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Toyota South Africa Sustainability Report 2008


Toyota South Africa is as much about contributing to the world we live in as it 

is about making and selling cars. 2007 saw Toyota South Africa achieving its 

28th consecutive year as market leader, having achieved new sales records, with 

new export sales records, new parts sales records, and as No. 1 in the customer 

satisfaction index. None of this detracts from our ongoing pursuit to deliver 

environmentally sound vehicles for sustainable mobility, through plants that 

work in harmony with people and the environment. 

This is the fifth annual report produced by Toyota South Africa (Pty) Ltd in which 

we detail our social, environmental and economic footprint. In keeping with 

Toyota Motor Corporation’s requirements, this report is the first to be called a 

Sustainability Report.We have historically produced annual reports, but we did 

not produce a Sustainability Report in 2007, and hence this report covers the 

period April 2006 – March 2008 (referred to as ’FY06 and FY’07).This year we are 

following the structure of our parent company’s 2007 report, in order to present 

a consistent message to all our stakeholders across the globe, and to better 

demonstrate Toyota’s total social, environmental and economic footprint. For 

all global issues, readers are referred to Toyota Motor Corporation’s website 1 . 

Through aligning our 2008 report with the global Toyota Motor Corporation 

standard, readers will note differences from our 2006 report. The issues are 

reported on within a clearer framework of: 

• Our vision and structures, which describes how we think about sustainability 

and how we integrate it into our governance framework; 

• Environmental aspects, based on our key risk areas of energy use and 

global warming; resource efficiency, use of substances of concern (SoC) and 

atmospheric quality; 

• Social aspects, in which we present our relationship with our various 

stakeholders including employees, shareholders, business partners and the 

community; and 

• Economic issues, which presents a summary of our financial performance. 

Through this structure, we aim to demonstrate how sustainability is not added 

onto our business, but forms the basis for our success, now and into the future. 

For the past five years, we have relied on our externally assured management 

systems to provide reliable data. In the interests of improved transparency, next 

year we will examine the issues relating to assurance of this report. 

For queries regarding this report please contact: 

Mr Riaan Olivier 

P O Box 26070 

Isipingo Beach 

4115, South Africa 

rolivier@toyota.co.za 

Tel: +27 31 910 2085 

Ms Mary Willemse 

P O Box 481 

Bergvlei 

2012, South Africa 

mwillemse@tsb.toyota.co.za 

Tel: +27 11 809 2557 

1. www.toyota.co.jp/en/index.html

Sustainability Report_14-10-2008:Layout 1 10/14/08 2:43 PM Page 1 

2 Executive Message 

Performance Trends: Selected Indicators ............................................................................................2 

3 Vision and Structures 

Corporate Philosophy ..............................................................................................................................5 

Toyota Precepts..................................................................................................................................6 

Guiding Principles ............................................................................................................................6 

Corporate Governance ............................................................................................................................7 

Awards..................................................................................................................................................7 

Board of Directors and Governance Committees ....................................................................8 

Environmental and Social Committee Structures ....................................................................8 

Compliance ..............................................................................................................................................10 

11 Environmental Aspects 

Toyota Earth Charter ..............................................................................................................................11 

Key Risks..............................................................................................................................................11 

Precautionary Principle ..................................................................................................................11 

Key Performance Indicators ..........................................................................................................12 

Environmental Incidents................................................................................................................12 

Highlights ..................................................................................................................................................12 

Energy/Global Warming ........................................................................................................................12 

Energy Use and CO 2 Emissions: Production..............................................................................12 

CO 2 reduction in Service and Parts Logistics ............................................................................15 

Recycling of Resources ..........................................................................................................................16 

Packaging ..........................................................................................................................................16 

Waste..................................................................................................................................................16 

Water ..................................................................................................................................................17 

Substances of Concern ..........................................................................................................................18 

Atmospheric Quality ..............................................................................................................................18 

Volatile Organic Compounds........................................................................................................18 

Other Emissions ..............................................................................................................................18 

Environmental Management ..............................................................................................................19 

Land Use and Biodiversity ............................................................................................................19 

Consolidated Environmental Management System (EMS) ..................................................19 

Mitigation of Environmental Impacts in Products and Services........................................20 

Fuel Types ..........................................................................................................................................21 

The Powertrain ................................................................................................................................21 

C O N T E N T S 

Engine and Transmission Technology ........................................................................................21 

Meeting European Emissions Standards ..................................................................................22 

Budgeting and Planning................................................................................................................22 

Special Story ............................................................................................................................................22 

Appendix ..................................................................................................................................................23 

Data Measurement Table..............................................................................................................23 

4 th Toyota Environmental Action Plan: ......................................................................................24 

27 Social Aspects 

Stakeholder Engagement..............................................................................................................27 

Highlights ................................................................................................................................................28 

Relations with Customers ....................................................................................................................29 

Integrated Safety Management ................................................................................................30 

Relations with Employees ....................................................................................................................30 

Employees Practices ........................................................................................................................31 

Training ..............................................................................................................................................32 

Employment Equity ........................................................................................................................33 

Occupational Health and Wellbeing ..........................................................................................35 

Occupational Safety and Health..................................................................................................37 

Relations with Business Partners ......................................................................................................39 

Dealerships ......................................................................................................................................40 

Relations with Shareholders ................................................................................................................41 

Global Society/Local Communities ....................................................................................................41 

Making a difference........................................................................................................................42 

Local Communities ........................................................................................................................42 

Education Based Projects ..............................................................................................................43 

Youth and Skills Development Projects ....................................................................................44 

SMME/Entrepreneurship Directed Projects ............................................................................44 

Community Development Related Projects ............................................................................45 

Health And Welfare Directed Projects ......................................................................................45 

Environmental Management Directed Projects ....................................................................46 

Special Story ............................................................................................................................................46 

47 Economic Aspects 

Business Results and Geographic Segment Information ............................................................47 

49 G3 Index ....................................................................................................................................................49 

Sustainability Report 2008 1


Executive Message 

Performance Trends: Selected Indicators 

We are proud to present our fifth report that deals 

with social, environmental and economic issues – our 

Sustainability Report 2008.What is gratifying for us is 

to achieve superb financial and commercial 

performance, while meeting increasingly demanding 

social and environmental expectations. In Toyota, 

sustainability principles have been fundamental 

values since the beginning of the company, and we 

have made significant strides over the past two years 

in implementing the Toyota Motor Corporation’s 

global sustainability philosophy. Our new Environmental Committee, established in early 

2008, is part of the global Toyota environmental management community through 

which we will share information on environmental management. 

Along with everyone else in South Africa, we have faced enormous challenges in making 

rapid adjustments to accommodate the uncertainty of the energy supply in the country. 

We continue to investigate alternative energy sources and we have made progress in 

implementing solar energy, as well as using natural light in the redesign of our plants. 

Sustainability is not just about talk; it requires action at a very personal level, as well as 

at corporate level. Sustainability is a way of life, and one that we are adopting across an 

increasing scope of our operations in South Africa. We trust that this report – and its 

related Executive Summary report – will clearly indicate the seriousness with which we 

take sustainability, as well as the successes and challenges that we have faced.We would 

like to hear what you think of our report, our performance, and our delivery against our 

stated intent, and invite you to engage with us as we move along the path to achieving 

truly sustainable growth in harmony with people and the environment. 

Dr Johan van Zyl 

President and CEO, Toyota South Africa 

ISSUE 

PERFORMANCE 

ENVIRONMENT FY’05 FY’06 FY’07 

Energy use GJ/Unit 5.52 6.61 6.65 

Waste generation kg/Unit 28.56 31.87 28.99 

Use of polystyrene in packaging 0 0 0 

Water consumption kl/Unit 4.64 6.99 6.70 

Waste water generated kl/Unit 2.89 3.21 2.87 

Phase out of banned chemicals Achieved Maintained Maintained 

Emissions of Volatile Organic Compounds 83.11 43.23 42.98 

(VOCs) g/m 2 

Reduction in emissions of Carbon Dioxide (CO 2 ) 1,510 tons Not available 1,350 tons 

Implementation of ISO14001 by suppliers Not achieved Not available 92% 

Compliance with EU End of Life Vehicle (ELV) Achieved Maintained Maintained 

requirements 

Re-certification of TSAM Durban to ISO14001: Achieved Maintained Maintained 

2004 standard 

Implementation of Toyota EMS Level Up Partially Achieved Maintained 

Achieved 

SAFETY 

Employee fatalities 1 1 0 

Contractor fatalities 2 0 1 

Lost workday case frequency rate 3.86 2.05 1.72 

COMMUNITY 

Investment in CSI programmes ZAR 8 million Not available 11.2 million 

Toyota Teach Primary School Project ZAR 3 million Not available 3 million 

Toyota Teach Education Programme ZAR 3 million Not available 3 million 

Rally to Read ZAR 182,000 380,000 380,000 

Value of donated materials ZAR 900,000 Not available Not available 

2


Vision and Structures 

Sustainability is truly at the heart of Toyota’s business model. In 2007, Toyota Motor 

Corporation (headquartered in Tokyo in Japan) celebrated 70 years of manufacturing 

excellence, epitomising a lifetime of quality and service based on sound ethical and social 

concepts that shows through in their dedication to people, technology and the 

environment.Toyota Motor Corporation has 52 manufacturing companies in 26 countries 

and regions, employs approximately 300,000 people worldwide, markets vehicles in more 

than 170 countries and averages a global production figure of 9.498 million vehicles per 

annum.The local manufacturing branch,Toyota South Africa (Pty) Ltd, was established in 

June 1962, and effective August 2008 is a fully owned TMC subsidiary. Previously it was 

listed as a private company, with Toyota Motor Corporation controlling 75% (-1 share) and 

Wesco owning 25% (+1 share). 

Toyota South Africa proudly ranks among the top ten international distributors, and is 

firmly established as the largest vehicle manufacturer on the African continent, and the 

largest vehicle exporter in South Africa. 

Toyota South Africa employs 9,770 people who contribute to the manufacturing and 

marketing of the Corolla, Hilux, Fortuner and Dyna models, which are marketed and sold 

through 184 dealerships countrywide. A further 22 dealerships in Southern Africa are 

supported by Toyota South Africa – Botswana (6), Lesotho (2), Namibia (12) and Swaziland 

(2). Total production in the 2006 calendar year was 151,056, with 155,245 units produced 

in the 2007 calendar year 2 . 

The Toyota South Africa manufacturing operations are located in Prospecton, Durban 

with the Marketing Division based in Sandton, Johannesburg. This report addresses the 

sustainability issues relevant to these business units. We also highlight some aspects 

regarding our supply chain and dealerships, although these are not addressed in as much 

detail as our core operations. 

We continue to travel the road to realise our environmental and social vision of contributing 

to a harmonious and prosperous society through the provision of automobiles. 

2.Toyota South Africa’s financial year runs from 1 April to 31 March each year. Data are reported for the financial year,not 

calendar year unless stated otherwise.The years covered in this report are thus FY’06 (Apr 2006-Mar 2007) and FY’07 (Apr 

2007 – Mar 2008) unless stated otherwise. 



“Monozukuri” and the Cycle of Nature... Toyota’s World View and Our Mission 

“Cycles of Nature” 

All people and communities 

are subject to the natural 

cycles of the earth. Toyota is 

committed to undertaking 

“monozukuri” (manufacturing 

that strikes a harmonious 

balance with nature in 

order to carefully sustain 

the global environment). 

“Cycles of Industry” 

An industry creates 

new value, while spawning 

the birth of a new industry 

– such is the way of the 

cycles of industry. 

Toyota endeavors to be 

a driving force behind 

the development of 

sustainable industries. 

As we head towards 2020, our mission is to re-examine the relationships between nature 

and industry, and to contribute to finding a harmonious balance between the cycles of 

nature, and the cycles of industry. 

Two significant changes occurred at our operations at Prospecton during the reporting 

period. In 2002, we embarked on a five-year plant modernisation and expansion 

programme in order to meet expectations regarding the new Toyota Corolla, destined for 

European markets. The introduction of the 10 th Generation Corolla required that the 

Prospecton Plant be expanded to enable a volume capacity of 220,000 units per annum 

by the year 2009, an increase of 340% over the 50,000 units exported in 2006. To this end, 

FY’06 saw the final construction and commissioning of Paint Line 3, and the associated 

decommissioning of Paint Line 2, along with various other production and manufacturing 

plant changes. Significant enhancements have also been introduced in the vehicle 

assembly hall, body and chassis line. The resin component production facility has also 

been equipped with Toyota’s leading edge technology and boasts its own water based 

paint facility for the painting of bumpers. The focus of the improvements has been on 

uncompromising quality, improved efficiencies, increased capacity, cost competitiveness 

and beneficial environmental improvements. 

4


Technical modifications alone were not sufficient to deliver the required quality, and 

to ensure buy-in from employees, a unique ‘Excellence in Customer Quality Challenge’ 

(E-CQC) was rolled out in May 2007. The aim of E-CQC was to create a quality mindset 

across the Toyota network, so that Toyota can deliver on the quality expectations of 

customers in the various markets into which the new Corolla will be launched. From 

a sustainability perspective, the E-CQC challenge emphasises engagement with all 

stakeholders in the life-cycle of the vehicle. 

Corporate Philosophy 

Toyota is committed to pursuing sustainability in three specific areas:technology (including 

research and development), manufacturing and social contribution. Our position in society 

is entirely dependent on achieving growth that maintains a balance between corporate 

activities and environmental conservation, as well as between vehicle volume and quality. 

In all our activities and all our interactions, our aim is to create harmonious and 

sustainable relationships with all our stakeholders, and to respect the environment in 

which we operate. Recognising that our success depends on responsible social 

development and the integrity of environmental systems, guidance has been developed 

to articulate how we contribute to these cornerstone business requirements. 

Sustainability principles have been core to Toyota’s business model and success since its 

founder, Mr Sakichi Toyoda developed the Toyota Precepts, which evolved into the 

Guiding Principles for the company. 

PAINT LINE 3 BENEFITS ECONOMIC, SOCIAL, ENVIRONMENTAL AND QUALITY OBJECTIVES 

Paint Line 3 was opened in 2006, and adopted the same advanced paint technology used in 

TMC’s nine paint plants in Japan, including the use of metallic water-borne paint for the top 

coat, which greatly reduces potentially harmful atmospheric emissions. Paint Line 3 is one of 

only five similar plants commissioned by Toyota Motor Corporation globally. 

The new paint facility represents an investment of more than R1-billion, the Black Economic 

Empowerment (BEE) component of which was approximately R250-million, and is a major part 

of Toyota’s 220K production programme. The full investment will total R2,4-billion. 

From an environmental perspective, the transition to water-borne paint technology in Paint 

Line 3 will see our current Volatile Organic Compound (VOC) emissions reduce from 80gm/m 2 

to just 30gm/m 2 painted, which conforms fully with international standards. This will 

contribute to a 60% reduction in air emissions from the new plant, compared to our previous 

two paint plants. At full capacity, there will also be reduced electricity usage in terms of the cost 

per unit. Propane, used to fire the paint shop ovens, is replaced with methane-rich natural gas 

which has both environmental and economic benefits. Paint Line 3 also introduced significant 

quality benefits. 

The new facility created 4,000 job opportunities. Huge investment has also been made in 

training the people who work in the new 

paint plant. A total of 58 senior team 

members spent 60 person-months in Japan 

on training, at a cost of R12-million. A further 

250 team members have undergone training 

locally over a period of five months. Toyota 

South Africa currently spends more than 

R70-million a year on direct training and skills 

development to support this increase in 

production capacity. 

Some other key sustainability results are: 

• 50% of expenditure on plant, machinery, 

services and civil engineering work was 

with local companies. 

• 60 contractors were involved in the project, 

77% of whom had BEE status. 

• A 60% reduction in air emissions, especially VOC emissions. 

All exhaust gases from the drying ovens and all volatile solvent emissions are processed 

through a Regenerative Thermal Oxidiser (RTO) where they are burnt off with the 

assistance of a gas burner. 



Toyota Precepts 

1. Be contributive to the development and welfare of the country by working together, 

regardless of position, in faithfully fulfilling your duties. 

2. Be at the vanguard of the times through endless creativity, inquisitiveness and 

pursuit of improvement. 

3. Be practical and avoid frivolity. 

4. Be kind and generous; strive to create a warm, homelike atmosphere. 

5. Be reverent, and show gratitude for things great and small in thought and deed. 

GUIDING PRINCIPLES AT TOYOTA 

Global Vision 2020 

Guiding Principles 

1. Honour the language and spirit of the law of every nation and undertake open and 

fair corporate activities to be a good corporate citizen of the world. 

2. Respect the culture and customs of every nation and contribute to economic and 

social development through corporate activities in the communities. 

3. Dedicate ourselves to providing clean and safe products and to enhancing the 

quality of life everywhere through all our activities. 

4. Create and develop advanced technologies and provide outstanding products and 

services that fulfill the needs of customers worldwide. 

5. Foster a corporate culture that enhances individual creativity and teamwork value, 

while honouring mutual trust and respect between labour and management. 

6. Pursue growth in harmony with the global community through innovative 

management. 

7. Work with business partners in research and creation to achieve stable, long-term 

growth and mutual benefits, while keeping ourselves open to new partnerships. 

TOYOTA WAY 2001 

Medium- to long-term management plan 

Corporate policies: annual policies, regional 

policies, group policies, divisional policies 

DAY-TO-DAY ACTIVITIES 

TOYOTA CODE OF CONDUCT 

The Toyota Earth Charter 2000 arose from the Rio Earth Summit in 1992. Following this, 

the Toyota Way, and the Global Vision 2010 were conceived. If the Toyota Way describes 

our values, based on the principles of continuous improvement and respect for people, 

the Toyota Business Practices provide a problem solving model for implementing the 

Toyota Way. 

Toyota prepared the explanation paper “Contribution toward Sustainable Development” 

in January 2005, to explain in greater detail how we interpret and live out the Guiding 

Principles in an ever changing stakeholder environment. These rapid changes in social 

expectations and environmental risks led to the development of the most recent Global 

Vision 2020, which provides a picture of our place in the world in the next 10 to 20 years. 

This is supported by our 4 th Toyota Environmental Action Plan. 

6


Corporate Governance 

Toyota South Africa’s commitment to good corporate 

citizenship is underpinned by governance structures and 

systems that address all aspects of sustainability across all 

operations. Our core values, alongside, demonstrate the 

integration of sustainability within everyday 

business. 

International standards such as the King Code 

and Sarbanes-Oxley provide our governance 

framework, supported by the internally ENVIRONMENT 

developed Code of Conduct and the 

principles embodied in Hoshin Kanri (a 

Environmental 

strategic planning methodology that helps 

us to focus on a shared goal, communicate 

that goal to all leaders, involve all leaders in 

Management System 

Product harmony 

planning to achieve the goal and holds people 

accountable for achieving their part of the plan). In 

2007, all managers were trained in the application of 

Sarbanes-Oxley. 

Toyota South Africa has a number of systems, policies and codes of practice in place, 

through which the Board and its subcommittees oversee sustainable development 

performance. These include the Toyota Environmental Management System, 

Employment Equity Plan and Policy, BEE Procurement Programme, the Masibambane 

Pact (between workers and management) and the Code of Conduct. The Toyota Code 

of Conduct, the Giving and Receiving of Gifts Policy, and the Whistle Blowing Policy 

provide employees and Toyota management with clear guidance on acceptable and 

unacceptable behaviour, as well as the tools to address any shortcomings. Training, 

such as induction, and risk analyses include Toyota’s expectations regarding ethical 

behaviour, and the risks related to corruption and other forms of unethical behaviour. 

PEOPLE 

Fair and equal opportunity 

Open and honest communication 

Customer satisfaction 

Social responsiveness 

Respect for people and 

property 

Teamwork 

ECONOMIC 

Awards 

Over the past few years we have been rewarded for our 

product quality and performance on many levels through the 

following awards: 

• Triple Crown Award: Overall market leader; passenger 

vehicle market leader and commercial vehicle market 

leader 

• Markinor and Sunday Times Top brand award – 

2006 & 2007 (Car category) 

• PMR Diamond Arrow Award and a Bronze 

Award 

• The eThekweni Mayoral Award for Excellence 

Quality in everything we do 

under Big Business 

• Gold Award in the Southern African Vehicle 

Recognition and reward 

Rental and Leasing Associations 2006 Award 

for effort 

(SAVRALA) 

• Six Initial Quality model awards in the JD Power 

and Associates 2006 South African Initial Quality Study 

• Focus on Excellence Awards: Best Light Commercial Vehicle 

• Focus on Excellence Awards: Best Medium Commercial Vehicle 

• Focus on Excellence Awards: Environmental Excellence 

• Nine Synovate Gold Awards for Vehicle Quality 

• Best Dealer Customer Satisfaction overall (Synovate) 

• Best Vehicle Quality (Synovate). Yaris top overall and nine category wins 

• Six JD Power initial quality awards 

• First place in four of twelve models of choice (Car Magazine) 

• Best Light Commercial and Medium Commercial vehicles (Focus on Logistics) 

• Numerous Platinum, Gold and Silver awards at shows and expo's around the country 

including Auto Africa 

• Manufacturers’ title for both Rally and Off-Road Racing 



8 

The Prius, our flagship hybrid vehicle has won numerous engineering and design awards 

over the years, and has simultaneously reaped many environmental awards, including: 

• International Engine of the Year 2004: best fuel economy engine 

• National Conservation Achievement Award: Presented by the National Wildlife 

Federation (March 2002) 

• ‘Clean Car Salute’: Awarded by the US-based Clean Car Coalition group (April 2004) 

• United States EPA’s First Annual Global Protection Award (2000) 

• IntelliChoice’s Best in Class Winner (2006): Top Winner for Lowest Fuel. 

Board of Directors and Governance Committees 

Governance processes address strategic and operational issues, including social, 

environmental and economic issues, which are reported on quarterly to the Toyota South 

Africa Board. The Audit and Compliance Committee, consisting of two executive 

directors, one non-executive director, and one independent non-executive director, 

oversees adherence to international policy and local legislation, across all aspects of 

sustainability, including safety, health and the environment. 

In the period covered by this report, Ms Elisabeth Bradley 3 , a non-executive director, was 

the Board chairman, supported by the Toyota South Africa President and Chief Executive 

Officer, Dr Johan van Zyl.The Toyota South Africa Board has 13 members, of whom five are 

executive and eight non-executive. Of the executives, two are South African, and three 

members are Japanese.The non-executives comprise three South Africans (one of whom 

is independent) and five Japanese members. 

The current Executive Board members are Messrs S Baba, MG Burger, H Niwa, Y Morita 

and Dr JJ van Zyl. The non-Executive directors are Mrs E Bradley, Mr P Robinson, Ms T 

Orleyn, H Ochiai* (Alt), H Ninoyu* (Alt), M Mori, H Inoue* (Alt), T Sakai, K Ina* (Alt), T 

Kinoshita, K Masui* (Alt), T Yoshioka. The company secretary, who is responsible for 

guiding the Board in respect of its duties and responsibilities and for updating the Board 

on all new and pending legislation and regulations, is Ms PC Reddy. 

3. Effective August 2008, Ms Bradley is no longer chairman. 

* Toyota Motor Corporation. 

Our Board members undertake annual self-evaluations of their performance.The Board 

of Toyota Motor Corporation then undertakes similar reviews of the local Board 

members’ individual performance. The self-assessment and the Toyota Motor 

Corporation assessment are then compared and discussed. In this way, Toyota is able to 

evaluate top management with respect to economic, environmental and social 

performance expectations. Sustainability criteria (including health, safety and 

environmental indicators) are built into performance contracts across management 

levels, and are weighted depending on individual’s roles. 

Environmental and Social Committee 

Structures 

Given the prominence of environmental 

matters in Toyota’s business success, Toyota 

Motor Corporation established an 

Environmental Committee (EC) in 1992. 

Over the years, the various regions have 

established similar committees (see table 

below) and in 2008, the Toyota South Africa 

EC met for the first time. The EC arose out 

of Toyota Motor Corporation’s Consolidated 

Region 

Toyota South Africa’s Environmental 

Committee was established in 2008. 

Year EC Established 

Toyota Motor Corporation (Japan) 1992 

Europe 2003 

North America 2004 

South America 2006 

Asia Pacific 2007 

China 2007 

South Africa 2008


Environmental Management Strategy, whereby all affiliates support Toyota Motor 

Corporation’s environmental objectives in a systematic way. 

The South African Environment Committee is supported by four working groups, 

including Production; Production Support; Service Parts and Dealer; and Marketing, 

Communications and CSI Working Groups. The Safety, Health and Environment (SHE) 

Department provides secretarial services, and directs action plans, while coordinating 

the overall environmental management programme, as illustrated below. All social 

aspects of performance are dealt with under the CSI working group. Environmental 

activity is directed and monitored via the South African EC. 

SOUTH AFRICA ENVIRONMENTAL COMMITTEE 

SHE Division 

Production Environmental 

Working Group 

Production Support 

Environmental Working Group 

Service Parts and Dealer 

Environmental Working Group 

Marketing/Corporate Social Investment/ 

Communities Environmental Working Group 

Resource Working 

Group (Energy/Water) 

Purchasing 

Working Group 

Service Parts 

Working Group 

Communication / CSI 

Working Group 

VOC Working Group 

Production Parts 

Logistics Working Group 

Dealer Working Group 

Sandton EMS 

Waste Reduction 

Working Group 

Vehicle Logistics 

Working Group 

EMS Working Group 



The purpose of the Toyota South Africa EC is to: 

• Ensure that Toyota South Africa meets the objectives of the Toyota South Africa 

Environmental Action Plan; 

• Give direction, ensure that resources are made available and review progress against 

targets; and 

• Ensure that Toyota South Africa achieves environmental leadership in South Africa 

through best regional performance, and be competitive with similar global Toyota 

Motor Corporation affiliates subject to the Toyota Motor Corporation Consolidated EMS. 

TOYOTA SOUTH AFRICA HEALTH AND SAFETY STRUCTURES 

CEO / President 

Board Meeting 

In recognition of the importance of occupational health and safety (H&S) in delivering 

on the Toyota value system, an Executive H&S Committee was established during this 

reporting period.This provides for decision making at the highest level and also provides 

feedback to all levels of employee.These structures, along with meeting frequencies, are 

depicted in the diagram alongside. In addition to these structures, each division within 

the company has one or more Health and Safety Representative(s). 

Compliance 

Durban Executive Health & 

Safety Committee 

Monthly 

Quarterly 

Secretariat 

SHE dept 

Sandton: Marketing 

Health & Safety 

Committee 

Quarterly 

Toyota South Africa is a member of National Association of Automobile Manufacturers of 

South Africa (NAAMSA) and Automobile Manufacturers Employers Organisation (AMEO), 

and complies with the requirements of these institutions. 

Plant Health & Safety Structures 

Two fines of R1, 000 each were imposed due to environmental incidents relating to waste 

water in the Prospecton plant. 

H&S Rep Committee Meeting 

10


Environmental Aspects 

TOYOTA EARTH CHARTER 

I. BASIC POLICY II. ACTION GUIDELINES 

1. Contribution toward a prosperous 21 st century society 1. Always be concerned about the environment 

Contribute toward a prosperous 21 st century society. Aim for growth that is in 

Take on the challenge of achieving zero emissions at all stages, i.e., production, 

harmony with the environment, and set as a challenge the achievement of zero 

utilisation and disposal 

emissions throughout all areas of business activities. 

(1) Develop and provide products with top-level environmental performance 

2. Pursuit of environmental technologies (2) Pursue production activities that do not generate waste 

Pursue all possible environmental technologies, developing and establishing new 

(3) Implement thorough preventive measures 

technologies to enable the environment and economy to coexist harmoniously. 

(4) Promote businesses that contribute toward environmental improvement 

3. Voluntary actions 2. Business partners are partners in creating a better environment 

Develop a voluntary improvement plan, based on thorough preventive measures 

Cooperate with associated companies 

and compliance with laws, that addresses environmental issues on the global, 3. As a member of society 

national, and regional scales, and promotes continuous implementation. 

Actively participate in social actions 

4.Working in cooperation with society 

(1) Participate in the creation of a recycling-based society 

Build close and cooperative relationships with a wide spectrum of individuals 

(2) Support government environmental policies 

and organisations involved in environmental preservation including governments, 

(3) Contribute also to non-profit activities 

local municipalities, related companies and industries. 

4. Toward better understanding 

Actively disclose information and promote environmental awareness 

III. ORGANISATION IN CHARGE Toyota South Africa Environmental Commitee (see page 9) 

Key Risks 

Four key areas of performance guide Toyota South Africa’s environmental efforts, based 

on the associated risks and opportunities. These are energy use and global warming, 

resource efficiency, use of substances of concern (SoC) and atmospheric quality. 

Within these four themes, the environmental issues that are key to Toyota’s success are 

water, waste and energy management, including carbon emissions, and volatile organic 

compound (VOC) management. 

Precautionary Principle 

The environmental framework established by Toyota Motor Corporation, and carried 

through to operations at Toyota South Africa translates the precautionary principle into 

practical measures. Agenda 21 states that where there are threats of serious or 

irreversible damage, lack of full scientific certainty shall not be used as a reason for 

postponing cost-effective measures to prevent environmental degradation. We have 

embedded this principle throughout the lifecycle of our vehicles. 

Toyota has a unique culture that places emphasis on preventative measures, Kaizen 

(continuous improvement) and problem solving. Our focus is on minimising risks across 

the full scope of strategy, technology, manufacturing, research and development, 

environment and social risks. For example, the Dealer Environmental Risk Audit 

Programme (DERAP) established five fundamental requirements for dealers, who are then 

audited against these. 

The precautionary approach is also emphasised through risk abatement; minimising 

environmental risks is one of the action items in the 4 th Toyota Environmental Action 

Plan, including the Eco-Factory programme. 

The precautionary approach is evident in our manufacturing drive. Plants are being 

designed and built to be sustainable, through employing natural energy sources such as 

solar power, and through environmental preservation by planting greenery around 

production sites. Energy conservation and resource saving activities are also being 

implemented, so that production plants can continue sustainable operations for at least 



100 years. Furthermore, our logistic system and resource-recycling practices have an 

environmental focus. We have implemented this approach most recently in the design 

and construction of our new Paint Line.The Toyota Production System eliminates waste 

and inconsistencies, which employs material and human resources as efficiently as 

possible and maintains high product quality. All of these measures contribute to the 

practical implementation of the precautionary principle – where we detect 

environmental risks, we put measures in place to negate or minimise these. 

Key Performance Indicators 

Following the direction set by the 4 th Toyota Environmental Action Plan, we have tracked 

performance against specific performance indicators in the key risk areas. We have 

experienced significant challenges in the past two years, due to the construction and 

commissioning of our new Paint Line. This has resulted in us not achieving many of our 

resource use and emissions targets. During the commissioning and ramp-up phase, we 

had two paint lines in operation; hence consumption and emissions indicators increased. 

A considerable amount of time is needed in any new plant before production can be 

started; during this time, our consumption and emissions data per unit therefore also 

increased. All indicators have however turned the corner, and are on the decline now 

that Paint Line 3 is fully in production mode. 

Environmental Incidents 

In the period under review, four environmental incidents occurred, two of which resulted 

in fines of R1,000 each. These were: 

• In May 2007, some sludge pool gates became blocked, which happened simultaneously 

with a sump effluent pump being switched off as part of a fault-finding training 

exercise. This resulted in an overflow into the storm water drain, contaminating the 

Joyner Road canal.Waste water was pumped from the Joyner Road canal for treatment 

and the canal was rehabilitated. 

• In June 2007, during the demolition of Paint Line 2, a leaking bund wall around Paint 

Line 2 E-Coat holding tank caused a small volume of E-coat to flow into the storm 

water system.This also resulted in contamination of the Joyner Road storm water canal. 

The canal was isolated and all contaminated material removed. Again the canal was 

rehabilitated. 

Toyota embarked on a process to identify similar risks at all of its processes. 

Improvements have already been implemented with completion of risk reduction 

activities during the next financial year. 

We have identified specific areas that require improvement to remain on track with our 

action plans, namely: 

• Through stabilising production, especially the new Paint Line, we will ensure our 

targets are achieved. 

• Strengthening our EMS foundation, especially risk control. 

• Making energy use reduction a company-wide focus, through developing a mindset 

that recognises that reduction in CO 2 equates to a cost reduction. 

• Closely follow up on the action plans for all working groups. 

• Review the Toyota South Africa 2010 Action Plan, in accordance with the 4 th Toyota 

Environmental Action Plan, in light of our goal of becoming the Regional 

Number 1 in Environmental Leadership. 

Highlights 

Despite the deterioration in key performance indicators due to the commissioning of 

Paint Line 3, the highlight of the past two years is the consequent reduction in VOC’s 

through use of world class technology in the new paint line.VOC emissions have already 

more than halved (see page 18). 

Energy/Global Warming 

Energy Use and CO 2 Emissions: Production 

Toyota is tackling climate change and energy use challenges in a three-pronged 

approach. Through management, development and design, and most importantly for 

South Africa, through production and logistics, energy efficiency and CO 2 reduction 

activities are underway. 

The greenhouse gas (GHG) of most concern at our operations is carbon dioxide (CO 2 ). 

12


Reducing CO 2 emissions and energy use has been on our environmental agenda and is 

a focal point in the 4 th Toyota Environmental Action Plan. Our primary sources of energy 

are electricity and gas, used for heating. 

With the commissioning and slow ramp up of Paint Line 3, and the change to double 

shifts, energy consumption and CO 2 emissions increased in the FY’06 period, although 

not as much as had been anticipated. 

ENERGY CONSUMED PER UNIT (GAS AND ELECTRICITY): PRODUCTION 

CO 2 EMISSIONS TOTAL: PRODUCTION 

200,000 

Tons 

100,000 

0 

FY’04 FY’05 FY’06 FY’07 

LP Gas 0 0 5,702 18,252 

Methane gas 17,338 17,828 17,700 6,365 

Electricity 109,232 129,905 166,419 153,990 

GJ/unit 

15 

10 

5 

CO 2 EMISSIONS PER UNIT: PRODUCTION 

0 

FY’04 FY’05 FY’06 FY’07 

Actual 6.31 5.52 6.61 6.65 

With the electricity service provider Eskom requesting a reduction in power usage of 10% 

over all business sectors, our manufacturing plant was one of the first to install solar 

panels. The renewable energy project began in 

2006 with the installation of 44 x 2,5m 2 panels 

in the Chassis Plant and in FY’05 we reported on 

the CO 2 savings generated. Solar energy is used 

to heat water for canteens and ablutions. 

The second phase was completed in June 2007 

when 150 panels were installed in the Weld 

Plant. In the third phase of this project, a further 

120 panels will be installed in other facilities. 

While the project has cost R3.5-million, savings 

of R95,000 per month on energy costs are 

expected when the project is completed. 

Tons/Unit 

1.30 

1.20 

1.10 

1.00 

0.90 

FY’04 FY’05 FY’06 FY’07 

Actual 1.12 1.08 1.25 1.13 

The installation of solar panels has enabled us to reduce carbon dioxide emissions by 

approximately 1,350 tons per annum compared to electricity usage. 

Other energy efficiency improvement and energy reduction changes have been made 

through for example, changing of light bulb installations. A study established that 42% 

of production energy is consumed during non-production time and this allows 

considerable room for improvement. Under the slogan “No Work-No Watt” focus is on 

the shut-down of energy consuming equipment during non-production hours. Since 

this program started, energy during non-production hours has decreased to 36% of 

normal production energy use. In May 2007, energy efficient light bulbs were issued to 

every employee.This equals a 71 kilowatt saving per person per year, which for the whole 

of Toyota South Africa equates to approximately 715 megawatts/year total saving. 



THIS IS TOYOTA SOUTH AFRICA 

Following a process that started in 2002, Toyota South Africa is now a fully-fledged member of 

the Toyota Motor Corporation (TMC) global production network. The five year multi-billion Rand 

plant modernised and revitalised Prospecton manufacturing facility now boasts the latest in 

world class automotive manufacturing technologies. Many of these are proprietary TMC systems, 

only recently released for use in Toyota plants outside of Japan. March 2008 saw the start of 

Corolla exports from Prospecton, aligning the local plant with a number of other Toyota global 

production facilities, each with annual manufacturing capacity of 200,000 to 250,000 vehicles. 

The process required a total transformation of the way we do business and in the way we build 

vehicles. Our ECO car logo stands for the commitment we have made to design and build cars in 

a manner which reduces negative environmental risks and impacts, now and in the future. 

Life Cycle Stage 

Design 

Impacts 

Fuel Efficiency, emissions, substances of concern 

(SOCs), recyclability 

Logistics and manufacturing Energy and water consumption, waste production, 

noise, odour, CO 2 , VOC (volatile organic compound) 

emissions 

Sales and distribution Waste generated, energy consumed and CO 2 

emissions to atmosphere 

Vehicle use 

Fuel consumption, exhaust emissions, noise, waste 

ENVIRONMENTAL IMPACTS MANAGED BY TOYOTA ENVIRONMENTAL ACTION PLAN 

Harbour 

14


CO 2 Reduction in Service and Parts Logistics 

Logistics plays a significant role in the emission of CO 2 . Recognising the energy and 

CO 2 implications of transport, the services and parts department have implemented 

a CO 2 monitoring programme across the entire logistics area. The current focus is on 

establishing a baseline, so that logical reduction targets can be set. 

The focus of the study is on delivery route optimisation (fewer kilometres travelled), 

packing and loading efficiency (fewer trips required), vehicle selection/improvement 

(fuel efficiency) and route designs (stop-start driving compared to constant speeds, 

which reduces fuel consumption). Total fuel use, fuel efficiency and CO 2 ton/km will be 

calculated, with a view to reductions. Currently, CO 2 emissions are reported on monthly. 

TOYOTA SOUTH AFRICA LOGISTICS DIVISION: CO 2 TRACKING 

Satellite 

Warehouse 

Dealer Export (Africa) 

Direct delivery 

National Parts 

Distribution Center 

Hub 

Delivery to Hub 

Air freight Imports/ 

Air freight Local Emergency 

Dealer B 

Shared Truck 

from Hub 

Direct to Dealer 

(local) 

Supplier – In-house 

parts delivery 

CO 2 Tracked 

Partially Tracked 

Untracked 

Back haul 



ENERGY EFFICIENT CARS 

At Toyota, we have built energy efficiency 

and CO 2 reduction technology into our 

products for a number of years. By the end of 

March 2008, a global total of over 1.4 million 

hybrid clean energy vehicles had been sold 

since first launching. The Prius hybrid has 

been available in South Africa since January 2005. From late 2008, the Lexus GS450h and 

SUV also became available. South African sales of the Prius – from launch in 2005 to end 

FY’07 – reached 569. This equates to a potential CO 2 saving of over 1,800 tons 4 . 

Sales of hybrid vehicles globally are steadily increasing, with 16% more vehicles sold in 

FY2007 compared to FY2006. Although only a small number of these vehicles are sold 

locally, indications are that they are growing in popularity, with a slight increase as a 

percentage of total vehicle sales. 

WASTE RECOVERY: 

CARDBOARD BAILING 

Recycling of Resources 

Packaging 

Toyota Motor Corporation’s global drive has seen reductions of about 3-million tons 

of packaging and wrapping materials, while Toyota South Africa is concentrating on 

improving packaging efficiencies and improving shop floor discipline to reduce the 

amount of packaging used in total, and per vehicle produced. We have achieved solid 

results from July 2007 to January 2008, whereby packaging efficiency improved from 

59% to 72% of total packaging space available. 

Waste 

The main sources of waste at Toyota South Africa are packaging and production 

process waste. Our target for 2010 is 23,4 kg/unit from production. Our waste is 

domestic or general waste; one of our areas for improvement in the future is to 

intensify our focus on the recovery of recyclable waste. The waste programme has 

delivered an improvement, in FY’07 from the 31,78 kg/unit the previous year. 

WASTE: PRODUCTION 

40.00 

30.00 

kg/u 

20.00 

10.00 

0.00 

FY’04 FY’05 FY’06 FY’07 

Actual 26.59 28.56 31.78 28.99 

4. Calculated based on per vehicle savings of 20 tons CO 2 over 10 year life of vehicle when compared to the old Corolla’s. 

In FY’07 we recycled 62% of our total waste volume; and only 38% of our waste went 

to landfill. 

16


WASTE WATER: PRODUCTION 

No waste is shipped internationally, and all hazardous waste is collected by a registered 

waste disposal company. In FY’06 a total of 2,120 tons of hazardous waste were disposed 

of. This decreased to 1,844 tons in FY’07. The hazardous waste is taken to registered 

disposal sites. 

In 2007, Toyota launched an Internal Recycling Project at its marketing offices in 

Sandton, Johannesburg in which staff were encouraged to start sorting waste and 

recycling at home, and to bring the resultant recyclable waste to the office. Since the 

launch of the ‘Waste from Home’ campaign, employee recyclable waste contributions 

average around 200kg per week. 

kl/u 

5 

4 

3 

2 

1 

0 

FY’04 FY’05 FY’06 FY’07 

Actual 3.43 2.89 3.21 2.87 

Our waste recovery efforts do not only focus on materials. In the Paint Line, hot gas 

from the burners gets captured and sent back to the ovens. This recirculation of hot air 

significantly reduces energy consumption in the Paint Line. 

We also concentrate on reducing water use through recycling of waste water. From 

2006 to 2007, waste water from the TSM Main Waste Water Treatment Plant reduced 

by 11% (from 3.21 kl/u to 2.87 kl/u). 

In 2006, the waste water treatment plant was upgraded and capacity was increased to 

accommodate the increased production arising from Paint Line 3. The upgrade was in 

order to achieve the waste water quality requirements set by the municipality, and the 

treatment plant was designed to meet 50% better than legal requirements. The waste 

water treatment plant has a maximum output capacity of 120m 3 per hour, and currently 

runs at an average of 60% of its capacity. 

Water 

In South Africa, the 30 th driest country in the world, reducing water consumption is key 

to Toyota South Africa’s sustainability.We draw water from the eThekwini municipality 

that supplies more than three million people. Following the increase in consumption 

due to the introduction of Paint Line 3, our water use has started to decline again. 

Our water usage and waste water increased in FY’06 because we were running two 

paint lines. This impacted on consumption per unit which has stabilised since the close 

of Paint Line 2. 

WATER USAGE: PRODUCTION 

kl/u 

8 

6 

4 

2 

0 

FY’04 FY’05 FY’06 FY’07 

Actual 5.34 4.64 6.99 6.70 



Substances of Concern 

PAINT LINE VOC (g/m 2 ) 

Toyota has 472 substances that are totally banned from use in any of its operations or 

products. Included in this are lead, cadmium, mercury and hexavalent chromium which 

are substances banned by the European Union (EU) End of Life Vehicle Directive 

(2000/53/EC). These substances can have significantly negative health and 

environmental consequences. No banned substances have been used by Toyota South 

Africa or our suppliers in the past two years, and this has been confirmed through audits. 

g/m 2 

100 

90 

80 

70 

60 

50 

40 

95.05 

84.42 

77.92 

43.23 42.98 

Several international companies have developed systems to collect and disseminate 

data on environmental releases and transfers of toxic chemicals from industrial facilities. 

These systems are known as Pollutant Release and Transfer Registers (PRTR). Although 

such systems do not yet exist in South Africa, Toyota has begun monitoring the use of 

toluene and xylene, which are PRTR chemicals found in paints and solvents. 

30 

20 

10 

0 

FY’04 FY’05 Apr 06 - Jun 06 FY’06 FY’07 

PAINT LINE 2: SOLVENT BASED 

PAINT LINE 3: WATER BASED 

Toluene is a volatile organic compound, and xylene is an aromatic hydrocarbon, both of 

which have significant hazardous properties. Future plans include the reduction of the 

use of toluene and xylene. 

Atmospheric Quality 

it was decommissioned.When the VOC reduction programme started the VOC emission 

was 156 g/m 2 . 

Paint Line 3 was designed from the start to be a water-based plant, thereby significantly 

reducing the amount of solvents used. As a result of these improvement measures, VOC 

emissions have more than halved,from 85.66 g/m 2 to 41.87 g/m 2 .The target for 2010 is 20g/m 2 . 

Volatile Organic Compounds 

Paint thinners and other solvents 

used during the painting process 

emit volatile organic compounds 

(VOCs), which are potentially 

harmful air pollutants, create 

smog, and potentially have 

significant health risks, if 

exposure limits are exceeded. 

Toyota South Africa has been reducing VOC emissions in Paint Line 2 for a number of 

years, through measures such as using less paint, and fewer solvents. In FY’06, the year 

that Paint Line 2 was decommissioned, it was emitting 85.66 g/m 2 of units painted until 

Other Emissions 

A number of emissions result from electricity use, some of which are greenhouse gases, 

such as oxides of sulphur and nitrogen (SOx, NOx). Through the installation of the solar 

panels, SOx and NOx reductions have been achieved as shown. 

FY’05 

FY’07 

SOx reduction (kg) 13,728 11,732 

NOx reduction (kg) 6,058 5,927 

No ozone depleting compounds (ODCs) are used at the Toyota South Africa 

manufacturing site. 

18


Environmental Management 

Land Use and Biodiversity 

Prospecton is an industrial development zone, 

and the Toyota South Africa plant is surrounded 

by light industrial activities. The Prospecton 

Industrial area however abuts the Isipingo 

lagoon and estuary. A series of canal systems 

adjacent to the Prospecton Zone, built to 

prevent flooding, have significantly impaired 

the water flow through the estuary and lagoon, 

causing poor water quality and negatively affecting the biodiversity. Solid waste and 

litter have also become a problem in the lagoon area. 

While not directly implicated in the degradation of the Isipingo lagoon and estuary, 

Toyota South Africa has ensured that all stormwater drains that feed directly to the canal 

system are marked as such, and nothing other than stormwater is allowed to be put 

into stormwater drains. 

One of the actions in the 4 th Toyota 

Environmental Action Plan is to 

implement programmes that contribute 

to environmental education and the 

preservation of biodiversity.Through our 

Corporate Social Responsibility (CSR) 

programmes, for the past 10 years, 

Toyota South Africa has supported a 

number of beach and river clean-up 

exercises, as part of the annual 

International Coastal Clean-Up Days.We 

also sponsored the creation and printing 

of a booklet entitled “Guide to a 

Successful Beach Clean-up”. Our efforts 

do not only focus on the beaches, and to 

coincide with the 2007 ICC Clean-Up Day, we embarked on cleaning a section of the 

Jukskei River near the Sandton offices in Gauteng. 

In 2007, more than 70 tons of waste was collected at the Toyota clean-up projects. In early 

2008, Toyota partnered with City Parks and focused on cleaning waterways in the newly 

revamped Diepsloot Park.A total of 3.5 tons of waste was removed from the area.Toyota also 

donated 100 trees to the Diepsloot Park as part of the Greening for 2010 project. 

Consolidated Environmental Management System (EMS) 

Toyota South Africa is one of the 581 companies worldwide that are subject to the Toyota 

Motor Corporation Consolidated Environmental Management System, which exceeds 

ISO14001 requirements.The aim of the environmental management system is to reduce 

the environmental impact over the entire life cycle of our product. 



The requirements of this system include: 

TMC Consolidated EMS Requirements 

Jointly adopt the Toyota Earth Charter and 

draft individual environmental policies 

In production, set quantitative goals and 

follow up on those goals 

In sales, create an environmental management 

system; reduce environmental impact, make 

social contributions, and carry out environmental 

communication in line with the nature of 

business. In FY2006 begin quantitative 

management of environmental impact such as 

CO2 emissions during logistics activities 

Implement top level environmental responses based 

on actual conditions in each country and region 

Toyota South Africa Response 

Achieved ISO14001 certification of Toyota 

Production (Durban) and Toyota Marketing 

(Sandton) 

Paint Line 3 has been introduced to address 

production shortfalls, and simultaneously 

reduce the environmental footprint of 

production, with regards to energy, water, 

CO 2 , VOCs and waste 

Quantitative monitoring underway; 

baselines established for primary emissions; 

logistics baseline studies underway. 

• Established SAEC 

• Toyota Action Plan 

100% of the vehicles produced by Toyota South Africa are subject to the Consolidated 

EMS. In 2007, a variety of internal and external audits of the EMS helped to identify 

opportunities for continuous improvement. These audits were carried out by: 

conducted by the South African Bureau of Standards (SABS). 

Mitigation of Environmental Impacts 

in Products and Services 

Toyota‘s environmental considerations 

go beyond production issues, and 

address the full life cycle of the vehicles 

produced. We aim to spread our 

philosophy of harmonious living across 

our suppliers, to our customers, and to 

other stakeholders with whom we 

engage in the course of our work. The 

table below highlights the key areas on which we focus our efforts to reduce our 

environmental footprint. 

Suppliers and Dealers Toyota South Toyota South Africa Products 

Africa Production Services including CSR 

ISO14001 VOC Education Energy 

implementation 

efficient vehicles 

DERAP Water Community and Replacing vehicle 

ECO 1, 2, 3 environment clean- parts with 

ups 

recycled materials 

Reduced transport Energy Community health Driver training 

from Suppliers: CO 2 

• Toyota Motor Corporation 

• The Toyota South Africa SHE Department 

• eThekwini Waste Water 

• The third party certification group BVQI 

The Sandton office was certificated to ISO14001 for the first time in 2007. Re-certification 

of the Prospecton plant to ISO 14001 is planned for another three years, with the 

re-certification audit to be undertaken in November 2008. External certification will be 

Parts 

SOC-free (Pb, Cd, Hg, 

cr6+) 

Packaging, waste 

CO 2 Production & 

Production Logistics 

Toyota EMS 

ISO14001: 2004 

20


Toyota focuses considerable effort on reducing the environmental footprint of our 

products. This is achieved through increasing use of recycled material for the plastic 

components of our vehicles, as well as the choice of technology, and thus issues such as 

fuel efficiency, in our vehicles. 

Fuel Types 

Diesel vehicles tend to have lower CO 2 emissions than petrol vehicles, while hybrid 

vehicles have lower emissions than both petrol and most diesel engines. The local trend 

for Toyota is increased sales of diesel vehicles, as shown below. 

VEHICLES SOLD BY FUEL* 

FY’06 

FY’07 

Diesel 25,419 36,351 

Hybrid 176 210 

Petrol 123,666 110,895 

Grand Total 149,261 147,456 

* This includes Export Sales. 

A cleaner, low sulphur diesel has been available in South Africa since 2006, referred to 

as 50 ppm diesel. This is in reference to the European emissions standards for sulphur, 

required for all diesel vehicles entering Europe. Toyota South Africa is embarking on a 

campaign to encourage customers to use this product, despite it being more expensive 

than the old 500 ppm diesel.The major benefit to the customer is the availability of the 

latest technology, high performance diesel engines, with better fuel consumption and 

increased longevity of engines. 

The environmental benefit of these engines is equally important. 50 ppm diesel has been 

proven to lower emissions of carbon monoxide (CO), carbon dioxide (CO 2 ), hydrocarbons 

(HC), nitrogen oxides (NOx), and sulphur dioxide (SO 2 ).These lower emissions contribute 

to reducing acid rain, climate change, ozone depletion, smoke and soot. At the same time, 

the particulate filters required to burn the diesel reduce the number of particulates which 

are known to exacerbate respiratory and cardiovascular diseases. 

Toyota South Africa aims to encourage fuel suppliers to increase 50 ppm diesel coverage 

by 2010 and to achieve 5 ppm supply 

by 2012. A programme of customer 

and dealer education is also underway. 

The Powertrain 

A vehicle’s powertrain is the group of 

components that generate power and 

deliver it to the road surface, water, or 

air. This includes the engine, 

transmission, driveshafts, differentials, and the final drive system. 

Global economic and environmental factors have resulted in the production of more 

economical, higher quality, more reliable, more fuel efficient, less polluting and longer life 

powertrains. Many technical limitations are imposed by these requirements, but Toyota is 

meeting these challenges through a variety of product offerings that contribute 

specifically to a lower pollution footprint for vehicles,as described in the following sections. 

Engine and Transmission Technology 

Engine technology plays a large part in reducing emissions. The split of Toyota South 

Africa sales by engine technology is reflected below, with a short explanation of the 

environmental benefits of each technology. 

VEHICLES SOLD BY TECHNOLOGIES* 

FY’06 

FY’07 

Commonrail direct injection 22,857 34,062 

CVT 176 210 

Dual VVT-i 2.241 12.516 

VVT-i 101,948 89,167 

* This includes Export Sales. 

Commonrail direct fuel injection is used in diesel engines. The electronic control over 

the injection time and quantity is precise. Direct injection and fine fuel atomization 

results in burning fuel more efficiently and as such reduces emissions. This technology 

is used in various models in the Auris, Avensis, Corolla, Fortuner and RAV ranges. 



A Continuously Variable Transmission (CVT) can provide better fuel economy by allowing 

the engine to run at its most efficient revolutions per minute (RPM) for a range of vehicle 

speeds. This technology is used in the Prius (1.5l). 

Variable Valve Timing (VVT-i) is a technology developed by Toyota, which varies the 

timing of the intake valves. Dual VVT-i adjusts both intake and exhaust camshafts.These 

engines significantly reduce hydrocarbon emissions. 

Meeting European Emissions Standards 

European emission standards define the limits for exhaust emissions of new vehicles 

sold in EU member states. Successive European directives progressively introduce 

increasingly stringent standards. The stages are typically referred to as Euro 1, Euro 2, 

Euro 3, Euro 4 and Euro 5 fuels for Light Duty Vehicle standards. Currently, emissions of 

nitrogen oxide (NOx), hydrocarbons (HC), carbon monoxide (CO) and particulate matter 

(PM) are regulated for most vehicle types. Toyota sales that meet the various stages are 

reflected below. 

Special Story 

In 2007, the Weld Plant at the Prospecton site undertook a major energy saving drive, 

under the theme of Environmental and Global Warming. Their aim within a two-year 

period was to replace all the high-energy lights of 400W each with low energy 

fluorescent tubes, and to ensure that unnecessary lights were not used. They achieved 

this – along with a monthly energy saving in the weld plant of 7,455 kWh – within 18 

months, through the removal, replacement or disabling of a total of 961 400-watt bulbs. 

FY’06 

FY’07 

EURO 0 10,697 8,254 

EURO 2 82,527 62,043 

EURO 4 55,992 77,159 

Grand Total 149,261 147,456 

The Weld Plant team. 

Budgeting and Planning 

As part of our drive to integrate environmental considerations into everything we do, 

no single “environmental budget” is compiled for our operations. Each department is 

responsible for capital expenditure, operational expenditure and maintenance budgets 

for environmental performance. Thus no consolidated figure can be reported for Toyota 

South Africa. 

22


Appendix 

DATA MEASUREMENT TABLE 

Issue Measured/Calculated/Estimated Method of Measurement/Calculation/Estimation 

Energy Use: electricity Measured Municipal meters and related billing 

Energy Use: LPG Measured Volume purchased 

4th environmental action plan: 

CO 2 emissions Calculated, using conversion co-efficients Electricity: 0.958kg CO 2 /kWhr 

Methane: 1.801 kg CO 2 /m 3 

LPG: 3.0 kg CO 2 /kg LPG 

Water Used Measured Flow meters 

Waste Water Measured Flow meters 

Packaging Measured Weighed 

Waste Measured Weighed 

SOC’s Measured Non-use confirmed through audits 

PRTRs Measured Weighed 

Methane Measured Flow meters (m 3 ) 

SOx Calculated 8.69kg / MWh (from Eskom Annual Report 2008 pg 219) 

NOx Calculated 4.39kg / MWh (from Eskom Annual Report 2008 pg 219) 

ISO14001 certification: Maintained; recertification for next three years to be undertaken in November 2008. 



4 TH TOYOTA ENVIRONMENTAL ACTION PLAN 

Action Item Specific Actions and Goals FY2010 Targets 

4. ATMOSPHERIC QUALITY 3. SUBSTANCE OF CONCERN 2. RECYCLING OF RESOURCES 1. ENERGY/GLOBAL WARMING 

DEVELOPMENT & DESIGN PRODUCTION & LOGISTICS PRODUCTION & LOGISTICS PRODUCTION & LOGISTICS 

Reduce CO 2 emissions in 

production and logistics 

activitiesof each country 

and region 

Promote the effective use 

of resources to further 

contribute to the realisation 

of a recycling-based society 

Reduce water consumption 

Promote management and 

further reductions in the use 

of substances of concern (SOC) 

Reduce the discharge of 

substances subject to the 

PRTR law 

Reduce emissions to improve 

air quality in urban areas in 

all countries and region 

Production 

• Dramatically increase productivity through measures such as the development 

of innovative production technologies, thus reducing CO 2 emissions 

• Develop technologies that willenable the use of "new energy"and study their introduction 

Logistics 

• Promote CO 2 emissions reduction activities through improvements in 

transportation efficiency 

Goals 

• Production: Emissions volume/Sales unit: 20% reduction from FY2001 

• Logistics: Grasp and determine actual CO 2 emissions by FY2007 and determine goals 

Production 

• Reduce the volume of material discarded at source, improve yields and other measures 

(Reduce generated volumes of valuable materials such as scrap metal, aim for zero landfill waste) 

Logistics 

• Reduce packaging and wrapping material usage by reducing packaging to a minimum 

and increase the use of returnable containers 

Goals 

• Production: Promote reduction activities to achieve number one status in South Africa 

• Logistics: Grasp usage volumes of packaging materials and expand reduction activities 

Production 

• Set goals and implement measures to reduce water consumption 

• Eliminate use of four SOCs (Lead, mercury, cadmium and hexavalent chromium) globally 

• Increase the number of SOC subject to management 

Production 

• Reduce PRTR chemicals discharge in vehicle painting processes 

Introduce Euro 3 and 4 level vehicles 

Production 

Assembly Electricity: 663.34 kWh/u 

Assembly Gas: 52.63 kg/u 

Assembly Energy: 4.79 GJ/u 

Component Electricity: 83.43 kWh/u 

Component Gas: 1.18 kg/u 

Component Energy: 0.35 GJ/u 

Man Ops Electricity: 65.72 kWh/u 

Man Ops Gas: 1.58 kg/u 

Man Ops Energy: 0.31 GJ/u 

Production Energy: 5.47 GJ/u 

Logistics 

Logistics' CO 2 emissions understood and managed by targets 

*Toyota South Africa: 0,68 tons CO 2 /sale unit 

(*target excludes logistics contribution) 

Production 

Assembly: 17.9 kg/u 

Manufacturing /Man Ops: 5.5 kg/u 

Production: 23.4 kg/u 

Logistics 

Switch packaging used or received to recyclable, returnable or 

lower volume packaging 

Toyota South Africa Durban: 23,4 kg/production u 

Toyota South Africa Sandton: 0,701 kg/sales unit 

Toyota South Africa Durban: 4.3kl/u 

Toyota South Africa Sandton: Detailed monitoring & awareness 

• Fully EU ELV compliant • Zero use of banned substances 

• All parts & accessories distributed to be free from four 

banned substances 

• Phase out use of banned substances 

• Reduction in Xylene & Toluene consumption 

• Strengthen market presence of Euro 3 and 4 vehicles in 

SA Market 

24



COOPERATION WITH SOCIETY 5. ENVIRONMENTAL MANAGEMENT 4. ATMOSPHERIC QUALITY 

MANAGEMENT PRODUCTION & LOGISTICS 

Initiatives to reduce VOC 

emissions 

Production 

Strengthen consolidated 

environmental management 

Further promotion of 

environmental management 

at business partners 

Enhance environmental 

education 

Contribute to the development 

of a recycling-based society 

Production 

• Introduce measures to reduce the volume of purge solvents and expand the use of 

water-borne paints 

• Reduce VOC emissions at the highest levels in each country 

Production 

• Implement, maintain and strengthen all Environmental Management System 

(EMS) to EMS Level-up requirements (Toyota EMS) 

• Implement Eco-Factory activities that ensure the incorporation of environmental 

measures from the planning stages (EMS Level-up requirements) 

Non-production 

• Management and improving environmental performance (CO 2 emissions, etc.) on a 

global scale 

Suppliers 

• Further enhancement of environmental activities in cooperation with suppliers 

• Management of SOC in parts, raw materials, production facilities and other items 

supplied to Toyota 

• Request voluntary initiatives by suppliers to improve environmental performance 

Overseas Distributors 

• Support initiatives to assess, manage, and reduce CO 2 and other substances 

generated by overseas distributor operations 

• Support initiatives to ensure appropriate disposal of waste, waste water and air 

conditioner coolants at overseas dealers 

• In addition to raising employee's environmental awareness, continue conducting 

environmental training that contributes to improvement in actual work activities 

• Enhance global environmental education and include consolidated affiliates 

Implement philanthropic programmes that contribute to the development of 

environmental technologies, environmental education and the preservation of 

biodiversity 

Production 

• Paint Plant 2: Closure 

• Paint Plant 3: 20g/m 2 

• Continual Improvement in Bumper Paint Plant 

• Full compliance to Toyota EMS: 

• Legal compliance • No complaints • Risk reduction • Achieve 

environmental targets 

• Ecological (ECO) Patrols at all levels • Oil usage reduction 

• Improved primary waste water treatment 

• ECO Factory screening & auditing of all new facilities or major 

improvements 

• ISO 14001 certification of Toyota South Africa Sandton 

• NPDC CO 2 emissions understood & managed by targets 

• Packaging reduction & returnable containers 

• All direct & indirect products received to be SOC free 

• All suppliers & important contractors to be ISO 14001 certified 

• Tracking of supplier environmental performance 

• Full compliance to Dealer Environmental Risk Audit Program 

(DERAP) requirements by all dealers 

• Environmental Facility standards 

• Dealer ECO rating system & Rating 

• System that is used to capture dealer environmental performance 

• Revised Dealer Guideline • Sharing improvements 

• Expand scope of environmental training provided 

• International Communication 

• Themes • Rules, signage and report-back 

• Green Image of operations 

• Harmony with environmental central theme for all marketing and 

social activities 



4 TH TOYOTA ENVIRONMENTAL ACTION PLAN 


COOPERATION WITH SOCIETY 

Improve disclosures of 

environmental information 

and two-way communications 

• Enhance disclosures of information concerning environmental product technologies in each country 

and region 

• Provide information on environmentally considerate driving (eco-drive) to consumers 

• Further enhance the content of environmental reports in each country and region 

• Further enhance communications with local communities at Toyota operations 

• Improve dialogues with and engage in communication with a broader range of 

stakeholders, and increase mutual understanding 

• Annual Environmental and Social Report 

• Annual environmental meeting and tour 

• Consistent and regular press reports 

THE TOYOTA WAY 

THE 

TOYOTA WAY 

Guiding Principles 

Toyota Earth Charter 

THE TOYOTA WAY 

Global Vision 2010 

Toyota Environmental Action Plan 

Annual Plan 


System 

The Toyota Way 

26


Social Aspects 

Toyota’s founding principle was to contribute to the development of a prosperous society 

through the manufacture of automobiles. Toyota understands that responsible mobility 

is one of the key tools to unlock the poverty cycle. People are therefore at the core of Toyota 

South Africa’s business. We recognise and pursue the value to be found in harmonious 

and sustainable relationships – with customers, suppliers, communities and employees. 

Stakeholder Engagement 

As Toyota South Africa, we engage in social contribution activities regarding the 

environment, education, arts, culture, and community care, which we believe to be the 

basis of a future sustainable society. 

Over our 46 years of operation, we have identified and continue to engage with the 

following stakeholder groups: 

• Employees and employee representatives; 

• Other Original Equipment Manufacturers (OEMs); 

• Local communities, including community based organisations, community 

representatives and leaders through informal structures e.g. school governing bodies, 

community resource centres, as well as formal structures such as local municipality 

structures, and Durban South Area Based Management; 

• Civil society, including non-profit organisations; 

• Local education institutions such as Schools, Further Education and Training High 

Schools (FET), FET Colleges, training providers, Universities; 

• KZN Provincial Government Departments such as the Department of Environment, 

Economic Development and Trade and Industry; 

• Other local businesses through the Durban Chamber of Commerce and Industry; 

• Toyota Motor Corporation; 

• Toyota South Africa Foundation; 

• Service providers; and 

• The media. 

Key stakeholders are identified based on developing and maintaining good relationships, 

mutual understanding and benefits with partners. 

Engaging with stakeholders is not just an exercise in risk and reputational management 

for us.We want to engage with our – and their - minds and hearts, and also believe that 

we can be instrumental in creating behaviour changes necessary to develop harmonious 

relationships with each other, and with our natural world. 



We believe that we can only contribute to a prosperous society if we ourselves prosper. 

What we do is not only aimed at building our reputation – a very necessary part of being 

a successful business – but also on contributing positively through our engagement 

processes. To this end, corporate image building focuses on: 

• Stakeholder empowerment such as education, training and skills development 

opportunities, employee career development and management, etc; 

• Treating all our stakeholders with respect; 

• Information sharing; 

• Achieving a common understanding of Toyota values; 

• Good corporate governance; 

• Active stakeholder involvement in key decisions; 

• Endorsement of environmental friendly business practices; and 

• Reward and recognition. 

Stakeholder engagement, part of the company’s overall communication and Human 

Resources Management practices, is formalised through a comprehensive documented 

consultation process that looks at policy review, planning and reporting on the 

effectiveness of engagement. 

Toyota employs an inclusive communication strategy 

that addresses all issues at their appropriate level. 

From daily pre-shift activity meetings, through 

monthly group activity meetings, to quarterly 

divisional, departmental and company-wide 

meetings and road-shows, the direction and 

performance of the company is communicated 

vertically and horizontally across the group. Through 

this integrated communication strategy, relevant 

aspects of issues such as KPI’s, productivity, safety, 

quality, and the “vital signs” of Toyota’s performance 

are discussed. 

To be effective, communication cannot only be from 

Toyota out, or from management down. We have listened to stakeholders, who have 

raised a number of concerns through our engagement processes. These include: 

• Employment opportunities, 

• Support for community development initiatives, 

• SMME support and development opportunities, 

• Training and skills development opportunities and 

• Environmental management issues e.g. pollution and maintenance of the canals. 

We know that a single approach to engagement is not appropriate, and we target our 

approach and response according to the stakeholder concerned. For example, employees 

undergo an annual opinion survey along with being involved through the Unions in daily 

structures. We engage with local communities and businesses on an ad hoc basis, or as 

projects demand. Monthly meetings with the Durban Chamber of Commerce and 

Industry ensure that we remain in touch with business partners. 

Gearing up for the new generation Toyota Corolla has resulted in a series of focussed 

stakeholder interventions, from employees, through to suppliers and customers. Quality 

has been the watchword, with all individuals being encouraged to understand their role 

in contributing to a world class quality product, through a series of innovative 

interventions. This has included special training for employees including taking 

production line employees through the entire production process, right up to delivery of 

the vehicle, so that they can see what part they play in the overall life of the vehicle. 

Highlights 

One of the highlights has been the development of an“improver scheme”for designated 

artisans. Through this scheme, employees are evaluated against their job specification, 

and areas for improvement are identified. Specific training is then put in place to help 

improve their levels of competence required for the job at hand. As competence levels 

improve, so too does remuneration, and in this way, permanent staff are able to embark 

on a path that will allow them to improve skills and earnings. 

28


Relations with Customers 

SPECIAL STORY 

Toyota South Africa embarked on a five-year plant modernisation and expansion 

programme; with an uncompromising drive for top class quality, improved 

efficiencies, increased capacity, cost competitiveness, and beneficial 

environmental improvements. But state-of-the-art facilities alone cannot 

ensure success - in the pursuit for attaining world class quality and beyond, 

a unique ‘Excellence in Customer Quality Challenge’ was rolled out in May 

2007. The E-CQC Challenge was launched and rolled-out from shop-floor, to 

employees and management,to dealers,contractors and suppliers,which required engagement at a level 

and intensity never before tackled in the company. 

Theaimof E-CQCis to createaqualitymindset within the wholeToyotanetwork,so thatToyotacan deliver 

on the quality expectations of customers in the various markets into which this vehicle will be launched. 

Toyota believes that they can bring the new facilities and the people together, to build a world class vehicle. 

Pledges of commitment were signed by each and every team member in the extended Toyota network. 

Over and above the technical enhancements made (covered in the Environmental Aspects section of 

this report), quality control facilities were improved with an end-of-line audit process that has a new 

dynamic test track as one of its quality assurance tools. The test track allows for a range of tests to be 

conducted to verify quality at the immediate pre-delivery phase. 

The completion of this intensive investment programme has placed Toyota South Africa at the 

forefront of vehicle production in South Africa - employing the latest manufacturing technologies, 

production- and quality assurance systems available. 

As part of gearing up for the New Generation Corolla, continuous preparation meetings were held to 

ensure that planning was on schedule for all areas of operation -- whether it be for construction of the 

new facilities,or New Generation Corolla project planning,or skills training and the transfer of manpower. 

Toyota South Africa currently spends more than R70-million a year on direct training and skills 

development to support this increase in production capacity, and to ensure that it has the skilled 

personnel in place at the company’s production facilities.In addition to this,a further budget is allocated 

for overseas training. 

Toyota’s most important asset remains its people,and the transfer of skills.In this quest to attain world 

class standards,training is rigorous and demanding,and never before hasToyota South Africa undertaken 

such intensive training, as in gearing-up for the new generation Corolla. 

Static on-line training assures that each team member gets the opportunity to train in a static 

environment before full production gets underway.68 vehicles were continuously used for static on-line 

training on the new Corolla line.Apart from dedicated dojo areas for New Generation Corolla training,the 

Ethembeni Hall was turned into a temporary dojo hall where people were not only trained in specific 

skills but also in fundamental knowledge. 

In support of the E-CQC challenge: 

• Key people in the Corolla team had an opportunity to visit export markets where the South African 

New Generation Corolla went on sale early in 2008. 

• The E-CQC campaign was also rolled-out at Suppliers to ensure that each and every part of the chain 

buy into E-CQC; and deliver quality standards. 

• At Vehicle Distribution, measures were put into place to make sure that vehicles leave the factory and 

arrive at their point of destination in a pristine condition. 

• An information Centre was established at the entrance to each plant, reinforcing the challenge of 

‘quality beyond Takaoka Plant’. 

• Team members were invited on Durban harbour visits to see how vehicle are stored and how carriers 

are loaded for export. 

• During dealership visits, some team members got their first taste of customer demands and 

expectations, and they brought the quality expectation back into the production process. For some, it 

was the first time that they left their station on-the-line,to see what efforts were put in by other team 

members in the various manufacturing processes. 

• Production staff got to experience a test drive in a new generation Corolla; a vehicle proudly built by 

the very people who were now enjoying the opportunity to evaluate their work. 

• Senior Management went to team members on-the-line, to discuss team member input in a 

one-on-one situation. 

• Each employee received a gift as a reminder of their commitment to the E-CQC programme. 

• To sustain awareness of the ECQC challenge,Corolla quizzes were staged at main entry gates to the plant. 

• At the National Parts Distribution Centre based in Sandton, various reforms took place to ensure that 

the flow of the right parts at the right time according to‘Just in Time Principles’ are in place. 

• Dealer personnel were trained up to ensure that they would be ready to deliver a high quality 

after-sales service to customers, and to perform early detection, and early resolution of problems. 

In order to ensure that we are meeting customer requirements,Toyota South Africa makes 

use of the Synovate Competitive Customer Satisfaction Index (CCSI), which is the most 

comprehensive motoring survey in South Africa. The results show that Toyota is consistently 

the best at meeting customer expectations. 

There have been no incidents of non-compliance with regulations and voluntary codes 

concerning marketing communications, including advertising, promotion and 

sponsorship. A formal customer complaints procedure is in place that operates via a 

centralised customer contact centre. 

Another customer satisfaction rating system, the JD Power and Associates 2007 South 

African Customer Satisfaction Index (CSI) Study named the Toyota Avensis as the top 



CCSI : OVERALL INDEX PASSENGER VEHICLES 

90 

85 

80 

75 

70 

65 

88.6 

87.8 87.3 

86.7 86.4 86.1 

86.0 84.9 

84.1 84.0 83.9 

83.8 83.7 

82.4 80.9 80.5 

79.4 

76.7 

Toyota 

Mitsubishi 

Jaguar 

Nissan 

Chevrolet 

Volkswagen 

Audi 

BMW 

Opel 

Volvo 

MB 

LR 

Mazda 

Ford 

Chrysler 

Fiat 

Renault 

Peugeot 

JUL – DEC 2007 

products are global leaders in safety measures.We address safety through an integrated 

approach dealing with the vehicles themselves, the driver’s understanding of the vehicle, 

driver, passenger and pedestrian behaviour, and environmental conditions. Our ultimate 

aim is for a mobile society with zero traffic deaths. 

As part of this global initiative,Toyota South Africa has 

introduced Toyota Advanced Driving (TAD), which will 

give customers access to the latest technologies and 

courses available to improve their driving skills. As 

part of our moral and business responsibility to promote safe driving, we also run other 

courses, namely Introductory and Advanced 4x4, Onroad/Offroad, Defensive and Tactical 

Driving, Dynamic Handling / High Performance and Hijack Prevention training. 

CCSI : OVERALL INDEX LIGHT COMMERCIAL VEHICLES 

90 

85 

80 

75 

70 

65 

87.9 

Toyota 

86.9 

Nissan 

86.0 

Isuzu 

85.4 

Mitsubishi 

JUL – DEC 2007 

vehicle in terms of customer satisfaction in the medium car segment in the South 

African vehicle market. Other Toyotas that have received class leading accolades for 

customer satisfaction in the 2007 JD Power survey were the Land Cruiser Prado (Medium 

SUV), the Hilux (One-Ton Pickup) and the enduring Tazz (Upper Compact Car). 

Integrated Safety Management 

Toyota Motor Corporation's Integrated Safety Management concept was introduced in 

2006. Safety – for our employees and our customers – is a pillar of our place in society. 

Corporate Social Responsibility is the basis of all our business activities, and Toyota’s 

85.2 

Opel 

81.8 

Ford 

81.6 

Mazda 

79.5 

Fiat 

Relations with Employees 

The Toyota Way is based on the dual pillars of “respect for people” and “continuous 

improvement.” An important aspect of this respect is the holistic wellness of our team 

members. 

In the past two years, two key programmes have been underway with staff. The first has 

been to realign the quality of the workforce to match the massive investment in 

infrastructure undertaken by Toyota South Africa over the past five years.The Prospecton 

plant has been revamped into a world class facility.The people deployed into such a facility 

must be world class as well. In order to achieve this, a massive work habit campaign was 

launched, looking at issues such as punctuality, safety, and adherence to basic policies. 

This required a lot of support from Toyota Motor Corporation to understand how to 

develop that culture. A process of Twin Management was implemented, whereby a TMC 

Coordinator and South African manager were paired, to provide a mentoring service. 

The second programme addressed labour management, in which our HR department 

has worked on making sure that there is a system of managing relationships with the 

unions, to enable Toyota to deal with internal issues effectively. In the process, a number 

30


TOYOTA/LABOUR STRUCTURES 

Salaried Staff 

Hourly Staff 

UASA MANAGEMENT NUMSA 

Salaried Staff policy 

related consultations - 

Quarterly meetings 

GSSF 

Group Salaried Staff 

Consultation Forum 

CNC 

Central Negotiating 

Committee 

Hourly policy related negotiation and 

consultations - other 

relevant matters 

Quarterly meetings 

HR/UASA 

Monthly 

Meeting 

MIRC 

Manufacturing Industrial 

Relations Committee 

All operational issues affecting Durban 

Manufacturing and unresolved 

shopfloor issues - 

Monthly meetings 

Divisional 

Management/Shop 

Steward Meeting 

All operational issues 

affecting the 

specific Division - 

Monthly meetings 

Departmental 

Management/Shop 

Steward Meeting 

All operational issues 

affecting the 

specific Department - 

Fortnightly meetings 

of committees and structures have been created that enable Toyota to address all factors 

affecting employees, with as much representation on the committees and structures as 

possible by unions. The past two years have been focussed on getting the physical 

committees and structures functional; going forward, we will focus on the quality and 

integrity of these structures. We are currently developing an HR management system, 

to enable us to be as scientific and legitimate as possible in decision making. We will 

consolidate policies, procedures and operating processes, and improve our capacity for 

analysis and the institutionalisation of organisational memory. 

Employees Practices 

At Toyota we respect and honour human rights, support equal employment opportunities 

and diversity, eliminate discrimination, do not use or tolerate any form of forced or child 

labour, provide fair working conditions, maintain a safe and healthy working environment, 

enhance communication and dialogue with employees, and build relations based on 

mutual trust and responsibility. We have an open culture, where employee issues that 

remain unresolved through line management processes can be taken to the Board to be 

addressed. Mechanisms in place to deal with employee grievances and complaints include: 

• Confidential line management procedures; 

• The Whistle Blowing policy; and 

• The Employee Assistance Programme, which includes a counselling facility. 

We participate actively in internal labour structures, and externally through the National 

Bargaining Forum (with other OEMs) and through Nedlac. 



Toyota South Africa has a preferential procurement policy that encourages the 

participation of historically disadvantaged South Africans in economically beneficial 

activities.We encourage broad based black economic empowerment (BBBEE) entities to 

participate in our supply chain; over 50% of the suppliers that participated in the 

construction of Paint Line 3 were empowered. Irrespective of BBBEE status, all suppliers 

must conform to our international standards for occupational health and safety, and to 

our environmental management requirements. 

Employee surveys are carried out each year. In the two years covered by this report,areas of 

concern raised through these surveys include pay and benefits,policies and procedures and 

interpersonal communications. These issues have in fact shown deterioration in the two 

year period under review. In the manufacturing and services sections therefore, each 

division has analysed their results and is putting together action plans to address the areas 

of decline.Training and development were identified by employees as areas of strength. 

Training 

Toyota’s leadership position on training and developing our people is recognised within 

the OEM’s. R300-million has been invested in training over the past five years. Toyota 

South Africa has a human rights policy, the implementation of which ensures that we 

live out our commitment to respect all stakeholders, including employees. In FY’06, 13% 

of our employees trained on human rights issues. In FY’07, 20% of our employees 

undertook this training. 

Affording people the opportunity to improve themselves is important to our business, 

and to defining our contribution to developing an harmonious society. We offer 

numerous opportunities for training to employees, from basic induction, to university 

bursaries. Some of our key internal training programmes are reflected alongside. 

In FY’06, 260,210 hours were spent on training, with the following year showing a 

decrease to 212,184 hours. On average, our shop-floor employees spend 70 hours a year 

in training, with management spending 56 hours per year on training. 

Life Skills Programmes are also offered, and these include Self Mastery, Stress 

Management, Managing Employee Effectiveness, Supervisory Skills, and Leadership for 

Hours spent on training FY’06 FY’07 

Inductions 227,584* 36,192 

Employment Equity 0 9,592 

Sexual Harassment 16 3,136 

SHE 29,418 98,672 

AIDS Master Training – 588 

* This included the massive contractor contingent involved in the construction of Paint Line 3. 

Management and Shop Floor employees. Our skills development training focusses on 

our Engineering Trainee Scheme, Learnership (Mechatronics), the Apprentice 

programme, and Toyota-Specific Skills (Toyota Way, PPS/TBP, Green Areas, SHE ,Quality 

Circles). Our study assistance scheme is available to all Toyota South Africa employees. 

Our Tertiary Bursaries are managed through the Albert Wessels Trust Bursary Fund.This 

training is focused on lifelong learning, as part of Toyota’s commitment to being a part 

of a thriving and prosperous society. 

FY’06 

FY’07 

Employees Assisted 56 43 

Children Assisted 59 44 

Renewals 120 141 

The total number of bursaries granted, as well as the total value thereof has increased 

over the past two years, as shown below. 

FY’06 

FY’07 

Number of Total Value Number of Total Value 

Bursaries 

Bursaries 

Prestige Scholarship 3 R75,000 4 R112,000 

Top University Bursary 37 R646,000 46 R874,000 

Normal University Bursary 90 R1,080,000 81 R1,053,000 

Normal University of Technology 48 R480,000 54 R594,000 

Total 148 R2.281-million 185 R2.633-million 

32


Employment Equity 

Fairness and equal opportunities 

underpin Toyota South Africa’s 

implementation of respect for 

employees. Employment equity 

is a business strategy that strives 

to ensure that everyone involved 

is able to both participate in, and 

benefit from, the activities of the 

business in a fair manner. 

Toyota aims to be an effective socially aligned institution in South Africa.We will know 

this vision has been attained when: 

• Each initiative provides a return on each Rand spent; 

• All clients acknowledge that we add value to their lives; 

• We deliver consistent value through our processes; 

• Our services are delivered by competent employees; and 

• We achieve the desired social impact results. 

We are facing significant challenges in meeting the demands of quality and efficiency 

as required by Toyota Motor Corporation, and simultaneously addressing the local 

challenges of job creation and contributing to a thriving economy. In the entire Toyota 

Motor Corporation family of affiliates, Toyota South Africa has the highest headcount 

for the volume of vehicles produced; a situation that is out of sync with Toyota’s global 

affiliates.We are therefore focusing on improving efficiencies especially in the services 

and manufacturing areas. 

Our employment equity (EE) plan was first mooted in 1998. Since then, we have 

focussed our efforts on getting full representivity, and monitoring the 

implementation of the plan. Our intention is to fulfill our employment equity 

obligations by 2011. We hope by then to have embedded employment equity into the 

fabric of our company. En route, we are in the process of revising the EE Strategy, 

which is to be ratified later in 2008. Toyota faces the same challenges as other heavy 

industry in attracting a high percentage of female staff. Attracting and retaining 

young African staff remains a challenge. Of total staff, the Executive comprise 1%, 

salaried staff 26% and hourly staff 73%. 

The representation of female staff at senior management level and above consequently 

remains low (see graph below). There has however been a 7% increase in female 

General Managers in the past 2 years (see graph on page 34). 

GENDER AND SKILLS LEVELS FY’07 

100% 

90% 

80% 

70% 

60% 

50% 

40% 

30% 

Our employment equity strategy aims to create a fair and equal opportunity culture, 

while facilitating social and business development that promotes the company 

through interaction with the communities we serve. We strive to procure from small, 

medium and micro enterprises (SMMEs) and provide relevant information to 

Government. 

20% 

10% 

0% 

Team Team Leaders Admin & Asst Managers Managers Senior General Vice 

Members & Tech Clerical & GL’s Managers Managers Presidents 

Female 

Male 



GENDER CHANGE FROM FY’06 TO FY’07 

10% 

8% 

Similarly, White, Asian, African and Coloured representivity in senior ranks does not 

reflect local demographics, although significant changes are evident from senior 

managers through to vice president level (see graphs alongside and below). 

6% 

4% 

2% 

0% 

-2% 

-4% 

-6% 

-8% 

-10% 



Female 

Male 

RACE CHANGE FROM FY’06 TO FY’07 

20% 

15% 

10% 

5% 

0% 

-5% 

-10% 

RACE AND SKILLS LEVEL FY’07 

100% 

90% 

80% 

70% 

60% 

50% 

40% 

30% 

-15% 

-20% 

-25% 

-30% 



Asian African Coloured White 

20% 

10% 

0% 



Asian African Coloured White 

Turnover in the past two years has been fairly constant, at around 11%. The highest rate 

of turnover is has been in the male 18-25 year age group. Toyota’s turnover rate is lower 

than other OEM’s, but turnover for Technical Experts and Artisans remains the biggest 

area of concern. Due to the increasing skills shortage in South Africa, technical expertise, 

embodied in artisans and engineers, is in high demand. 

34


The minimum wage for the Motor Industry Bargaining Council is based nationally 5 . In 

FY’06 the Toyota South Africa minimum wage for Skill level 1 was R24.92 per hour, which 

is 57% more than the local entry level minimum wage. In FY’07, this increased to R27.16 

per hour, 56% more than the local equivalent. 

We have determined that in FY’06, the salary ratio between males and females was on 

average 0.9 i.e. women earned 10% less than men in the same salary band. In FY’07 this 

has improved markedly to 0.99; the difference is now only 1%. This remains an issue of 

concern and we will be investigating the cause of this discrepancy, which may simply 

be a function of service time. 

Full time employees enjoy a 13th cheque bonus, pension/provident fund and medical 

aid. Toyota South Africa is in the process of replacing the old pension scheme with a 

programme of defined contribution, rather than defined benefit. 

The percentage of staff covered by collective bargaining agreements has increased by 

10% in the years covered by this report, from 77% to 87%. 

According to current policy, salaried employees in Bands 10-11 and upward receive 

performance and career development reviews; this amounted to 25% of employees in 

FY’06 and 15% of employees in FY’07. In 2009, career development reviews will be 

introduced to bands 8-9 and upward, and then in 2010, from bands 5-6 and upwards. 

Although this is the formal policy, many departments already provide performance 

review for Bands 5-6 and upward. 

A formal overtime policy exists in Toyota South Africa, for salaried and hourly staff. We 

have a stipulated 40 hour work week, with an average of six hours per person per week 

spent on production overtime. Our efficiency efforts are paying dividends in as far as 

total overtime is reducing; this is important for the overall wellbeing of our staff. 

Formal recruitment processes are in place for internal appointments, external 

appointments, line management and temporary staff. These procedures have 

5. There may be regional differences for 'local minimum wage' but the 'Highveld Region' has been used for the 

purposes of this report. 

FY’06 

FY’07 

Total Salaried Overtime Hours Worked 623,935 528,497 

Total Hourly Paid Overtime Hours Worked 3,004,541 2,139,461 

Total Overtime Hours Worked 3,628,477 2,667,958 

Average Weekly Overtime Hours 69,778 51,307 

Non-hourly employees with Overtime Schemes 21% 26% 

timeframes and turnaround times, all of which are linked to defined tasks, 

communication routes and requirements. 

Occupational Health and Wellbeing 

The health, safety and general well-being of every Toyota employee is of the utmost 

importance to Toyota, and is regularly evaluated. Recognising the importance of 

physical and psychological well-being, the company’s wide-ranging wellness 

programme aims to prevent illness and injury or disability, and to promote good health, 

as well as treating illnesses and providing rehabilitation facilities. 

The World Health Organisation Global Plan of Action on Workers Health 2008 – 2017 has 

been reviewed, and the requirements of this are being translated into occupational 

health policies, through an assessment of trends in ill health and death. 

Compensatable Diseases 

The diseases of most concern at Toyota South Africa are noise induced hearing loss, 

occupational asthma and musculoskeletal or repetitive strain disorders. In FY’07, a 15 

year review of all occupational diseases was undertaken, and a steady decline in disease 

incidence is evident. 



OCCUPATIONAL DISEASE INCIDENCE 

Number of Reported Cases 

70 

66 

60 

50 

40 

35 

30 

20 

20 

16 

15 

10 

10 

10 

5 

2 

3 2 

0 1 1 

0 

1993 - 1997 1998 - 2002 2003 - 2006 2006 2007 

1 

feedback from employees who have been injured or have required medical treatment 

on site. The three steps on which we requested feedback were (i) first aid treatment 

(ii) medical services and (iii) line management support and response. Patients were 

asked for their perception of these three elements, and the main area of concern has 

been identified as the first aid step. Despite having more than the legally required 

number of first aiders on site, access to people and equipment is being addressed as 

a shortcoming. 

In order to maintain high quality primary care, and improve where possible, a certain 

percentage of primary care cases are reviewed by the primary health care doctor.Toyota 

intends implementing an occupational health and safety management system, and as 

part of this, exposure risk pathways are being developed for all risk areas in the various 

plants. A number of health risk assessments have been undertaken to ensure focussed 

hygiene surveys are conducted. 

Lung Noise Other 

As part of addressing repetitive strain disorders, the assembly line in the plant has been 

completely revamped to account for the ergonomics affecting employees. The lower 

moving platform system allows for better ergonomics and simultaneous improved 

assembly quality. 

Primary Health Care 

Primary health conditions and chronic conditions – such as hypertension, diabetes, 

tuberculosis and epilepsy – are treated at one of the eight clinics in Toyota South Africa. 

One clinic is located in Johannesburg, and in Prospecton there is the main clinic, plus six 

satellite clinics (exhaust plant, chassis plant, truck plant, stamping division, tool and 

dye and Cataler South Africa). Primecure, a subsidiary of Netcare, are the health service 

provider, and 65 Primecure and Toyota staff service the clinics, including all Employees 

Assistance Programme (EAP) staff. 

As part of our drive to provide caring and effective health facilities, we requested 

Employee Assistance Programme 

As well as direct medical care, Toyota South Africa provides on-site psycho-social 

services to employees via our Employee Assistance Programme (EAP) in order to deal 

with emotional, psycho-social, family and substance abuse problems. 

In any lost time incident, EAP is called in to assist the patient and their family. Staff try 

to identify if there 

were any non-work 

related factors that 

could have led to the 

incident, such as 

depression or home 

problems. In addition, 

EAP helps with 

trauma counseling 

for the individual and 

their family members, 

including trauma 

debriefing. 

Members of the Medical and EAP Team. 

36


A review of all EAP cases since 1995 revealed that over 70% of people that made use of 

EAP’s services remain in service. The functioning of EAP has been changed to fully take 

into account on-site conditions. Making use of Careways staff, we now employ six full 

time social workers, allocated to specific divisions. The social workers therefore become 

accustomed to the issues within Toyota, and within each specific division allowing for 

more effective interventions where needed. One of the major benefits of being in 

partnership with the Careways Group is the fact that employees now also have access 

to telephone counselling, making it easier for employees to get help. 

EAP maintains its community outreach programme. On a monthly basis, Toyota EAP 

staff go into the community, and using arts and music, draw people to attend functions 

at which current problems are highlighted. This issue of most concern currently is 

personal finances. 

HIV/AIDS, Tuberculosis and Substance Abuse 

The impact of HIV/ AIDS on employees, their families and the community is of critical 

concern to Toyota. In recent years extensive voluntary HIV testing and counselling 

services have been offered to employees along with formal hospice and home-based 

care facilities. This campaign is proving to be hugely successful, in that the number of 

deaths and the number of disability claims relating to HIV/AIDS has declined 

dramatically. 

The uptake of voluntary counselling and testing (VCT) has been phenomenal. In 2003, 

only 140 people underwent VCT. In 2005, this had risen to 689. In 2007, a total of 1,578 

people availed themselves of this service. 

Toyota has successfully maintained the public private partnership with government in 

the provision of anti-retroviral (ARV) medication to HIV positive uninsured employees. 

There has been a steady uptake in enrolment on the ARV programme, and there are 

instances where people who were on disability leave are now back at work and fully 

productive. 

There is a very strong Tuberculosis (TB) management programme at Toyota. Treatment 

has been introduced on site using the Direct Observed Treatment Shortcourse (DOTS) 

programme, where medical staff observe people taking their medication for TB. 

Intermittent or inconsistent taking of TB medication results in increasing incidence of 

extremely drug resistant (EX-DR) TB. The current cure rate in Toyota is very high; the 

target is 80% and the site currently records an even higher success rate than targeted. 

One key tool in the medical arsenal is to expose the linkage between HIV and TB, so 

that TB patients are encouraged to be tested for HIV. 

Another hugely successful programme has seen a massive reduction in substance 

abuse. With the cooperation of Unions, random gate tests were implemented, and if 

workers are found to be under the influence of drugs or alcohol, Toyota renders a 

supportive service to get these staff members onto relevant dependency programmes. 

The incidence of positive gate tests for alcohol has reduced dramatically. 

General Wellness days are being held in targeted areas, such as Purchasing, Human 

Resources and Finance. The uptake has exceeded expectations and stands at 

95%-97%. Other than basic health education, these Wellness days are being used to 

assess potentially more sensitive issues such as stress management at all levels 

within the organisation. 

Occupational Safety and Health 

Safety is an unquestionable value across Toyota. In the past two years, corporate 

structures were established to manage health and safety similar to the 

environmental structures (depicted in the Governance section). We have concentrated 

on company wide risk reduction activities – Sou-Tenken, aimed at preventing “Stop 6” 

type injuries (caught/pinched by machine, contact with heavy object, contact with 

vehicle, contact with heated substance, falling from height, electric shock). This 

process, depicted in the flowchart below, was started in December 2006. The initial 

steps in the process are proactive, where plants are required to identify hazards and 

implement effective countermeasures. The effectiveness of this process is evident in 

the graphic alongside, in that the more hazards that have been identified, the fewer 

the related incidents. 

Fatalities 

Despite our safety efforts, we report with sincere sorrow the deaths of two people on 



our Prospecton site, an employee in FY’06 and a contractor in FY’07. The employee was 

crushed when a pallet fell from height while a forklift was moving it. The contractor 

was killed when he was crushed between the cage of a hydraulic lifter (cherry picker) 

and the steel roof structures that he was removing. 

RISKS IDENTIFIED AND RELATED INCIDENTS 

35 

33 

30 

8284 

9000 

8000 

In order to prevent similar incidents, countermeasures were introduced in both cases. 

Racking standards have now been introduced to ensure that items are stacked safely. 

At the same time, floor demarcations, walkways and racking demarcations have been 

introduced to reduce the exposure risk as well. The plants have since been audited on 

compliance to this standard. A “Walk-in-the-Walkways” culture is being encouraged 

All Plants participate in thorough risk 

identification activities 

(eg safety patrols) 

25 

20 

15 

10 

5 

0 

1104 

FY’06 

FY’07 

11 

7000 

6000 

5000 

4000 

3000 

2000 

1000 

0 

Stop-6 Risks Identified 

Stop-6 LWC’s 

Continuous Activity 

Identify STOP6 Hazards 

and enforced across the site. 

Re-evaluate the risk. Ensure risk levels 

are reduced to below 2, 

otherwise investigate additional 

countermeasures 

Determine the risks according to: 

1. Consequence 

2. Exposure Frequency 

3. Existing Mitigatory Controls 

Regarding the use of hydraulic lifters, contractor work permits have been amended to 

include specific performance expectations. A pre-use checklist has been developed, and 

must now be completed by contractors before using a hydraulic lifter on Toyota property. 

Injuries 

The lost work day case frequency rate (LWCFR) continues to decline, but we regretfully 

report a serious incident in FY’06, when an employee suffered the amputation of his 

arm in a press. 

Implement countermeasures 

Management to decide on effective 

countermeasures, target dates and 

responsible person 

(Risk driven process) 

In Toyota, the principle of Yokoten is practiced. If a near miss, serious incident or injury 

occurs, thorough investigation identifies the root cause and effective countermeasures 

are determined. This information is shared throughout the global company to prevent 

similar incidents from occurring in other plants. Plants are then required to thoroughly 

check for similar situations and implement the same effective countermeasures. 

38


M 

Relating to the amputation 

injury, lack of lockout and 

guarding protection were 

found to be contributory 

factors. Toyota Motor 

Corporation assisted Toyota 

to identify areas for 

improvement. During this 

audit, 1,518 areas for improvement were identified in terms of lock-out and guarding in 

Toyota South Africa. As a result of this, approximately R20-million was spent by Toyota 

South Africa on hazardous machinery lock-out and guarding improvements. 

A monthly Housekeeping Competition 

was introduced to drive home the 

message that good housekeeping 

improves the safety culture and 

working conditions. Other general 

measures have been introduced 

including placing a safety gate at the 

main entrance to the plant, displaying 

safety slogans at each plant and the 

signing of a Safety Commitment by the 

management of each plant. 

s 

C 

o 

With the plant expansion, the number of people on site increased, as did vehicular 

traffic. A number of site improvements were instituted, such as the demarcation of safe 

walking areas, and most busy areas had pedestrian crossings painted and stop signs 

erected. To encourage good safety performance two safety competitions were 

introduced in FY’07. 

The annual President’s Health and Safety Competition is intended to motivate plants 

to take responsibility for safety. Plants are measured on safety activities (leading 

indicators), as well as injury rates and lagging indicators. 

Relations with Business Partners 

We recognise that stable partnerships create trust, enhance efficiencies, and lead to 

mutual growth and benefits. We follow fair trade practices and open market polices, 

and encourage innovation in research. Our relationships with our business partners are 

premised on encouraging them to adopt our international standards on safety, 

environmental management, respect for people, and delivering top quality at all times. 

d 

SAFETY STATISTICS 

4 

3 

3 

2 

1 

1 1 

0 

0 

FY’04 FY’05 FY’06 FY’07 

Actual 2.81 3.86 2.05 1.79 

LWCFR 

Fatalities 

Toyota undertakes supplier audits that are risk based, and include safety, health and 

environmental criteria. In the past 18 months, three suppliers have lost contracts with 

Toyota due to non-compliance with overall requirements. A supplier support 

programme is in place; in our services, parts and accessories division, a team of two 

people from the Durban supplier school work exclusively towards upgrading the 

programme. Suppliers are required to supply certificates proving that they comply with 

ISO14001, ISO9002 and as far as the non-use of SOC’s are concerned, must provide 

approved laboratory certificates. 

One small example of our influence on our business partners was the training of Toyota 

South Africa’s Prospecton cleaning contractor, Khanya Cleaners, on our environmental 

management requirements, waste segregation requirements and pollution prevention. In 



support of our waste to landfill reduction strategy, Khanya has now introduced a ‘green 

bag’system,whereby the collection of recyclable waste from office areas can be facilitated. 

In the revamped manufacturing process, a new partnership has come about at the 

Blanking line.This facility is a joint venture between Toyota Tsusho Corporation in Japan 

and Toyota Tsusho Africa and for the first time, sees Toyota South Africa take delivery of 

steel for body panels in coil form for on-site processing into cut sheets, for stamping. 

Toyota South Africa is only the third country, including Japan, to employ this latest 

technology that will eventually be introduced at most of Toyota’s global manufacturing 

facilities. 

Dealerships 

All dealers were challenged with meeting ECO I status by the end of 2007 and 74% of 

the dealer network achieved this - a remarkable improvement from the 48% in 2006. 

All Lexus, Prius, Mega and Supermega dealers have been set the challenge of achieving 

ECO III status. Dealers receive support from the TSA Sandton operations while the 

Vehicle Supply Department at the plant in Prospecton is on-line to the dealer network 

ECO STATUS 

ECO I status reflects the minimum criteria for environmental management, as required by 

Toyota Motor Corporation. ECO I status includes the need for: 

• Basic responsibilities assigned for environmental management at dealers 

• Appoint person in charge of environmental matters 

• Environmental policy and declare compliance to legislation 

• Management of hazardous waste 

• Management of waste water 

• Basic HFC/CFC recovery 

ECO II and ECO III requirements are increasingly stringent. Some of the minimum 

requirements for ECO III include: 

• The availability of specialised kits for battery acid spillage 

• Specifications for bunded areas for waste oil 

• Specifications for waste separation, disposal and recycling 

• Detailed environmental emergency plans are in place 

• A full environmental objectives and targets programme is in place 

• Only indigenous plants are used on site 

via a sophisticated computer system called e-Toyota. This allows dealers to track the 

progress of any unit ordered, enabling them to keep customers fully informed about 

specific build requirements and expected delivery date. 

A completely revamped retail concept has been launched in Toyota, which includes 

significant improvement at our dealerships, that will see the completion of 38 

retrofitted dealerships in 2008, and another 52 retrofitting programmes started. 

R2.05-billion will be spent by 2010 on this programme. As part of this, Toyota South 

Africa and our dealerships have been placing material focus on environmental issues. 

The steps that we have taken to date include: 

• 198 dedicated environmental staff have been assigned to dealerships across 

the country; 

• 86% of our dealerships have signed a Waste Treatment Declaration; 

• 79% of our dealerships have implemented a comprehensive Hazardous Waste 

40


treatment programme, including having spill kits available; 

• 80% of our dealerships are in the process of implementing proper draining 

water treatment; and 

• 67% of the dealerships have achieved full hydrofluorocarbon (HFC) and 

chlorofluorocarbon (CFC) recovery. 

Dealers have a standard environmental manual, and are assessed for compliance against 

Toyota’s stringent environmental management system. The role of the newly deployed 

environmental officers (EO) in this regard is paramount. In order to ensure that the 

environmental officers are able to fulfil their roles, all EO’s were afforded the opportunity 

for training in FY’07. 

All dealers are required to re-examine their sites, and to budget for environmental 

expenditure on upgrades to meet water and waste management expectations. Dealers 

are also now required to report more fully on environmental issues which feed into the 

global reporting system for Toyota. As part of this renewed focus on environmental 

issues, the Lydenburg Toyota dealership participated in the annual clean-up drive for the 

first time in 2007, bringing the message to the local area. Toyota South Africa donated 

a number of trees from Food and Trees for Africa to the dealership who planted the trees 

in the surrounding community. 

• The newly established Toyota South Africa Environmental Committee 

• The Heath and Safety Committee structures 

• Monthly and quarterly reporting processes. 

Toyota Motor Corporation pursues increased value through the three priorities of 

growth, efficiency and stability. Our massive capital and training investment over the 

past five years is our contribution to this drive. 

Global Society/Local Communities 

As Toyota South Africa, we recognise the flagship role we play in Africa in spearheading 

the reputation of the Toyota brand in the continent. Global social and environmental 

issues, such as poverty reduction, climate change and the global energy crisis influence 

our approach to production and our relationships with all our stakeholders. As part of 

our efforts to realise sustainable mobility, our parent company is strengthening its 

traffic safety initiatives in the future through three key pillars: 

Relations with Shareholders 

Toyota Motor Corporation provides guidance and direction on performance expectations, 

financially and on all aspects of sustainable development. Our aim is to provide the best 

return on capital to shareholders, via a system of governance that addresses all risks to 

company success, and identifies opportunities to maximise benefits. 

There are various structures through which we build and maintain our relationship with 

Toyota Motor Corporation, namely: 

• The Toyota South Africa Board 



• The development of even safer vehicles and technologies 

• Participation in the creation of a safe traffic environment 

• Activities designed to educate people in traffic safety. 

We consider that our biggest contribution is to be made locally, in the communities with 

whom we directly interact. We have translated this global traffic safety drive into local 

conditions, through for example, the support for the “No.1 Taxi Driver” competition. 

MAKING A DIFFERENCE, POWERED BY TOYOTA SES’FIKILE 

Improved road safety is one of Toyota’s global objectives and in South Africa this objective 

is being emphasised by the No.1 Taxi Driver campaign, initiated and coordinated by brand 

house and powered by Toyota Ses’ fikile. 

Now in its fourth year of existence, the 2008 campaign drew 700 participating taxi ranks. 

Various forms of advertising and promotions were utilised to motivate commuters and taxi 

drivers to nominate a No 1 Driver from the participating ranks. 

In the local finals ten drivers are chosen per participating taxi rank. Seven are randomly 

drawn from driver entries and three are based on commuter votes. In this round drivers 

participate in a theory test and a practical test that is conducted by Toyota Advanced 

Driving (TAD). 

In order to facilitate the number of drivers who need to participate in the practical test the 

Toyota Advanced Driving team has embarked on a national road trip.The motto of the trip is 

“We will make a difference” which encompasses the objectives of the campaign which are: 

• To improve driving standards within the taxi industry 

• Change the image of drivers positively 

• Educate passengers 

• Reward responsible behaviour 

• Establish a best practice model 

After the local level of the competition the rank winners will proceed to the regional finals 

where the drivers learn practical driving skills on accident prevention and skid control. 

Toyota has invested substantial time and funding in developing the Toyota Advanced 

Driving initiative, aimed at giving Toyota drivers the opportunity to undergo specialised 

defensive and advance driving courses. The No.1 Taxi Driver finalists undergo some of this 

training and it is our hope to expand this – with the cooperation of the National Taxi 

Associations – to a larger taxi driving audience. 

Local Communities 

Our philosophy of respect for people extends beyond the company gates, and our 

engagement with our communities is premised on helping to develop thriving and 

vibrant societies. In our corporate social investment efforts we have targeted education 

for social upliftment, as well as programmes that will help to empower local 

communities and improve their quality of life. 

Direct contact, workshops and on-the-ground analysis of needs are used to engage with 

our communities. Community participation is sought for social and environmental 

impact assessments. Communities are informed of activities via the Website, Toyota 

Zone magazine, Toyota Today, Toyota News and Manufacturing News newsletters, 

workshops, meetings and stakeholder forums. Newsletters are published monthly, along 

with monthly formal engagement events. Public information meetings, and informal or 

ad hoc engagement sessions are held as required. 

No complaints were received during the reporting period from communities 

surrounding our manufacturing activities, and no compensation was therefore paid. 

Corporate social investment programmes are divided into four levels, namely; 

• Local projects: where employees live in the communities; 

• Regional Projects:coordinated byToyota South Africa regional sales and marketing offices; 

• Provincial Projects: selected projects within KwaZulu Natal and Gauteng but outside 

a 35km radius of major communities; and 

• National Projects: national focus and are approved and managed by the CSI Steering 

Committee. 

Our active community engagement has allowed us to focus our contribution to 

community development, including Education, Youth and Skills Development, 

Environmental Management, Health and Welfare and SMME Development. 

42


In FY’07, Toyota contributed the following: 

Community Spend (Rand) 

FY’07 

from Read Education Trust. During 2006 and 2007 Toyota contributed R380,000 each year 

of the more than R4-million that has been spent on the project. 

Total on Education 

Youth and Skills Development 


The total spend of R11,166,597 includes SMME development, community training and 

marketing related environmental initiatives. Some of the projects are described in more 

detail below. 

Education Based Projects 

Toyota Technical Education Programme (T-TEP) 

T-TEP aims at giving high school learners hands-on experience on how the automotive 

repair industry works. The idea of the T-TEP programme is to provide our Dealers with 

Apprentice Motor Mechanics who already have a good basic knowledge. The School for 

Dealer and Distributor development, under the Toyota Academy, in association with 

Toyota Motor Corporation in Japan, is supporting T-TEP at 11 Technical high schools 

throughout the country, with more than R3-million a year allocated to this programme. 

Rally To Read – 2006 & 2007 

Toyota has participated in these Rallies 

every year since the programme was 

initiated in 1998 and in 2006 and 2007 

made a nine vehicle sponsorship on nine 

Rallies. A total of 130 schools in 2006 and 

143 schools in 2007 were visited where 

over 34,500 children received books. More 

than 1,079 teachers have received training 

R5,581,785 

R3,357,769 

R2,111,043 

Health and Welfare R116,000 

High School Technical Wings 

Toyota South Africa has invested approximately R6-million on building motor mechanics 

workshops and equipping them at three KwaZulu Natal high schools.The buildings were 

later donated to the Department of Education who undertook to maintain the 

equipment and facilities. Toyota South Africa has a close relationship with the schools 

for ongoing support where necessary. 

Masakhane Community Centre 

In recognition of the education standard 

achieved by the pre-school, it was awarded 

official Grade R status in 2004 and feeds 

directly into the surrounding primary 

schools. Toyota South Africa supports the 

centre on an ongoing basis whenever 

training is required by the staff members. 

Save the Children Fund 

The Save the Children Fund is an international organisation mainly focusing on the 

development and welfare of children. Toyota South Africa has been involved with Save 

the Children Fund since 2001. The funds donated in 2006 and 2007 were directed at 

training ECD supervisors from the surrounding rural areas who are not exposed to any 

training whatsoever. This training has assisted them to formalise their childminding 

businesses. 

Protec (Umlazi) 

This organisation continues to provide opportunities for Grades 10, 11 and 12 learners 

from Umlazi High Schools to participate in workshops and group activities held at the 

Mangosuthu Technikon Outreach Centre on Saturdays and during school holidays. 

These sessions are aimed at improving their competencies in Maths and Science as 

well as to introduce them to the world of work through career days and factory tours. 

This project is on-going and funded annually. 



Ukukhanya Kwezwe Centre 

The company’s quest to tackle the education and poverty alleviation problems led to 

Toyota funding this early childhood development centre, based in Marlboro at the 

borders of Alexandra Township in Johannesburg. The Centre caters for children from 

the age of three months to six years old. Over and above the funding Toyota gives to 

the Centre, Toyota also supports the centre with skills development and training to 

the Staff. In 2006 and 2007 computer training was offered to the Management team 

of the centre. 

Youth and Skills Development Projects 

Mangosuthu and Swinton Road Auto Workshops 

In 1990 Toyota built and equipped auto repair workshops at the Mangosuthu Technikon 

in Umlazi. The workshop is not only used by the Mechanical Engineering faculty for 

practical training of their students, but also as an outreach project providing short courses 

for students who wish to set up their own auto servicing businesses.We maintain a close 

relationship with the facility to ensure that they have up to date teaching aids in the 

form of motor components and that their courses comply with required quality 

standards. These auto workshops cater for between 120 and 150 students per year. 

Experiential Trainees 

This programme gives students an opportunity to acquire practical work experience, 

through spending from three to six months in the company. 

To date students from the following disciplines have been on the programme: 

• Mechanical, Electrical, Mechatronics, Electronics, Industrial & Chemical Engineering 

• Human Resources, Purchasing, Exports, Finance & Marketing. 

• Office Administration 

Since 2003, Toyota has assisted a substantial number of students in completing or 

partially completing their formal qualifications in the above-mentioned disciplines. We 

are currently preparing an intake for 2008/9. 

Adult Basic Education and Training 

Adult Basic Education and Training was started in 1995 when management recognised 

a need to develop employees from on site. Meetings were held with stakeholders 

including the Training Department and Numsa. After completing the programme, 

employees benefit by being rewarded by incentives, promotion and in-house training. In 

FY’06, 120 employees underwent ABET training, with 890 AMIC qualifications. In FY’07, 

117 employees undertook ABET, with 770 AMIC qualifications. 

Learnerships For The Unemployed 

The learnership programme is a Merseta 

accredited programme. Each unit standard as 

well as the electives have been registered 

with the South African Qualification 

Authority, hence each has a registered 

number. The programme covers Electrical, 

Safety, Assembly Mechanical Components, 

Electronics, Computers, Welding, HIV / AIDS, 

Engineering Hand Skills and Fire Fighting. 

To date we have successfully completed four learnership programmes and all our 

learners are currently employed by Toyota and other companies. A large number of 

learners from the learnership programme are currently doing their apprenticeship 

training with Toyota as well as other companies. In 2007, two groups of 100 learners 

each were recruited and in the first group 96 learners completed the programme; in the 

second group 88 learners completed the programme. 

SMME/Entrepreneurship Directed Projects 

Junior Achievement 

This national organisation runs an 11-week “entrepreneurial experience programme” for 

Grade 11 High School children. Learners are taught how to research a business idea and 

practically run the business chosen. Included in the programme, learners are required 

to buy shares in their business. Towards the end of the cycle they are shown how to 

44


liquidate the business and share the profits made. This is an annual project and learners 

are recruited from schools close to the plant. 

and other related matters to the local community members at no cost. Volunteers 

mainly operate these centres. Toyota South Africa supports four centres situated in 

Umlazi, Folweni, Lamontville and KwaMakhutha. 

s 

Community Development Related Projects 

Nkandla Linen Embroidery Project (Rural) 

This project comprises a group of women from 

a rural Northern KwaZulu Natal town, who 

were taught sewing skills in 2006 in order to 

enhance their hand embroidery skills. In 2007 

Toyota bought them sewing equipment and 

registered them as a co-operative. The latter 

will allow them to tender for different 

Government departments should there be an 

opportunity for them to do so. 

Masikhule Community Development Project 

(Rural) 

This project has 15 smaller projects affiliated 

to it. Toyota funded the sewing skills training 

for a group of 25 women from different 

villages and also bought them sewing 

material including domestic sewing 

machines. They also benefited from a 

donation of redundant industrial sewing 

machines removed from the plant. 

Health And Welfare Directed Projects 

Ubuntu Community Chest 

Toyota South Africa monitors the work of the Community Chest through their 

Distribution Department. They receive applications, evaluate project proposals, 

award the funds and monitor the projects closely. From the fundraising side, the 

Chest has a Payroll linked Giving strategy called the “Share” programme. Toyota 

supports the Chest’s “Share” programme by encouraging employees to contribute 

by way of salary deductions. An agreed amount is deducted from the participating 

employee’s salary on a monthly basis and deposited in an interest earning bank 

account. Once a year the money is withdrawn and handed over to the Chest together 

with a supporting contribution from the company. Employees have also specified 

that the money should be used to support projects operating in the residential areas 

around the factory. In addition Toyota employee representatives visit the projects 

supported by the funds donated. 

Life Line 

Lifeline is an organisation which has served the Durban Community for approximately 

34 years offering a counselling service to all sectors of the community both adult and 

youth. They offer both telephone and face-to-face counselling for anyone in crisis and 

over 500,000 people have benefited from their services. Toyota’s Employee Assistance 

Programme Department works closely with Life Line. 

Jona Vaughan Home 

This is a Home situated in Amanzimtoti that caters for 80 physically and mentally 

handicapped people of all races (mainly adults) who live there on a permanent basis. 

Toyota has made donations to subsidise the purchase of a vehicle which the home 

needed to run its errands. 

Community Resource Centres 

The Community Resource Centres are situated in most of the residential areas in and 

around Durban.These centres provide advice and guidance on para-legal, welfare, health 

Highway Hospice – Home Based Care Project 

In 2000 the Hospice deployed two caregivers in Umlazi who are supported by Toyota. 

Since then a further 25 caregivers have been trained and ten of them are now working 



in Umlazi. They receive a small salary through a government subsidy. Redundant 

furniture was donated to Hospice which was shared amongst their four centres around 

Umlazi Township. 

Environmental Management Directed Projects 

Gardens for Africa 

Toyota initiated the Gardens for 

Africa Project in 2002, with the 

assistance of Operation Hunger. Land 

was identified in Folweni, and local 

unemployed women grouped 

themselves together and started 

community food gardens. 

Special Story 

Toyota’s funding has largely been 

used to provide a salary for a Field 

Officer, without whom the project 

would not function. Improved 

nutrition for the participants and 

their families as well as a small 

income for the recycling groups has 

been achieved. In addition, there has 

been an increase in awareness of 

various environmental issues. 

In its almost 20 years of existence, the Toyota South Africa Foundation has ventured into 

and supported a wealth of education specific initiatives of which the most prominent 

has been the Toyota Teach Primary School Projects (TTPSP). 

The flagship project for the Toyota South Africa Foundation,TTPSP has been in existence 

for over a decade and unlike many other social investment projects, the investment in 

this programme is not evident in bricks and mortar but rather it is measured in academic 

achievements at the TTPSP schools. 

The project is unique in that it takes a holistic approach to working in the schools. The 

project’s initial goal was to produce teachers who are competent in Mathematics, 

Science, Technology and Language 

Skills and until three years ago the 

focus was solely on educating 

educators. In recent years, however, the 

project’s focus has moved away from 

individual teachers to providing 

professional assistance to the whole 

school (with particular focus on School 

Governing bodies). 

46


Economic Aspects 

Business Results and Geographic Segment information 

The opportunities afforded by Toyota’s commitment to production in harmony with 

people and the environment is evident in Toyota’s massive investment in hybrid 

technology since the mid 1990’s when climate change was hotly debated. 

The company aims to sell 150,000 vehicles on the domestic market and export 147,000 

vehicles annually by 2010. In April 2007, Toyota overtook General Motors to become 

the world’s biggest carmaker, a position which GM held for 76 years. While both GM 

and Toyota posted record sales in the first quarter of 2007, for the first time Toyota 

Toyota’s commitment to inspiring hybrid technology, and further reducing the CO 2 , 

energy and other resource footprint of our production facilities, as well as of our 

products, provides the company with challenges and opportunities. 

Production figures* 

2002 2003 2004 2005 2006 2007 

80,777 96,087 113,534 125,695 151,056 155,245 

* Calendar year 

Financial Indicator* FY’06 FY’07 FY’08 

Sales (R000) 22,731,219 30,764,788 35,062,473 

Capital Investment (R000) 1,867,711 2,820,964 780,843 

Number vehicles sold 148,375 208,680 220,065 

Market Share 22.50% 23.6% 25.9% 

Number of employees 9,477** 9,146 9,770 

*The date convention used for financial data is FY’08 (April 2007 - March 2008) 

**The number of employees has been restated for 2005/6 to remove vacancies that were reported in 

the figure of 10.173 



Total Capitalisation FY’07 FY’08 

Debt (R000) 3,531,787 7,161,118 

Equity (R000) 4,640,855 4,614,673 

Total assets; (R000) 14,666,723 19,214,327 

Beneficial ownership* 

TMC 74.9% TMC 74.9% 

Wesco 25.1% Wesco 25.1% 

surpassed GM in total global sales, selling 2.348-million vehicles to GM’s 2.26-million. 

Export destinations for South African built Toyotas include: Algeria; Angola: Austria; 

Belgium; Canary Islands; Czech Republic; Denmark; Egypt; Ethiopia; Finland; France; 

Gabon; Germany; Ghana; Greece; Hungary; Ireland; Israel; Italy; Kenya; Malawi; 

Mauritius; Morocco; The Netherlands; Nigeria; Norway; Pakistan; Poland; Portugal; 

Reunion; Slovenia; Spain; Sudan; Sweden; Switzerland; Tanzania; Tunisia; Turkey; United 

Kingdom and Zambia. 

*As from August 2008, TMC has 100% ownership 

48


G3 Index 

G3 Ref 

Pages 

G3 Ref 

Pages 

Strategy and Analysis 

1.1 Statement from the most senior decision maker of the organisation 

2 

1.2 Description of key impacts, risks and opportunities 

11 

Organisational Profile 

2.1 Name of reporting organisation 

IFC 

2.2 Primary brands, products and/or services 

IFC 

2.3 Operational structure of the organisation 

not 

reported 

2.4 Location of organisation headquarters 

3 

2.5 Number of countries where the organisation operates 

3 

2.6 Nature of ownership, legal form 

3 

2.7 Markets served 

3, 48 

2.8 Scale of organisation 

3 

• Number of employees; 

3, 47 

• Net sales (for private sector organisations) or 

47 

• Net revenues (for public sector organisations) 

47 

• Total capitalisation broken down in terms of debt and equity (for private sector 48 

organisations) 

• Quantity of products or services provided 

• Total assets 

• Beneficial ownership (including identity and percentage of ownership of 

largest shareholders) 

• Breakdowns by country/region of the following: 

• Sales/revenues by countries/regions that make up 5% or more of total 

Report Parameters 

Report Profile 

3.1 Reporting period 

3.2 Date of most recent previous report (if any) 

3.3 Reporting cycle (annual, biennial, etc.) 

3.4 Contact point for questions regarding the report or its contents. 

47 

48 

3 

47, 48 

revenues 

• Costs by countries/regions that make up 5% or more of total revenues 

not 

applicable 

• Employees 

not 

applicable 

2.9 • Significant changes during the reporting period regarding size,structure,or ownership 4 

2.10 Awards received in the reporting period 

7, 8 

IFC 

IFC 

IFC 

IFC 

Report Scope and Boundary 

3.5 Process for defining report content 

3.6 Boundaries of report 

3.7 Limitations on the scope or boundary of the report 

3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced 

operations, and other entities that can significantly affect comparability from 

period to period and/or between organisations. 

3.9 Data measurement techniques and the bases of calculations, including 

assumptions and techniques underlying estimations. 

3.10 Explanation of the effect of and reason for re-statements of information provided 

in earlier reports 

3.11 Significant changes from previous reporting periods in the scope, boundary, or 

measurement methods applied in the report 

GRI Content Index 

3.12 Table identifying the location of the Standard Disclosures in the report 

Assurance 

3.13 Policy and current practice with regard to seeking external assurance for the report 

4. Governance, Commitments, and Engagement 

Governance 

4.1. Governance structure of the organisation 

4.2 Indicate whether the Chair of the highest governance body is also an executive officer 

4.3 For organisations that have a unitary board structure, state the number of members 

of the highest governance body that are independent and/or non-executive members. 

4.4 Mechanisms for shareholders and employees to provide recommendations or 

direction to the highest governance body. 

4.5 Linkage between compensation for members of the highest governance body, 

senior managers, and executives (including departure arrangements), and the 

organisation performance (including social and environmental performance) 

4.6 Processes in place for the highest governance body to ensure conflicts of interest 

are avoided. 

4.7 Process for determining the qualifications and expertise of the members of the 

highest governance body for guiding the organisation strategy on economic, 

environmental and social topics 

IFC 

3,4 

3 

not 

applicable 

23 

47 

3,4 

49 

IFC 

7-10 

8 

8 

8, 31 

8 

data unavailable 




G3 Index 

G3 Ref 

Pages 

G3 Ref 

Pages 

4.8 Internally developed statements of mission or values relevant to the economic, 

environmental and social performance of the company 

4.9 Procedures of the highest governance body for overseeing the organisation 

identification and management of economic, environmental, and social performance 

4.10 Processes for evaluating the highest governance body’s own performance, particularly 

with respect to economic, environmental, and social performance 

Commitments to External Initiatives 

4.11 Explanation of whether and how the precautionary approach or principle is addressed 

by the organisation 

4.12 Externally developed economic, environmental, and social charters, principles, 

or other initiatives to which the organisation subscribes or endorses 

4.13 Memberships in associations (such as industry associations) and/or national/ 

international advocacy organisations 

Stakeholder Engagement 

4.14 List of stakeholder groups engaged by the organisation 

4.15 Basis for identification and selection of stakeholders with whom to engage 

4.16 Approaches to stakeholder engagement, including frequency of engagement by 

type and by stakeholder group 

4.17 Key topics and concerns that have been raised through stakeholder engagement, 

and how the organisation has responded to those key topics and concerns, 

including through its reporting 

5. Management Approach and Performance Indicators 

Economic Performance Indicators 

EC1 

EC2 

EC3 

EC4 

EC5 

Aspect: Economic Performance 

Direct economic value generated and distributed 

Financial implications and other risks and opportunities for the organisation 

activities due to climate change 

Coverage of the organisation defined benefit plan obligations 

Significant financial assistance received from government 

Aspect: Market Presence 

Range of ratios of standard entry level wage compared to local minimum wage at 

significant locations of operation 

5-7 

7-10 

8 

11 

IFC, 11 

10 

27 

27 

28 

28 

47-48 

47 

not 

available 

not 

available 

35 

EC6 

EC7 

EC8 

EC9 

Policy, practices, and proportion of spending on locally-based suppliers at significant 

locations of operation 

Procedures for local hiring and proportion of senior management hired from 

the local community at locations of significant operation 

Aspect: Indirect Economic Impacts 

Development and impact of infrastructure investments and services provided 

primarily for public benefit through commercial, in-kind, or pro bono engagement 

Understanding and describing significant indirect economic impacts, including the 

extent of impacts 

Environmental Performance Indicators 

EN1 

EN2 

EN3 

EN4 

EN5 

EN6 

EN7 

EN8 

EN9 

Aspect: Materials 

Materials used by weight or volume. 

Percentage of materials used that are recycled input materials. 

Aspect: Energy 

Direct energy consumption by primary energy source 

Indirect energy consumption by primary source 

Energy saved due to conservation and efficiency improvements 

Initiatives to provide energy-efficient or renewable energy based products and 

services, and reductions in energy requirements as a result of these initiatives 

Initiatives to reduce indirect energy consumption and reductions achieved 

Aspect: Water 

Total water withdrawal by source 

Water sources significantly affected by withdrawal of water 

EN10 Percentage and total volume of water recycled and reused 

Aspect: Biodiversity 

EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas 19 

and areas of high biodiversity value outside protected areas 

EN12 Description of significant impacts of activities, products, and services on biodiversity 

5, 22,39 

in protected areas and areas of high biodiversity value outside protected areas 

EN13 Habitats protected or restored 

19 

EN14 Strategies, current actions, and future plans for managing impacts on biodiversity 19 

not 

EN15 Number of IUCN Red List species and national conservation list species with habitats applicable 

in areas affected by operations, by level of extinction risk 

35 

42-46 

42 




14 

data un- 

available 

14, 22 

14 

not 

reported 

17 


19 

50


G3 Index 

G3 Ref 

Pages 

G3 Ref 

Pages 

Aspect: Emissions, Effluents, and Waste 

EN16 Total direct and indirect greenhouse gas emissions by weight 

EN17 Other relevant indirect greenhouse gas emissions by weight 

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved 

EN19 Emissions of ozone-depleting substances by weight 

EN20 NO, SO, and other significant air emissions by type and weight 

EN21 Total water discharge by quality and destination 

EN22 Total weight of waste by type and disposal method 

EN23 Total number and volume of significant spills 

EN24 Weight of transported, imported, exported, or treated waste deemed hazardous 

under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of 

transported waste shipped internationally 

EN25 Identity, size, protected status, and biodiversity value of water bodies and related 

habitats significantly affected by the reporting 

EN26 Initiatives to mitigate environmental impacts of products and services, and extent 

of impact mitigation 

EN27 Percentage of products sold and their packaging materials that are reclaimed by category 16 

Aspect: Compliance 

EN28 Monetary value of significant fines and total number of non-monetary 

sanctions for non-compliance with environmental laws and regulations 

Aspect: Transport 

EN29 Significant environmental impacts of transporting products and other goods and 

materials used for the organisation operations, and transporting members of the 

workforce 

Aspect: Overall 

EN30 Total environmental protection expenditures and investments by type 

Social Performance Indicators 

LA1 

LA2 

LA3 

Labour Practices and Decent Work Performance Indicators 

Aspect: Employment 

Total workforce by employment type, employment contract, and region 

Total number and rate of employee turnover by age group, gender, and region 

Benefits provided to full-time employees that are not provided to temporary or 

part-time employees, by major operations 

13 

18 

12-15 

18 

18 

not 

reported 

16-17 

12 

17 

19 

20-22 

10, 12 

15 

22 

3, 33, 47 

34 

35 

LA4 

LA5 

LA6 

LA7 

LA8 

LA9 

Aspect: Labor/Management Relations 

Percentage of employees covered by collective bargaining agreements 

Minimum notice period(s) regarding operational changes, including whether it is 

specified in collective agreements 

Aspect: Occupational Health and Safety 

Percentage of total workforce represented in formal joint management–worker 

health and safety committees that help monitor and advise on occupational 

health and safety programs 

Rates of injury, occupational diseases, lost days, and absenteeism, and number of 

work related fatalities by region 

Education, training, counselling, prevention, and risk-control programs in place to 

assist workforce members, their families, or community members regarding serious 

diseases 

Health and safety topics covered in formal agreements with trade unions 

Aspect: Training and Education 

LA10 Average hours of training per year per employee by employee category 

LA11 

LA12 

LA13 

Programs for skills management and lifelong learning that support the 

continued employability of employees and assist them in managing career endings 

Percentage of employees receiving regular performance and career development 

reviews 

Aspect: Diversity and Equal Opportunity 

Composition of governance bodies and breakdown of employees per category 

according to gender, age group, minority group membership, and other indicators of 

diversity 

LA14 Ratio of basic salary of men to women by employee category 

Human Rights Performance Indicators 

HR1 

HR2 

HR3 

Aspect: Investment and Procurement Practices 

Percentage and total number of significant investment agreements that include 

human rights clauses or that have undergone human rights screening 

Percentage and total number of significant investment agreements that include 

human rights clauses or that have undergone human rights screening 

Total hours of employee training on policies and procedures concerning aspects of human 32 

rights that are relevant to operations, including the percentage of employees trained 

35 



35-39 

35-37 


32 

32 

35 

33-35 

35 





G3 Index 

G3 Ref 

Pages 

G3 Ref 

Pages 

HR4 

HR5 

HR6 

HR7 

HR8 

HR9 

SO1 

SO2 

SO3 

SO4 

SO5 

SO6 

SO7 

SO8 

Aspect: Non-Discrimination 

Total number of incidents of discrimination and actions taken 

Aspect: Freedom of Association and Collective Bargaining 

Operations identified in which the right to exercise freedom of association and 

collective bargaining may be at significant risk, and actions taken to support these rights 

Aspect: Child Labour 

Operations identified as having significant risk for incidents of child labour, and 

measures taken to contribute to the elimination of child labour 

Aspect: Forced and Compulsory Labour 

Operations identified as having significant risk for incidents of forced or compulsory 

labour, and measures to contribute to the elimination of forced or compulsory labour 

Aspect: Security Practices 

Percentage of security personnel trained in the organisation policies or procedures 

concerning aspects of human rights that are relevant to operations 

Aspect: Indigenous Rights 

Total number of incidents of violations involving rights of indigenous people 

and actions taken 

Aspect: Community 

Nature,scope, and effectiveness of any programs and practices that assess and manage 

the impacts of operations on communities, including entering, operating, and exiting 

Aspect: Anti-Competitive Behaviour 

Total number of legal actions for anticompetitive behaviour, anti-trust, and 

monopoly practices and their outcomes 


Monetary value of significant fines and total number of non-monetary 

sanctions for non-compliance with laws and regulations 



not 

applicable 

not 

applicable 


not 

applicable 

41-46 

Aspect: Corruption 

Percentage and total number of business units analysed for risks related to corruption 7 


Percentage of employees trained in organisation anti-corruption policies and procedures 


Actions taken in response to incidents of corruption 

Aspect: Public Policy 


Public policy positions and participation in public policy development and lobbying 


Total value of financial and in-kind contributions to political parties, politicians, 

and related institutions by country 


10 

Product Responsibility Performance Indicators 

PR1 

PR2 

PR3 

PR4 

PR5 

PR6 

PR7 

PR8 

PR9 

Aspect: Customer Health and Safety 

Life cycle stages in which health and safety impacts of products and services are 

assessed for improvement, and percentage of significant products and services 

categories subject to such procedures 

Total number of incidents of non-compliance with regulations and voluntary 

codes concerning health and safety impacts of products and services during their 

life cycle, by type of outcomes 

Aspect: Product and Service Labelling 

Type of product and service information required by procedures, and percentage of 

significant products and services subject to such information requirements 


codes concerning product and service information and labelling, by type of outcomes 

Practices related to customer satisfaction, including results of surveys measuring 

customer satisfaction 

Aspect: Marketing Communications 

Programs for adherence to laws, standards, and voluntary codes related to 

marketing communications, including advertising, promotion, and sponsorship 


codes concerning marketing communications, including advertising, promotion, 

and sponsorship by type of outcomes 

Aspect: Customer Privacy 

Total number of substantiated complaints regarding breaches of customer privacy 

and losses of customer data 


Monetary value of significant fines for non-compliance with laws and regulations 

concerning the provision and use of products and services 

30 



30 

29 

29 

not 

applicable 


52


For further information contact: 

Environmental Department: eco@toyota.co.za 

Social Development Department: 

ztshabalala@tsb.toyota.co.za 

Feedback 

We welcome feedback on this report. 

Please e-mail your comments to: 

commsdept@tsb.toyota.co.za 

Sandton Marketing Office 

Toyota SA Motors (Pty) Ltd 

PO Box 481, Bergvlei, 2012 

Republic of South Africa 

Tel: +27 (0) 11 809 9111 / Fax: +27 (0) 11 809 2940 

Prospecton Plant 

PO Box 26070, Isipingo Beach, 4115 

KwaZulu Natal 

Republic of South Africa 

Tel: +27 (0) 31 910 2911 / Fax: +27 (0) 31 912 1475 

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