Cities were invited to enter the Challenge by identifying areas in which innovation would help them expand access to safe, affordable, and inclusive modes of transportation; harness the power of data to create connected and resilient mobility ecosystems; and reduce environmental impact through low-carbon and renewable solutions.

 Over 200 entries were received during this entry period from over 150 cities in 46 countries globally. They were assessed on the impact the Challenge would have, the receptiveness of the issue to open innovation approaches, capacity within the city, and the focus of the entry. The shortlist includes cities in Brazil, Colombia, India, Italy, Malaysia, Mexico, the United Kingdom, and the United States.

In this tough competition two European cities made it to the shortlist:

Venice, Italy

The world-renowned “City of Canals” is one of the most unique cities in the world. Over the last few years, the City of Venice has been improving its sustainable mobility infrastructures and services. However, such investments have not resulted in a higher number of users relying on sustainable means of transportation. The Challenge could help to invert this trend using innovative solutions.

The city’s unique geography requires an integrated transportation system that works across both land and water.

York, United Kingdom 
York is a perfect mix of heritage and hi-tech, with a Viking past and Roman roots, the ancient city of York is seeking to use existing and future innovation to future-proof mobility in the city.

Transport is almost a third of York’s total emissions, negatively impacting health, wellbeing, and the city’s architectural heritage. A 2030 Net Zero target recognizes that the need to shrink the impact of each journey is critical. York’s Challenge would seek to empower sustainable mode choices while increasing the affordability of passenger and goods movements.

The city wants to combine its fragmented modes of public, shared and private transportation into a single, cohesive fleet to increase accessibility, affordability, reduce emissions and journey times.

Other shortlisted cities globally are:

Bengaluru, India 

Bengaluru is predicted to be the fastest-growing city in the Asia-Pacific and is the second most congested city in the world where traffic accidents are common. The ever-expanding city is looking for innovative ways to enhance road safety by crowdsourcing the identification of road safety concerns such as faulty traffic signals and accident-prone areas.  

Detroit, United States 

Detroit, known as the first motor city, has a heavy manufacturing and commercial freight industry. High vehicle traffic has led to severe health and environmental problems, particularly poor air quality. To combat these issues, Detroit aims to address growing freight emissions as global trade expands. 

Fortaleza, Brazil 

Fortaleza, has revolutionized its urban mobility systems in the last 10 years. However, there are still challenges to be overcome, such as access to public transport for low-income communities. Now, the city is seeking ways to make transportation more affordable and efficient.

Medellín, Colombia 

Nicknamed the “City of Eternal Spring,” Medellín’s mountainous terrain and sloping streets create significant mobility challenges for people with disabilities and those who care for them - the majority of whom are women and low-income workers. The region is looking for integrated approaches to make mobility more inclusive and accessible.  

Mexico City, Mexico 

The historic center of Mexico City is not only a World Heritage Site, but also the largest commercial hub in the city. Its heritage status means that it is difficult to carry out substantial modifications to the urban landscape or its infrastructure. The city needs to find innovative ways to improve its transport systems to meet the needs of its residents.

New Orleans, United States 

Known for its French and Spanish Creole architecture and rich culture, the “Big Easy” faces a huge challenge: evacuations ahead of rapidly intensifying hurricanes. As the increase of rapidly intensifying hurricanes threaten coastal communities, the City of New Orleans and stakeholder partners seek an innovative solution to the challenge of evacuating vulnerable residents as hurricanes become increasingly dangerous on a much shorter timeline.

Seberang Perai, Malaysia 

Evidence points to a settlement in Seberang Perai since the Neolithic era. Today, industrial parks consume large amounts of energy and produce high levels of emissions, creating health risks for nearby communities. As the Batu Kawan Industrial Park in Seberang Perai expands, the city aims to work with local businesses and industry to reduce the carbon footprint and environmental impact of freight. 

Varanasi, India 

One of the world's oldest continually inhabited cities, Varanasi has seen the use of e-rickshaws grow exponentially in recent years. However, the sector is currently highly disorganized and poorly regulated. The city is looking for ways in which efficiency can be optimized, with routes more evenly distributed across the city. 

The shortlisted cities will be invited to attend a capacity building academy and will receive support developing their challenge design, becoming part of a wider network of other innovative city teams. Open innovation Challenges often develop and evolve throughout the process as the city’s specific needs are understood more closely.  

Three cities from the shortlist will be selected to launch their own City Challenges and in mid-2024, the call will be launched to global innovators to work with the winning cities. Innovators could be homegrown - living in the city or country chosen - or may be from anywhere across the globe, but with solutions applicable and tailored to the winning cities. 

The semi-finalist innovators for each city will be decided in late 2024, and the winning cities and innovators who are announced in 2026 will share $9 million in funding to test and roll out their solutions.

The Sustainable Cities Challenge is funded by the Toyota Mobility Foundation and has been designed in partnership with Challenge Works and World Resources Institute. Challenge Works is an international leader in developing challenge programs to drive new thinking and find creative solutions to problems facing society. World Resources Institute is a global research organization which works with partners to develop practical solutions that improve people’s lives and ensure that nature can thrive.

To find out more, visit the Sustainable Cities Challenge website.

^{About Toyota Mobility Foundation}

^{The Toyota Mobility Foundation (TMF) was established in August 2014 by the Toyota Motor Corporation (Toyota) to support the development of a more mobile society in which everyone can move freely.  The Foundation underscores Toyota’s ongoing commitment to continuous improvement and respect for people. It utilizes Toyota’s expertise and technologies to support strong mobility systems while eliminating disparities in mobility. TMF works in partnership with universities, governments, non-profits, research institutions and other organizations, creating programs that are aligned with the UN Sustainable Development Goals (SDGs) to address mobility issues around the world. In the past, TMF has led a range of Challenges, including the global Mobility Unlimited Challenge, CATCH in Malaysia, InoveMob Challenge in Brazil and STAMP Challenge in India. You can find out more about TMF and how it is governed at toyotamobilityfoundation.org.}  

^{About Challenge Works}

^{Challenge Works is a global leader in design and delivery of open innovation challenges that incentivises diverse innovative thinkers to solve pressing problems and unlock change. The most promising solutions are rewarded with seed funding and expert support, and the innovation that is the best or quickest to solve the problem wins the grand prize. This approach levels the playing field for innovators from any background or experience to apply their ingenuity for societal impact. Founded by Nesta, the UK’s innovation foundation for social good, they are a social enterprise that has delivered 87 challenges to date and distributed more than £124 million to winning innovators. Visit them at challengeworks.org.}

^{About World Resources Institute}

^{World Resources Institute (WRI) is a global research organization with offices in Brazil, China, Colombia, India, Indonesia, Mexico and the United States, and regional offices for Africa and Europe. WRI’s 1,700 staff work with partners to develop practical solutions that improve people’s lives and ensure nature can thrive. Learn more: WRI.org and on X (formerly Twitter) @WorldResources.}

The interest in hydrogen is recently increasing as it becomes more evident that it has the potential to significantly contribute to CO₂ reduction in the transport and other sectors where pure electrification has its limits. Fuel Cell Electric Vehicles are relevant for intense usage and long-distance drives as required by the EU Parliament, emitting nothing but water. The car will be fuelled at Air Liquid’s Hydrogen Station that was built on the grounds of Toyota’s Technical Centre in Zaventem and it will utilise the hydrogen station network of H2Mobility Germany when driving to Strasbourg.

In line with Toyota’s Environmental Challenge 2050, the Energy Observer demonstrates and shares solutions to champion an ecological and energy transition, supporting tomorrow's energy networks to make them efficient and applicable on a large scale. As the first French ambassador of the Sustainable Development Goals (SDGs), Energy Observer is detecting and promoting positive initiatives and sustainable solutions to design tomorrow's future, and to prove that a cleaner world is possible.

For the next leg in the journey, Energy Observer and Toyota have worked closely together to introduce Toyota’s leading fuel cell technology in the boat. Toyota Technical Center Europe has especially developed this fuel cell system, using components first introduced in the Toyota Mirai and fitted it into a compact module suitable for marine applications. It will deliver more power and efficiency, but also high reliability to cross the Atlantic and Pacific Ocean this year.

The R&D team in Europe managed within 7 months the design and component production, followed by the build and installation of the compact fuel cell module. This successfully demonstrates the adaptability of the Toyota fuel cell technology to a variety of applications. At the end of last year, the fuel cell module was tested in the boat in the shipyard. Currently, the final full power testing is being done at sea before the Energy Observer sails off for their 2020 Tour mid-February.

The Toyota Fuel Cell System has proven its benefits already for many years in the Mirai, but more recently also in other applications such as buses and trucks. Using it for maritime transportation is again another step closer to the development of the hydrogen society. Toyota believes that hydrogen is the catalyst for energy decarbonisation and the technology acceptance can accelerate with the Toyota Fuel Cell System modular solution, which can be considered for a multitude of applications.

Toyota aims to grow its mobility services offer in addition to traditional private and fleet vehicle sales through a strategy organised around four pillars:

• Use a distinct and dedicated brand to appeal to new categories of mobility users, from individuals to corporate clients as well as cities;
• Increase its share of the full service leasing (FSL) market, which consists of providing multi-brand all-in-one vehicle and services offers to corporate and individual customers;
• Use the power of data and vehicle connectivity to develop and launch services like car sharing, carpooling, or subscription where viable;
• Prepare to integrate future advances in automated driving to market-test automated mobility-as-a-service transport, for example using the e-Palette concept currently under development at global level.

In 2018, Toyota started building the foundations necessary to prepare the European organisation to integrate new mobility services into its existing business of making and selling cars. Toyota established two entities, respectively a fleet management company (Toyota Fleet Mobility, based in Cologne, Germany) and a digital platform company (Toyota Connected Europe, based in London, UK).

• Toyota Fleet Mobility focuses on growing its Full-Service Leasing in the European market. TFM is growing organically (with current affiliates present in Spain, France and Italy) and through acquisitions. It recently acquired Inchcape Fleet Solutions (IFS) to grow its business in the UK market. TFM is a joint-venture between Toyota Financial Services Corporation and Toyota Motor Europe.
• Toyota Connected Europe is the European subsidiary of Toyota’s technological enabler and data company. It develops and implements a range of products and services associated with connected vehicle systems, such as Toyota Big Data Centre, as well as services within Toyota’s proprietary Mobility Services Platform (MSPF).

The KINTO brand will be used to clearly position the offer as dedicated to new ways to consume mobility, and will stand for “inclusive and trustworthy,” “simple and effortless,” and “sustainable.”

The new brand’s name is derived from the Japanese word Kintoun or Flying nimbus, a cloud which provides on-demand transportation for a famous animated character in Japan. Just like Kintoun, KINTO wants to be available every time a customer looks for easy and clever ways to move around, whenever, wherever.

KINTO-branded services will be deployed market by market based on viability and sustainability of the business case. The initial services to be introduced in some European markets include:

• KINTO One: a Full Service Lease offer, providing ease of ownership combining vehicle, service, insurance in one monthly payment.

• KINTO Share: a car sharing service based on a large hybrid vehicle line-up available via a self-service concept, without the running costs. Toyota’s existing car sharing service Yuko which is already operational in several cities in Europe (Dublin; Venice; Copenhagen; and Madrid), will be re-branded under KINTO.
• KINTO Join: Carpooling, connecting employees who wish to share their daily commute to work, benefitting both employees and companies who can reduce their CO2 footprint.
• KINTO Flex: Subscription based car leasing, offering increased flexibility and providing premium experience.

Other services are being evaluated, such as ride-hailing or a multi-modal app. The services would feature easy access via mobile apps and integrated payments.

We are steadily preparing a framework to respond thoroughly to the challenge, putting all the pieces in place, including the creation of new business models.

Working in an extensive and open manner, we are collaborating with partners as we strive to contribute to a better society.

DISCOVER MORE

When walking into the Toyota Radosc retailer in Warsaw, Poland, little did Ms Magdalena Sobolewska-Bereza suspect she would find herself half an hour later taking the keys of her brand new Toyota C-HR Hybrid from the General Manager of Toyota Radosc, Maja Kleszczewska, during a small celebration. Turns out Ms Sobolewska-Bereza just bought the 2 millionth hybrid sold by Toyota since the company pioneered hybrid electric technology in 2000 in Europe.

Independent research* shows that a self-charging Toyota hybrid drives in zero emissions mode more than 50% of the time, in both urban and suburban environment. There is no need to plug in the car since the system charges the battery while driving, decelerating and braking. These benefits, in addition to the comfortable and silent experience, are assets that are highly valued by customers.

In 2011, 10% of our European customers chose a hybrid. This figure has grown exponentially to 47% in 2018: today, almost one out of every two cars sold by Toyota in Europe is a hybrid. Thanks to the large line-up – Toyota has 8 hybrid models, Lexus 9 – there is a choice to cater for each customer’s taste, from the B-segment Toyota Yaris Hybrid to the Lexus flagship coupe LC500h.

Since the Prius was introduced in 1997 in Japan, Toyota has sold over 12 million hybrid cars worldwide. More than a numerical milestone, this demonstrates the way self-charging hybrid electric technology has changed the rules of the game. It has emerged as a mainstream solution to reduce greenhouse gas emissions and other pollutants. In the footsteps of the iconic Prius that started it all, Toyota now sells 34 different hybrid models in more than 90 countries and regions across the globe. This has helped to reduce CO2 emissions by 93 million tonnes.

In October 2015, Toyota announced the Toyota Environmental Challenge 2050. As part of this set of challenges, it aims to reduce new vehicle CO2 emissions by 90% by 2050, compared to the levels in 2010. Toyota aims to reach that ambition by accelerating the popularization of electrified cars. It aims to put more than 5.5 million on the road every year, by 2030 - at least one million of which will be zero-emissions vehicles. Toyota hybrid electric technology is at the heart of its portfolio of environmentally friendly cars, encompassing plug-in hybrid electric (PHEVs), battery electric (BEVs) and fuel cell electric vehicles (FCEVs).

REFERENCE - TABLE

* Research by CARe (Center for Automotive Research and Evolution) of the University Guglielmo Marconi in Rome in collaboration with Enea (Italian National Agency for New Technologies, Energy and Sustainable Economic Development) 

Toyota City, Japan, February 20, 2018―Toyota Motor Corporation (Toyota) announces that it has developed the world's first^*1 neodymium-reduced, heat-resistant magnet. Neodymium magnets are used in various types of motors such as the high-output motors found in electrified vehicles, use of which is expected to increase rapidly in the future. The new magnet uses significantly less neodymium, a rare-earth element^*2 ("rare earth"), and can be used in high-temperature conditions.

The newly developed magnet uses no terbium (Tb) or dysprosium (Dy), which are rare earths that are also categorized as critical materials^*3 necessary for highly heat-resistant neodymium magnets. A portion of the neodymium has been replaced with lanthanum (La) and cerium (Ce), which are low-cost rare earths, reducing the amount of neodymium used in the magnet.

Neodymium plays an important role in maintaining high coercivity (the ability to maintain magnetization) and heat resistance. Merely reducing the amount of neodymium and replacing it with lanthanum and cerium results in a decline in motor performance. Accordingly, Toyota adopted new technologies that suppress the deterioration of coercivity and heat resistance, even when neodymium is replaced with lanthanum and cerium, and developed a magnet that has equivalent levels of heat resistance as earlier neodymium magnets, while reducing the amount of neodymium used by up to 50 percent.

This new type of magnet is expected to be useful in expanding use of motors in various areas such as automobiles and robotics, as well as maintaining a balance between the supply and demand of valuable rare earth resources. Toyota will work to further enhance performance and evaluate application in products while accelerating the development of mass production technologies, with the aim of achieving early adoption in motors used for various applications, including in automobiles and robotics.

Development of elemental technologies for motors, inverters, batteries, and other components will require steady research and development in anticipation of the future. Toyota positions these technologies as essential for electrified vehicles and will continue making steady progress in each and every area, while working to build the foundation that will support the increased use of electrified vehicles in the future.

1. Background of Development of the Nd-reduced, Heat-resistant Magnet

• It is important that magnets used in automotive motors and other applications have high coercivity (the ability to maintain magnetization) even at high temperatures. For this reason, approximately 30 percent of the elements used in magnets are rare earths.
• When powerful neodymium magnets are used at high temperatures, such as for automotive applications, terbium and dysprosium are generally added to increase high-temperature coercivity. However, terbium and dysprosium are rare and expensive metals found in locations with high geopolitical risks. Because of this, considerable efforts have been made to develop magnets that do not use these metals, and positive results have been achieved.
• Production volumes of neodymium are relatively high among rare earths, but there are concerns that shortages will develop as electrified vehicles, including hybrid and battery electric vehicles, become increasingly popular in the future. Despite this, little effort has been made to address neodymium use.
• To overcome these issues, Toyota successfully undertook development of technologies that can both eliminate the use of terbium and dysprosium and reduce the amount of neodymium used. Through substitution of neodymium with lanthanum and cerium, which are abundant and low-cost rare earths, high heat resistance can be maintained and loss of coercivity minimized.

Use of rare earths in neodymium magnets

2. Key Points of Development of the Nd-reduced, Heat-resistant Magnet

• The newly developed Nd-reduced, heat-resistant magnet is able to maintain coercivity even at high temperatures because of the combination of the following three new technologies:

1. Grain refinement of magnet
2. Two-layered high-performance grain surface
3. Specific alloying ratio of lanthanum and cerium

Development Point 1: Grain refinement of magnet

• It is now possible to retain high coercivity at high temperatures through the reduction of the size of the magnet grains to one-tenth or less of those found in conventional neodymium magnets and the enlargement of the grain boundary area.

Development Point 2: Two-layered high-performance grain surface

• In a conventional neodymium magnet, neodymium is spread evenly within the grains of the magnet, and in many cases, the neodymium used is more than the necessary amount to maintain coercivity. Thus, it is possible to efficiently use neodymium by increasing the neodymium concentration on the surface of the magnet grains, which is necessary to increase coercivity, and decreasing the concentration in the grain core. This results in the reduction of the overall amount of neodymium used in the new magnet.

Development Point 3: Specific ratio of lanthanum and cerium

• If neodymium is simply alloyed with lanthanum and cerium, its performance properties (heat resistance and coercivity) decline substantially, complicating the use of light rare earths. As a result of the evaluation of various alloys, Toyota discovered a specific ratio at which lanthanum and cerium, both abundant and low-cost rare earths, can be alloyed so that the deterioration of properties is suppressed.

World's first Nd-reduced, heat-resistant magnet developed by simultaneously incorporating all three technologies

[Electron microscope image and composition analysis mapping image]

[Heat resistance performance]

_{Note:This research and development initiative was conducted as part of the "Development of Magnetic Material Technology for High-efficiency Motors for Next-Generation Automobiles" report issued by the New Energy and Industrial Technology Development Organization (NEDO)}

3. Future Efforts

• The new Nd-reduced, heat-resistant magnet developed at this time not only eliminates the use of terbium and dysprosium, rare earths necessary for neodymium magnets that require high heat resistance, but it also reduces the amount of neodymium used. This new magnet is expected to have a wide range of applications in motors that require relatively high output such as those required for electrified vehicle drive motors and generators, electric power steering, robots, and various household appliances. It will also contribute to reducing the risks of a disruption in supply and demand of rare earths and price increases.
• Going forward, Toyota will proceed with further practical use in mind, perform application assessments in motor vehicles, and continue researching and developing technologies with the aim of low-cost, stable production.
• Toyota expects that the magnets will be put to use in the motors of electric power steering for automobiles and other applications in the first half of the 2020s. Furthermore, the company will undertake development with the aim of practical application in high-performance electrified vehicle drive motors within the next 10 years.

_{^*1As of January 2018 (Toyota Motor Corporation)}

_{^*2A group of 17 elements that have similar properties. Among the rare earths are lanthanum, cerium, neodymium, terbium, and dysprosium. It is possible for various functional materials to manifest through use of these elements.}

_{^*3Metals of which stable supply is politically important, even though relatively small amounts are present in earth's crust or extraction is difficult due to technological or economic reasons. (Ministry of Economy, Trade and Industry, Japan)}

“In just over 20 years, we have seen electrified new vehicle sales increase from under 500 sales to more than 1.5 million sales,” said Shigeki Terashi, executive vice president, Toyota Motor Corporation. “This is a testament from our customers to the quality, durability and reliability of our electrified powertrains, and, thanks to them, has led us to establish a solid and sustainable foundation for mass producing a more diverse portfolio of electrified vehicles across our range moving forward.”

Since the introduction of its first commercially available electrified powertrain on the Prius in Japan in 1997, Toyota has worked at improving the technology as the basis for its electrification efforts, having launched first mass-produced Fuel Cell Electric Vehicle, the Mirai, in 2014, the fourth generation of the Prius in 2016, and the second-generation Prius Plug-In Electric Vehicle in 2017. The company will continue the development and diversification of electrified vehicles as it now turns its sights to include the mass production of battery electric vehicles from 2020, starting in China and India, followed by Japan, the United States and Europe. Toyota also aims to further expand sales of hybrid electric vehicles in emerging markets to further contribute to lowering CO2 from new vehicles sales worldwide.

The efforts to improve and increase the diversity of electrified power train options is tied directly to Toyota’s ‘Environmental Challenge 2050’, wherein the company aims to achieve annual electrified vehicle sales of 5.5 million units by 2030, as announced in December 2017. To achieve its goal, Toyota unveiled plans to have 10 BEV models available worldwide by the early 2020s, and from around 2025, the company aims to have an electrified version available for all vehicle models across its global lineup.

Toyota Electrified Vehicle Sales Based on TMC data (Unit = 1,000 vehicles)

2017CY Sales of Toyota Electrified Passenger Vehicles Based on TMC data (Unit = 1,000 vehicles)

Cumulative Sales of Toyota Electrified Passenger Vehicles Based on TMC data (Unit = 1,000 vehicles)

The award recognizes Toyota for its track record of sustainability achievements and for its eco-sensitive hybrid and fuel cell vehicles, and places the world’s largest automaker ahead of such respected companies as Apple, Starbucks and Nike. This year’s score improves upon Toyota’s past performance on the ranking, reflecting the company’s ongoing commitment to sustainable initiatives.

The annual Newsweek Green Rankings evaluate the world’s largest publicly traded companies, using eight metrics to measure environmental performance. Newsweek, in partnership with Corporate Knights and HIP Investor, scores companies against their industry peers on each metric, including energy, water and waste levels. The full Newsweek Green Rankings list is available now on Newsweek’s website at http://www.newsweek.com/green-rankings-2017-18.

The program was introduced to commemorate Toyota winning the Global 500 Award¹ in 1999. It is also part of Challenge 6: the Challenge of Establishing a Future Society in Harmony with Nature under the Toyota Environmental Challenge 2050², which was announced in 2015.

Once again, biodiversity conservation and global warming were chosen as themes for the grant program, which drew 92 applications in the three selection categories―the international project grants, the domestic project grants, and the domestic small project grants.

During the screening process, the first and final rounds focused on continuity and future development, harmony with regional characteristics, among other considerations. Within the international project grant category, 10 projects, including the "Joint Biodiversity Conservation Activities with Cacao Farmers in Ghana" were selected. In Japan, ten projects including the "Conservation of Endangered Butterflies (luehdorfia japonica and coenonympha oedippus arothius)" were selected from the domestic project category, and eight projects including the "Local Power to Protect Wildlife! Nature Specialist Club for Nurturing Future Generations" were selected from the domestic small project grant category.

A ceremony will be held in December in Tokyo, where representatives of this year's selected projects will be presented with grant certificates. A meeting will be held next spring to report on the selections.

Toyota plans to continue making its contributions to establish a future society in harmony with nature through various forms of support to NPOs among others, in the future.

¹The award recognizes the outstanding achievements of individuals and organizations in protecting and improving the environment. In 1999, Toyota became the first Japanese corporation to receive the award in recognition of its many initiatives to protect and improve the environment (such as being the first company in the world to mass-produce and sell hybrid vehicles) and its wide-ranging corporate social contribution activities.

²With the aim of contributing to the sustainability of the global environment, in October 2015, Toyota had announced the Toyota Environmental Challenge 2050. The Toyota Environmental Challenge 2050 aims to reduce the environmental burden of manufacturing and driving vehicles to zero, by helping address key global environmental issues such as climate change, water shortage, resource depletion, and degradation of biodiversity, as well as to create value and produce benefit to society. The challenge is composed of six individual challenges across three areas: ever-better cars, ever-better manufacturing, and enriching lives of communities. http://www.toyota-global.com/sustainability/environment/challenge2050/

• Grant Program Contact:Secretariat, Toyota Environmental Activities Grant Program
• E-mail: tmc-ecogrant@g500.jp
• URL: http://www.toyota.co.jp/jpn/sustainability/environment/blessings_of_nature/ecogrant/ (Japanese)

http://www.toyota-global.com/sustainability/environment/challenge6/ecogrant/ (English)

2016 Toyota Environmental Activities Grant Program Recipients

The pioneering work by a team at Kew’s Plant Assessment Unit (PAU) is expected to accelerate the identification of plants threatened with extinction. It is also pinpointing the factors that have put them at risk, such as invasive species, including emerging pests and diseases, loss of habitat and climate change.

This work, drawing on the Royal Botanic Gardens’ world-leading knowledge resources, will help guide conservation activities and reduce the rate of global biodiversity loss.The project benefits from Toyota funding, which is being channelled to Kew through Toyota MotorCorporation’s five-year partnership with the International Union for Conservation of Nature (IUCN) to develop the organisation’s Red List of Threatened Species^TM.

The intention is to achieve a significant increase in knowledge about the risk of extinction faced by more than 28,000 species, including many that are key food sources for large numbers of the world’s growing population.The partnership is a key project in the first phase of the Toyota Environmental Challenge 2050, a far-reaching global commitment to significantly reduce the environmental impact of Toyota’s vehicles and business operations and to enhance the world around us, helping build a future society that lives in harmony with nature.Toyota has produced this short film in which members of the PAU team at Kew explain the work they do and its relevance to helping safeguard biodiversity.

Professor Kathy Willis, Director of Science, RBG Kew said, “It’s so important to have this kind of dedicated support to allow us to resource our work properly and thereby speed up the pace at which we can identify threatened plant species. It is truly alarming how fast we are losing biodiversity and without timely investment like this we risk always being on the back foot so we are very grateful to Toyota and the IUCN that extinction risk assessment is getting the attention it richly deserves.”

Steve Hope, General Manager, Environmental Affairs & Corporate Citizenship, Toyota Motor Europe said: “Toyota recognises the vital importance of protecting the natural world and is pleased to support the work being done by the Kew Science team in identifying threatened species and the factors that put them at risk. Through the Toyota Environmental Challenge 2050 we are not only seeking to reduce our impact on the environment, we are actively working on delivering positive benefits for the natural world.”

For images and more information please contact the Royal Botanic Gardens, Kew, Press Office on 0044 (0)20 8332 5607 or email pr@kew.org

Toyota Environmental Challenge 2050

For full details on the Environmental Challenge 2050 please click on this link: Toyota Environmental Challenge 2050

About Royal Botanic Gardens, Kew

The Royal Botanic Gardens, Kew is a world famous scientific organisation, internationally respected for its outstanding collections as well as its scientific expertise in plant diversity, conservation and sustainable development in the UK and around the world. Kew Gardens is a major international and a top London visitor attraction. Kew receives approximately just under half of its funding from the UK Government through the Department for Environment, Food and Rural Affairs (Defra). Further funding needed to support Kew’s vital work comes from donors, membership and commercial activity including ticket sales. For more information on corporate support for Kew’s scientific work visit the Kew Foundation.http://www.kew.org/about/our-work/people-and-departments/about-kew-foundation

About IUCN

IUCN is a membership Union composed of both government and civil society organisations. It harnesses the experience, resources and reach of its more than 1,300 Member organisations and the input of more than 16,000 experts. IUCN is the global authority on the status of the natural world and the measures needed to safeguard it. https://www.iucn.org https://twitter.com/IUCN/

Conventional agricultural plant improvement to increase crop yields involves selecting and interbreeding of parent varieties based on extensive past improvement data, assessing progeny over the long term, as well as selecting new progeny with the desired property. However, although the recently developed marker technology^*1, which uses genetic information to predict plant characteristics has helped to improve the efficiency of this process, the lengthy time needed as well as the high cost of this method of DNA analysis have sought to hinder its adoption.

In response, TMC has paired its proprietary sample preparation technology^*2 with a next-generation sequencer^*3 to develop GRAS, a new technology that can substantially simplify the process of identifying and selecting useful genetic information. GRAS is capable of analyzing DNA in about one-tenth the time needed, and at around one-third the cost of conventional techniques that are being utilized. This is a promising technology that has the potential to boost sugar-cane production, and to increase biofuel crop yields per unit area of land.

In addition to increasing biofuel crop yields, TMC believes that this new technology can also be used to help increase the production and the disease resistance of food crops. TMC plans to continue actively disclosing and providing information about this technology to help facilitate its application in the agricultural sector. A technical evaluation is already under way in cooperation with the Kazusa DNA Research Institute, as the institute has an extensive experience in the field of DNA analysis.

TMC plans to announce the details of this technology, including the analytical results for the materials provided by NARO, at the 130th Meeting of the Japanese Society of Breeding (JSB) which is due to be held in Tottori starting September 24.

*1Marker technologyTechnology that uses characteristic DNA sequences (markers) on the genome (genetic information) to identify useful genes, and to also analyze the presence of these genes, as well as parent/progeny and genetic relationships.

*2Proprietary sample preparation technologyTechnology that amplifies thousands to tens of thousands of locations on the genome with a high degree of repeatability as a means of amplifying the sequence of an analysis sample using a proprietary primer (nucleic acid fragments necessary for the synthesis and replication of DNA).

*3Next-generation sequencerA device capable of analyzing tens of million to billion locations on the genome at the same time.

As part of the partnership, Toyota will support the Living Asian Forest Project, a new series of existing and planned WWF activities to conserve tropical forests and wildlife in Southeast Asia. The project will take place in WWF priority places Borneo (Kalimantan) and Sumatra in Indonesia. In the future, the project will expand to the Greater Mekong region.

The project will also focus on increasing the sustainability of natural resources such as wood, paper and pulp, palm oil and natural rubber. Unsustainable production and use of these commodities are among the main causes of deforestation and increased threats to endangered species in these regions.

Toyota will donate US$1 million to the Living Asian Forest Project in 2016 and will continue its support for a total of five years. The support strengthens efforts toward achieving the Toyota Environmental Challenge 2050 goals of aiming to reduce Toyota's environmental footprint to zero, while creating value and producing benefit to society in the face of global-scale environmental issues. The Living Asian Forest Project will specifically help accomplish one of the six challenges: to establish a future society in harmony with nature.

With demand expected to rise for natural rubber - the main resource for car tires - the partnership recognizes that the sustainable production and use of natural rubber is required for forest ecosystem conservation. Toyota acknowledges the environmental and social challenges surrounding natural rubber, and will collaborate with industries and stakeholders to contribute to international standard-setting as well as other related activities that WWF promotes.

Throughout the partnership, WWF and Toyota will also work together to help realize a zero carbon society. In order to successfully meet the company's Zero CO2 Emissions Challenges under its Toyota Environmental Challenge 2050, Toyota has already joined the Science Based Targets initiative that is aimed at helping companies combat climate change.

Didier Leroy, Executive Vice President of Toyota, said: "We share the same vision as WWF: to achieve a truly sustainable society and leave a living planet for future generations. When we started working on concrete actions to achieve our Environmental Challenge 2050, we decided that joining forces with non-governmental organizations which are experts in their field was essential. Our partnership, and projects like the Living Asian Forest Project, are among the most effective ways for a company like ours to make a positive impact and raise awareness among our employees, suppliers, and customers of the importance of sustainable resource management."

Marco Lambertini, Director General of WWF International, said: "WWF is delighted to join forces with Toyota in order to accelerate efforts needed to prevent the dangerous degradation of the natural systems we all depend on. Science has never been clearer and awareness of the problems and solutions to the many environmental challenges that the world is facing has never been greater. We need more private sector organizations like Toyota to step up and find solutions to these challenges. WWF commends Toyota's vision to help make a safer, healthier more sustainable world a reality for future generations and our living planet."

Arnold Sitompul, Conservation Director of WWF Indonesia, said: "One of the exciting outcomes of this partnership will be the strengthening of our work to conserve tropical forest ecosystems in Kalimantan and Sumatra. These are important homes for critically endangered species, and essential proving grounds for the sustainable management of natural resources." 

Message from Marco Lambertini,
Director General of WWF International
Editor's notes
WWF Global Corporate Partnership

This partnership is based on a common understanding of issues, shared ambitions or activities, and a willingness to speak out in public. Typically, three types of cooperation with a partner company will be implemented in the partnership; (a) driving sustainable business practices; (b) communications and awareness raising; and (c) philanthropic contributions to support WWF conservation projects.

Toyota Environmental Challenge 2050
With the aim of contributing to the sustainability of the global environment, in October 2015, Toyota had announced the Toyota Environmental Challenge 2050. Toyota is taking on new challenges that consider the world 20 or 30 years in the future that will help address key global environmental issues such as climate change, water shortage, resource depletion, and degradation of biodiversity. The Toyota Environmental Challenge 2050 aims to reduce the negative impact of manufacturing and driving vehicles to zero, and also, to create value and produce benefit to society. The challenge is composed of six individual challenges across three areas: ever-better cars, ever-better manufacturing, and enriching lives of communities. http://www.toyota-global.com/sustainability/environment/challenge2050/

Science Based Targets initiative
The Science Based Targets is a collaborative initiative by WWF, CDP, WRI, and the UN Global Compact to support companies to set emission reduction targets in line with what the science says is necessary to keep global warming well below the dangerous threshold of 2°C. The initiative provides a range of guidance documents and tools to support target setting processes. More than 160 companies worldwide have committed to setting such ambitious climate targets (as of July 1, 2016).

About WWF
WWF is one of the world's largest and most respected independent conservation organizations, with over five million supporters and a global network active in more than 100 countries. WWF's mission is to stop the degradation of the earth's natural environment and to build a future in which humans live in harmony with nature, by conserving the world's biological diversity, ensuring that the use of renewable natural resources is sustainable, and promoting the reduction of pollution and wasteful consumption.

Please refer to www.panda.org/news for the latest news and media resources on the WWF.

About Toyota
Founded in 1937, Toyota is a global automotive company with production in 29 countries and sales in more than 170 countries.

Overview of "Living Asian Forest Project"
The "Living Planet Index"^*1 had decreased by more than 50% during the period from 1970 to 2010 with a particularly significant decrease of 56% in the tropics ("Living Planet Report 2014"). While tropical forests in Southeast Asia, one of the mega-biodiversity spots in the world, still hold valuable ecosystems, its forests have been lost drastically.

As part of the Toyota and WWF partnership the "Living Asian Forest Project" will aim, at helping the conservation of tropical forests and wildlife in Southeast Asia. Projects include landscapes inside WWF's priority places in Borneo (Kalimantan) and Sumatra. In the future and depending on the results of the initial local initiatives, the project may expand to the Greater Mekong region, across Cambodia, Laos, Myanmar, Thailand and Vietnam.

Unsustainable production and use of key commodities has been one of the main reasons of deforestation and increased threats to endangered species in the regions. The project activities will therefore focus on increasing the sustainability of natural resources such as wood, paper and pulp, palm oil and natural rubber. The project will also include wildlife surveys, restoration of forests, and community empowerment. The inclusion of work on commodities is to implement WWF's "One Planet Perspective"^*2 vision which calls for better choices for managing, using and sharing natural resources, and this framework provides a set of effective activities in order to conserve biodiversity and forests also as important storage of CO2 in the regions.

As for natural rubber which is the main material of automobile-tire and other products, the partnership will work on promoting sustainable natural rubber. It is expected that the demand for natural rubber will expand in the subsequent years, and the sustainable production and use of natural rubber is required for forest ecosystem conservation.

Toyota recognizes environmental and social challenges surrounding natural rubber and collaborates with industries and stakeholders to positively contribute to international standard setting for sustainable natural rubber and other activities which WWF promotes.

*1Living Planet Index ("LPI")
Based on trends in 10,380 populations of 3,038 mammal, bird, reptile, amphibian and fish species, WWF and ZSL (Zoological Society of London) calculate and report the LPI, to evaluate the status of world's biodiversity every two years. The LPI shows a decline of 52% between 1970 and 2010, which suggests that, on average, vertebrate species populations are about half the size they were 40 years ago.

*2Better Choices from a One Planet Perspective
WWF proposes "One Planet Perspective," which outlines better choices for managing, using and sharing natural resources within the planet's limitations, so as to ensure food, water and energy security

The latest generation of the world's most sold hybrid car is the first application of Toyota's all-new TNGA (Toyota New Global Architecture) development philosophy, which allows the Prius to deliver much improved styling and driving dynamics, whilst achieving its strongest environmental performance yet with average fuel consumption of only 3.0 l/100 km and CO₂ emissions as low as 70 g/km[1].

Alongside Prius is the new RAV4 Hybrid which is available in 2WD and AWD versions. It marries dynamic styling, premium interior quality, ingenious packaging and versatility with a full hybrid powertrain, offering customers improved driving feel for an even more sophisticated driving experience.

On sale in Europe since September[2], the Mirai uses hydrogen as a source of fuel to generate the power needed to drive its motor while emitting only water. It combines superior environmental performance with a cruising range similar to a gasoline engine vehicle and a refuelling time of roughly three minutes.

The sustainable mobility display is completed with the i-ROAD and COMS two compact electric vehicles which offer an insight into Toyota's vision on future mobility. These Personal Mobility Vehicles (PMV) are part of the 'Cité Lib by Ha:mo' car share scheme in the French city of Grenoble. The three year project started in October 2014 and involves a total fleet of 70 i-ROAD and COMS vehicles.

Le Rendez-Vous Toyota is also turning the spotlight on motorsports. The dedicated display includes the TS040 HYBRID, Toyota's LMP1 prototype racer which won the 2014 FIA World Endurance Championship (WEC), the superb TS020, also known as GT-One, and the MP11-Toyota Le Mans, a 2/3 scale replica of the TS040 Hybrid — built by the community organization Les Galapiats^[3].

Visitors can also put their racing skills to the test in the two WEC and GT86 simulators, have their picture taken against customized backdrops (WEC, Galapiats, Arc de Triomphe and Christmas) or try out the Oculus Rift virtual reality headset, while children can take part in the Toyota Dream Car Art Contest.

Located in Paris at 79 Avenue des Champs-Élysées in Paris, Le Rendez-Vous Toyota is open from 11:00 am to 8:00 pm from Sunday to Wednesday, and from 11:00 am until 11:00 pm on Thursdays and Saturdays.

www.lerendezvoustoyota.com

facebook.com/lerendezvoustoyota

[1] Based on the NEDC type-approval test procedure

[2] Initial European sales are limited to Germany, Denmark, UK and Belgium

[3] www.lesgalapiats.com

"Observe the production floor without preconceptions and with a blank mind. Repeat "why" five times to every matter." — Taiichi Ohno, father of the Toyota Production System

With a new initiative being rolled out in 10 European countries this month, Toyota is encouraging school children to do just that, following in the footsteps of Charles Darwin and his legendary curiosity about the world around him.

"Throughout his life Darwin wanted passionately to understand or explain what he saw. He really noticed things and thought about them. He never stopped asking questions. Darwin also developed methodology to record information and investigate mysteries so he could find answers. Most importantly he recorded details about an enormous number of different things he saw in many different places, followed the evidence and was brave enough to come up with ideas that seemed logical — even if they were almost unthinkable." — From The Great Plant Hunt, Darwin Story Book.

This project is an initiative of Toyota Motor Europe, the Foundation for Environmental Education (FEE) and Royal Botanic Gardens, Kew to support biodiversity education in schools throughout Europe. The initiative builds on the Wellcome Trust funded project "The Great Plant Hunt" co-ordinated by the Royal Botanic Gardens, KEW - which runs in the UK and India. The campaign aims to educate students about biodiversity and its importance and encourages them to take positive action. It focuses on biodiversity with a particular emphasis on plants and their associated species.

The initiative, which is launching in November, will be rolled out in 10 European countries: Belgium, Denmark, Germany, Ireland, Italy, Latvia, Poland, Slovenia, Spain and Turkey.

Schools, within these 10 countries, which are part of the FEE network, can join. To find out more, schools can contact their Eco-Schools National Operator.

Toyota will fund the translation of the materials and FEE will make them available for schools in their language. The target audience of the campaign in 2015 is young children, aged between 5 - 7 years.

Through the initiative, Toyota hopes to encourage young people to become advocates for conservation and promotion of local biodiversity activities.

Steve Hope, General Manager Environmental Affairs & Corporate Citizenship: "At global level, promoting biodiversity is one of Toyota's top priorities in our efforts to enrich the lives of communities. This initiative is a significant step in our upcoming 6th 5-Year Environmental Action Plan helping to promote awareness on environment in general and biodiversity specifically. We are pleased to build upon the relationship established in the last years with the Foundation for Environmental Education and the Royal Botanic Gardens, KEW. With this project we are bringing together expertise from both organisations to ensure a scientific approach and wide dissemination network amongst school students."

Julia Willison, Head of Content and Learning, Royal Botanic Gardens Kew: "Kew is delighted that Toyota Europe and the Foundation for Environmental Education is increasing the reach of The Great Plant Hunt, helping to stimulate from an early age an awareness of native biodiversity and an interest in plant science".

The Foundation for Environmental Education is a non-governmental, non-profit charity aimed at promoting sustainable development through environmental education. A global presence, more than 80 countries around the world are engaged in working with various FEE programmes. The organisation is recognised by UNESCO as a world-leader within the fields of Environmental Education and Education for Sustainable Development.

The Royal Botanic Gardens, Kew. Kew's mission is to be the global resource for plant and fungal knowledge and the world's leading botanic garden. The Wellcome Trust is a global charitable foundation dedicated to improving health by supporting bright minds in science, the humanities and social sciences and public engagement.

'The Great Plant Hunt' was commissioned and funded by The Wellcome Trust to mark the 200th anniversary of Charles Darwin's birth. The Great Plant Hunt materials were developed and created by the Royal Botanic Gardens, Kew.

Toyota Motor Europe established the Toyota Fund for Europe to collaborate with non-profit organisations on community activities that support the environment, technical education and road safety. The projects supported by the Toyota Fund for Europe aim at raising awareness and creating positive change.

To find out more about the initiative and apply, please visit: http://www.ecoschools.global/the-great-plant-hunt/learn-more

Content

The 2014 Report's content covers TME's environmental, social and economic performance for the financial year 2013 (FY13) from 1 April 2013 to 31 March 2014. Fifteen priority issues identified in the FY12 review are reported, as well as the set of KPIs developed and maintained by Toyota Motor Europe's CSR Committee.

Additional details on the priority sustainability issues, such as Environment, Safety, and Alternative Powertrains, are provided across the website - the case studies and examples are to be regularly updated to always provide the most relevant information.

Always better lives

At Toyota, sustainability encompasses all business activities. As stated in Toyota's Global Vision, this means delivering products and services that respect and enrich society and the environment.

"Always Better Lives" has been chosen as the overall expression of TME's view towards Sustainability in Europe: "Putting people at the heart of everything we do". Toyota's approach to sustainable growth is achieved through the following 3 pillars:

1) Always Better Cars

Toyota strives to make Always Better Cars in quality, safety, environmental performance and driving pleasure. In Europe, the focus is on small and compact cars and this year two important models have been launched: The new Aygo and the new Yaris. Those models also represent the most significant customisation so far from Toyota's European RandD strategy focused on A, B, C segments vehicle development.

Both models are proof of Toyota's commitment to give all customers a product that is tailored to their individual needs, while at the same time safer, more environmentally friendly and fun to drive. Looking forward, next year the Mirai, Toyota's first Sedan Fuel Cell Vehicle powered by hydrogen, will be launched in Europe. Its extended driving range, zero emission and fast refuelling time make it the nearest thing yet to the ultimate eco-car.

2) Always Better Society

Toyota stands for green technologies and mobility that is affordable. For the former to have a real impact they need to be widely adopted. For this reason, Toyota has spearheaded the adoption of hybrid vehicles. As of today Toyota has put more than 7,000,000 of them on the road worldwide, with 830,000 of those in Europe. At the same time, Toyota continues to pioneer alternative solutions that address society's challenges by pursuing the vision towards a Smart Mobility Society — a mobility that connects private and public means of transportation in a seamless way. A recent example is the Citelib by Ha:Mo project in Grenoble, where together with partners Toyota studies multimodal and last mile mobility with ultra-compact electric vehicles, including the revolutionary i-ROAD.

3) Always Better Business

To achieve its vision and long-term goals, the business must be successful. This means creating a business model for sustainable growth. For example, one of company's commitments is to contribute to communities by producing where cars are sold. Today Toyota can proudly say that it is a legitimate local player in European region, having reached in October this year the milestone of 9 million European-produced vehicles. With 20,000 employees, 9 manufacturing plants and 31 sales and marketing organisations covering 56 countries, Toyota's Europe region increased sales in 2013 for the third year in a row despite a declining market, and achieved solid profitability.

Moreover, company's dedication to make cars that are eco-friendly and help people have a stress-free life is paying-off. Hybrid sales in 2013 have increased by 28%, making it a fundamental contributor to profitability.

Navigation

The 2014 Sustainability Report is accessible online through the homepage of toyota-europe.com à Home/World of Toyota/Sustainability

The Report contributes to Toyota Motor Corporation global Sustainability reporting system. More information about Toyota's stance on Sustainability, and details on products, global operations and technologies can be found in Toyota Motor Corporation's 2014 Sustainability Report.

We welcome your comment on this report and invite you to share them with us via email at info@toyota-europe.com

The testing is part of a project, also to begin this month, run by the Japanese Ministry of Agriculture, Forestry and Fisheries (MAFF) to create and test advanced agricultural management models.

Recently in Japan, increasing numbers of small-scale farmers and landowners have been entrusting land cultivation to large-scale agricultural cooperatives. To address the needs of this growing farming model and make it more efficient, Toyota developed the IT tool as a means to organize data gathered from independent field laborers into a central database so that work on scattered, independent rice farms can be better managed.

The tool generates and distributes daily coordinated work plans to multiple laborers at different rice fields over a large area. As laborers report their progress via smartphone or tablet to a central database, administrators can manage the overall cultivation.

The tool can also be used post-cultivation in the drying and refining phases to gather information such as the rice grain type, cultivation area, fertilization conditions, weather, working hours and drying conditions. Harvest quantity and quality can also be collected and analyzed to help produce a better tasting crop at lower cost.

Toyota has a wealth of knowledge about production control systems and process improvements, and since 2011, has been working with rice growers in Aichi Prefecture to improve cultivation processes and boost productivity. Initial trials of the IT tool began in 2012, with major improvements made, such as reduced complexity for fewer human errors, lower material costs and enhanced administrative capabilities.

The IT tool and related services will be sold by TMC's IT business subsidiary Toyota Media Service Corporation.

Currently, the tool only supports the cultivation of major crops such as rice, wheat and soy. However, Toyota intends to continue to expand the scope of the tool to help support the revitalization and competitiveness of Japanese agriculture.

*Consortium formed by nine rice growing agricultural cooperatives in Aichi and Ishikawa Prefectures to test the tool and improve its quality and efficiency

Roughly 40 years' worth of mineable copper resources*¹ remain worldwide, while global consumption is growing, driven particularly by infrastructure-related demand for wiring in emerging markets. In addition, large amounts of copper are used in the motors of hybrid vehicles, which are becoming increasingly popular.

When wiring harnesses are removed from end-of-life vehicles under conventional methods, it is extremely difficult to separate the copper from the fuse box and other components. As a result, it has not been possible until now to recycle harnesses using mechanical sorting methods*².

In 2010, however, TMC, Yazaki, Toyota Tsusho and their partners*³ began collaboration in a number of areas, including establishing pre-processing quality requirements for dismantling companies. In 2011, TMC developed the first mechanical sorting method that can prevent contamination from minute impurities. Trial production involving small amounts of recycled copper began at TMC's Honsha Plant in 2013. Once quality had been assessed by Yazaki, the copper was introduced to the wiring harness manufacturing line. Stable production involving recycled copper has been achieved, and annual production of recycled copper using this method will increase to approximately 1,000 tons in 2016.

This new technology is the result of TMC's first collaboration with parts makers and dismantling companies in Japan on next-generation recycling systems. Toyota will continue to enhance this technology while reducing costs and expanding collaborative efforts. Furthermore, Toyota will create an ongoing next-generation recycling project with parts makers and dismantling companies with the aim of fostering a recycling-based society. This, in addition to other resource recycling initiatives, will become a new source of competitiveness for Toyota and other involved companies as they combat resource depletion.

Eight dismantling companies involved in collaboration

*¹ According to Japan Oil, Gas and Metals National Corporation (JOGMEC), "Copper Demand Trends," January 31, 2013

*² Sorting methods whereby the wiring harness covering is removed by a shredding company, aluminum and other light metals are removed by a method called specific-gravity sorting, iron is removed magnetically, and small contaminants are identified by color and removed.

*³ Eight dismantling companies from the Chubu region of Japan

Committed to addressing global environmental issues such as the reduction of CO₂, NOX and particulate emissions, Toyota has been researching and implementing environmentally-friendly mobility solutions for over 40 years in the quest for the ultimate eco car.

The continuous development of powertrain technology is crucial to improving the environmental performance of vehicles, and Toyota has identified three key goals:

1 Improved fuel efficiency and reduced CO₂ emissions

2 Cleaner exhaust emissions for improved air quality

3 Energy diversification to counter decreasing oil reserves

Recognising the importance of energy diversification, Toyota is taking a Comprehensive Environmental Technology approach, developing a wide array of advanced technologies which pave the way for several types of eco car to coexist in the future.

Today, Toyota maintains its environmental lead through the simultaneous development of new technologies on two fronts: Toyota Optimal Drive and Hybrid Synergy Drive^®.

Toyota remains convinced that hybrid drive is the core technology for the future. With 2.7 million hybrid vehicles already sold1 worldwide, the company's outstanding record of customer experience gives it a significant lead in the drive towards sustainable mobility through the adaption of Hybrid Synergy Drive® for use in Plug-in Hybrid Vehicles (PHV), Electric Vehicles (EV) and Fuel Cell Hybrid Vehicles (FCHV).

However with fossil fuels remaining the primary energy source of the immediate future, Toyota will continue to improve the efficiency of its petrol and diesel engines through the use of Toyota Optimal Drive technologies, which already benefit some 90% of the model line-up.

Despite a model line-up which includes several larger vehicles, Toyota recorded the second lowest European whole fleet CO₂ emissions in 2009, with an average of only 130 g/km.

Toyota Optimal Drive

Introduced at the 2008 Paris Motor Show, Toyota Optimal Drive showcases a combination of wide-ranging advanced technologies and internal improvement programmes designed to optimise the balance of performance and driving enjoyment with fuel economy and low emissions.

Incorporated, as standard, in every new Toyota, these diverse core technologies focus on three key aspects of powertrain development:

1 Reduction of engine weight 

2 Reduction of mechanical losses

3 Maximisation of fuel efficiency

Reduced Engine Weight

Weight is the enemy of fuel consumption. Toyota has developed super-lightweight and highly compact engine blocks and transmissions. For example, featuring a lightweight resin cylinder head cover and intake manifold, the 1.33 litre petrol engine in the Auris is the lightest and most compact in its class, weighing 13kg less than the engine it replaced.

Reduced Mechanical Losses

Further engine efficiency has been achieved by the painstaking reduction of friction throughout the new powerplant range. Revised roller rocker technology incorporates new camshaft profiles for friction reduction in the valve gear. Enhanced bore circularity and lightweight, coated pistons reduce friction in combustion chambers. Increased engine block rigidity, the adoption of a water jacket spacer and the use of low-viscosity oil further reduce mechanical friction.

Maximised Fuel Efficiency

Every Toyota powertrain incorporates several key technologies to maximise combustion efficiency and fuel economy. Petrol engine efficiency is enhanced through a higher compression ratio, the refinement of intake port and combustion chamber design, and the introduction of piston cooling by oil jet.

Newly developed Valvematic technology further improves performance through the optimisation of valve timing and intake lift across the widest possible engine revolution band. Toyota Valvematic can reduce CO2 emissions by up to 10%, whilst generating some 10% more power than VVT-i.

Toyota's proven D-4D common rail diesel technology reduces intake temperature, allowing for a higher compression ratio and the generation of increased torque. Every D-4D unit in the Toyota Optimal Drive range has now been upgraded with advanced Piezo high-pressure injectors to further improve combustion efficiency.

All Toyota diesel engines are fitted, as standard, with either a Diesel Particulate Filter (DPF) or a Diesel Particulate and NOX Reduction system (DPNR), further reducing NOX and PM emissions. Every diesel engine in Toyota's line-up now meets Euro 5 emission standards.

Performance, driving pleasure and fuel efficiency are further enhanced through a range of technologically advanced, highly responsive Multidrive and 6-speed manual transmissions. And a Stop & Start system automatically switches off the engine when the vehicle is stationary, reducing fuel consumption by up to 15% under urban driving conditions.

2010 — A Decade of Proven HSD Technology. Reliability and Customer Satisfaction lays the foundations for Toyota's Full Hybrid Expansion Programme

Hybrid Synergy Drive^® - Proven Powertrain Technology

— Delivers record-low fuel consumption, significantly less harmful emissions and exceptionally low running costs

— Switchable EV mode, unique to full hybrid technology, delivers silent, emissions-free, fully electric urban driving

— Three on-demand modes -EV, ECO and POWER- encourage either relaxed and fuel-efficient or engaging, performance-enhanced driving 

Hybrid Synergy Drive^® is not an alternative to petrol or diesel, but an addition, enhancing the efficiency of existing powertrains. As well as lowering fuel consumption, hybrid vehicles are particularly effective in the reduction of CO₂ and NOX emissions.

Toyota's Hybrid Synergy Drive^® offers full hybrid capability, operating in petrol and electric modes alone, as well as a combination of both. It combines best-in-market petrol CO₂ emissions and class-leading fuel economy with no compromise on performance.

Hybrid Synergy Drive^® features three 'on demand' modes, EV, ECO and POWER, encouraging either relaxed and fuel-efficient or engaging, performance-enhanced driving. Unique to full hybrid technology, its switchable EV mode delivers fully-electric urban driving at speeds of up to 50 km/h, with minimal noise and zero carbon dioxide (CO₂), nitrogen oxide (NOX) and particulate matter (PM) emissions.

Internal Toyota studies performed with the third generation Prius show that during a typical city trip, when the average speed is below 30 km/h, more than 25% of the journey takes place with the engine off, not only eliminating emissions, but also significantly lowering average fuel consumption.

Building on established reliability and minimising servicing costs, the full hybrid powertrain has no starter motor, alternator or drive belts. The battery is designed to last the life of the car, standard tyres have a life expectancy of over 50,000 km, and the efficiency of the Electronically Controlled Braking (ECB) regeneration system increases brake pad life to over 100,000 km.

Awarded the title "Green Engine of the Year" in 2010, Hybrid Synergy Drive's^® outstanding reliability is supported by the Prius' warranty history. It has the lowest warranty cost per unit of any Toyota model, of which only 1.3% relates to hybrid componentry. Proven quality and continued customer approval are witnessed by a decade of top J.D. Power and Associates customer satisfaction survey rankings.

The launch of the Auris HSD in the heart of the C-segment anticipates the introduction of as many as 10 new, Toyota full hybrid models by the early 2010s, with worldwide annual sales of 1 million hybrid vehicles targeted within the same time frame. As early as possible in the 2020s, Toyota aims to offer all its models in Europe with a full hybrid powertrain derivative, making full hybrid technology accessible to a wide range of customers.

Hybrid Synergy Drive^® system architecture and operation

Toyota's Hybrid Synergy Drive^® series/parallel full hybrid system features a 1.8 litre petrol engine, a powerful electric motor, a generator, a high performance battery, a power control unit, and a power split device which employs a planetary gear set to combine and re-allocate power from the engine, electric motor and generator according to operational requirements.

Key to the successful installation of Hybrid Synergy Drive^® within a front-engined platform, the electric motor, generator and power split device are all housed in one lightweight, highly compact transmission casing directly comparable in size to that of a conventional gearbox.

The hybrid system's petrol engine operates on the Atkinson cycle, in which compression and expansion are asymmetrical and the valves close late, delaying compression. This creates a high expansion ratio for less compression, reducing intake and exhaust energy losses and converting combustion energy to engine power more effectively. As a result the exhaust temperature is lower than that of a conventional engine.

A cooled Exhaust Gas Recirculation (EGR) system further reduces engine operating temperatures. And, together, these technologies minimise the need for fuel enrichment to protect the catalytic converter from overheating, thereby improving fuel economy and lowering emissions.

Over the course of any journey, Hybrid Synergy Drive^® operates in several different modes to maximise the vehicle's overall efficiency: at rest, the engine stops automatically to conserve fuel.

Under operating conditions of low engine efficiency such as start up and low to mid-range speeds, the vehicle runs on the electric motor alone, thus eradicating CO₂ and NOX emissions.

Under normal driving conditions, power allocation is constantly adjusted between engine and electric motor to combine optimum performance with maximum fuel efficiency. During constant-speed cruising, the engine alone will normally power the vehicle. But when additional power is needed, for example during sudden acceleration, the motor operates in tandem with the engine to boost hybrid system output.

The hybrid system also incorporates Electronically Controlled Braking (ECB) with a regeneration system. During deceleration and under braking, the electric motor acts as high-output generator to effect regenerative braking. This optimises energy management in the Hybrid Synergy Drive^® system by recovering kinetic energy (normally wasted as heat) as electrical energy for storage in the high performance battery.

Battery power level is constantly managed via an engine driven generator, making it unnecessary to recharge the system from an external source.

Prius — Ahead of its Time

— With cumulative European sales of Prius topping the 100,000 mark in May 2008, the figure has doubled to 200,000 in just two years 

— In one decade, Prius' HSD system maximum power has increased by over 30%, fuel consumption has fallen by over 23% to 3.9 l/100 km and CO2 emissions have been reduced by almost 26% to 89 g/km

— Numerous, segment-first high technology features including head-up display and solar-powered ventilation

Finding increasing acceptance as a mainstream model, the full hybrid Prius celebrates the major milestone of its first decade on the European market with a dramatic acceleration in sales performance.

With cumulative European sales of Prius topping the 100,000 mark in May 2008, the figure has now doubled to 200,000 in just two years. The third generation Prius has been Japan's best-selling car for every month since its launch in May 2009. Cumulative global sales of Prius are expected to exceed 2 million units by the autumn of 2010.

Prius has been consistently ahead of its time in addressing environmental issues, leading the field in the pursuit of improved fuel efficiency and a reduction in CO₂, NOX and particulate emissions. The last decade has witnessed a fall in the fuel consumption of its Hybrid Synergy Drive® powertrain of more than 23% and a reduction in CO₂ emissions of almost 26% from 120 g/km to just 89 g/km. Yet maximum system power has simultaneously increased by 30%.

The Prius addresses not only CO₂ emissions, but also air quality. Even operating in normal drive mode, the Prius generates significantly lower NOX emissions than any comparable diesel vehicle. In EV drive mode it generates zero CO₂, NOX and PM emissions.

Customer perceptions of full hybrid technology have evolved significantly since the first Prius was introduced more than a decade ago. First generation owners were won over by the car's unique concept and technological innovation. Second generation owners were enthusiastic early adopters of niche technologies, remaining passionate about the Prius product concept.

Third generation customers recognise the Prius as a true mainstream vehicle with on-road performance and dynamic abilities which now bear comparison with any D segment competitor.

Each generation of Prius has introduced new, high technology features to the segment ahead of its time. Amongst the third generation Prius' numerous new technologies are a world-first combination of a solar powered ventilation system and remote controlled air conditioning, a head-up display, touch sensitive Touch Tracer steering wheel-mounted switches, an Intelligent Parking Assist System (IPA) and a pre-crash safety system.

Moreover, the Prius maintains a peerless reputation for reliability and is exceptional value for money. Best-in-market petrol CO2 emissions and combined cycle fuel economy of 3.9 l/100 km offer Prius customers significant, pan-European tax incentives, inner city congestion charge exemption and exceptionally low running costs.

In August 2010, for the 5th time since 2004, Prius was ranked the Most Environmental Car, by the German Association for Sustainable Mobility, Verkehrsclub Deutschland (VCD), on this occasion sharing 1st place with the Auris HSD.

Auris HSD - The First, and Only, Full Hybrid Powertrain in the C-Segment

— A first step towards Toyota's full hybrid roll-out across the mainstream market

— Auris is the first C-segment model to offer a choice of petrol, diesel or full hybrid powertrains.

— The world's most affordable full hybrid, combining urban driving efficiency, significant tax benefits and low cost of ownership 

The Auris HSD is equipped with the first and only full hybrid powertrain in the highly competitive C-segment. The introduction of Toyota's Hybrid Synergy Drive^® to the range makes the Auris unique within the segment, it being the first model to offer a choice of petrol, diesel or full hybrid powertrains.

Exclusively designed for the European market and built at Toyota Motor Manufacturing UK in Burnaston, the Auris HSD drives like no other car in its class. The everyday usability, driving comfort and remarkable quietness of its Hybrid Synergy Drive® powertrain will further contribute to the important shift in customer perceptions of hybrid technology initiated by Prius. They will appreciate the urban driving efficiency, low cost of ownership and significant tax benefits of the world's most affordable full hybrid technology.

Capable of operating both independently and in combination, the Hybrid Synergy Drive^® system's 1.8 litre VVT-i petrol engine and electric motor generate a maximum system output of 136 DIN hp, equipping the Auris HSD with seamless 0-100 km/h acceleration in 11.4 seconds and a maximum speed of 180 km/h — a best-in-class performance for vehicles with sub-100 g/km CO₂ emissions.

Conversely, the Auris full hybrid returns class-leading fuel consumption figures of only 3.8 l/100 km in the European homologation combined cycle and remarkably low, highly tax-efficient CO₂ emissions of just 89 g/km — a figure unmatched by any other C-segment car.

The Auris HSD combines the practical, flexible packaging of a conventional 5-door C-segment car with all the advantages of Hybrid Synergy Drive^®, including an integral, Eco driving support monitor to help customers develop relaxed, fuel-efficient and engaging driving techniques which maximise system efficiency.

As with every Toyota full hybrid, the Auris HSD has been designed to minimise running costs. Combining lower parts pricing with shorter service times, its maintenance costs over 100,000 km are on a par with those of a 1.0 litre Toyota Yaris.

FT-CH Concept — Future Toyota Compact Hybrid Concept

— Dedicated full hybrid - the latest addition to Toyota's advanced concept technology 

— Demonstrating Toyota's intention to expand HSD technology to the small compact car segment

— Compact, urban friendly package, appealing to a younger customer base

Reinforcing Toyota's commitment to introduce HSD technology to a far wider customer base over the next decade, the FT-CH concept is the company's first representation of a full hybrid vehicle for the small compact car segment.

Just 3,895 mm long, the FT-CH's compact proportions hint at a manoeuvrability and responsiveness ideally suited to the urban environment, whilst its generous, 2,550 mm wheelbase provides spacious accommodation for four passengers.

With styling inspired by the 8-bit microprocessor technology that dominated the 80s video game industry, the FT-CH's exterior design incorporates the attention to aerodynamic detail which hallmarks every Toyota full hybrid. The wheels feature white rim clips and matt black hubs designed to minimise air turbulence.

Placing the emphasis on quality, simplicity and affordability, the interior has been designed with the minimum of complex componentry in mind. The dashboard is of a simple, three-piece construction, the interior door panel has just six parts and the seatback and squab frames are formed from the same moulding.

A racing-style instrument cluster and steering wheel have been adopted to appeal to a younger, more sporting customer, and the FT-CH full hybrid's Eco driving support monitor features an innovative, multi-coloured wind turbine display.

Future Sustainable Mobility based on Core HSD Technology

Toyota believes it is important to follow more than one path towards sustainable mobility, diverse energy sources and battery technology paving the way for several types of eco cars to coexist in the future.

In this context, Hybrid Synergy Drive's^® modular technology makes it the ideal platform for adaptation to use with several different power sources: Plug-in Hybrid Vehicles (PHV), Electric Vehicles (EV) and Fuel Cell Hybrid Vehicles (FCHV).

The Prius Plug-in Hybrid — The Best of Both Electric and Full Hybrid Worlds

The further development of electric cars as urban commuters is currently handicapped by the weight and size of the large capacity batteries required to offer a satisfactory range, and the lack of an adequate recharging infrastructure.

Toyota therefore believes that plug-in hybrid technology is the most feasible short- to mid-term solution to the electrification of powertrains. Thanks to its alternative, on board power source, a PHV can be used beyond the electric driving range.

The Prius Plug-in Hybrid represents a significant expansion of the Hybrid Synergy Drive^® system's capabilities. It addresses the specific needs of urban-based customers with a significantly extended, fully-electric EV driving range for shorter journeys, while the hybrid powertrain's petrol engine awards the vehicle true long range capability. Moreover, the affordability of its proven HSD technology will make it widely accessible.

Because lithium-ion batteries offer a considerable increase in EV driving range with no adverse weight or packaging issues, the Prius Plug-in Hybrid marks their introduction for the first time in a Toyota hybrid vehicle. Rapid charging is a further lithium-ion asset the battery pack of a Prius Plug-in Hybrid can be fully recharged in 1.5 hours from a standard, 230 V household outlet.

The lithium-ion battery pack gives the vehicle a maximum speed of 100 km/h when driven in EV mode. With battery fully charged, the Prius Plug-in Hybrid's EV mode range is approximately 20 km.

The Hybrid Synergy Drive^® powertrain generates a total system power output of 136 DIN hp, providing seamless acceleration from 0-100 km/h in 11.4 seconds and a top speed of 180 km/h.

Conversely, with the vehicle's overall fuel efficiency significantly enhanced by its extended EV range, the Prius Plug-in Hybrid returns a remarkably low fuel consumption figure of only 2.6 l/100 km in the European homologation combined cycle — a reduction of 30% over that of the Prius. Furthermore, CO₂ emissions have also fallen to an unprecedented low of just 59 g/km.

600 Prius Plug-in Hybrids Worldwide - 200 in Europe

With the goal of bringing the Prius Plug-in Hybrid to the market in Europe and globally in 2012, some 600 vehicles are already involved in limited lease projects worldwide - one third of them in Europe.

The lease projects are designed to assess every aspect of real-world PHV use, address customer feedback and verify the new Prius Plug-in Hybrid's overall environmental and technological performance before it goes on sale.

Simultaneous research into public-private development of recharging infrastructure is fundamental to the viability of any electric vehicle. To that end, Toyota has an ongoing partnership with French energy company, EDF, and has established additional partnerships with other local authorities and energy companies in Europe.

Toyota's European limited lease project has already begun in Strasbourg, France, with the three year leasing of 100 Plug-in Prius Hybrids. 20 vehicles have been introduced in the UK this year, and a further 30 in Germany. Spain, Norway, Belgium and Portugal are also participating in the project. In total, Toyota has leased about 200 vehicles to some 20 European countries since mid 2010.

Toyota has also introduced the Prius Plug-in Hybrid on a global scale, with participants including Canada, United States of America, Japan, Australia and New Zealand.

Early customer feedback from France is encouraging. Since they began driving the vehicle in April, a majority of surveyed users have reported that the Prius Plug-in Hybrid has already exceeded their expectations, in many cases significantly. Users cite three key reasons for this: the vehicle's low CO₂ emissions, its low fuel consumption, and its technological features.

The majority of users drive less then 40 km per day, making the Prius Plug-in Hybrid's extended EV range ideal for their needs, with one, 1.5 hour full recharge easily accommodated during working hours. They find the car easy to use, regardless of whether or not they have previous experience of full electric drive.

All drivers recorded lower fuel consumption than that achieved with their normal cars. Furthermore, half of the drivers adapted their driving behaviour to fully exploit the benefits of full hybrid drive, resulting in an even better environmental performance.

Battery technology — fundamental to the further development of HSD

Toyota is fully committed to the most rapid possible advances in battery technology. It has been developing in-house battery technology since the early 1990s.

In June 2008, the company established its own Battery Research Division at the Higashi-fuji Technical Centre, to accelerate the development of next-generation batteries. In January 2010, a Battery Production Engineering Development Division was established at the same location, bringing the number of engineers dedicated to battery development to over 100.

Toyota's joint-venture partnership with Primearth EV Energy (PEVE) has also been a key element of its success in the advancement of hybrid technology. PEVE's two production facilities in Japan are capable of producing 1.1 million battery packs per annum.

Battery technology has progressed significantly in the ten years since the introduction of Toyota's full-electric RAV4 EV and e-Com vehicles. The durability and reliability of nickel-metal hydride perfectly suits Toyota's Hybrid Synergy Drive^®, and the superior volume energy density of lithium-ion offers improved EV range and high speed recharging for PHVs.

Each successive generation of HSD technology has seen a reduction in battery pack size, weight and cost, yet improved efficiency. And Toyota RandD is investing heavily in the development of a more accessible generation of lithium-ion batteries for hybrid vehicles, PHVs, EVs and FCHVs.

With 2.7 million batteries sold to date1, major challenges still remain. For instance, the cost of lithium ion batteries needs to be reduced significantly, or a more affordable alternative found.

Electric Vehicles - for shorter distance mobility

Toyota believes in the feasibility of EVs as a primary mode of transportation for shorter distances, and a mid term solution towards sustainable mobility.

Electricity has high potential as an alternative energy source to oil. It can be supplied easily, and produced from renewable sources such as solar, wind and hydro-electric power.

Toyota has been strengthening its knowledge and engineering capability in the field of electric vehicles, and continues develop short range EVs for commercialisation.

On stage at the 2010 Paris Motorshow, the FT-EV II concept is a compact EV with a top-speed of 100 km/h and a driving range of over 90 km. Toyota plans to launch a lithium-ion battery equipped EV in the United States in 2012.

In May 2010, Toyota Motor Corporation and Tesla Motors Inc announced their intention to cooperate in the development of electric vehicles and parts, as well as production system and engineering support. In July, the two companies initiated the development of an EV combining the Toyota RAV4 model with a Tesla electric powertrain.

With the aim of marketing the new EV in the United States in 2012, Tesla plans to produce and deliver a fleet of prototypes to Toyota for evaluation within this year. The first prototype has already been built and is now undergoing testing.

Fuel Cell Hybrid Vehicles — one step closer to the ultimate eco car

In terms of distance travelled per unit of fuel and CO₂ emitted per kilometer, FCHVs have a higher well-to-wheel efficiency than hybrids, any conventional petrol or diesel engine, and even electric vehicles.

A fuel cell produces electricity through a chemical reaction between hydrogen (stored in the vehicle) and oxygen (from the air), with water vapour the only emission. Its structure comprises electrodes and polyelectrolyte films sandwiched between separators. When hundreds of cells are stacked together, the result is a fuel cell 'stack', known as an FC stack.

A fuel cell can convert as much as 80% of hydrogen's energy into usable power -about twice the efficiency possible with current generation petrol engines.

Toyota began work on FCHVs in 1992, developing its own hydrogen fuel cells and high-pressure hydrogen storage tanks in house. The company now applies its own HSD technology to FCHV development, replacing petrol engines with FC stacks, and petrol fuel compartments with high pressure hydrogen tanks.

Toyota's latest fuel cell hybrid, the FCHV-adv, is a Highlander equipped with a powertrain based on this HSD-derived technology. It features an in-house developed, polymer electrolyte, 90 kW FC stack, a 21 kW Ni-MH battery, a 90 kW / 260 Nm electric motor and four tanks, each storing hydrogen at a pressure of 70 MPa.

With a maximum 10 minute refuelling time, the FCHV-adv will travel up to 790 km on a single tank of hydrogen at speeds of up to 155 km/h. Operating in temperatures as low as -30° C, it offers a completely silent drive and generates zero CO₂, with water vapour the sole emission.

Continuing its research into improved battery durability and reliability, significant cost reduction, improved well-to-wheel CO₂ emissions and the implementation of a hydrogen fuelling infrastructure, Toyota aims to begin the commercialisation of fuel cell vehicles in 2015.

Hydrogen Infrastructure through Partnership Cooperation

A smooth shift to a hydrogen-based society will be a significant undertaking. Reaching a consensus on from what to make hydrogen, how to deliver it and how to implement a fuelling infrastructure depends on the combined efforts of all sectors of society, including governments, private companies and research and standardisation institutions.

To that end -and in anticipation of the imminent commercialisation of a number of FCHVs- Toyota, Ford, Daimler, General Motors, Honda, Hyundai/Kia and Renault/Nissan signed a Letter of Understanding in September 2009 calling for oil and energy companies and government organisations to cooperate in the creation of hydrogen infrastructure networks of sufficient density in Europe, the United States, Japan and Korea by 2015.

At the start of 2010, Toyota joined the Clean Energy Partnership (CEP) an alliance of 13 leading companies dedicated to establishing hydrogen as the fuel of the future, paving the way to an era of zero-emissions mobility. Members include major technology, oil and energy companies, as well as the majority of German car manufacturers and two leading public transport companies.

Through the participation of local governments in providing pilot regions for the first demonstration projects, the declared objective of the CEP is to increase the proportion of hydrogen produced using renewable energy to 50%. First initiatives in German states mark the beginning of a nationwide programme to develop and test hydrogen refuelling infrastructure. Toyota will contribute with five FCHV-adv fuel cell hybrid vehicles to the partnership by 2011.

In the United States, 100 FCHV-adv vehicles are being placed in various nationwide demonstration programmes over the next three years, including one with the California Fuel Cell Partnership.

BMW Group (BMW) and Toyota Motor Corporation (TMC) announce that they today signed a memorandum of understanding (MOU) concerning a mid-to-long-term collaboration on next-generation environment-friendly technologies.

Under the MOU, the two companies agreed on a collaborative research in the field of next-generation lithium-ion battery technologies. Furthermore, they have agreed to identify and discuss other possible collaborative projects.

In addition, Toyota Motor Europe (TME), TMC's European subsidiary, and BMW have entered into a contract under which BMW is to supply 1.6 litre and 2.0 litre diesel engines to TME starting in 2014. The engines will be installed in certain Toyota-produced vehicles planned for sale in the European market. Through this agreement, Toyota plans to expand its European lineup and sales of fuel-efficient, low CO₂-emission diesel-powered vehicles.

Marking the announcement, Norbert Reithofer, Chairman of the Board of Management of BMW AG, said: "Toyota is the leading provider of environment-friendly series technology in the volume segment and the BMW Group is the most innovative and sustainable manufacturer of premium automobiles. We are now joining forces to further develop environment-friendly technologies and to expand our innovation leadership in each of our segments. Supplying Toyota with our fuel efficient and dynamic diesel engines represents another important step in the planned expansion of our sales activities for engines and powertrain system."

Representing TMC, President Akio Toyoda said: "It is a great joy and a thrill to enter into this mid-to-long-term collaborative relationship with BMW, a company with its own culture and history from its many years of car manufacturing in Europe, and a company that makes cars that are fun to drive. In the spirit of contributing to furthering the development of the auto industry and society, both companies will bring their wide-ranging knowledge—starting with that concerning environmental technologies—to the table and make ever-better cars."

###

The press conference will be broadcasted live on the internet and will continue to be available at:

English: http://www.ustream.tv/channel/toyota-en

Japanese: http://www.ustream.tv/channel/toyota-jp

The Toyota speeches are available at www.toyota-global.com and http://corporatemedia.toyota.eu

The corresponding press release and speeches from BMW are available at www.press.bmwgroup.com

For more information, please contact: 

BMW Group

Micaela Sandstede, Business- and Finance Communications

Telephone: +49 89 382-61611, Fax: +49 89 382-24418

Micaela.Sandstede@bmw.de

BMW Group Japan

Miki Kurosu, Corporate Communications

Tel: +81-3-6259-8020

Miki.Kurosu@bmw.co.jp

Toyota Motor Europe

Etienne Plas

Telephone: +32 2 745 2022

etienne.plas@toyota-europe.com

Toyota Motor Corporation

Media from the Americas, Europe or Africa: +81-3-3817-9628/9161

Media from Asia, Oceania or the Middle East: +81-3-3817-9182/9174

The Green Manufacturing Award acknowledges companies that clearly demonstrate unparalleled performance in environmental manufacturing. Adjudicators look at case studies to determine the performance of shortlisted companies in areas including, maximising energy efficiency levels, addressing water use and treatment, compliance with environmental regulations and minimising waste from the production process.

The panel of judges made up of industry professionals praised Toyota's approach towards environmental performance in manufacturing, demonstrating a clear link to the well-established principles of the Toyota Production System (TPS).

Steve Hope, General Manager of Plant Engineering and Safety at TME, said: "This award recognises the tremendous efforts by the members at all of our European manufacturing facilities who continuously improve, and apply their knowledge and expertise of TPS to their daily activities."

Toyota maintains a strong focus on environmental leadership ever since the first European manufacturing facility was established in 1992. Toyota's Environmental Management System at each of its five European manufacturing facilities incorporates the principles of "green, clean and lean", promoted through the continued application of the Toyota Production System with the core principle of eliminating "waste".

From 2001 to 2009, Toyota's European manufacturing facilities reduced the consolidated impact per vehicle in terms of energy consumption by 40%, waste by 38%, emissions of volatile organic compounds (VOC) by 51% and water usage by 44%.

Currently, two of just five Toyota manufacturing facilities worldwide nominated as a "Sustainable Plant" by Toyota Motor Corporation are based in Europe — Toyota Motor Manufacturing France and Toyota Motor Manufacturing United Kingdom — demonstrating Toyota's environmental leadership in Europe.

TME was also shortlisted for the Outstanding Achievement in Continuous Improvement Award at this year's Strategic Manufacturing Awards.

Toyota Motor Europe publishes an annual Sustainability Report detailing its sustainable operations in Europe. The 2011 edition of the report can be found: http://www.toyota.eu/sustainability/

About World Trade Group

World Trade Group is one of Europe's leading Business-to-Business corporate events, media information providers and knowledge transfer companies. Established in 1997, WTG delivers conferences, training courses webinars, lead generation, online communities and Business Decision Maker Profiling to more than 10 international industry sectors. The Manufacturing division also hosts the Supply Chain distinction Awards and the Strategic Manufacturing Awards.

Covering 90,000m² of industrial land with the TMUK Burnaston site, the new solar power system is the largest installed by any vehicle manufacturer in the UK.  The "array" of about 17,000 solar panels has the capacity to save 2,000 tonnes of CO₂ emissions from the complex each year, and realise an energy saving equivalent to 4.6 million kWh – roughly the power needed to build 7,000 cars a year.

The project adds to the plant’s impressive environmental profile as one of Toyota’s five standard-bearing worldwide “eco-factories”. Notably, TMUK in Burnaston, Derbyshire, is also the production centre for the Toyota Auris full hybrid, the first volume production full hybrid car to be built in Europe.

The solar power system is complimented by a range of showcase energy saving features that have been introduced around Burnaston’s manufacturing shops. These include a ‘brise soleil’, which is a sunshade of solar panels fitted above the windows, and a wall of solar glass to replace existing windows. The solar panels in the main array cost more than € 11.4 million (£10 million) and are all British-manufactured.

They were installed and paid for by British Gas, which is claiming the feed-in tariff – a UK Government scheme designed to improve the up-take up of solar power generation systems, under which owners are paid for the renewable electricity they produce.

TMUK, which operates the Burnaston facility, will benefit from the free renewable electricity generated. Tony Walker, TMUK Deputy Managing Director, said: “The launch of the new solar array marks a further significant step in our journey towards low carbon and sustainable manufacturing. This development is a key part of our 'sustainable plant' vision in which our production facilities are designed to work in harmony with our local community and surrounding environment. Our aim is to be a true eco plant producing eco cars built by eco-minded people.”

Colin MacDonald, Head of Microgeneration at British Gas, said: “This new solar array – one of the biggest in the UK – demonstrates how an energy intensive industry like manufacturing can lead the way to a low carbon future. As well as improving Derbyshire’s green credentials, we hope it will act as a beacon for other homes and businesses throughout the county to think about renewable energy.”

Frank McArdle, Chief Executive of South Derbyshire District Council, Burnaston’s local planning authority, said: “Toyota has clearly invested for the future with the installation of these solar panels. This in itself is a sign of the confidence it has in its plant in Burnaston and puts this area at the cutting edge of green technology.”

TMUK has a fine record of environmental leadership. It was the first UK car manufacturer to be awarded the international ISO 14001 standard for environmental management in 1996, and the first to reduce the amount of waste sent to landfill to zero in 2002. In 2008 it went further achieving zero waste to incineration.

The Port of Zeebrugge Authority, MBZ, recently approved construction plans for the turbines on the premises of Toyota's Zeebrugge VLC. This joint project with Evelop Belgium will contribute towards the Port Authority's broader wind energy plan at the port. Today's announcement means Toyota will be among the first operators at the inner port to support this initiative. Each wind turbine will be capable of generating 3 MW of electricity, and a combined annual capacity of 17.1 GWh.

Wind energy provider, Evelop Belgium — part of the Dutch energy group Eneco, will construct and maintain both wind turbines at Toyota's Zeebrugge VLC. Eneco Group has constructed 52 wind turbines in Belgium with an energy output in excess of 100 MW, and 300 MW in Europe.

Koen Vandersteegen, Regional Manager for Vehicle Logistics at TME, said: "This project is part of our long-term aim to ensure sustainability of our operations. As an automotive company, we remain committed to contributing positively to the environment. The wind turbines are only the most recent in a series of environmental projects we have implemented to improve our environmental performance."

Today's announcement comes just over a year after the inauguration of 80,000 m² of solar panels at Toyota Parts Centre Europe in Diest, Belgium. The solar panels are amongst the largest in Belgium and produce between 15% and 20% of the annual electricity requirements of the facility. Since 2007, Toyota facilities in Belgium are 100% powered by Green Energy.

Starting operations in January 2001, the Zeebrugge VLC currently occupies 460,000 m², following an expansion project in 2003. The hub is one of nine Toyota logistics centres in Europe to be awarded the ISO 14001 certification for environmental management. The Zeebrugge VLC reached a milestone in March when it distributed the 3-millionth vehicle after its first decade of operations

The solar array is located on 90,000 m² of industrial land within the plant and consists of around 17,000 panels — enough to cover almost four and a half football pitches — all of which will be manufactured in the UK. Generating electricity for use on site, the project will help reduce the plant's carbon footprint, support energy security and cut its power bills. The scheme will save up to 2,000 tonnes of CO₂ emissions a year and the saving in energy will be equivalent to 4,600,000 kWh. When fully operational it will be capable of supplying enough energy to build approximately 7,000 cars a year

The solar panels will cost more than £ 10 million (&euro 11.2 million) and will be installed and paid for by British Gas. Installation work has started and the array is expected to begin supplying power to the plant in July.

The development is a key part of Toyota's "Sustainable Plant" vision in which manufacturing facilities are designed to work in harmony with their local community and surrounding environment. TMUK and Toyota Motor Manufacturing France are two of just five Toyota plants worldwide to be designated a Sustainable Plant with first-rate environmental credentials

Tony Walker, TMUK Deputy Managing Director, said: "We are already making a significant contribution to the UK's low carbon economy with production of Auris full hybrid — the first European built full hybrid car. Generating solar power on-site to supply electricity to the plant underlines our commitment to do even more to further reduce our carbon footprint and is yet another example of our environmental leadership. We are delighted to be working in partnership with British Gas to achieve this."

Jon Kimber, Managing Director of British Gas New Energy, said: "With energy costs increasing and a tough financial climate, all businesses are looking at ways to cut their bills as well as reduce their carbon emissions. Solar power has the potential to make this happen and really revolutionise the way Britain's

homes and businesses generate energy. Toyota is a real beacon for green business throughout the UK."

Toyota has a recognised history of environmental leadership. It was the first UK car manufacturer to be awarded the international ISO 14001 standard for environmental management in 1996, and the first to reduce the amount of waste sent to landfill to zero in 2002. In 2008 it went further achieving zero waste to incineration.

TMUK environmental achievements to date:

1996 — First UK automotive plant to be awarded ISO 14001 (Environmental Management System)

2000 — Solar panels installed on administration building

2002 — Zero waste to landfill achieved

2003 — Boiler improvements to achieve NOx reduction

2004 — Waste water recycling using reverse osmosis

2004 — Boiler CO2 reduced by steam pressure reduction

2005 — CO2 reduction through thermal efficiency improvement

2007 — Wet lake registered as site of biological importance

2008 — Zero waste to incineration

2008 — Increased use of natural lighting in buildings

2009 — Material recycling facility opened

2009 — Combined heat and power generator installed

2010 — Start of Auris full hybrid production

Theoretical capacity of the solar panel array is 4.1 MW (peak).

Details

1. Hybrid Vehicles

TMC plans to introduce 11 models by the end of 2012, consisting of all-new models and redesigned models. Of the planned new models, one is a compact with fuel efficiency in excess of 40 km/L under the 10-15 Japanese test cycle.

2. Plug-in Hybrid Vehicles

By early 2012, TMC plans to begin sales of a "Prius"-based PHV, mainly in Japan, the United States and Europe. Sales are targeted at more than 50,000 units annually, and the price for Japan is expected to be in the 3-million-yen range.

3. Electric Vehicles

In 2012, in addition to the U.S. market, an iQ-based EV will also be introduced in Japan and Europe.

&bull Launch preparations call for road trials in Japan, U.S., and Europe starting in 2011.

&bull Launch in China is also being considered, with road trials planned for 2011.

Separately, the "RAV4 EV" concept, which was developed jointly with Tesla Motors, will be on display until November 28 at the Los Angeles Auto Show in Los Angeles, United States.

4. Fuel Cell Vehicles

TMC is continuing development of a sedan-type fuel-cell hybrid vehicle (FCHV), with sales aimed to start in around 2015 in Japan, the U.S. and Europe—markets in which hydrogen supply infrastructure is expected to develop. Although currently a price under 10 million yen seems attainable, TMC aims to further reduce costs to bring the vehicle to market at a more-affordable price.

5. Next-generation Secondary Batteries

TMC is researching development of next-generation secondary batteries with performance that greatly exceeds that of lithium-ion batteries. Such research is aimed to help bring about the revolutionary advances in battery performance that will be necessary for the broad adoption of electric-motor-propelled eco-cars.

&bull Solid-state batteries: TMC has successfully reduced what is known as particle resistance and has made progress toward creating full solid-state batteries in a promising compact package.

&bull Metal-air batteries: TMC has determined the reaction mechanism of lithium-air batteries and has clarified its research policy regarding the batteries as rechargeable secondary batteries.

In January 2010, TMC established a division charged with studying production of next-generation batteries. The division, with a staff of approximately 100 researchers, is accelerating its research.

TMC believes that eco-cars can have a positive impact on the environment only if they are widely used. TMC will continue to improve the fuel efficiency of its conventional combustion-engine cars, which account for the majority of its sales, while raising performance, reducing costs and expanding the company's product lineup. Within these efforts, hybrid technologies—consisting of the basic technologies necessary for development of various eco-cars—are positioned as key technologies to achieve both high fuel efficiency and driving performance, and to facilitate the use of various fuels with the aim of creating a low-carbon society through response to the need to diversify energy sources.

Previously, nickel-metal-hydride batteries recovered by car dealers and vehicle dismantling businesses were subjected to reduction treatment, and scrap containing nickel was recycled as a raw material for stainless-steel manufacturing. Now, with the development of high-precision nickel sorting and extraction technology, materials can be introduced directly into the nickel-refining process, thus achieving "battery-to-battery" recycling.

To carry out the business, TMC has established the Toyota HV Call Center to help recover the batteries, constructed advanced recycling facilities designed for mass production in cooperation with Toyota Chemical Engineering, and is receiving support from Sumitomo Metal Mining concerning the refining of nickel for use in batteries. TMC is also receiving support from PEVE concerning quality assurance in the manufacture of hybrid-vehicle nickel-metal-hydride batteries.

In addition, making use of trucks on return trips from parts deliveries is planned to reduce environmental impact, including CO₂ emissions during transport.

The establishment of this recycling system in Japan will accelerate the creation of a sustainable, recycling-based society, a priority measure for TMC, and is a showcase for recovery and recycling technologies as effective means of promoting and reinforcing recycling in response to global resource limitations.

TMC is currently investigating introducing this recycling system overseas.

The TOYOTA Smart Center uses plug-in hybrid vehicles (PHVs) and electric vehicles (EVs)—both of which are expected to gain greater use—and home energy management system (HEMS)-equipped smart houses to monitor and coordinate energy used by the vehicles and houses involved, the electricity supplied by the power company, as well as the electricity generated by the houses from, for example, solar panels. It also enables remote monitoring and coordination by providing information to the people using the vehicles and houses.

Specifically, the system collates information transmitted from a household-linked PHV or EV regarding remaining vehicle-battery charge, household power consumption information transmitted by the HEMS, weather forecast data and charge-rate information for specific time segments from the power company. In this way the system can coordinate vehicle recharging and household energy consumption with an aim to minimize CO₂ emissions and reduce electricity costs. Furthermore, with a smart phone, users can remotely check the current battery charge of their vehicle and the distance it could travel, adjust the charging time or turn the air-conditioning on or off to ready the car for use. As for the house, the system monitors power consumption, solar-panel electricity production, battery charge and Eco Cute* hot water volume it also enables users to remotely control their batteries and water heater.

The system can also optimize energy consumption based on users' lifestyles and automatically control vehicle-battery charging and water-heater use to systematically and reliably make possible energy-saving lifestyles.Under the Rokkasho Village smart grid demonstration project that began on September 16, TMC is conducting trials of the TOYOTA Smart Center in two houses constructed by Toyota Housing Corporation linked with eight PHVs. Trials will be conducted over approximately two years to improve the system. TMC hopes to market similar systems with PHVs scheduled for launch in early 2012 and with some Toyota Housing homes.

With the TOYOTA Smart Center, TMC aims to link people, homes and vehicles to support the development of a low-carbon society and the establishment of more comfortable and environmentally conscious living.

*An electric heat pump water-heater system

More than just tree planting, the project—in the Luzon Island town of Peñablanca (about 500 km north of Manila)—seeks to give root to practices that support the livelihood of the local community, while ensuring the reforestation effort remains a success. In Phase 2, to encourage residents to continue reforestation activities beyond the conclusion of the project, efforts will focus on heightening the awareness of residents and of cooperatives set up under the project, and on starting the use of the fund to finance the reforestation. Also in Phase 2, volunteers from TMC local subsidiary Toyota Motor Philippines Corporation are scheduled to plant 1,000 trees over the next three years.

In a joint effort, TMC, the Philippine Department of Environment and Natural Resources, the Peñablanca Municipal Government and the international environmental non-government organization Conservation International have been conducting reforestation efforts since September 2007. In Phase 1, the project included the establishment of a forest exclusively for harvesting wood for fuel as a way to ward against the unregulated felling of trees, and promoted the planting of mango, cacao and other fruit-bearing trees, from which part of the harvest income could be used to establish a fund managed by cooperatives set up by the project for expanding and sustaining the reforestation.

In December 2009, for its high standards and achievements, the project was awarded a Gold rating under the international Climate, Community and Biodiversity Project Design Standards*.

In addition, Toyota shares the top position together with a German brand in the ranking which measures the environmental commitment of manufacturers. For points collected in this category CO₂ emissions are of high importance. Furthermore, VCD evaluates the vehicle size and separates cars into the categories "Compact Class", "Family Car", "Seven-Seater" and "Climate Champions". Among the climate champions, Prius is the largest model, followed by Auris Hybrid. Both cars benefit from Toyota's full hybrid technology with 100kW / 136 DIN hp performance and have CO₂ emissions of only 89 gram per kilometer.

The environmental ranking is published by VCD once a year, since 1989. In order to achieve one of the top ten positions, best results are necessary in three categories: consumption (measured in CO₂ per kilometer), noise and emissions. The highest possible score of 10 points can be achieved with CO₂ emissions of 60 gram per kilometer.

Further information and the full ranking can be found on: http://www.vcd.org/auli_2010_2011.html

Outline of Fifth Toyota Environmental Action Plan

1. Themes and management of the initiatives

TMC has established three key environmental-action themes: 1) Establishing a low-carbon society, 2) establishing a recycling-based society and 3) protecting the environment and creating a society in harmony with nature. TMC will also formulate programs, specific steps and objectives and promote comprehensive environmental management within development, engineering, procurement, production, logistics, sales and recycling.

2. Main new actions

- Develop next-generation vehicles that use electricity for propulsion and ensure wider market acceptance of the vehicles based on their characteristics.

- Promote effective use of resources on a global basis.

- Strengthen the management of chemical substances in products.

The plan will also be communicated to Toyota subsidiaries and affiliates around the world via Toyota environment committees in Europe, North America, South America, Asia Pacific, China and South Africa.

The themes this year are "Global Warming Countermeasures" and "Biodiversity Conservation", representing serious and urgent issues for preserving the earth's environment. The grants will be provided to NPOs (excluding schools) and other private non-profit groups that are promoting practical projects in these areas. There are two categories of grant under the program: general grants, with no restriction on the implementation sites or on the grant amount per project and small-scale grants (targeting activities in Japan), with a limit on the grant amount per project and with simpler application procedures. In total, approximately 200 million yen in grants will be awarded for 2008.

For application guidelines and an overview of 2007 recipients, please see the attached "Toyota Environmental Activities Grant: Program Summary".

1 From April 1, 2008 to March 31, 2009.2 Global 500 Award (1987-2003): Presented by UNEP to recognize the outstanding achievements of individuals and organizations in protecting and improving the environment. TMC in 1999 became the first Japanese corporation to receive the award, in recognition of its various achievements in environmental protection and improvement (such as being the world's first to mass-produce and sell hybrid vehicles) and its various corporate social contribution activities.

Toyota Environmental Activities Grant: Program Summary

Grant Themes"Global Warming Countermeasures" and "Biodiversity Conservation"

Grant Categories

1. General Grants

There is no restriction regarding project implementation site(s) or limit on the grant amount per project. This grant targets projects aimed at environmental education activities and hands-on learning (or creating and providing the opportunities for such activities), as well as projects aimed at implementing experiment-based environmental technology at the community level.

2. Small-scale GrantsProjects should be implemented in Japan, with the maximum grant amount of two million yen per project. This grant targets practical, community-based grassroots activities aimed at protecting the local environment.Grant PeriodUp to three years for general grants and up to two years for small-scale grants (starting from January 2009).Application PeriodApril 25 to June 20, 2008 (applications must arrive by June 20)

Notification of Decision

The Selection Committee, consisting of seven experts from Japan and overseas, will review the applications and select grantees. Applicants will be notified in writing by the end of October 2008.Contact InformationInquiries regarding application procedures and further details about the program should be addressed to:Toyota Environmental Activities Grant Program Secretariat

MBE Box 363, 2-3-6 Otemachi, Chiyoda-ku, Tokyo 100-0004 JAPAN

Phone: +81-3-3272-1925 Fax: +81-3-3272-1926

E-mail: toyota-ecogrant@mri.co.jp

Detailed information is available online at:

http://www.toyota.co.jp/en/environment/ecogrant (English)

http://www.toyota.co.jp/jp/environment/ecogrant (Japanese)

Selection Committee Membersw Name Title/Organization

Dr. Keiko Nakamura (Chair)Director General, JT Biohistory Research Hall (Japan)

Dr. Motoyuki SuzukiProfessor, University of the Air (Japan)

Dr. Eiji HosodaProfessor, Faculty of Economics, Keio University (Japan)

Dr. Ashok KhoslaPresident, Development Alternatives (India)

Dr. Peterson MyersCEO, Environmental Health Sciences and Board Chair, National Environmental Trust (U.S.A.)

Dr. Göran A. Persson Chairman, Euro-CASE Platform on Energy/ Environment (Sweden)

Mr. Toshiki HayamaManaging Officer, Toyota Motor Corporation (Japan)

Click the attached file to access the full document including all relevant details.

The Toyota Environmental Activities Grant Program was established in commemoration of TMC's receipt of the Global 500 Award² in 1999 from the United Nations Environment Programme (UNEP), and has been carried out every year since 2000 as part of TMC's environmental social contribution activities, with this year marking the program's 11th year.

Inquiries regarding application procedures and further details about the program should be addressed to:

Toyota Environmental Activities Grant Program Secretariat

Phone: +81-3-3817-9238 (Mon.-Fri.: 10:00-17:00, Japan Standard Time)

Email: tmc-ecogrant@g500.jp

Detailed information is available online at: http://www.toyota.co.jp/en/environment/ecogrant 

Click the attached file to access the full document including all relevant details.

The new course will use the center's flat and wide-open areas, as well as its low-friction section, to teach businesses and organizations how to improve everyday fuel efficiency, mainly through smooth acceleration and using anticipatory driving techniques to avoid wasteful manoeuvring.

TMC has reaffirmed its commitment to customer safety as its top priority, based on the view that realizing a society free of traffic casualties requires an integrated effort encompassing people, cars and the traffic environment. At the same time, TMC is actively involved in a variety of traffic-safety awareness activities, including an annual traffic-safety event for children at "mobilitas".

Outline of New Course

DatesTo meet reservationsTime 9:30 to 12:30 or 14:00 to 17:00

Fee10,500 yen per person (including taxes)Number of participants6 per session (minimum 3)

ReservationVia telephone: 0800-123-0250 (toll-free within japan)

Further informationhttp://www.toyota.co.jp/mobilitas/ (Japanese language only)

Course Content

Orientation (classroom)Overview of course and environmentally friendly driving

Practice drivingWarm-up session to get used to the vehicle and track

Current fuel efficiencyMeasuring fuel efficiency of participants' current driving technique

Environmentally friendly drivingChecking driving posture, practicing smooth acceleration, learning to acquire smotth driving balance and anticipatory driving techniques

Post-training fuel efficiencyMeasuring fuel efficiency of environmentally friendly driving

Summary

Distribution of handbook on environmentally friendly and safe driving

"I am delighted to wholeheartedly embrace another element of our 360° approach to Environmental Leadership", said Mr Arashima.

"Our ultimate aim to reach 'zero emissions' goes far beyond the use of the car. This solar panel installation corresponds perfectly with TME's drive towards sustainability across the entire lifecycle of its products."

"This project is a great example of how government support in combination with industry initiative results in innovative renewable energy projects. In this way, together, we can achieve our renewable energy targets, improve air quality and gain energy security", said Freya Van den Bossche, Flemish Minister for Energy. "The Flemish government is currently drafting its Renewable Energy Action Plan 2020, and welcomes this type of investment. Solar energy is a promising renewable energy source for the future".

Toyota adopts a holistic approach to its environmental activities. Its commitment to achieving sustainable development is the cornerstone of Toyota's Guiding Principles. These principles inform every aspect of the group's activities and business practices. TPCE's response to the environmental challenges started with the implementation of the ISO 14001 standard in 2001 and has continued ever since. Today's solar panel inauguration is another step forward in Toyota's continuous effort to achieve our aim of zero emissions.

“I Take Responsibility” enables students to be responsible for the electricity used in their classrooms. Each classroom is fitted with an electricity switch unit which is operated by a card – similar to the ones found in hotel rooms. One student from each class takes responsibility for carrying the card. The “I Take Responsibility” project, and the theme of energy saving, was completely integrated into the curriculum of the entire school and the effects of the project were closely monitored.

The award was handed to the school by Henny C. Kromhout, a member of the Foundation for Environmental Education (FEE) Executive Board, and Inge Huijbrechts, Manager Corporate Social Responsibility for Toyota Motor Europe. The ceremony was also attended by officials from the Turkish Ministries of Education and the Environment.

“It is exciting to see the attention being given to environmental awareness by students from the school. The project was entirely their idea and I am sure the concept will spark many other innovative environmental ideas,” commented Inge Huijbrechts.FEE ran the Let’s Save Energy competition in six countries: Denmark, Finland, Italy, Norway, Portugal and Turkey. Over 80 schools representing about 20,000 students were involved. Grants were awarded to 28 projects, enabling them to implement their innovative energy saving ideas.

The best national projects were selected in each country in early 2009. The international jury selected the winner of the International Award from these six winning projects. The jury included prominent members of European organisations including the Executive Agency for Competitiveness and Innovation, the British Council, the United Nations Environment Program (UNEP) and CSR Europe.

The project from Ankara was unanimously chosen by the jury because of its innovation, energy efficiency and ability to be copied by other schools across Europe.

TMC runs the Peñablanca project jointly with the Department of Environment and Natural Resources in the Philippines, the Peñablanca municipal government and CI.

The project seeks to establish a system that both achieves successful reforestation and supports the livelihood of local communities.

Thus, in addition to planting indigenous native species to restore the tropical forest, the project has also started establishing a forest exclusively for harvesting wood for fuel and introducing stoves (on a trial basis) that use rice hulls as an alternative fuel to wood, thereby helping prevent forest destruction. Under the project, also encouraged are the cultivation of fruit trees such as mango and cacao and the use of a portion of harvest income to establish a fund for expanding and sustaining the reforestation.

TMC has provided approximately 200 million yen in capital to support this initiative, with Toyota Motor Philippines Corporation, a TMC subsidiary, assisting in the tree-planting by sending volunteers and donating Toyota "Hilux" four-wheel-drive pick-up trucks.In Phase 2, TMC plans to establish and operate structures that will support independent activities by the local communities even after the end of the project in July 2013.

Outline of Philippine Peñablanca Sustainable Reforestation Project:

Project organizers 

- Department of Environment and Natural Resources (the Philippines)

- Peñablanca Municipal Government

- Conservation International

- Toyota Motor Corporation (TMC)

Project term

Phase 1

September 2007 to July 2010

Phase 2

August 2010 to July 2013Project sitePeñablanca, Cagayan Province (approx. 500km north of Manila)

Capital Contribution (TMC)

Phase 1

Approx. 200 million yen

Phase 2

Currently under consideration

At the event, 30,000 trees were planted, representing 51 varieties including mango and neem. Plans call for trees chosen based on a survey of the local flora to be planted in a total of three stages, resulting in coverage of a combined area of 40,000 square meters of the 1.7-million-square-meter plant site. The aim is to produce a multi-layered natural environment using trees native to the area thereby creating a production site that could serve as a lush and diverse habitat for various living creatures.

Following the tree-planting event held in May last year at TMC's Tsutsumi Plant in Japan, TMC began similar activities at its Takaoka, Tahara and Motomachi plants, as well as at the Ban Pho Plant of Toyota Motor Thailand Co., Ltd. These efforts are part of TMC's sustainable plant activities, with the goal being the creation of production plants in forest-like settings. So far, these activities have resulted in the planting of approximately 190,000 trees.

TMC began its sustainable plant activities—which emphasize the role of nature in creating production sites that are in harmony with their natural surroundings—in Japan in July 2007. The activities are being carried out based on the following three objectives: 1) reducing energy consumption through the development and introduction of production technology with lower CO2 emissions and through everyday kaizen (improvement) activities 2) switching to renewable energy sources such as solar power and 3) contributing to the local community and conserving the environment by planting trees at and around production plants.

Outline of TKM

The Toyota China Youth Environmental Protection Aid Program, which was established in 2005, solicits written proposals from Chinese youth concerning environmental education, ecosystem restoration, pollution prevention and resource conservation. Those who submit the best proposals receive grants to support their environmental-protection activities and are given the opportunity of a study trip to Japan.

This year, under the program's continuing theme "Everyone's world, everyone's responsibility", 311 proposals were sent in from across China. One proposal received the Toyota Special Award, 12 received general support and 15 received individual commendations.

The Toyota Special Award went to "Garbage Disposal and Recycling in Reconstruction Efforts for Areas Stricken by the 2008 Sichuan Earthquake", a program that has played an extremely important role in protecting the environment, restoring the ecosystem and ensuring sanitary conditions and the availability of drinking water for the public during the reconstruction of disaster-stricken areas in Sichuan Province.

TMC and its affiliates have continued to conduct social contribution activities throughout the world, focusing on the three areas of environmental protection, traffic safety and human resources development. In China, TMC and its affiliates are implementing afforestation programs to combat desertification, conducting traffic-safety educational events for the general public in collaboration with the Chinese Ministry of Public Security and have established the Toyota Study Assistance Fund and a research center in collaboration with the School of Public Policy & Management at Tsinghua University.

TMC aims to be a good corporate citizen and plans to continue contributing to Chinese society.

Ecological Plastic adequately meets the heat-resistance and shock-resistance demands of vehicle interiors through the use of various compounding technologies,such as those allowing molecular-level bonding and homogeneous mixing of plant-derived and petroleum-derived raw materials. And being equal to conventional plastics in terms of quality and productivity means that it can be used in production vehicles.

TMC continues to develop various advanced technologies aimed at realizing sustainable mobility and believes that it is important to increase the availability of such technologies in the marketplace. As such, TMC became the first automaker in the world to use 100-percent plant-based plastics in production-vehicle interior parts when it launched the Japanese-market "Raum" in May 2003, featuring Ecological Plastic that used polylactic acid and other all-plant-based materials. TMC intends to pursue research and development and practical application that result in expanded use of Ecological Plastic in vehicle parts.

*Zero net CO₂ emissions over an entire product lifecycle

Reference: Ecological Plastic Application and Materials Used

*Non-food source

The themes this year are "Global Warming Countermeasures" and "Biodiversity Conservation", both targeted at urgent issues. During the April to June application period, the program received 446 applications for general grants (compared to 373 last year) and 124 applications for small-scale grants (compared to 157 last year), resulting in a total of 570 applications, the largest number to date.

The program's expert, international selection committee, which is chaired by Dr. Keiko Nakamura, director general of the JT Biohistory Research Hall, selected 25 projects (13 general grants, 12 small-scale grants) according to criteria such as appropriateness of objective, continuity and future development, and degree of local-community collaboration. Of the 25 projects selected this year, 17 came under the theme of "Biodiversity Conservation", including a project in Ecuador ("Ensuring Sustainability in Galapagos through Locally Based Education Initiatives"), while eight projects addressed the theme of "Global Warming Countermeasures", including a project in Japan ("The Practical Application of Micro Water-Power Generation in Itoshiro").

¹Unless otherwise noted, years mentioned are from April 1 to March 31.

²Global 500 Award (1987-2003): Presented by UNEP to recognize the outstanding achievements of individuals and organizations in protecting and improving the environment. In 1999 TMC became the first Japanese corporation to receive the award in recognition of its various achievements in environmental protection and improvement (such as being the first in the world to mass-produce and sell hybrid vehicles) and its various corporate social contribution activities.

The event—representing TMC's ongoing effort to plant trees at and around vehicle production facilities as part of its global sustainable plant activities²—was designed to create a multi-layered natural environment using trees native to the area and to create a production site that could serve as a lush and diverse habitat for various living creatures. Based on a survey of the local flora, 34 types of tree including yang-na and takien thong were selected, with approximately 100,000 trees planted in total.

The Ban Pho Plant, which began operation in 2007, is aimed at being an innovative plant in the Asia-Pacific region in terms of its production technology and environmental response. It has achieved zero landfill waste since commencing operations and was the first overseas TMC plant to introduce a cogeneration system and solar panels, which enable it to cut its CO₂ emissions by 9,000 tons annually. In addition, wastewater is recycled at the plant and water-borne metallic-paint is used in vehicle body paint lines. Currently, a biotope³ being created at the plant will promote the reuse of materials from production and production-related processes, such as using wood from shipping crates to build bridges, waste plastic to create benches, and blocks made from solidified waste to pave footpaths.

The Ban Pho Plant, together with TMC's Tsutsumi Plant in Japan, Toyota Motor Manufacturing, Mississippi, Inc. (TMMMS) in the United States, Toyota Motor Manufacturing (UK) Ltd., and Toyota Motor Manufacturing France S.A.S. (TMMF), is a model plant for sustainable plant activities. TMC believes that the successful implementation of its sustainable plant activities depends on how well it can cultivate eco-consciousness among its employees and the ability of its plants to coexist with their surrounding communities. At the Ban Pho Plant, environmental displays have been set up in each production process area to raise employees' environmental awareness, and, through such actions as today's tree-planting event and the future opening of the biotope to the general public, the plant intends to further its sustainable plant activities, aiming to become a production facility that will be embraced by the surrounding community.

In the future, TMC plans to gradually initiate such activities at all of its plants around the world to make sustainable plants a reality.

1. According to TMT studies

2.TMC is steadily expanding the number of production facilities worldwide at which sustainable plant activities are undertaken. In July 2007, aiming to create production sites that make use of the natural environment and achieve harmony with nature, these activities were launched with a focus on the following three areas:

i) Energy reduction through the development and introduction of low CO₂-emitting production technologies and

the implementation of daily kaizen (continuous improvement) activities

ii) Switching over to renewable energy such as solar power

iii) Contributing to the local community and conserving the environment by planting trees at and around plants

3. An area uniform in climate and distribution of animal and plant life

Specific TMC plans are described below.

1. Research and Development

Some of the environmental and energy issues surrounding automobiles include reducing CO2 emissions (global warming measures), supporting the use of non-petroleum based sources of energy and improving air quality. TMC aims to help achieve sustainable mobility by using hybrid technology as a core means to reduce oil consumption and promote the adaptation of vehicles to energy diversification.

Automobiles

While adapting to energy diversification, TMC will develop vehicles that can simultaneously reduce CO2 emissions and make the air cleaner. It will commercialize such vehicles in line with the energy trends of each market based on its philosophy of introducing the right vehicle, at the right time, in the right place.

Packaging

TMC is working on initiatives to reduce vehicle size and weight. The "iQ", which is planned for launch in 2008, offers revolutionary packaging—seating four people in a body less than three meters long.

Powertrains

Average fuel efficiency for new Toyota vehicles sold in Japan rose by approximately 28% in the 10 years from 1997 to 2007. By the end of 2010 TMC will complete transition to a new series of highly efficient engines and transmissions.

Gasoline Engines

TMC will complete revamping its engine lineup, with new 1.3-liter and 2.5-liter engines introduced in 2008. The new 1.3-liter gasoline engine is equipped with the newly developed TOYOTA Stop&Start SYSTEM.

Diesel Engines

In 2003, TMC introduced clean diesel engines featuring the Diesel Particulate-NOx Reduction system, and, in the fall of 2007, it introduced a new 4.5-liter V8 engine. Cumulative production of diesel engines passed the 20 million mark in February 2008.

Transmissions

While advancing multi-stage automatic transmissions and continuously variable transmissions, TMC will introduce a highly efficient compact six-speed manual transmission in the fall of 2008.

Hybrid Vehicles

Hybrid systems are a core Toyota technology that can contribute to cleaner emissions, lower CO2 emissions and increased fuel efficiency. TMC is actively working to popularize these systems by increasing the number of hybrid models among its vehicle series.

Worldwide cumulative sales of the Prius reached 1 million units this past April and global cumulative sales of hybrid vehicles reached 1.5 million in June 2008. According to TMC's calculations, use of these vehicles has contributed to approximately 7 million generated and has reduced gasoline consumption by approximately 2.7 million kiloliters*1.

• TMC's aim is to achieve hybrid vehicle sales of 1 million vehicles annually as early in the 2010s as possible and to strive for further popularization.
• TMC is working to further reduce the size, weight and cost of motors, inverters, batteries and other hybrid system components.
• In addition to already producing hybrid vehicles in China and the United States, TMC recently decided to produce hybrid vehicles in Thailand and Australia. We intend to continue to expand our overseas hybrid vehicle production efforts.

*1 Based on TMC calculations

Alternative Fuel Vehicles

Flexible Fuel Vehicles*2

Bio-fuel Flexible Fuel Vehicles

In 2006, TMC adapted all of its vehicles sold worldwide to E10 fuel and in May 2007 introduced flexible-fuel "Corolla" models in Brazil that can run on E100.

TMC will introduce the E85-compatible flexible-fuel Tundra and Sequoia in North America in 2008.

*2 Vehicles that are specially designed to run on either gasoline alone or on a blend of gasoline and ethanol

Electricity (Plug-in Hybrid Vehicles/Electric Vehicles)

Verification tests are currently being conducted in Japan, the United States and Europe, as plug-in hybrid vehicles—which can be used as electric vehicles for short trips and as conventional hybrid vehicles for traveling longer distances—represent the

most promising approach.

• By 2010, TMC will introduce a plug-in hybrid vehicle equipped with a lithium-ion battery, geared toward fleet customers in Japan, United States and Europe.
• TMC plans to accelerate development of small electric vehicles for mass production.

Battery RandD and Production

• TMC will establish in late June 2008 a battery research department to advance the development of an innovative next-generation battery that can outperform a lithium-ion battery.
• Panasonic EV Energy Co., Ltd., a joint venture TMC established with the Matsushita Group that is conducting joint research on batteries for use in automobiles, will commence limited production of lithium-ion batteries in 2009, moving into full-scale production in 2010.

Hydrogen (Fuel Cell Hybrid Vehicle or FCHV)

TMC has developed the "TOYOTA FCHV-adv", which features a newly designed high-performance Toyota FC Stack fuel cell. The TOYOTA FCHV-adv received vehicle-type certification from Japan's Ministry of Land, Infrastructure and Transport on June 3.

The TOYOTA FCHV-adv features a 25% improvement in fuel efficiency, and, through the use of TMC-developed 70Mpa high-pressure hydrogen storage tanks, has a single-fill-up cruising range of approximately 830 km (in the 10-15 Japan test cycle 760 km in the JC08 test cycle as measured by TMC), which is more than twice the cruising range of its predecessor, the TOYOTA FCHV.

The TOYOTA FCHV-adv can be started and operated at —30 degrees Celsius, greatly improving its cold weather performance. TMC is steadily overcoming the technological hurdles associated with fuel cell vehicles and will focus next on solving problems related to maintaining reliability and reducing costs.

Alternative Fuel Supplies

TMC's involvement in alternative fuel utilization includes a variety of initiatives aimed at ensuring fuel supplies.

• TMC is reinforcing its structure of survey-based global energy analysis by establishing energy research organizations in Japan and the United States.
• TMC is conducting research on a cellulosic ethanol that can both avert competition with food supplies and ensure a stable supply. The distinctive feature of TMC's research is the focus on using technologies that involve yeast.
• TMC is conducting joint research with Nippon Oil Corporation onhigh-concentration bio hydrofined diesel (also known as "BHD") as a bio-fuel alternative to petroleum-based diesel. So far, the research has led to vast improvement in the oxidative stability of BHD, enabling the fuel to perform on par with conventional diesel.
• TMC is conducting research on biomass-to-liquid (also known as "BTL"), which is derived from synthesizing gas made from all types of biomass, including cellulose.

   

Infrastructure and Driver Support

Solving global warming and energy-related issues cannot be accomplished solely through automotive technology it is essential to address issues throughout society, taking into consideration the actions of drivers and the state of the transport infrastructure. As an automaker, TMC is supporting activities in these areas.

In terms of infrastructural development in Japan, TMC is working with various government ministries to improve traffic flow by reducing traffic congestion. One potential method for accomplishing this is to find practical applications for the Probe

Communication Traffic Information System*3.

As one way to support environmentally considerate driving, TMC will increase the number of vehicle series equipped with the Eco Driving Indicator, which lights up when the vehicle is being operated in a fuel-efficient manner, and with the Eco Driving Mode Switch, which puts the vehicle in an energy conserving mode by monitoring and controlling such functions as gear-shift timing and air conditioner settings.

*3 Gathers traffic information and provides drivers with specifically tailored driving information.

2. Manufacturing

TMC is continuing to actively seek greater environmental responsiveness in its production and logistics through greater reduction of CO2 and further consolidation of environmental management. In addition to existing initiatives, TMC is also

strengthening the global implementation of "sustainable plant" initiatives as another means of reducing CO2 emissions.

CO2 Emission Reduction Results and Targets for TMC Production TMC is reducing CO2 emissions from its production activities, based on its "Fourth Toyota Environmental Action Plan" (2006 to 2010*4). Because TMC has already achieved its original 2010 targets, it has set new targets and strengthened its approach.

*4 Unless otherwise noted, the years mentioned are from April 1 to March 31.

2010 CO2 Emission Reduction Targets, Results and New Targets

*5The roughly 120 Toyota Group companies both in Japan and overseas subject to consolidated environmental management

"Sustainable Plant" Activities

"Sustainable plant" activities were begun in July 2007 with the aim of emphasizing the role of nature through the creation of production sites that are in harmony with their natural surroundings. TMC is implementing its "sustainable plant" activities with the following in mind:

1) Energy reduction through development and implementation of low carbon production technologies and through daily kaizen (improvement) activities

2) Energy conversion using photovoltaic and other renewable energy sources

3) Tree planting for fostering exchanges with local communities and protecting ecosystems

Model Plant Initiatives

Japan

Takaoka Plant

In August 2007, Line No. 1 started production after the introduction of innovative

production technology.

Tsutsumi Plant

• A photovoltaic generation system was introduced in March 2008 that has a rated output of 2,000kW, making it one of the largest photovoltaic power generation systems in use among automobile plants worldwide (as surveyed by TMC).
• Also, a project to paint the assembly plant's exterior walls with a photo-catalytic paint is planned for completion by around the summer of 2008.
• On May 18, volunteers from the local community and from TMC took part in Japan's largest tree-planting event (as surveyed by TMC), with approximately 50,000 trees planted.

Overseas

United States

Toyota Motor Manufacturing, Mississippi, Inc. (TMMMS) is expected to begin production—with an innovative production line—in around 2010. TMMMS is also actively promoting tree-planting activities as part of its effort to achieve a harmonious balance between the local community and the environment.

Europe

Toyota Motor Manufacturing (UK) Ltd. (TMUK) and Toyota Motor Manufacturing France S.A.S. (TMMF) serve as model plants.

Asia

Ban Pho Plant of Toyota Motor Thailand Co., Ltd. in Thailand is Asia's model plant. In addition to its cogeneration system and solar panels, the plant recycles wastewater, employs waterborne metallic paint at vehicle body paint lines and has maintained zero landfill waste since the beginning of its operations. This year in August, as part of its plant "greening" activities, Toyota plans to conduct one of the largest-ever tree-planting events in Thailand, with 10,000 people planting 100,000 trees.

3. Social Contribution

TMC promotes programs for the development of forestry, human resources and the local community in countries and regions throughout the world, believing that community-based initiatives are just as necessary for a sustainable level of environmental preservation as initiatives on the national or international level. TMC will continue to strengthen and enhance its contribution to environmental preservation by sharing the knowledge and experience gained with society at large so that the initiatives can be more widely implemented.

Examples of Key Initiatives

• In 1992 the "Forest of Toyota" initiative was launched in Toyota City, Aichi Prefecture. This initiative includes a number of activities, such as a hands-on nature experience program, forest improvement and maintenance, and research on satoyama (forests and wetlands near populated areas).
• In the year ending March 2001, TMC launched the Toyota Environmental Activities Grant Program, a subsidy program that supports the environmental activities of non-profit private groups and other organizations. The core theme of the program is environmental technology and human resource development thatcontribute to environmental revitalization and conservation. As of the end of the 2007 fiscal year (in March 2008), TMC granted funding to a total of 140 grant projects, both in Japan and overseas.
• In 2001, desertification prevention projects were begun as part of afforestation efforts in China, in areas affected by overgrazing and excessive cutting down of trees. In addition, TMC launched afforestation programs in 2007 to rejuvenate tropical forests in the Philippines, where forest degradation is a serious issue.
• In 2005, TMC supported the establishment of the Center of Industrial Development and Environmental Governance within the School of Public Policy and Management at Tsinghua University in China.
• The Toyota Shirakawa-Go Eco-Institute in Shirakawa, Gifu Prefecture, which was established in 2005, offers hands-on programs so that people can experience and learn about nature and projects for conserving forests.
• In addition, Toyota foundations and overseas affiliates throughout the world conduct initiatives in a number of areas, centered on providing grants.

With a completed panel display room, seminar rooms and other facilities, the center will function as a base for conducting research and surveys, helping to deepen the specialist knowledge of afforestation experts and researchers. It will also accept afforestation volunteers and serve as a forum for students and the general public to receive environmental education on afforestation programs.

Representatives from the parties involved attended an opening ceremony today at which volunteers from TMC and Toyota's affiliates in China carried out a tree-planting event.

The center forms part of the third-term joint activities laid out under the 21st Century Greater Beijing Reforestation Model. The model, a Sino-Japanese afforestation initiative that has been underway since April 2001, is an effort to prevent the expansion of desertification that is encroaching upon Beijing and other areas around the Chinese capital. TMC is supporting these joint initiatives through such ways as the provision of 450 million yen, including the cost of building the afforestation center.

Toyota is committed to carrying out social contribution activities throughout the world, with a focus on environmental protection, human-resource development and traffic safety. In China, in addition to implementing afforestation programs to combat desertification, TMC has also created the Toyota Environmental Protection Aid Program for China's Youth, providing support for local environmental protection activities. Meanwhile, to promote human-resource development, TMC established the Toyota Study Assistance Fund and a research center in collaboration with the School of Public Policy & Management at Tsinghua University. In the area of traffic safety, TMC is conducting safe-driving events for the general public in collaboration with the Chinese Ministry of Public Security. Through such social contribution activities, Toyota aims to be a good corporate citizen and plans to continue actively

contributing to Chinese society.

The 21st Century Greater Beijing Afforestation Center

21st Century Greater Beijing Reforestation Model

*Located approximately 180km north of Beijing, the Fengning Man Autonomous County in Hebei Province is one of the areas that spawn the dust storms that have been assailing Beijing in recent years. The area also serves as the source of Beijing and Tianjin's water supply.

Sustainable plant activities at Tsutsumi are not limited to planting trees and other types of greenery—in March, the plant installed a photovoltaic power generation system to reduce its CO₂ emissions. The system, which uses natural energy, has a rated output of 2,000kW, making it one of the largest photovoltaic power generation systems in use among automobile plants worldwide*. This, together with the active introduction of cogeneration power systems and other energy conservation efforts made so far, is expected to result in annual CO₂ emissions 55% less than in the 1990 business year. This is equivalent to the amount of CO₂ that can be absorbed annually by a 5,040-hectare tropical rain forest. Additionally, the electricity generated is to not only be used within the plant, but also for lighting surrounding sidewalks.

TMC began its sustainable plant activities—which emphasize the role of nature in creating production sites that are in harmony with their natural surroundings—in Japan in July last year. The activities are being carried out based on the following three objectives: 1) achieving groundbreaking environmental performance by introducing innovative technology and kaizen (improvement) activities, 2) reducing CO₂ by using renewable energy, including biomass and natural energy sources, such as solar power and wind power and 3) contributing to the local community and conserving the environment by planting trees at and around plants. Toyota intends to promote such activities at other vehicle and component plants, both in Japan and overseas.

TMC believes that the successful implementation of its sustainable plant activities depends on how well it can cultivate “eco-thinking” among its employees and on how well its plants can coexist with their surrounding communities. At Tsutsumi Plant, an “eco-point program” allows employees to earn rewards by voluntarily planning and holding environment-related events or by taking it upon themselves to come up with and adopt eco-minded practices. At the same time, with a desire to create production facilities that will be embraced by their surrounding communities, TMC intends to continue promoting activities that reflect the opinions of local citizens and that can be carried out jointly with them.

*As surveyed by TMC

Mite allergens—known to be a cause of allergy-related disorders—accumulate on a vehicle's seats(2) after transfer by clothing and can be forced into the air, or otherwise become unsettled, due to movement by vehicle occupants or other factors. The new seat fabric developed by TMC contains an anti-allergen agent that envelops approximately 98%(3) of the mite allergens that settle on a seat's treated surfaces. The long-lasting agent does not affect the color or texture of the seat fabric.

Other initiatives for improving vehicle-cabin comfort include the introduction of Fraichir®(4) seats (featuring fibers coated with sericin, a protein extracted from natural silk that reduces skin irritation), an automatic air conditioner with both a fast-acting pollen-reduction mode and Plasmacluster Ions®(4) technology for suppressing the airborne movement of mold bacteria, as well as the world's first(5) in-car oxygen-level conditioner for maintaining a suitable level of oxygen inside the vehicle cabin.

TMC aims to make vehicles interiors evermore comfortable and intends to actively develop technology for making automobiles easier on people and easier to use.

How the anti-mite allergen seat fabric works

1. As of January 2008, surveyed by TMC

2. According to a TMC survey

3. According to measurements by TMC

4. "Plasmacluster Ions" is a registered trademark of Sharp Corporation

5. As of August 2006, surveyed by TMC

The Toyota Environmental Activities Grant Program was launched in commemoration of TMC's receipt of the Global 500 Award* in 1999 from the United Nations Environment Programme (UNEP). Since that time, the program has been supporting practical projects in the areas of environmental education and environmental technology conducted by NPOs and other non-profit private groups. In 2007, during the April to June application period, 530 applications were received, with 373 for the category of "general grants" for site restriction-free project implementation (compared to 424 last year) and 157 for the category of "small-scale grants" for community-based grassroots activities (compared to 124 last year).

The program's selection committee, which was made up of experts from Japan and overseas, was chaired by Dr. Keiko Nakamura, director general of the JT Biohistory Research Hall. The committee deliberated intensely in order to select this year's grantees. The entries were judged according to criteria such as the appropriateness of the projects, continuity and future development, clear demonstration of the necessity of funding and the level of collaboration with local communities. The grant program will support the chosen projects for up to three years for "general grants" and up to two years for "small-scale grants".

TMC held a session today in Toyota City, Aichi Prefecture for the Japanese NPOs being awarded grants. At the event, Nakamura, as the selection committee chair, presented the winning 15 organizations with their awards. Participants also joined a tour of the Forest of Toyota, near the venue. The event provided an opportunity for four of the past Japanese grant-receiving organizations to present their achievements and for members of the participating NPOs to interact with each other.

*Presented by UNEP to recognize the outstanding achievements of individuals and organizations in protecting and improving the environment. In recognition of its various achievements in environmental protection and improvement, such as being the world's first to mass-produce and sell hybrid vehicles, and for its various corporate social contribution activities, TMC in 1999 became the first Japanese corporation to receive the award.

To commemorate the commencement of activities, a signing ceremony for the four-party project was held today, in the presence of Philippine President Gloria Macapagal-Arroyo at Malacañang Palace, the Philippines.

By providing the reforestation expertise and tree-planting techniques developed through its activities in China, TMC seeks to create a system in the Philippines, where deforestation is a serious problem, that combines both a means of supporting the livelihood of local communities and reforestation. Specifically, it will establish a forest for harvesting fuel wood and urge local residents to cultivate cash crops, such as mango and cocoa, to combat logging for fuel wood and slash-and-burn agricultural methods—the causes of deforestation. To these ends, TMC will contribute 170 million yen in funds. Furthermore, Toyota Motor Philippines Corporation, a local corporation, will provide a Toyota Hilux pickup truck free of charge for the tree-planting activities.

TMC, on the occasion of its 70th anniversary this year, intends to more actively pursue sustainability in the three fields of RandD, manufacturing and social contribution. As part of this effort, TMC is engaged in a variety of environmental efforts and recognizes that reforestation is increasingly important from the perspective of improving the global environment.

Today, the manufacture of a Yaris produces 9.5 kg of waste. More than 4 kg of this is directly recyclable (cardboard, metal, oil, solvents etc.) The remaining 5.5 kg of waste is used as substitute fuel (instead of oil, for example) for industrial procedures. This is compared with 2005, when 2.5 kg of the 15 kg of waste produced per vehicle, was incinerated.

"The Toyota Valenciennes factory is one of the first automotive production sites in the world to achieve this result which, just a few years ago, seemed impossible. Once again, Toyota is demonstrating that nothing is impossible thanks to a commitment from all teams and improvements in the way we sort waste, allowing us to reach our goal of 100% recycling," stressed Didier Leroy, President of TMMF.

TMMF's approach, closely linked with standard ISO 14001, demonstrates the site's capacity for continual improvement of results, and thus its ability to reduce the impact of its activities on the environment. The generation of waste is one of four key performance indicators at the site, which also include power and water consumption, and emissions levels for Volatile Organic Compounds. These indicators are the subject of regular and rigorous monitoring, culminating in action plans to advance the continuous improvement process.

Toyota is especially focussed on taking pro-active action to reduce the impact of the motor vehicle on theenvironment throughout its life cycle: from the design stage, to the manufacturing process, right through until the end of its life — including, of course, the time the vehicle is used.

Toyota produces 1,100 Yaris vehicles every day at its industrial facilities in Onnaing, which are marketed in thirty different countries. 3,900 people are employed at the site.

Representatives from Toyota Manufacturing UK (TMUK) collected a "Big Tick" award from Business in the Community (BITC) at its East Midlands Awards for Excellence celebrations at Kelham Hall, Newark, Nottinghamshire on Thursday 14th June.

As part of its global commitment to resource conservation and energy reduction, Toyota set water usage reduction as just one of many environmental targets. TMUK's Facilities & Environment team analysed all waste water generated during the manufacturing process and identified that water which had been used to wash and rinse vehicles ahead of the painting process had the potential to be reused in on-site boilers for steam generation.

Several months of trials were needed to identify a suitable method to treat and clean this waste water to ensure it would be of sufficient quality for use in the boilers. After investigation, and working in close partnership with suppliers, a cost-effective solution was identified. By installing a reverse osmosis unit — which passes the waste water through a series of cleaning filters and membranes — this previous waste water stream could be cleaned to such a standard that it could be reused in the boilers.

In the first year of full operation the reverse osmosis unit has reduced the company annual water use by over 100,000 tonnes and has also lead to a reduction on the energy used in the boilers as the recycled water is so clean.

Hein Van Gerwen, Managing Director, Toyota Manufacturing UK said: "As a responsible manufacturer and good corporate citizen, we are committed to reducing the impact of our operations on the environment. Across our two UK plants we have implemented a number of initiatives to reduce our use of natural resources and energy. This latest Big Tick award is further recognition of that commitment."

Jim Haywood, BITC Director of Business in the Environment, said: "Toyota demonstrates environmental leadership throughout every aspect of their business, from the efficient use of resources in their operations, to the fuel economy of their vehicles, to their curbing of manufacturing and product waste.

"Their most recent activities to reduce water consumption provide an excellent case study of how innovation and efficiency can cut costs and preserve important natural resources."

In 2004 Toyota Manufacturing UK was awarded a Big Tick from Business in the Community in recognition of its achievement in delivering zero waste to landfill from both its Burnaston and Deeside plants - the first UK car manufacturer to achieve this environmental target..

For more information please contact Steve Carter or Karen Bradley at Toyota Manufacturing UK on 01332 283666

Notes to editors: 

Toyota Manufacturing UK 

Toyota Manufacturing UK (TMUK) produces Avensis and Auris models at its vehicle manufacturing plant at Burnaston, Derbyshire, and petrol engines at its engine manufacturing plant at Deeside, North Wales. In 2006, TMUK produced 282, 215 vehicles, 180,143 fully assembled engines and 258,049 engine sets for export and local assembly at plants across the world. To date Toyota has invested over £1.75 billion into its UK manufacturing operations which currently employs over 4,700 members.

Business in the Community 

Business in the Community is a unique movement of over 750 member companies, with a further 2,000 plus engaged through our programmes and campaigns. We operate through a local network of more than 100 business led partnerships and 60 global partners. Our purpose is to inspire, challenge, engage and support business in continually improving its positive impact on society.

Awards for Excellence

Now in their tenth year, Business in the Community's Awards for Excellence are the UK's leading Awards for responsible business practice. The Awards recognise companies that are integrating responsible business practice into their main operations and are delivering positive impacts on the marketplace, the workplace, the environment or in the community.

Big Tick Awards

The Big Tick is awarded to companies able to demonstrate excellence in the way that they organise and integrate their responsible business practices and who can show a positive impact both on society and on the business. Eco-efficiency Awards recognises companies taking a strategic, comprehensive and innovative approach to reducing waste and natural resource use.

A total of 300 people attended the awards ceremony, including Hu Chunhua, first secretary of the Central Committee of the Communist Youth League of China (Chinese Communist Youth League — CCYL) and honorary chairman of the ACYF, Japan's Ambassador to China Yuji Miyamoto, as well as ACYF executives, government officials, Beijing University staff, students and Toyota representatives.

In his address to the attendees, TMC Executive Vice President Yoshimi Inaba, who oversees Toyota's operations in China, said, "The second year of the program has seen an improvement over last year in the projects submitted, both in terms of number and content. I look forward to seeing the positive contribution that these projects make to environmental protection once they are put into action."

This year, the awards were presented under the theme of "Everybody's world, everybody's responsibility". More than 200 proposals were submitted from across China in which the panel—comprised of Chinese environmental protection experts and reporters who specialize in environmental topics—selected one proposal to receive the Toyota Special Award, 10 proposals to receive special support and 20 proposals to receive a special commendation. Award recipients receive grants for their environmental protection activities and are given the opportunity to travel to Japan for study trips. TMC is providing 3.5 million Chinese yuan (approximately 50 million yen) each year, over a three-year period.

The Toyota Special Award went to the Chinese University Student Environmental Education Base Project, a project organized primarily by the students of Beijing University to create a space to share information and develop the necessary human resources in order to include the general public in environmental protection initiatives. For more information, please contact Paul Nolasco/Tomomi Imai at (03) 3817-9161/9150 The function of the Toyota Environmental Protection Aid Program for China's Youth, which was jointly established by the ACYF, CCYL and TMC in July 2005, is to solicit written proposals for environmental protection activities from China's youth and to offer support to the best proposals. Toyota has always conducted social contribution activities throughout the world, focusing on the three areas of environmental protection, human resources development and traffic safety. In China, with regard to environmental protection, in addition to the Toyota Environmental Protection Aid Program for China's Youth, Toyota is also implementing afforestation programs to combat desertification. Meanwhile, in order to promote human resources development, Toyota has established the Toyota Study Assistance Fund, the China Automotive Industry Toyota Jin Bei Technical Training Center and a research center in collaboration with the School of Public Policy & Management at Tsinghua University. Further, in the area of traffic safety, Toyota conducts safe-driving events in collaboration with the Chinese Ministry of Public Security. Toyota aims to be a good corporate citizen and plans to continue contributing to Chinese society.

* Unless noted otherwise, the years mentioned are business years starting from April 1, 2006 to March 31, 2007.