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Toyota European Sustainability Report 2010 I Environmental Performance 40 Parts logistics Parts Supply Chain Group (PSCG) Within our network we have one central warehouse in Belgium and 13 regional depots in Europe. In 2009 we have been able to make environmental improvements and at the same time, reduce costs which is essential in the global economic context. With this sense of urgency we have taken our environmental mission to the centre of every process and to our transport network. For example, we have built on our previous successes in network optimisation so that our shipping CO 2 emissions from transport In FY09, our Parts Supply Chain Group divisions continued their efforts to further improve and reduce CO 2 emissions. While the Warehouse Operations Division focused on improving case and truck density by adapting internal picking, packing, modulating and loading processes, the Transportation Division concentrated on switching to environmentally friendly transportation modes. In 2009 a number of activities were completed including: 1- Changing the mode of transport for all of our shipments to Portugal from trucks to ships, which has led to a reduction of 1,103 kilometres travelled and 288 tonnes of CO 2 emissions per year. 2- Two other routes have been reviewed to reduce the distance travelled by trucks. Firstly, routes to Ireland were sent by sea resulting in an 84% reduction in distance travelled by truck a year, which equates to a saving of 19.76 t CO 2 emissions. Secondly, routes to the Finnish depot in Helsinki were also partners can now directly optimise every load in their process. By looking at how we can reduce environmental impacts throughout our supply chain we have made significant steps and will continue to look for improvements for the future. The three main environmental impacts of our operations are : 1- CO 2 emissions from transportation 2- The environmental impact of our facilities 3- Packaging materials Managing CO 2 emissions (1) fy04 fy05 fy06 fy07 fy08 fy09 Total CO 2 emissions (tonnes) 29,919 38,174 46,429 52,062 48,434 44,175 CO 2 emissions (kg/m 3 transported) 15.49 15.82 15.30 16.18 15.31 15.14 CO 2 emissions (kg/km transported) 0.489 0. 499 0. 516 0. 520 0. 491 0. 472 1,000 t CO2 80 60 40 20 0 FY 0.48 29.92 04 05 06 07 08 09 t CO2 0.49 38.17 C0 2 emissions 0.51 46.43 kg CO2/km 0.52 52.06 kg CO2/km (1) The reported data includes all Toyota Motor Europe controlled parts accessories logistics. 0.49 48.43 0.47 44.17 0.8 0.6 0.4 0.2 0 changed with the distance by truck reduced by 52% resulting in a saving of 37.76 t CO 2 emissions. 3- Implementation of a rail connection between Genk and Verona for shipments to Italy and Greece, resulting in an annual saving of 257.53 t CO 2 emissions. % for Sea, Air and Rail transport 12% 10% 8% 6% 4% 2% 0% Transport methods evolution (share of kilometer) Sea Air FY07 FY08 FY09 We reduced airfreight volume by 14% from FY08 to FY09. This was achieved by introducing measures such as consolidating packaging and adapting the box size to the actual volume. The graph above shows the impact of changing the way we transport our parts, which helps us reduce CO 2 emissions from transportation. It also has helped increase operational efficiencies and reduce costs. We will continue to review the network to identify other ways we can reduce CO 2 emission from transportation, and we will work with our logistics partners to invest in environmentally friendly trucks. Rail Truck 82% 80% 78% 76% 74% 72% 70% % for Truck transport
Environmental impact of facilities All 14 of our parts distribution centres are certified to the ISO14001 Environmental Management System. The key environmental aspects we track are energy consumption and waste management. Energy consumption Despite one of the coldest winters on record and the number of parts handled increasing, the total energy used in FY09 by our parts distribution centre decreased by 7% since FY08. The Parts Supply Chain Group has two energy related Key Performance Indicators (KPIs) to monitor : 1- total energy/1,000 pieces shipped 2- total energy/warehouse volume multiplied by the number of operating hours kWh 350 300 250 200 150 100 50 0 kWh 0.07 0.06 0.05 0.04 0.03 0.02 0.01 0.00 Energy per 1,000 pieces shipped 288.1 307.2 FY10 target = 288.1 kWh 329.9 296.0 FY06 FY07 FY08 FY09 Warehouse energy use per m 3 0.0610 FY10 target = 0.0610 kWh 0.0558 0.0563 0.0584 FY06 FY07 FY08 FY09 We achieved a 10% reduction in energy consumption for the first KPI. However, for the second KPI there was a slight increase of 3.5% from FY08. However, we remain on target to achieve the FY10 target for both KPIs set out in the Five Year Environmental Action Plan. The increase for the second KPI is due to the number of operating hours reducing at a faster rate (10%) than the energy reduction (7%). The decrease in energy is due to each site team maintaining the kaizen (continuous improvement) principles and making improvements wherever possible. For example, Toyota Parts Centre Deutschland carried out a re-lighting project which contributed to 5% reduction in energy consumption. Waste management All parts distribution centres worked hard to achieve zero waste to landfill, which meets the target set in our Five Year Environmental Action Plan. kg 40 35 30 25 20 15 10 5 0 kg 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Total waste per 1,000 pieces shipped 33.09 33.55 33.65 FY10 target = 25.76 kg 25.96 FY06 FY07 FY08 FY09 Mixed waste per 1,000 pieces shipped 4.11 3.02 FY06 FY07 FY08 FY09 Additionally the total waste produced per part shipped decreased by 10% as a result of increased reuse of packaging material at a number of depots. The amount of mixed waste per part handled was 1.78 kg / 1,000 pieces shipped, which is a 57% decrease since FY06. 2.75 FY10 target = 3.29 kg 1.78 Toyota European Sustainability Report 2010 I Environmental Performance 41
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