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MESSAGE Executive message from the President and CEO, Toyota South Africa Motors Sustainability is a key focus area for Toyota globally and as such we are proud to present Toyota South Africa Motors’ sixth sustainability report, addressing the past two fiscal years (FY08 and FY09). I want to take a moment to reflect on the conditions experienced over the reporting period, with the two periods in stark contrast with each other. While FY08 was one of growth, FY09 was one of rapid market contraction and recession. During these turbulent times we continually reviewed our cost structures to compete for production volume and ensure the sustainability of the company. These challenges contributed to making Toyota a better, stronger and more vibrant company with a clear view on how to achieve sustainable growth. As I am of the view that over the next few years there will be moderate sustained growth in market conditions, with subsequent improvement in our sales and production volumes, this will stand the company in good stead. The contraction in the vehicle market in 2009 not only resulted in a significant drop in vehicle production, but also impacted on our environmental performance when expressed in per unit performance. We are in the process of developing our next Five Year Environmental Action Plan and these trends will be addressed in our future environmental performance efforts. As a company we experienced a particularly trying time during the last part of FY09 when the global recall campaign around some of our core models occurred. Teamwork and fast action when an issue needs to be addressed are critical ingredients of the Toyota Way. These core values of our philosophy were illustrated earlier this year when 52 546 Corolla, Auris and Verso vehicles and 216 Prius vehicles were recalled as a precautionary measure. It was a difficult time for us, but our business partners – in this case our dealers – responded excellently with the execution of this campaign, and in only three months more than 90% of the possibly affected vehicles were recalled. I want to take this opportunity to thank 2 Toyota South Africa Motors Sustainability Report 2010 Dr Johan van Zyl during a walkabout at the Prospecton manufacturing operation. With the support of our stakeholders we will continue to provide safe and reliable vehicles to our customers. “ ” all our dealers, but also to express my appreciation to our customers for their understanding and the trust they showed in our company and its products during this time. You can be assured that we are fully committed to your safety and satisfaction with our product. We will continue to build on the quality, durability and reliability that are by now synonymous with Toyota. The same values are also incorporated in our CSI initiatives as we believe good corporate citizenship is as important to the sustainability of our company as good product. We have initiated and also support a variety of social responsibility programmes and these activities will be strengthened further in future. In closing, we take sustainability, in all its forms, very seriously and therefore have also taken major steps to improve the safety culture in our company. The results are positive, but strong leadership will be needed to fundamentally change the culture we want to see in our organisation. We continue to investigate alternative energy sources as to us it is clear that society will increasingly demand low carbon emission vehicles and energy efficient production, and are positioning ourselves to be ready to respond to these expectations. With the support of our stakeholders we will continue to provide safe and reliable vehicles to our customers and we invite you to engage with us as we move along the path to achieve true sustainable growth in harmony with people and the environment. Dr Johan van Zyl President and CEO, Toyota South Africa Motors
Highlights of FY08 and FY09 Environmental Aspects -14 million tons CO 2 The amount of CO 2 emissions saved by Toyota’s hybrid vehicles (cumulatively). Environmental Philosophy pgs 13-21 The Fourth Environmental Action Plan, based on the Toyota Motor Corporation (TMC) plan, provided the framework for TSAM’s environmental activities during FY08 and FY09. The plan detailed specific issues and actions including reduction of carbon dioxide (CO2) emissions, resource conservation, reduction in substances of concern, risk reduction and legal compliance. Implementation of the plan was monitored and further actions identified. TMC has developed the Fifth Environmental Action Plan, which commences in FY11 and maps the way forward in terms of management of environmental impacts. Energy/Global Warming pgs 22-26 Total CO 2 emissions were significantly reduced mainly due to the drop in production caused by the economic recession and due to a number of energy saving projects implemented in production and logistics. However, per unit CO2 emissions reduced in FY08 but then rose in FY09, also due to the economic recession and the drop in production. TMC globally continued to increase the availability of hybrid vehicles and to improve fuel efficiencies of conventional drive trains in ongoing efforts to significantly lower global CO emissions. 2 CO 2 emissions: Production FY08 FY09 Total CO 2 emissions (tons) 156 112 131 912 CO 2 emissions per unit (kgs) 1 041.27 1 284.48 Recycling of Resources pgs 27-28 Over the past four years, TSAM has reduced waste to landfill by 15.5%. Recycling initiatives encouraged broad employee participation both in the workplace and at home. Use of Water Resources pg 29 Water use efficiencies improved significantly in FY08 but lower production figures in FY09 caused water usage per unit to exceed target. TSAM implemented control measures that have significantly reduced the risks of contaminated water spilling into the stormwater drainage system at its production operations. Atmospheric Quality pg 30-31 Actions were taken to further reduce volatile organic compounds (VOCs). The full benefits of VOC reduction as a result of the commissioning of the new, water-based Paint Plant in FY06 are yet to be realised, although total VOC emissions have decreased consistently. Social Aspects FY08 FY09 Waste generated (kg/unit produced) 21.47 26.84 FY08 FY09 Water usage (kilolitre/unit produced) 5.05 6.19 Waste water discharged (kilolitre/ unit produced) 2.31 3.11 FY08 FY09 Body paint VOC (g/m 2 ) 36.5 34.4 Relations with Customers pgs 36-37 TSAM excelled in national quality and customer satisfaction surveys which compare automobile manufacturers in South Africa, finishing top or close to the top of the rankings in every segment. Relations with Employees pgs 38-44 Total workforce numbers reduced by 16% between FY08 and FY09 due to the effects HIGHLIGHTS of the global recession. TSAM focused on providing education and training opportunities to enable employees to improve their skills and qualifications, thus adding value to their lives and their jobs. Health and Safety pgs 45-49 Safety incident and injury frequency rates continued to decline thanks to risk reduction activities and effective safety structures, training and awareness. Increasing numbers of employees are taking advantage of wellness and assistance programmes. Relations with Business Partners pg 50 Toyota dealers and suppliers must comply with stringent environmental standards, and suppliers are required to comply with ISO 14001 standards. Regular audits are carried out to confirm compliance. Global Society/Local Communities pgs 51-54 TSAM engages with business, community and civil society institutions to foster harmonious relations and contribute to the development of a thriving and vibrant society. TSAM has initiated or participates in educational, environmental and empowering projects located in local communities. Economic Aspects FY08 FY09 Total number of employees 9 089 7 934 FY08 FY09 Number of injury cases 533 290 Tracking Economic Performance pg 55 TSAM experienced a period of growth in FY08, followed by a contraction in business during FY09 as a result of the global economic recession. Moderate sustained growth in market conditions has been forecasted for the next year, and a subsequent improvement in production and sales volumes is expected. FY08 FY09 Vehicle production 184 087 105 079 Toyota South Africa Motors Sustainability Report 2010 3
Page 2 and 3: About this Report This is the sixth
Page 6 and 7: SPECIAL FEATURE Toyota South Africa
Page 8 and 9: SPECIAL FEATURE 30 years of market
Page 10 and 11: ABOUT THE COMPANY About the Company
Page 12 and 13: ABOUT THE COMPANY The Toyota Way is
Page 14 and 15: ABOUT THE COMPANY The Toyota Code o
Page 16 and 17: ENVIRONMENTAL ASPECTS Figure 8 Glob
Page 18 and 19: ENVIRONMENTAL ASPECTS The TSAM Four
Page 24 and 25: ENVIRONMENTAL ASPECTS Energy/Global
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Page 28 and 29: TMC’s commitment to hybrid techno
Page 30 and 31: ENVIRONMENTAL ASPECTS Sandton waste
Page 32 and 33: ENVIRONMENTAL ASPECTS Atmospheric Q
Page 34 and 35: ENVIRONMENTAL ASPECTS Environmental
Page 36 and 37: ENVIRONMENTAL ASPECTS Risk reductio
Page 38 and 39: SOCIAL ASPECTS Customer satisfactio
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Page 42 and 43: SOCIAL ASPECTS Human rights TSAM’
Page 44 and 45: SOCIAL ASPECTS TSAM’s Graduate Tr
Page 46 and 47: SOCIAL ASPECTS SPECIAL FEATURE Reco
Page 48 and 49: SOCIAL ASPECTS Fatalities There wer
Page 50 and 51: SOCIAL ASPECTS Occupational health
Page 52 and 53: SOCIAL ASPECTS Relations with Busin
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SOCIAL ASPECTS is made to assist in
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SOCIAL ASPECTS of the Kavango-Zambe
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Independent Assurance Statement To
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Global Reporting Initiative Index G
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Glossary of terms and acronyms 3R R
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