Toyota South Africa Sustainability Report 2008 - Automotiveonline ...

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Sustainability Report_14-10-2008:Layout 1 10/14/08 2:44 PM Page 12 100 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
Sustainability Report_14-10-2008:Layout 1 10/14/08 2:44 PM Page 13 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. Sustainability Report 2008 13
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