.

A total of 9.41 kg of waste per unit produced was generated during the year, with the biggest impact caused by Indaiatuba, where the Corolla is manufactured. There was a reduction in total waste generated, both in terms of gross non-hazardous waste in metric tons and the amount of waste per unit produced.

The amount of water consumed was 1.67 cubic meters per unit produced. During the year, diverse kaizens led to water savings of 25,000 m³, resulting in a total water consumption of 291,871 m³, below 2013 levels (see chart).

In relation to effluent generation, TDB is compliant with the requirements of Decree 8.468/76, which determines that effluents from any source of pollution may only be discharged in public sewage systems after appropriate treatment. During the year, the total discharge after physical-chemical treatment at the plants was 183,505.7 m³.

Kaizens G4-EN10, G4-EN27

Sorocaba

TDB implemented the reuse of rainwater in the bathrooms in the production area; the plant also initiated the use of condensate from the compressors in the cooling towers of the bodywork area and the boiler.

250 m³ of water reused per year in the unit

Change in the frequency of cleaning two water rinse tanks, with

projected savings of 2,904 m³/year

Biological treatment for the restaurant grease tanks, preventing the generation of

60,000 kg of waste a year

São Bernardo do Campo

Water consumption in the cooling towers was reduced by increasing the set point.

Savings of 230 m³/year

Project to reduce weight in the disposal of bag filters.

Annual saving of 33 kg

Indaiatuba

Measures to reduce water consumption in the painting process.

Reduction of 1,037 m³/year

Installation of a paint sludge pre-filter to separate residue from water in the production process.

17,035.36 kg reduction in waste per year

Non-hazardous waste (in metric tons) G4-EN23

	2013	2014	2015
Composting	405.6 t	391.8 t	409 t
Recycling*	25,735 t	28,279.5 t	24,505.1 t
Landfill	204.9 t	218 t	232.2 t
Treatment of septic tanks, grease tank, washing of industrial towels	88.3 t	501.2 t	450.9 t
Total	26,613.9 t	29,348.4 t	25,562.2 t

* Recycling: scrap and wood.
** Waste disposed of directly by TDB or by third-parties.

Hazardous waste (in metric tons) G4-EN23

	2013	2014	2015
Recovery*	157.7 t	223.6 t	311.1 t
Co-processing	1,213.3 t	1,185.3 t	1.118.8 t
Incineration of health service waste	2 t	2 t	2 t
Recycling of paints, solvents, lubricants etc.	236.5 t	212.6 t	207.3 t
Total	1,578.7 t	1,600.7 t	1,613.8 t

* Recovery: light bulbs and drums.
** Waste disposed of directly by TDB or by third-parties.

Total water withdrawn by source G4-EN8

	2013	2014	2015*
Ground water	164,907 m³	162,776 m³	175,051 m³
Public/private utility company	169,718 m³	187,276 m³	116,820 m³
Total	334,625 m³	350,052 m³	291,871 m³

* A number of measures contributed to the reductions, such as the installation of water meters (points for improvement were identified by controlling consumption), optimization of consumption of water used for rinsing and change in frequency of cleaning of tanks (Sorocaba); reduction in consumption in cooling towers, use of dry urinals; repairs to leakages (São Bernardo do Campo); and measures to promote reuse, automation, reduction in consumption of potable water in bathrooms and improvements in production processes (Indaiatuba). Further details in the highlighted kaizens.

Effluent discharge by unit* G4-EN22

	2013	2014	2015
Process generated wastewater (IDT)	82,777 m³	87,743 m³	94,126, m³
Process generated wastewater (SBC)	8,652.4 m³	7,535 m³	6,358.7 m³
Process generated wastewater (SOR)	110,844 m³	116,774 m³	83,021 m³
Total	202,273.4 m³	212,052 m³	183,505.7 m³

*Discharge of waste water to public sewage network after treatment and not reused by other organization.

In harmony with nature

Another focus of attention for TDB is mitigating impacts associated with climate change. In production processes, two aspects are considered to be priorities: controlling volatile organic compound (VOC) emissions and ensuring suppliers are aware of which substances are prohibited in the composition of components and replacement parts. The company also addresses questions related to biodiversity and technological modernization applied to production processes in the Brazilian plants.

In its painting processes, Toyota has been investing in technologies to minimize VOC emissions, compounds that can pollute the atmosphere. In the Sorocaba plant, for example, thinner-based paint was substituted with a water-based variety.

23.86 GRAMS PER M² OF VEHICLE PAINTED AREA consolidated VOC emissions for the Sorocaba and Indaiatuba plants in fiscal 2015/2016

Kaizens G4-EN27

Volatile organic compounds

IndaiatubaA project to adjust thinner consumption in purging the painting area robots reduced VOC emissions by 1.2 grams per square meter of vehicle painted area.

Climate change: pursuit of opportunities G4-EC2, G4-EN6

Climate change may directly or indirectly impact Toyota strategy and the future of its business, not to mention the industry as a whole. For this reason, climate change is an integral part of the company's strategic planning to the point that the adoption of hybrid technology is seen as a highly significant opportunity to boost the company's activities and strengthen its reputation.

In terms of risk, problems such as drought and water stress linked with climate change have the potential to affect business continuity. In 2015, a key issue was the increase in the cost of electricity (R$/MWh), which impacted the production cost of Toyota vehicles.

As a result, a series of continuous improvement measures were implanted focused on reducing energy consumption. The company's total consumption was reduced by 4% compared with fiscal 2014. Taking into account the fact that production during the period was 5% higher, in fiscal 2015 energy consumption per vehicle produced decreased 9% compared with 2014.

Habitat reclamation and conservation projects in 2015 G4-EN13

Area/project	Size (hectares)	Location	Status	Approval by external specialists	Project partners
Green area	79.03 ha	Toyota Sorocaba (condition of operating license)	Finalized	The green area project was approved by the environmental authority (Cetesb/SP). The final reforestation report was submitted at the end of 2014. There has been no external assessment as of yet.	Biométrica Edson Banach ME
Fauna stewardship and conservation	10 ha	Toyota Sorocaba (condition of operating license)	Finalized	The Fauna Stewardship and Conservation project was approved by the environmental authority (Cetesb/SP) and reports on monitoring of fauna, limnology and ichthyofauna are submitted annually. The monitoring ended in December 2015.	Biométrica
Monitoring of vegetation	79.03 ha	Toyota Sorocaba (condition of operating license)	In progress	The vegetation monitoring project started in 2015/2016 will last three years. Vegetation growth is assessed each 6 months. Monitoring for 2016/2017 is already underway. Monitoring reports are submitted to Cetesb annually.	Edson Banach ME
Morizukuri project - Toyota Sorocaba Green Belt	5.57 ha 167,482 seedlings planted	A voluntary Toyota environmental preservation project. Reforestation and fauna rescue	In progress: A further 33,500 seedlings need to be planted to conclude the project. Deadline not established	The project has been approved by TMC	UFSCar Edson Banach ME
Conclusion of forestry reclamation in Parque da Biodiversidade	62.5 ha	Toyota Sorocaba Environmental compensation project (condition of operating license) (Address: Avenida Itavuvu, 11.500 - Sorocaba - SP)	Finalized	The project was finalized and the bimonthly reports were approved by the Sorocaba Environmental Department.	Biométrica Edson Banach ME

Environmental management: for more efficient factories G4-EN27

In the beginning of the 2010s, the Toyota Motor Corporation developed a model ecofactory to serve as a guide for all its new facilities worldwide. Furthermore, the model's guidelines were adopted for the modernization of existing plants, driving more rational use of natural resources, more advanced production technologies, specific measures to enhance relations with surrounding communities, as well as greater environmental care.

In fiscal 2015/2016, discussions were initiated for the implantation of the eco-company concept in Brazil. This encompassed not only direct operations, but also the entire Toyota product and service life cycle and the company's relations with the value chain. The goal is to ensure that the combination of operational efficiency and excellence throughout the chain will enable the company to achieve the targets set forth in the Toyota 2050 Environmental Challenge.

Sorocaba: the first ecofactory in the country

In Brazil, the first unit to adopt this model was the Sorocaba plant, employing technologies such as water-based paint; the installation of high-performance green areas, with the implantation of a green belt around the factory based on the concept of morizukuri (which translates as "to make forests"); and the use of lower impact building technologies, as well as energy and water solutions.

MORE THAN 134,000 SEEDLINGS planted

14% REDUCTION IN water consumption (2012-2015)

São Bernardo: new look

The same efficiency principles were adopted for the SBC Reborn project – entailing a series of investments in the São Bernardo do Campo plant, the oldest in operation in the country, responsible for parts production and, since 2015, Toyota's official headquarters in Brazil.

With an investment of R$ 19 million in the first phase and a further R$ 48 million scheduled by the end of 2016, the project prepared the industrial complex manned by 1,400 employees to receive a third production shift, the company's administrative and corporate headquarters, a memory center and the first Toyota research center in Latin America (read more in In the products: technological innovation).

The revitalization project included the planting of 281 native tree seedlings, which provide local fauna with shelter and help sequester carbon. The project utilized more efficient building methods, such as Low-E windows, which provide greater thermal insulation, improved use of natural lighting, the reuse of building materials, thermal insulation paint on the roofs and the use of 100% renewable energy. Other important measures being adopted include the use of 100% recycled water (target for 2018) and the reuse of rainwater.

100% RENEWABLE energy sources

5% REDUCTION in energy consumption compared with fiscal 2012

Porto Feliz: construction driving rationalization

Aligned with the ecofactory concept, the new Porto Feliz engine plant was inaugurated in 2016 incorporating a series of social and environmental requirements. These include the use of inorganic instead of traditional sand – which generates residues that cause greater environmental harm; the elimination of rotating ovens, which use more energy; a compact production system, with three process stages in a single building; the use of solar energy to light external areas; and the planting of 35,000 tree seedlings around the plant.

The plant was designed to be a benchmark in energy and water consumption for other Toyota engine plants. The forging process utilizes innovative technologies and processes that minimize waste and effluent generation.

35,000 SEEDLINGS planted