Aim: zero emissions, zero waste 4

Towards the ultimate Eco-car 7

Clean manufacturing 10

Green technologies 11

The 3 Rs: Reduce, Reuse, Recycle 18

The next horizon 21

�

Table of Contents

September 2006 edition

How do cars affect the environment?

Vehicle manufacturing consumes raw materials and energy, while cars produce exhaust emissions and have to be disposed of properly at the end of their lives. Reducing the impact of each of these processes is a key challenge for Toyota.

Aim: zero emissions, zero waste

European CO2

emissions by sector (2004)Motor vehicles interact with theenvironment throughout their entirelifecycle–fromtheirinitialdesignandthewaytheyaremanufactured,totheiruseontheroadandtheireventualdisposalwhennolongerneeded.

When driving, car engines releaseemissions into the air, influencing thechemicalcompositionoftheatmospherewe breathe and indirectly affectingweatherpatternsaroundtheglobe.Thechallenge is:Howcantheseemissionsbefurtherreduced?

Asecondenvironmental impactcomesfromthefactthatvehiclesaremadeoutofmetals,plasticsandothermanufacturedmaterials. Can cars be designed so

that they can be recycled more easilyandcomprehensively?Andautomotivefactories use energy and materials tomanufacturenewvehicles,andproducewaste as a by-product. How canfactoriesbedesignedtorespondmoreefficientlytoenvironmentalconstraints?

For Toyota, minimizing these kinds ofenvironmental impact has long beena top priority at every level of thecompany’sorganisationandactivity.Thecompany’s environmental policy formspartofamuchwidervisionofsustainabledevelopment,oneofthecornerstonesofglobaleconomicthinkingforthefuture.AndbuildingcompletelyrecyclablecarswithzeroemissionsisToyota’sforemostchallengefortheyearstocome.

World CO2 emmisions by sector*

There are over 200 million cars in use on Europe’s roads

today, providing freedom of mobility to every type of driver.

Yet cars are also widely associated with being harmful to the

planet’s ecosystem. This can range from global warming and

greenhouse gases to smog, noise and landfill pollution. In

recent years, the automobile industry has made great progress

in reducing the environmental burden of motor vehicles.

CarbonDioxide(CO2)

ParticulateMatter(PM)

NitrogenOxides(NOx)

VolatileOrganicCompounds(VOCs)

CarbonMonoxide(CO)

VEhiClE Emissions

End of Life

Waste, Landfill

Carbon DioxideParticulate MatterNitrogen Oxides

Volatile Organic CompoundsCarbon Monoxide

Life cycle emissions

Energy, Water,Waste, Landfill, Emissions

Manufacturing

hOw dO CARS AffECT thE EnvironmEnt?

� �

a“greenhousegas”thatcancontributetoglobalwarming.

foundinsootfromfactoriesandcarexhaustamongstothers.Cancauserespiratorydiseases.

causesacidrain.Alsogeneratesozonethatcancontributetophotochemicalsmogandglobalwarming.

hydrocarbonsfromindustrialprocesses,factoriesandcars.Contributetosmog.

harmfultohumans,canbefatal;nowlargelyeliminatedfromcarexhaustemissions.

Both…and morE!

Much of the debate surrounding sustainable mobility, or

the development of the ultimate eco-car, places a cleaner

environment in opposition to economic and industrial

growth. The thinking goes: you can only have one or the

other, but not both. It is in Toyota’s corporate culture to work hard when

confronted with these challenges, to try and achieve both and more!

* Source EEA (European Environment Agency) Technical Report 6/2006

30%Electricity and Heat Production (CO2)

Manufacturing Industries and Construction (CO2)

Transportation (CO2)

Residential (CO2)

Other

9%4%

5%

12%

16% 24%

Commercial/ Institutional (CO2)

Petroleum refining (CO2)

&

Towards the ultimate

Eco-car

One of theworld’s leading

automobilemanufacturers,Toyotasoldsome8.1millionvehicles*in200�,marketingtheminover1�0countries.

ToyotaisoneoftheleadingautomotivebrandsinEurope,where it has been selling cars since the early 1960sand has invested over €6 billion since 1990. From itsheadquartersinBrussels,Belgium,thecompanyoverseasits eight European production sites, large R&D facilitiesanddesign,logistics,trainingandservicecentres.Intotal,Toyotaemployssome��,000peopleinEurope,includingretailers.

In addition to a reputation for technological innovation,superiorqualityandmanufacturingexpertise,Toyotafullyassumesitscorporateresponsibilityfortheenvironmentandforthecommunitiesinwhichitoperates.

Thiscommitmenttranslatesintoacomprehensivevisionofsustainablemobility.Toyota’sextensiveResearchandDevelopment programmes examine every aspect ofvehicledesign,performance,safetyand the informationinfrastructurethatwillunderpindrivingtomorrow.Findingand implementing solutions that make cars less of anenvironmentalburdenisoneofthecentralfoundationsofsustainablemobility.

Responsibility through

innovation

6 �

DieselEngines

GasolineEngines

ElectricalEnergy

AlternativeFuel Engines

Alternative Fuel HV

Hybrid Technology

Plug-in HV

Biofuels

Synthetic Fuels

Lean-Burn

FCHVFuel CellHybrid

Vehicle

Diesel HybridVehicle

Toyota Hybrid System

CompressedNatural Gas

Diesel ParticulateNOx Reduction

Direct Injection4-Stroke Petrol Engine

Electric VehicleVariable Valve

Timing with Intelligence

Common Rail Direct Injection

Diesel HV THS II

CNG

DPNRD-4

VVT-iEV

Common Rail DI

In 2020 it is estimated there will be some 1.2 billion cars on the road, nearly twice the current number. Car makers must make the right decisions today to ensure that this growth does not lead to a drastic increase in exhaust emissions and the greenhouse gas carbon dioxide (CO2). Toyota’s approach to exhaust emissions is to explore simultaneously a broad variety of solutions for developing cleaner, greener vehicles. The reason is that different countries and communities have different driving conditions, available fuel, vehicle infrastructure and legislation.

• Followthetrafficflowandanticipate whatisgoingtohappeninfront ofyou.• Changeuptoahighergearearly: ahighergearalwaysmeansalower enginespeedandlowerfuel consumption

• Aconstantspeedcangive lowerfuelconsumption.• Don’tuseyourcartotravelshort distances• Ifpossible,switchoffyourengineif youhavetowaitlongerthan �0seconds• Followthemanufacturer’s instructionsandhaveyourcar servicedregularly• Checkyourtyrepressuresona monthlybasis• Keepyourwindowsclosedanduse theventilationsystem• Onlyuseelectricalaccessories(air conditioning,rearscreenheater, etc.)whennecessary,asthey consumeenergy

• Extraweightresultsinadditional energyconsumption(10%for skiboxesontheroof,upto �0%moreforacyclerack ontheroof).Removethem afteruse.• Planyourrouteinadvanceso youdonotmakeunnecessary detours.• Avoiddrivingintown, wherefuelconsumptionis twiceashighasonthe motorway.• Useofequipmentsuchas cruisecontrol,oradisplay whichshowscurrent consumption,canleadto fuelsavingsofupto10%.

toyota’s Eco-drivE tips

* Toyota, Lexus, Hino & Daihatsu combined

Toyota is committed to developing hybrid systems as the core technology for eco-cars, combining dif-ferent power sources in ways that maximize the strengths of each.

How can the environmental impact of a car be measured?

Provided we look at the whole lifecycle of a car, we can accurately measure its overall impact in terms of materials, production, emissions and end-of-life. This Life Cycle Assessment then makes it easier to produce cleaner cars according to clear targets.

8 9

1998

1997Kyoto Protocol

drafted

EU Directive: sets emission targets

for new cars as of 2005 (Euro 4)

2006All Toyota engines meet

Euro 4 Directive for emissions

2008/9European, Japanese and

Korean car makers to reduce average CO2

to 140 g/km

EURO 3

EURO 4

EURO 3 EURO 4

NOx + HC Particulate Matter

Date of application

After 1/1/2000

1/1/2005 0.50 0.25 0.30 0.025

0.64 0.50 0.56 0.05

CO NOx

EURO 3

EURO 4

NOxDate of application

After 1/1/2000

1/1/2005

COHC + NOx

PMNOx

1.00 0.10 0.08

2.30 0.20 0.15

CO NOx + HC

Diesel (in grammes/km)Petrol (in grammes/km)

For Petrol cars

100

80

60

40

20

EU directives on exhaust emission limits

Target setting Target-achievement status con�rmation

ProductionDesigning and prototype building

Eco-VAS at work

Target-achievement status check Evaluation-results feedback

Vehicle planning

When a new Toyota vehicle isplanned, the Chief Engineer setsquantitativetargetsforreducingits

environmental impact.Assessmentcoversawiderangeofitems.Itstartswithmaterials–includingtheeliminationof substances of concern such as lead or chrome– components and production methods. It continuesby examining fuel efficiency and emissions during thevehicle’suse.Anditfactorsintheamountofmaterialsthatcanberecoveredondisposal,aswellasoverallreductionofemissionsthroughoutthevehicle’slifecycle.

Allfindingsfromtheseassessmentsarekeptinacomputerdatabasethatcanbeaccessedtocompareandcontrastprogress in reaching Eco-VAS targets, and confirm theenvironmentalconformityofanewvehiclebasedontheconceptoftotalLifeCycleAssessment(LCA).

By enabling development teams to evaluate theenvironmentalimpactofanewvehicleaheadofitsactualproduction,itwillbeeasierforToyotatoensureconstantstepbystep improvementson the road to theultimateeco-car.

Eco-VAS at work

One of the most promising technologies for reducingemissions in conventional cars is known as hybridtechnology, since it advantageously combines thebenefitsoftwotypesofpowersourceinsteadofrelyingon justone.Forexample,apetrolenginecanbecombinedwithanelectricmotor.

In certain contexts of vehicle use, othertypesof low-emissionenginetechnologiesare also proving effective, although theyarenot yetasmatureor versatileaspetroland diesel-powered engines. These includefuel cells (wherehydrogen isused togenerateelectricity)andcompressednaturalgasengines.

Toyota is investing inall thesetechnologies inparallel.Eachformsastepforwardtowardstheultimateeco-car.Thisidealtargetwouldgeneratezeroemissionsfromitsengine,andbetotallyrecyclable.Butwhilepursuingthisideal, it is important tomeet therealneedsofsocietytodayandtomorrow,andthereforeToyota’sapproach

is to deploy the appropriate engine technology toproduce... the rightcar for the rightplaceat the righttime.

Toachieveloweremissionsandgreenervehiclesonthewaytowardtheultimateeco-car,itisessentialtomeasureprogress.Toyotahas thereforedeveloped itsEcological

Vehicle Assessment System, or Eco-VAS. This is acomprehensiveapproachtoassessingavehicle’swholelifecycle–fromproduction,throughusetodisposal–interms of its impact on the environment, starting at theearlystagesofdevelopment,beforethevehicleisactuallybuilt.ToyotabeganusingEco-VASin200�,bringingthesystemtoahighlevelofimplementationin200�.

how environmental is your car?

&

The production of vehicles, engines and transmissions in

factories inevitably has an impact on the environment. To

ensure that car manufacturing can make more with less,

Toyota developed its world-famous Toyota Production

System (TPS) several decades ago. Over the years, TPS

has also evolved to include new environmental targets.

It is now applied in Toyota’s production facilities all over

Europe.

Since 2001:• Total energy usage per car has been reduced by 37% across all of Toyota’s European manufacturing plants.• Water usage has been reduced in Europe by 34%.• Packaging waste has been reduced through the full use of returnable or recyclable packaging.• Volatile organic compound emissions per square metre of painted surface have been reduced by 21%.

Clean manufacturing

10 11

toyota’s production system...• eliminateswaste• reducesenergyusage• minimisesuseofrawmaterials•deliversstandardisedquality

by...• applyingbestpracticein allprocesses(“Yokoten”)• continuousimprovement (“Kaizen”)• goingtothesourcetofindthe facts(“GenchiGenbutsu”)• just-in-timeproduction,by ‘pulling’productsthroughthe productionline• activeinvolvementfrom allteammembers

Constant efforts to improve standards throughout the workplace have radically reduced the environmental impact of production at our plants.

For example: Toyota’s vehicle plants in both the U.K. and France, have achieved the ambitious target of delivering zero waste to landfill.* Applying TPS principles, staff carefully examined how production waste was created, and invented appropriate solutions to reduce, reuse or recycle all the ‘waste’ materials generated. This has resulted in a 73% reduction of waste going to landfill since 2001.

Aim: zero emissions through TPS

Greener manufacturing

in the Toyota Prius

The manufacturing process for the new Prius model has been organized to reduce the amount of energy needed for building the car. CO2 emissions during the manufacturing process are cut by 31% compared to the previous Prius production plant. Special Eco-plastic made from plants to provide floor mats is used. This further reduces CO2 emissions during manufacturing. The batteries are smaller and more efficient, resulting in 33% less CO2 emissions during manufacturing when compared to the previous generation Prius.

the toyota prius is 90% recycable!

Petrol and diesel engines are highly efficient, but they come at a price. They emit CO2 and other gases and particles that pollute the atmosphere and might influence longer-term climate patterns. Toyota is therefore committed to developing technologies that reduce emissions to much lower levels. Since petrol and diesel engines will probably continue to form the major source of automotive power in the years to come, a major effort is being made to reduce the environmental impact of these technologies.

GreenTechnologies

For example, Toyota has re-examined the whole structure of the internal combustion engine to identify specific ways in which petrol and diesel engines can burn less fuel more efficiently, and so emit less CO2 and other unwanted gases.

This has led to the development of integrated intelligent technologies that use advanced solutions inside engines to improve the management of fuel and driving operations. One of these is Variable Valve Timing-intelligent (VVT-i), which uses less fuel than comparable petrol engines and emits less carbon dioxide, nitrogen oxides and hydrocarbons.

Another is Toyota’s Common Rail Diesel technology (known as D-4D), which injects a precise amount of fuel directly into the combustion chamber to deliver more efficient combustion and better fuel economy. These both help reduce CO2 levels in exhaust emissions.

Toyota has also made significant advances in developing engines that are powered by alternative energy sources. One of the most promising approaches is to combine two different power sources in a single system to exploit the performance potential of both. This is known as hybrid technology, and forms one of the most promising development paths on Toyota’s eco-car roadmap.

* Zero waste to landfill: less than 3% of 1997 amount of waste disposal to landfill

Do diesel engines pollute more than petrol engines?

Diesel engines use less fuel and overall produce less CO2 than petrol engines. However, they produce more particulate matter and nitrogen oxides than petrol engines. Advanced technologies can improve the efficiency and cleanliness of both petrol and diesel engines.

Advancing with diesel

Mile for mile, diesel engines are more efficient as a powersource than petrol engines. But this efficiency comes at aprice. Diesel exhaust contains higher quantities of ParticulateMatter (mostly consisting of un-burnt carbon compounds), as wellas nitrogen oxide. Over the years, Toyota has developed anumber of engine technologies that lower diesel’s impact.Common Rail Diesel technology (D-�D), for example, reducesCO2 emissions. Special catalysts have been developed to re-duce particulate matter and nitrogen oxides. Toyota’s D-�Dand exhaust gas recirculation technology help reduce thepresence of hydrocarbons, carbon monoxide and particulatematterinvehicleexhaust.

In 200�, Toyota revolutionised the diesel engine by combiningthese different technologies into a single new integrated solutioncalled Toyota Diesel Clean AdvancedTechnology (Toyota D-CAT). Thisadvanced concept dramaticallyreduces particulate matter andnitrogen oxides resulting in theworld’s cleanest diesel enginetechnology!In200�,ToyotaD-CATwasfeaturedinabrand-new2.2-litrehigh-power(1��DINhp)dieselengine, built in Poland. Toyota’snew 2.0-litre D-�D 12� diesel en-gine is available with a diesel par-ticulate filter, reducing particulateemissionsevenfurther.

Toyota’schallengeistoensurethatdiesel engines’ emissions perform-ancewilleventuallybeequivalenttopetrolengines.

The D-4D 2.2-litre, Toyota D-CAT engine integrates special technologies to produce very low NOx and particle emissions

Piezoelectric common-rail injection

High Power Diesel Engine • 2.2-litre, in-line 4-cylinders

DPNR Catalyst

NOx storage reduction catalyst

Oxidation Catalyst

Air fuel ratio sensor

Gas Temperature Sensors

Pressure Difference Sensor

EGR Cooler

Exhaust Port Injector

Variable Nozzle Turbocharger

EGR Valve

12 1�

No single engine technologyor fuel can deliver an opti-malsolutiontotheemissionsproblem.Allhavetheirshort-comings.

Petrol engines emit less nitrogen oxides than die-sel engines, and produce insignificant levels of par-ticulate matter. Diesel engines, on the other hand,are more fuel efficient and therefore produce lesscarbon dioxide than petrol engines. Among non-pe-troleum power sources, electric vehicles, for exam-ple, are clean, but cannot deliver satisfying overalldriveperformance,acceptabledrivingrange,andhavetoberecharged.

Butwhatif itwerepossibletocombinedifferenttypesofpowersourcesandmakethemworktogethertoen-hancetheirrespectivebenefitsandreducetheirobviousshortcomings?

ThisleapforwardhasbeenmadethroughthecreationofToyota’shybridtechnology,nowoneofthecompa-ny’scorevehicletechnologies.

Hybridtechnologycanbeappliedeffectivelytoimprovetheefficienciesofavarietyofpowertrainsirrespectiveofthetypeoffuelused(gasoline,diesel,alternativefuelsorfuelcellvehicles).

Hybridsnotonlydeliver loweremissionsand reducedfuelconsumption,buttheyarecompletelysilentwhenoperatingelectricallyanddeliverimpressivedrivingper-formance.

The revolutionary breakthrough achieved by hybridtechnologyistheintelligentmanagementoftheenergyflowsfromtwodifferentpowersourcessothateachdi-mensionofdriving–acceleration,open road,brakingandstop-and-go–isperformedinanoptimalway.

Thishighly innovativesolutionconsistsofapetrolen-ginedesignedtominimizefuelconsumption,combinedwithazero-emissionelectricmotormatchedtoanickelmetalhydrideelectricbatterypacktoprovideaddition-alpower.Bothof thesepowersourceswork togetherunder the supervision of a sophisticated powermanagement controller to deliver maximum overalldrivingefficiency.

hybrid Technology

hybrid

&

If you drive 25,000 km a year in a Prius, you will save over 1 tonne more

CO2 when compared to a similarly-sized diesel car.

One tree(1) absorbs around 14kg(2) of CO2 each year. So you'd be doing the annual

workload of a forest with 71 trees.(1) Measured using Japanese cedar

(2) CO2 equivalent

++

+

+

Electric

or

AlternativesFuels

or

or

Fuel Cell

Petrol

Diesel

toyota & hyBrid:

• Launchedtheworld’sfirstmass-producedhybrid car(ToyotaPrius)in199�.• Istheworld’sleadingmanufacturerofhybrid vehiclesandhasthelargesthybridmodelline-up.• Intendstodoublethenumberofmodelsinits hybridline-upbytheearly2010s.• Over�00,000hybridvehiclessoldworldwide (July2006).• Over�0,000hybridvehiclessoldin Europe(July2006).• Targetofreachingannualhybridsales of1millionunitsbytheearly2010s.

1� 1�

Energy recovered and stored

Zero fuel consumption

ordinary driving deceleration/braking stop-and-goFull-throttle acceleration

Runs with electric motor and engine in most fuel-efficient

configuration

Engine power + electric motor power

Electricity is generated, and partly recharges the battery

Engine stops automatically, and can run on electricity alone

Battery Electric motorBattery

Battery Electric motor

EngineEngine

Battery

Electric motor Battery Electric motorBattery

Battery Electric motor

EngineEngine

Battery

Electric motor Battery Electric motorBattery

Battery Electric motor

EngineEngine

Battery

Electric motor Battery Electric motorBattery

Battery Electric motor

EngineEngine

Battery

Electric motor

High fuel-efficiency driving

Prius: an eco-pioneer

The Toyota Prius has already captured 90% of the world market for hybrid technology, having been on the market since 1997. The Prius was voted the 2005 European Car of the Year – a strong endorsement for

environmentally beneficial hybrid technology.

Battery

Charged by the engine via the generator when cruising, and

by electric motor when braking. Never needs to be

plugged in.

Power Split Device

Splits power between engine, motor, generator and wheels.

Electric motor

Permanent-magnet technology to produce 50kW

output.

Regenerative braking system

Uses electric motor as generator to convert

braking energy into electricity.

1.5-litre Petrol engine

Uses special technology to extract more energy from petrol

combustion.

Inverter

Converts DC from battery to AC for driving the motor.

hybrid Synergy drive

HybridSynergyDrive® (HSD) is theconceptbehindthenewgenerationofhybridvehiclesfromtheToyotabrand, including the Toyota Prius, the world’s best-sellinghybridvehicle.HSDcombinesdrivingpleasureand performance with fuel economy, low emissionsandsilentdriving.Theword“synergy”extendstothehighersynergybetweenthepetrolengineandelectricmotortopowerthevehicle.Theelectricmotorisnowmore powerful, allowing a higher ratio of electrical/petrolusage.Theresultsaremoreperformancewithgreatlyimprovedefficiency.

the benefits of hybrid synergy drivein the prius

•Excellent driving performance: accelerationsimilartoamainstream D-segment(1)dieselengine.

•Low fuel consumption: �.�litres/100km–equivalent toaB-segment(1)dieselcar.

•Lower emissions: CO2emissionsof10�g/kminthe combinedcycle(2),downfrom 120g/kmforthepreviousgeneration.

•silent driving: HSDcanrunontheelectricmotoronly, offeringacompletelysilent drivingexperience.

(1)B-segmentcarsarecompactcarsliketheToyotaYaris. D-segmentcarsarelarger,morepowerfulcarssuch astheToyotaAvensis.

(2)Cityandhighwaydriving.

16 1�

The Lexus brand first in-troduced hybrid power trains with the RX 400h in May 2005. Since then, Lexus has gained more ground with its Eu-ropean hybrid strategy, both by launching the GS 450h in May 2006 and presenting the company’s forthcoming flagship, the LS 600h, in May 2007.

Hybrid technology is attracting customers to the Lexus brand who are looking for a realistic alterna-tive to mainstream technology. In addition to the quietness, smoothness and refinement of hybrid power trains, Lexus customers appreciate the powerful and linear acceleration combined with segment-leading environmental performance. To reflect the importance of its hybrid strategy, Lexus has adopted a new brand name that will more clearly identify its advanced hybrid technology and philosophy: Lexus Hybrid Drive.

lexus hybrid drive

Thegreatadvantageofalternativeenergysourcesisthattheycandrasticallycutemissionsforcarsbeingdriven. However, since many of the technologiesinvolved are not yet fully mature, and are still toocostly to be implemented into a broad range ofcars, themajorityof themrequire further researchanddevelopmentbeforetheycometomarket.

Toyota has led the way in developing a number of these alternative technologies as cleaner solutions forsustainablemobility,andhasalreadyproventhatinnovativesolutionscanbecommercialisedforspecificuses.

Alternatives to fossil fuels

0 0.2 0.4 0.6 0.8 1.0

Petrol vehicle

Diesel vehicle

Petrol Hybrid

Toyota FCHV (target)

(Gasoline vehicle = 1)

In the Japanese 10-15 test cycle, Toyota in-house testingFCHV: Hydrogen fuel

Well-to-Tank CO2 = CO2 emitted from the oil well until the fuel arrives at the fuel station Tank-to-Wheel CO2 = CO2 emitted by a vehicle during use, including refueling

Well-to-Tank CO2

Tank-to-Wheel CO2

CO2 output from oil well to car wheel

1. Fuel cell stack2. Battery3. Control unit4. Motor

1

2

AirWaterHydrogen

4

3

inside an Fchv

Gsi - GEar shiFt indicatorFuel consumption in vehicles can also be reduced by making more efficient use of existingtechnology.The“GearShiftIndicator”isagoodexample.It’satechnologythataimstoencouragefuelefficientdrivingbehaviour. Itdoesthisbyindicatingtheoptimumpointtochangegearforeco-driving. By doing so, awareness of fuel efficient driving is increased. Depending on thecircumstances,fuelconsumptioncanbereducedbyover�%.

hydrogen fuel cells – as pure as water One of the most promising technologies devel-oped tousealternativeenergy is ‘fuel cell’.A fuelcellworksby combining twocommonelements -hydrogenandoxygen- togenerateelectricity thatpowersanelectricmotor. Theby-productsof thisreaction are only water vapour and heat, makingthistechnologytheultimatezeroemissionsolutionforvehicleuse,eventhoughtheactualproductionprocess for hydrogen is not emission-free. Toyotahasbeenconducting research into fuelcellssince1992. It believes fuel cell driven vehicles will be-comeamainstayofmobilityinthefuture.

VehiclesequippedwithfuelcellsandusingToyota’shybrid system configuration are 2 - � times moreefficient than petrol-powered cars in terms of fueltank-to-wheelefficiency.

In2002,Toyotawasthefirstautomobilemanufac-turer to commercialise Fuel Cell Hybrid Vehicles(FCHVs) inJapanandtheU.S.Theyareequippedwith the Toyota FC Stack, a completely in-house

developed fuel cell. The full commercialisation offuelcellvehicles,however,willrequiretheestablish-mentofahydrogensupplynetworksimilar to thatforpetrolanddieselfuel-a large-scaleandcostlyundertaking.Butwhilethemarketoffuelcellpow-eredvehiclesislimitedfortheimmediatefuture,theirpotentialremainsprovenandclear.

Toyota has been researching a number of othersources of cleaner fuel for some time now, in itsquestfortheultimateeco-car.

For example, Toyota has researchedCompressedNatural Gas (CNG) for over two decades, withlimited-scale commercialisation. Compared toconventional diesel and petrol vehicles, naturalgas powered vehicles emit very small amounts ofParticulateMatter,andmuchlesscarbondioxide.

However, CNG requires very large storage tanksfor the fuel, and tends todeliver less energy thanconventional fossil fuels, limiting its long-term ap-plicationstoveryspecificdrivingcontextssuchasbusor taxi transport incitycentres.Gas-to-Liquid(GTL)–asyntheticdieselfuelproducedfromCNG-isanotherpromisingenergyalternative,asitusesexisting diesel fuel infrastructures. It provides thebenefitof furtheremissionsreductionandthebet-ter fueleconomyofthe latestcleandieselengines– such asToyotaD-CATandToyota’s DieselPar-ticulateFilter.

Toyotaalsosupportstheuseofalternativefuelsin-cludingbio-fuels forcars tohelp reduce fossil fuelconsumptionandtopreventclimatechange.

How does recycling reduce CO2 emissions?

Making new cars involves the use of many materials, from metals and synthetic products to cardboard, which all have to be first produced industrially. By recycling materials where and when appropriate, the amount of energy used can be reduced, along with factory emissions.

The 3 Rs: Reduce, Reuse, Recycle

For car makers, truly sustainable mobility also

means manufacturing vehicles and processing

them at the end of their lifetime in ways that ensure

maximum energy efficiency and minimum waste.

The 2015 target is to have 85% of the vehicle

weight being reused or recycled and 10% energy

recovery, leaving the remaining 5% for disposal.

End-of-life vehicles (ELVs) contain materials ranging from steel and

rubber to plastic and solvents. Some of these contain Substances of Concern (SoCs) which would contaminate the soil and the groundwater reserves if an ELV is simply thrown away.

Toyota’s Eco-VAS (Vehicle Assessment System) sets targets and consistently tracks measures for limiting SoCs and reducing other forms of environmental burden. And further improvements will follow in the future.

toyota makes vehicle recycling easier:

1. Designing cars for easier recovery. 2. Manufacturing cars with recovery in mind. 3. Recovery of used parts and components that are replaced during the life of a vehicle.4. Minimising the remaining waste of an ELV.

End-of-life vehicles

18 19

The recycling Process

The European End-of-Life Vehicle Directive(Environmental Directive2000/��/EC) was adoptedby the European Parliament

andCouncil onSeptember18, 2000, to im-prove the recyclingand recoveryofELVs, andtoincreasetheenvironmentalperformanceofalleconomicplayersintheprocessingchain.Sincethen,allEUMemberStateshaveenactedlawstoimplementthisDirective.

designing for recyclingInordertosimplifythedismantlingprocess,Toy-otadesignedanew ‘Easy toDismantleMark’.Thismarkisaddedtovehiclepartsclearlyindi-catingcertainpointsthatassistininitialdisman-tling,suchasthepositionsatwhichlargeresinpartscanbeeasilyseparatedandthelocationsatwhichholescanbedrilledforremovingfuel.

Cars contain plastics that are hard to recycle.Toyotahasthereforedevelopedaspecialrecy-clableplasticcalledToyotaSuperOlefinPolymer,orTSOP,thatcanbeusedtomakecarbump-ersandotherpartswhichcanthenberecycledmanytimesover.

Greening spare partsBatteries,tyres,andoilfiltersallneedtobere-placed during a vehicle’s lifetime. Toyota hasthereforesetupawastecollectionsystemthatretrievesusedpartsfromEuropeandealersandsendsthembackforrecovery.Inaddition,Toyo-ta’sremanufacturedpartsofferingnowincludesair conditioning compressors, power steeringracks,cylinderheads,starters,automatictrans-missions,alternators,enginesandclutchkits.

substances of concernLead, together with Mercury, Cadmium andHexavalent Chromium, are heavy metals thatcause long-termdamage to theenvironment ifburiedunprocessed in landfills. In linewith theyear2000EuropeanUniondirectiveonEnd-of-LifeVehicleswhichlimitstheuseoftheseSub-stancesofConcern(SoCs)inmaterialsandve-hiclecomponentsstartingin200�,Toyotanowusesanumberofzero-leadcarpartsandanti-corrosion coatings, mercury-free lighting andswitches, and asbestos-free friction materialsandenginegaskets.ItalsoavoidsSoCsinvari-ouskindsofpaintsandinsolvents.

Rubber recycling

and reuse

Application of

recycled materials

Resin recyclingand reuse

Dealer w

aste

collection system

Rep

lace

men

tre

man

ufac

ture

d

par

ts

IDIS, a practical tool

to dismantle carsPioneer Recycling Plant in Japan

Toyota Priu

s battery

recyclin

g system

Automobile Recycling

Technical Centre

Using shredder residue effectively

DEVELOPMENT P

RO

DU

CT

ION

USE

DIS

PO

SA

L

Eco-VAS ‘design

with care’ D

esig

n fo

r rec

yclin

g

Bui

ld r

eco

vera

bili

ty

into

des

ign

CA

R RECYCLING

LOPM

CA

R

RECYCLING

&

the end is a new beginningToyotahascreatedadedicatedAutomobileRe-cyclingTechnicalCentreinJapantoexperimentwithnewtechniquesfordismantlingvehiclesforrecovery. This has resulted in the constructionofanoperationalAutomobileShredderResidueRecyclingPlantwhichin2001achievedToyota’svoluntarygoalofdevelopingthetechnologyforacommercialsystemtoachieveahighrecoveryrateforcomponentmaterials.

OnceEurope’send-of-lifecarshavebeenshred-ded toextractusablematerials, theystill leave2million tonnesof residuebehind.Traditionallythishasbeenburiedinlandfillorincinerated.ButtheEuropeanELVandLandfillDirectivesnowinforcelimittheuseofthissolution.

In Japan, Toyota hasdevelopedwaysofus-ing certain foam prod-ucts found in vehicleresidue to create re-cycled soundproofingproducts. Thanks tothe high-quality char-acteristicsofautomotiveglass,powderedglassfrom shredder residue is recycled into tiles foruseinlandscapingpavement.

Shredder residue that cannot be recycled cannevertheless be melted down into extremelysmallpacksforlandfill,reducingoncemoretheenvironmentalimpactofvehiclesonfuturegen-erations.

Recycled plastic for the bumper, instrument panel

and other coverings.

Plastic recycled from polypropylene is used in

four separate parts.

Two parts use plastic recycled from

production waste.

Renewable materials (recycled cotton and wool) for sound absorption and

insulation.

Toyota Avensis and the 3 Rs

20 21

The next horizonCars have benefited society for over a century. During this time, car makers have

explored a variety of technologies, and fine-tuned the internal combustion engine into

the high-performance machine we know today. For Toyota, the automobile’s future will

be dedicated to improving relations between cars, people and the environment.

Toyota has promised toachievesustainablemobil-

ity.Andourcompany iswell recognised for its

innovative productsand technologies.Toyota is develop-ingtheseadvancedtechnologies in or-der to protect theenvironment, and

ensure its continuedgrowth.Ourcompany

recognises the link be-tweenmobility, a sustain-

able environment and eco-nomicgrowth,andbelieves that

thegrowthofourbusinessdependsonthesuccessofsustainablemobility.

Through the concepts it builds today fortomorrow’s society, Toyota is seeking toexpand the scope of personal mobility whileensuring minimal environmental impact. Forexample, Toyota has developed the i-swing,a personal, light-weight mobility vehicle thatcreates a seamless transformation betweenvehicle and human movement. The battery-powered i-swing minimizes occupied spaceandenergyconsumptionwithitsultracompactsize, operating in two-wheel mode whenmovingamongpeopleinthecityandswitching

RAiSinG EnViROnmEnTAl AwAREnESS ThROUGh ThE TOYOTA FunD FOR EuROPE:

Green packSince2000,ToyotahassupportedtheRegionalEnvironmentalCenterforCentralandEasternEuropeinthedevelopmentandproductionoftheGreenPack–auniquemulti-mediaenvironmentaleducationkitdesignedtobeusedbyschools.

schools for sustainable development In200�,ToyotaEuropelaunchedtheSchoolsforSustainableDevelopmentprogrammeinpartnershipwiththeNGOsGroundworkUKandtheEnvironmentalPartnership(CEEurope).Theprojectaimstopromotelocalcommunityenvironmentalactionsbygivingschoolstheopportunitytomakeimprovementsintheirneighbourhoods.

Eco-schoolsThisproject,rolledoutinWesternEurope,isaimedatpromotinginnovationinschools´environmentalproblemsolving,throughtheawardingofgrantsprojectsonsustainablemobility.

22 PB

to three-wheel mode on the road with other vehicles. The driver of thei-swingcanremaininpermanentcontactwiththeirvehiclethroughamobilephoneoraPC,bringingpersonalmobilitytoanotherlevel.

Beyond its product range, Toyota recognises the importance of goodcorporate citizenship and is taking concrete steps to positively impactEuropeansociety.

In2002,ourcompanyestablishedafund–theToyotaFundforEurope–toenhanceitsgoodcorporatecitizenshipthroughsocialcontributionactivitiesinEurope.ThestrategicfocusofthisFundis linkedtoourcorecorporatesustainabilitychallenges:environment,roadsafetyandtechnicaleducation.

Toyota’s advanced technologies already provide a proven new platformfor building an even wider range of cleaner and morefuel-efficient engines, while offering anenticing driving experience.And other technologies suchas fuel cells promise long-term alternatives for specificapplications.

With its effective productionmethods, leading technologyand constant attention tocustomer requirements, Toyotais developing many solutions totheglobalchallengeofsustainablemobility.