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Toyota Environmental Sustainablity Report

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Service Parts and Accessories Logistics<br />

Our Parts Supply Chain Group (PSCG) includes one central<br />

warehouse in Belgium and 13 regional depots in Europe. We<br />

have faced many challenges over the past few years and are<br />

working to further strengthen our supply chain strategy to<br />

avoid unpredictable demand and delivery. These efforts will<br />

result in cost reduction, an increase in service effi ciency and<br />

environmental improvement. The three main environmental<br />

impacts of our operations are :<br />

C O 2 emissions from transportation<br />

The environmental impact of our warehouses<br />

Packaging materials.<br />

The main reasons for this achievement include :<br />

The switch from Euro3/4 engines to Euro4/5. Until FY09,<br />

72% of the mileage by road in international trucking was<br />

driven in Euro3 trucks. In FY10 only 32% was driven by<br />

Euro3 type engines. In FY10, the Euro4 increased from 20%<br />

up to 40% and Euro5 from 8% to 28%.<br />

The review of the retail distribution network in Germany and<br />

Spain. This led to changes resulting in more effi cient linehauls<br />

(-403 tonnes CO 2 per year). In the UK at the end of 2010<br />

we started using double-deck trailers for the line-hauls from<br />

the depot to the platforms (-124 tonnes CO 2 per year) :<br />

Tonnes CO2<br />

The modal shifts from road to rail and sea implemented in<br />

2009 have been continued and intensifi ed where possible.<br />

The mileage by road is still decreasing but is less pronounced<br />

than in 2009.<br />

CO 2 Emissions from Transport<br />

In FY10, the PSCG succeeded in further reducing CO 2<br />

emissions by continuing and, where possible, intensifying<br />

activities already started in FY09 and before.<br />

While the warehouse operations division continued to focus<br />

on improving case and truck density, the transportation<br />

department encouraged logistics partners to switch to<br />

cleaner truck engines, reviewed the retail distribution<br />

network and continued the modal shift from road to rail<br />

and sea. The overall result of CO 2 emissions of 0.455kg/km<br />

is well below the FY10 target of 0.466kg/km.<br />

managing Co 2 emissions fy06 fy07 fy08 fy09 fy10<br />

Total CO 2 emissions (tonnes) 46,429 52,062 48,434 44,175 43,793<br />

CO 2 emissions (kg/m 3 transported) 15.30 16.18 15.31 15.14 14.70<br />

CO 2 emissions (kg/km transported) 0.516 0.520 0.491 0.472 0.455<br />

Impact actions FY10<br />

450<br />

400<br />

350<br />

300<br />

250<br />

200<br />

150<br />

100<br />

50<br />

0<br />

324<br />

Network reviews & optimisations<br />

(major contributors D, ES)<br />

Reduced km (in 1,000 km)<br />

403<br />

148<br />

124<br />

UK introduction<br />

double decks<br />

Reduced CO 2 emission (in tonnes)<br />

Transport methods evolution (share of kilometre)<br />

% for Sea, Air and Rail transport<br />

% %<br />

12<br />

10<br />

8<br />

6<br />

4<br />

2<br />

0<br />

FY 07 08 09 10<br />

Truck<br />

Sea Air Rail<br />

We will continue to make improvements by further reviewing<br />

our network and by increasing the use of environmentallyfriendly<br />

trucks.<br />

<strong>Environmental</strong> Impact of our Warehouses<br />

All of our 14 Parts Distribution Centres (PDCs) are certifi ed to<br />

the ISO14001 environmental management standard. The key<br />

environmental aspects we track are energy consumption and<br />

waste management.<br />

82<br />

80<br />

78<br />

76<br />

74<br />

72<br />

70<br />

% for Truck transport<br />

<strong>Toyota</strong> European Sustainability <strong>Report</strong> 2011 I <strong>Environmental</strong> Performance<br />

25

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