toyota’s 5 year environmental action plans: a case...

Miltos Tsoskounoglou/Toyota Hellas 1

ToyotaToyota’’s 5 year Environmentals 5 year EnvironmentalAction Plans: a case study Action Plans: a case study Environmental Preservation is a valid business caseEnvironmental Preservation is a valid business case


The environmental challenges The environmental challenges facing automakersfacing automakers

Miltos Tsoskounoglou / Toyota Hellas 3

Climate Change is a major concern for society (perhaps the biggest challenge of all ! )


Transport is highly exposed as it is almost totally dependant on fossil fuels

Lack of diversification of energy sourses for transport:- No available Plan B- Very sensitive to oil price changes

0

1

2

3

4

5

6

Industry Transport Residential PowerGeneration

Coal OilGas ElectricityBiomass & waste NuclearHydro & Wind Other

Bill

ion

Tonn

es O

ilEq

uiva

lent

Source: IEA, WEO 2008


The rapid global increase in vehicles, will…

Source: Handbook of automotive industry 1999


…. further increase CO2 emissionsDefinitely, we must do something about it !

Source: IPCC report 2007

CO

2de

nsity

(ppm

v)

Industrial Revolution

280 ppm

379 ppm (2005)

450 ppm EU target(~2° Celsius)


-100 -50 0 50 100 150 200

Total CO2

ManufacturingOther

ResidentialIron, Steel

CommercialCement

PetroleumPower & Heat

Transport

Trasport is perhaps the “hardest nut to crack”

2007 CO2 equivalents emissions2007 vs 2006 emissions

Others8%

Iron, Steel 2%

Cement2%

Petroleum refining

4%

Commercial 5%

Residential 12%

Manufacturing 15%

Transport 23%

Power & Heat 29%

Source: European Environment Agency

Mt CO2

EU EU


EU Climate Change Package - 2020

20%Renewable

energy

20%Energy consumption

reduction

20%GHG emissions

reduction

No wonder that the EU puts pressure on the transport sector with an Energy & ClimateChange Package with legislated targets …

Energy crisis Temperature increase


Reference: http://www.oilposter.orgReference: http://www.oilposter.org

DiscoveryDiscovery

ProductionProduction

6060

5050

4040

3030

2020

1010

0019301930 19501950 19701970 19901990 20102010 20302030

PredictionPrediction

“Peak oil”“Peak oil”

Billio

ns of

barre

ls/ye

arBi

llions

of ba

rrels/

year

yearyear

Gap Between Oil Discovery and ProductionGap Between Oil Discovery and ProductionFurthermore, when we consider oil production, there is a real posibility of reaching “peak oil”in the near future


World Business Council forSustainable Development

This has a big impact on business, therefore Toyota must address these issues


Facing the challenges through Facing the challenges through Environmental 5 year action plansEnvironmental 5 year action plans

a. Our whole Life Cycle approacha. Our whole Life Cycle approach


Toyota addresses these challenges throughout its business with its whole Life Cycle approach


In Product Design & Development…..

1. Product 1. Product Design & Design &

DevelopmentDevelopment


We are drastically reducing CO2 emissions in existing models through technical innovation

CO

2F

lee

t A

ve

rag

e

-45%

Legally

required

limit


… while at the same time evolving new technologies to use new energy sources(many routes to choose from…)

Gasoline,diesel

Gaseousfuels Biofuels Synthetic

fuels Electricity Hydrogen

CO2 reduction Air qualityEnergy diversity

Hybrid technology

Ultimate Eco-Car

The right car, the right place, the right time


Strategic choice for Toyota: Hybrid Technology(with applications in many future technologies)

Engine

Fuel tank

Motor

Battery Engine

H2tank

Motor

Battery

FC stack

HEV

Engine

Fuel tank

Motor

Battery

EV

Engine

Fuel tank

Motor

Battery

PHEV FCHEV

Using hybrid technology for PHEV, EV and FCHEV


Prius full hybrid• heavy investment in hybrid technology (600 patents)

• launched in 1997

• top selling hybrid globally

• currently top selling model in Japan

• ~50% of all hybrids worldwide are Prius


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Units

Toyota global hybrid sales are taking off

2.5 million

Our aim: 1 million hybrid sales per year, early 2010s1 hybrid option in every model, early 2020s


Efforts to date have significantly improved CO2 performance

Source : JATO - 21 countries – Note : All figures are volume-weighted

146.5 g/km

H1 2008

132.9 g/km

H1 2009

- 13.6 g/km

H1 ‘09 (g/km)

-9%


At the same time, lot’s of progress has been made to lower exhaust emissions and to improve air quality


In Production…..

2.Production2.Production


Toyota is transforming its existing plants into sustainable plants with benchmark performance

Renewable Energy

Sustainable Plant: TMUK

Sustainable Plant: TMMF

Using the least natural resources whilst existing in harmony with the natural surroundings

Planting trees on & around Sites

Leading- edge Environmental Performance

1

2

3


Toyota Plants are ‘Clean, Lean and Green’

Aim for the top level of environmental activity

(Voluntary actions)

Compliance with laws(Proactive preventive measures)

All 8 Toyota plants in Europe have ISO 14001

All plants have zerowaste to landfill

Reach top level environnemental performance in each countryClean, Lean & Green

TMUK plants in Burnaston and Deeside


Energy use & CO2 emissions per vehicleproduced have been reduced by 38% since 2001

Energy consumption per vehicle CO2 production emissions per vehicle


In Logistics…..

3. 3. LogisticsLogistics


CO2 emissions in Production Parts Logistics are being reduced rapidly through kaizen


…. together with emissions in Vehicle Logistics


In our Retailer Network

4. 4. SalesSales//UseUse


Sustainable Retailer Strategy introduced•To reduce CO2, water, waste emissions footprint of retailer facilities•To provide tangible business benefits (reduce energy costs)


Sustainable Retailer ‘Flagships’ built

Main Technologies: Geothermal / Solar panels / LED Lighting / Rainwater recycling

Environmental Improvement:- 90% CO2 reduction- 80% water/car- 40% kWh/m2

- Zero NOx emissions

Opening Q1 FY10

La Rochelle - France Salzburg - Austria Maribor - Slovenia

Main Technologies:Geothermal / Solar panels / Micro wind

Environmental Improvement:- CO2 neutral- 50% water consumption/car- 60% kWh/m2- 100% reduction in NOx

Main Technologies: Solar panels / heat recuperation / triple glazing

Environmental Improvement:CO2 neutral- 29% water consumption/car- 62% energy consumption/m2

- 71% reduction in NOx emissions

Opening Q3 FY09Opening Q1 FY10

•To set best practice examples within the network – Next steps: ‘yokoten’to the rest of the network


Consumers/Users: promote Eco-Driving


At the end-of-life phase…

5. Recycling5. Recycling


Recycling is a solid business case to conserveprimary & secondary raw materials, and reduce emissions• Increased used of recycled materials in new cars


Recycling of Hybrid Batteries has been organized


Facing the challenges through Facing the challenges through 5 year action plans5 year action plans

a. Providing the means and a. Providing the means and management resourcesmanagement resources


In the 5 year Environmental Action Plans,through our Life Cycle analysis, specificprojects are identified and goals are setToyota’s Global EMS is based on ISO 14001


Supported by environmental investments & maintenance costs (total: 2,7% of net sales)

Source: Independently verified by Japan Environmental Management Association for Industry(JEMAI)


Sustainability Reports are issued annually


Progress on KPIs, special projects and results achieved are reported annually



150.000

new Prius

CO2 emissions in production

37% less CO2

comparable diesel vehicle

CO

2ov

er th

e ve

hicl

e lif

e cy

cle

Inde

x =

1 (fo

r die

sel v

ehic

le a

t 150

.000

km

)

1

050.000 100.000 Mileage driven (km)

We believe that the results or our co-ordinatedefforts through our whole Life Cycle approach are visible in all our products & services


Prius III


Thank you for your kind attention !

toyota’s 5 year environmental action plans: a case...

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