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aim: zero emissions

Kaizen

"Continuous improvement. As no process can ever be declared perfect, there is always room for improvement."

Table of

Contents

Aim: zero emissions, zero waste 4

Towards the ultimate Eco-car

7

Clean manufacturing

10

Green technologies

11

The 3 Rs: Reduce, Reuse, Recycle

18

The next horizon

21

September 2006 edition

Aim:

Petroleum refining (CO2) Commercial/ Institutional (CO2) Other

zero emissions, zero waste

There are over 200 million cars in use on Europe's roads

European CO2 Yet cars emissions byCO2 emmisions by sector* are also widely associated with being harmful to the World sector (2004)

today, providing freedom of mobility to every type of driver.

planet's ecosystem. This can range from global warming and recent years, the automobile industry has made great progress in reducing the environmental burden of motor vehicles.

greenhouse gases to smog, noise and landfill pollution. In

9%

4% 5%

30%

Residential (CO2)

12%

Electricity and Heat Production (CO2)

16%

24%

Life cycle emissions

Carbon Dioxide Particulate Matter Nitrogen Oxides Volatile Organic Compounds Carbon Monoxide

h Ow dO C A R S Af fE C T t hE E n v i r o n mEn t ?

Manufacturing Industries and Construction (CO2)

Transportation (CO2)

End of Life

Waste, Landfill

* Source EEA (European Environment Agency) Technical Report 6/2006

VEhiC lE Emission s

CarbonDioxide(CO2) a"greenhousegas"thatcancontribute toglobalwarming. ParticulateMatter(PM) foundinsootfromfactoriesandcar exhaustamongstothers.Cancause respiratorydiseases. NitrogenOxides(NOx) causesacidrain.Alsogeneratesozone thatcancontributetophotochemical smogandglobalwarming. VolatileOrganic hydrocarbonsfromindustrial Compounds(VOCs) processes,factoriesandcars. Contributetosmog. CarbonMonoxide(CO) harmfultohumans,canbefatal;now largelyeliminatedfromcarexhaust emissions.

Manufacturing

Energy, Water, Waste, Landfill, Emissions

How do cars affect the environment? Vehicle manufacturing consumes raw materials and energy, while cars produce exhaust emissions and have to be disposed of properly at the end of their lives. Reducing the impact of each of these processes is a key challenge for Toyota.

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Motor vehicles interact with the environment throughout their entire lifecycle­fromtheirinitialdesignandthe waytheyaremanufactured,totheiruse ontheroadandtheireventualdisposal whennolongerneeded. When driving, car engines release emissions into the air, influencing the chemicalcompositionoftheatmosphere we breathe and indirectly affecting weatherpatternsaroundtheglobe.The challengeis:Howcantheseemissions befurtherreduced? Asecondenvironmentalimpactcomes fromthefactthatvehiclesaremadeoutof metals,plasticsandothermanufactured materials. Can cars be designed so

that they can be recycled more easily and comprehensively? And automotive factories use energy and materials to manufacturenewvehicles,andproduce waste as a by-product. How can factoriesbedesignedtorespondmore efficientlytoenvironmentalconstraints? For Toyota, minimizing these kinds of environmental impact has long been a top priority at every level of the company'sorganisationandactivity.The company's environmental policy forms partofamuchwidervisionofsustainable development,oneofthecornerstonesof globaleconomicthinkingforthefuture. Andbuildingcompletelyrecyclablecars withzeroemissionsisToyota'sforemost challengefortheyearstocome.

Both...and morE! Much of the debate surrounding sustainable mobility, or the development of the ultimate eco-car, places a cleaner environment in opposition to economic and industrial growth. The thinking goes: you can only have one or the other, but not both. It is in Toyota's corporate culture to work hard when confronted with these challenges, to try and achieve both and more!

toyota's Eco-drivE tips · · Followthetrafficflowandanticipate whatisgoingtohappeninfront ofyou. Changeuptoahighergearearly: ahighergearalwaysmeansalower enginespeedandlowerfuel consumption · · · · · · · Aconstantspeedcangive lowerfuelconsumption. Don'tuseyourcartotravelshort distances Ifpossible,switchoffyourengineif youhavetowaitlongerthan 0seconds Followthemanufacturer's instructionsandhaveyourcar servicedregularly Checkyourtyrepressuresona monthlybasis Keepyourwindowsclosedanduse theventilationsystem Onlyuseelectricalaccessories(air conditioning,rearscreenheater, etc.)whennecessary,asthey consumeenergy · · · · Extraweightresultsinadditional energyconsumption(10%for skiboxesontheroof,upto 0%moreforacyclerack ontheroof).Removethem afteruse. Planyourrouteinadvanceso youdonotmakeunnecessary detours. Avoiddrivingintown, wherefuelconsumptionis twiceashighasonthe motorway. Useofequipmentsuchas cruisecontrol,oradisplay whichshowscurrent consumption,canleadto fuelsavingsofupto10%.

One of the world's leading automobilemanufacturers,Toyotasoldsome8.1million vehicles*in200,marketingtheminover10countries. ToyotaisoneoftheleadingautomotivebrandsinEurope, where it has been selling cars since the early 1960s and has invested over 6 billion since 1990. From its headquartersinBrussels,Belgium,thecompanyoverseas its eight European production sites, large R&D facilities anddesign,logistics,trainingandservicecentres.Intotal, Toyotaemployssome,000peopleinEurope,including retailers.

Responsibility through innovation

In addition to a reputation for technological innovation, superiorqualityandmanufacturingexpertise,Toyotafully assumesitscorporateresponsibilityfortheenvironment andforthecommunitiesinwhichitoperates. Thiscommitmenttranslatesintoacomprehensivevision ofsustainablemobility.Toyota'sextensiveResearchand Development programmes examine every aspect of vehicle design, performance, safety and the information infrastructurethatwillunderpindrivingtomorrow.Finding and implementing solutions that make cars less of an environmentalburdenisoneofthecentralfoundationsof sustainablemobility.

* Toyota, Lexus, Hino & Daihatsu combined

6

Towards the ultimate

Eco-car

In 2020 it is estimated there will be some 1.2 billion cars on the road, nearly twice the current number. Car makers must make the right decisions today to ensure that this growth does not lead to a drastic increase in exhaust emissions and the greenhouse gas carbon dioxide (CO2). Toyota's approach to exhaust emissions is to explore simultaneously a broad variety of solutions for developing cleaner, greener vehicles. The reason is that different countries and communities have different driving conditions, available fuel, vehicle infrastructure and legislation.

Alternative Fuel HV

FCHV

Fuel Cell Hybrid Vehicle

Plug-in HV Diesel HV

Diesel Hybrid Vehicle

THS II

Toyota Hybrid System

Toyota is committed to developing hybrid systems as the core technology for ecocars, combining different power sources in ways that maximize the strengths of each.

Hybrid Technology

Biofuels Synthetic Fuels CNG

Compressed Natural Gas

DPNR

Diesel Particulate NOx Reduction

D-4

Direct Injection 4-Stroke Petrol Engine

VVT-i Common Rail DI

Common Rail Direct Injection Variable Valve Timing with Intelligence

EV

Electric Vehicle

Lean-Burn

Alternative Fuel Engines

Diesel Engines

Gasoline Engines

Electrical Energy

How can the environmental impact of a car be measured? Provided we look at the whole lifecycle of a car, we can accurately measure its overall impact in terms of materials, production, emissions and end-of-life. This Life Cycle Assessment then makes it easier to produce cleaner cars according to clear targets.

&

One of the most promising technologies for reducing emissions in conventional cars is known as hybrid technology, since it advantageously combines the benefitsoftwotypesofpowersourceinsteadofrelying onjustone.Forexample,apetrolenginecanbe combinedwithanelectricmotor. In certain contexts of vehicle use, other typesoflow-emissionenginetechnologies are also proving effective, although they are not yet as mature or versatile as petrol and diesel-powered engines. These include fuel cells (where hydrogen is used to generate electricity)andcompressednaturalgasengines.

is to deploy the appropriate engine technology to produce... the right car for the right place at the right time.

Toyotaisinvestinginallthesetechnologiesinparallel. Eachformsastepforwardtowardstheultimateeco-car. Thisidealtargetwouldgeneratezeroemissionsfromits 1997 engine,andbetotallyrecyclable.Butwhilepursuingthis Kyoto Protocol drafted ideal, it is important to meet the real needs of society1998 EU todayand tomorrow, andtherefore Toyota's approachDirective:

sets emission targets for new cars as of 2005 (Euro 4)

2006

All Toyota engines meet Euro 4 Directive for emissions

EU directives on exhaust emission limits

Petrol (in grammes/km)

Date of application EURO 3 EURO 4 After 1/1/2000 1/1/2005 CO 2.30 1.00 NOx + HC 0.20 0.10 NOx 0.15 0.08 EURO 3 EURO 4

2008/9

European, Japanese and Korean car makers to reduce average CO2 to 140 g/km

Diesel (in grammes/km)

Date of application CO After 1/1/2000 1/1/2005 0.64 0.50 NOx 0.50 0.25 NOx + HC 0.56 0.30 Particulate Matter 0.05 0.025

For Petrol cars

100 80 60 40 20 EURO 3 EURO 4 CO HC + NOx PM NOx

8

how environmental is your car?

Toachieveloweremissionsandgreenervehiclesonthe waytowardtheultimateeco-car,itisessentialtomeasure progress. Toyota has therefore developed its Ecological

Vehicle Assessment System, or Eco-VAS. This is a comprehensiveapproachtoassessingavehicle'swhole lifecycle­fromproduction,throughusetodisposal­in terms of its impact on the environment, starting at the earlystagesofdevelopment,beforethevehicleisactually built.ToyotabeganusingEco-VASin200,bringingthe systemtoahighlevelofimplementationin200.

Eco-VAS at work

When a new Toyota vehicle is planned, the Chief Engineer sets quantitativetargetsforreducingits environmentalimpact.Assessmentcoversawiderange ofitems.Itstartswithmaterials­includingtheelimination of substances of concern such as lead or chrome ­ components and production methods. It continues by examining fuel efficiency and emissions during the vehicle'suse.Anditfactorsintheamountofmaterialsthat canberecoveredondisposal,aswellasoverallreduction ofemissionsthroughoutthevehicle'slifecycle. Eco-VAS Allfindingsfromtheseassessmentsarekeptinacomputer databasethatcanbeaccessedtocompareandcontrast progress in reaching Eco-VAS targets, and confirm the environmentalconformityofanewvehiclebasedonthe conceptoftotalLifeCycleAssessment(LCA).

at work By enabling development teams to evaluate the environmentalimpactofanewvehicleaheadofitsactual production,itwillbeeasierforToyotatoensureconstant step by step improvements on the road to the ultimate eco-car.

Vehicle planning

Target setting

Designing and prototype building

Target-achievement status check Evaluation-results feedback

Production

Target-achievement status con rmation

9

Clean

Europe.

manufacturing

The production of vehicles, engines and transmissions in factories inevitably has an impact on the environment. To ensure that car manufacturing can make more with less, Toyota developed its world-famous Toyota Production System (TPS) several decades ago. Over the years, TPS has also evolved to include new environmental targets. It is now applied in Toyota's production facilities all over

Since 2001:

· Total energy usage per car has been reduced by 37% across all of Toyota's European manufacturing plants. · Water usage has been reduced in Europe by 34%. · Packaging waste has been reduced through the full use of returnable or recyclable packaging. · Volatile organic compound emissions per square metre of painted surface have been reduced by 21%.

toyota's production system... · eliminateswaste · reducesenergyusage · minimisesuseofrawmaterials ·deliversstandardisedquality by... · applyingbestpracticein allprocesses("Yokoten") · continuousimprovement ("Kaizen") · goingtothesourcetofindthe facts("GenchiGenbutsu") · just-in-timeproduction,by `pulling'productsthroughthe productionline · activeinvolvementfrom allteammembers

Constant efforts to improve standards throughout the workplace have radically reduced the environmental impact of production at our plants.

Aim: zero emissions through TPS

For example: Toyota's vehicle plants in both the U.K. and France, have achieved the ambitious target of delivering zero waste to landfill.* Applying TPS principles, staff carefully examined how production waste was created, and invented appropriate solutions to reduce, reuse or recycle all the `waste' materials generated. This has resulted in a 73% reduction of waste going to landfill since 2001.

Greener

manufacturing in the Toyota Prius

The manufacturing process for the new Prius model has been organized to reduce the amount of energy needed for building the car. CO2 emissions during the manufacturing process are cut by 31% compared to the previous Prius production plant. Special Eco-plastic made from plants to provide floor mats is used. This further reduces CO2 emissions during manufacturing. The batteries are smaller and more efficient, resulting in 33% less CO2 emissions during manufacturing when compared to the previous generation Prius. the toyota prius is 90% recycable!

* Zero waste to landfill: less than 3% of 1997 amount of waste disposal to landfill

10

Green

Technologies

Petrol and diesel engines are highly efficient, but they come at a price. They emit CO2 and other gases and particles that pollute the atmosphere and might influence longerterm climate patterns. Toyota is therefore committed to developing technologies that reduce emissions to much lower levels. Since petrol and diesel engines will probably continue to form the major source of automotive power in the years to come, a major effort is being made to reduce the environmental impact of these technologies.

For example, Toyota has re-examined the whole structure of the internal combustion engine to identify specific ways in which petrol and diesel engines can burn less fuel more efficiently, and so emit less CO2 and other unwanted gases. This has led to the development of integrated intelligent technologies that use advanced solutions inside engines to improve the management of fuel and driving operations. One of these is Variable Valve Timing-intelligent (VVT-i), which uses less fuel than comparable petrol engines and emits less carbon dioxide, nitrogen oxides and hydrocarbons. Another is Toyota's Common Rail Diesel technology (known as D-4D), which injects a precise amount of fuel directly into the combustion chamber to deliver more efficient combustion and better fuel economy. These both help reduce CO2 levels in exhaust emissions. Toyota has also made significant advances in developing engines that are powered by alternative energy sources. One of the most promising approaches is to combine two different power sources in a single system to exploit the performance potential of both. This is known as hybrid technology, and forms one of the most promising development paths on Toyota's eco-car roadmap.

11

Do diesel engines pollute more than petrol engines? Diesel engines use less fuel and overall produce less CO2 than petrol engines. However, they produce more particulate matter and nitrogen oxides than petrol engines. Advanced technologies can improve the efficiency and cleanliness of both petrol and diesel engines.

&

Advancing with diesel

Mile for mile, diesel engines are more efficient as a power source than petrol engines. But this efficiency comes at a price. Diesel exhaust contains higher quantities of Particulate Matter (mostly consisting of un-burnt carbon compounds), as well as nitrogen oxide. Over the years, Toyota has developed a number of engine technologies that lower diesel's impact. Common Rail Diesel technology (D-D), for example, reduces CO2 emissions. Special catalysts have been developed to re duce particulate matter and nitrogen oxides. Toyota's D-D and exhaust gas recirculation technology help reduce the presence of hydrocarbons, carbon monoxide and particulate matterinvehicleexhaust. In 200, Toyota revolutionised the diesel engine by combining these different technologies into a single new integrated solution called Toyota Diesel Clean Advanced Technology (Toyota D-CAT). This advanced concept dramatically The D-4D 2.2-litre, Toyota D-CAT engine integrates special technologies reduces particulate matter and to produce very low NOx and particle emissions nitrogen oxides resulting in the world's cleanest diesel engine EGR Valve Exhaust Port Injector technology!In200,ToyotaD-CAT wasfeaturedinabrand-new2.2 litrehigh-power(1DINhp)diesel engine, built in Poland. Toyota's Piezoelectric common-rail injection new 2.0-litre D-D 12 diesel engine is available with a diesel parHigh Power Diesel Engine ticulate filter, reducing particulate · 2.2-litre, in-line 4-cylinders emissionsevenfurther. Toyota'schallengeistoensurethat diesel engines' emissions performancewilleventuallybeequivalentto petrolengines.

EGR Cooler Pressure Difference Sensor NOx storage reduction catalyst DPNR Catalyst Gas Temperature Sensors

Variable Nozzle Turbocharger Air fuel ratio sensor Oxidation Catalyst

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hybrid

Electric

Diesel

+ + + +

Alternatives Fuels

or

Petrol

or

Fuel Cell

or

hybrid Technology

No single engine technology or fuel can deliver an optimalsolutiontotheemissions problem.Allhavetheirshortcomings.

Hybridtechnologycanbeappliedeffectivelytoimprove theefficienciesofavarietyofpowertrainsirrespective ofthetypeoffuelused(gasoline,diesel,alternativefuels orfuelcellvehicles). Hybrids not only deliver lower emissions and reduced fuelconsumption,buttheyarecompletelysilentwhen operatingelectricallyanddeliverimpressivedrivingperformance. The revolutionary breakthrough achieved by hybrid technologyistheintelligentmanagementoftheenergy flowsfromtwodifferentpowersourcessothateachdimension of driving ­ acceleration, open road, braking andstop-and-go­isperformedinanoptimalway. This highly innovative solution consists of a petrol enginedesignedtominimizefuelconsumption,combined withazero-emissionelectricmotormatchedtoanickel metalhydrideelectricbatterypacktoprovideadditional power. Both of these power sources work together under the supervision of a sophisticated power management controller to deliver maximum overall drivingefficiency.

Petrol engines emit less nitrogen oxides than diesel engines, and produce insignificant levels of particulate matter. Diesel engines, on the other hand, are more fuel efficient and therefore produce less carbon dioxide than petrol engines. Among non-petroleum power sources, electric vehicles, for example, are clean, but cannot deliver satisfying overall driveperformance,acceptabledrivingrange,andhave toberecharged. Butwhatifitwerepossibletocombinedifferenttypes ofpowersourcesandmakethemworktogethertoenhancetheirrespectivebenefitsandreducetheirobvious shortcomings? Thisleapforwardhasbeenmadethroughthecreation ofToyota'shybridtechnology,nowoneofthecompany'scorevehicletechnologies.

If you drive 25,000 km a year in a Prius, you will save over 1 tonne more CO2 when compared to a similarly-sized diesel car.

One tree(1) absorbs around 14kg(2) of CO2 each year. So you'd be doing the annual workload of a forest with 71 trees.

(1) Measured using Japanese cedar (2) CO2 equivalent

1

The Toyota Prius has already captured 90% of the world market for hybrid technology, having been on the market since 1997. The Prius was voted the 2005 European Car of the Year ­ a strong endorsement for environmentally beneficial hybrid technology.

toyota & hy Brid:

· Launchedtheworld'sfirstmass-producedhybrid car(ToyotaPrius)in199. · Istheworld'sleadingmanufacturerofhybrid vehiclesandhasthelargesthybridmodelline-up. · Intendstodoublethenumberofmodelsinits hybridline-upbytheearly2010s. · Over00,000hybridvehiclessoldworldwide (July2006). · Over0,000hybridvehiclessoldin Europe(July2006). · Targetofreachingannualhybridsales of1millionunitsbytheearly2010s.

Prius: an eco-pioneer

ordinary driving Runs with electric motor and engine in most fuel-efficient configuration

Engine Engine Engine Engine

Full-throttle acceleration Engine power + electric motor power

Engine Engine Engine

deceleration/braking Electricity is generated, and partly recharges the battery

stop-and-go Engine stops automatically, and can run on electricity alone

Battery

Battery Battery Battery Battery Battery Battery Battery Electric motorElectric motor Electric motor Electric motor

Battery Battery Battery Electric motorElectric motor Electric motor Battery Electric motor

Battery Battery Electric motor Electric motor Battery Electric motorElectric motor

High fuel-efficiency driving

Energy recovered and stored

Zero fuel consumption

1

hybrid Synergy drive

Hybrid Synergy Drive® (HSD) is the concept behind thenewgenerationofhybridvehiclesfromtheToyota brand, including the Toyota Prius, the world's bestsellinghybridvehicle.HSDcombinesdrivingpleasure and performance with fuel economy, low emissions andsilentdriving.Theword"synergy"extendstothe highersynergybetweenthepetrolengineandelectric motortopowerthevehicle.Theelectricmotorisnow more powerful, allowing a higher ratio of electrical/ petrolusage.Theresultsaremoreperformancewith greatlyimprovedefficiency. the benefits of hybrid synergy drive in the prius · Excellent driving performance: accelerationsimilartoamainstream D-segment(1)dieselengine. · Low fuel consumption: .litres/100km­equivalent toaB-segment(1)dieselcar.

Power Split Device

Battery

Charged by the engine via the generator when cruising, and by electric motor when braking. Never needs to be plugged in.

Inverter

Converts DC from battery to AC for driving the motor.

1.5-litre Petrol engine

Uses special technology to extract more energy from petrol combustion.

· Lower emissions: CO2emissionsof10g/kminthe combinedcycle(2),downfrom 120g/kmforthepreviousgeneration. · silent driving: HSDcanrunontheelectricmotoronly, offeringacompletelysilent drivingexperience.

(1)B-segmentcarsarecompactcarsliketheToyotaYaris. D-segmentcarsarelarger,morepowerfulcarssuch astheToyotaAvensis. (2)Cityandhighwaydriving.

Splits power between engine, motor, generator and wheels.

Regenerative braking system

Uses electric motor as generator to convert braking energy into electricity.

Electric motor

Permanent-magnet technology to produce 50kW output.

1

lexus hybrid drive

The Lexus brand first introduced hybrid power trains with the RX 400h in May 2005. Since then, Lexus has gained more ground with its European hybrid strategy, both by launching the GS 450h in May 2006 and presenting the company's forthcoming flagship, the LS 600h, in May 2007. Hybrid technology is attracting customers to the Lexus brand who are looking for a realistic alternative to mainstream technology. In addition to the quietness, smoothness and refinement of hybrid power trains, Lexus customers appreciate the powerful and linear acceleration combined with segment-leading environmental performance. To reflect the importance of its hybrid strategy, Lexus has adopted a new brand name that will more clearly identify its advanced hybrid technology and philosophy: Lexus Hybrid Drive.

Alternatives to fossil fuels

Thegreatadvantageofalternativeenergysourcesis thattheycandrasticallycutemissionsforcarsbeing driven. However, since many of the technologies involved are not yet fully mature, and are still too costly to be implemented into a broad range of cars, the majority of them require further research anddevelopmentbeforetheycometomarket.

Toyota has led the way in developing a number of these alternative technologies as cleaner solutions for sustainablemobility,andhasalreadyproventhatinnovativesolutionscanbecommercialisedforspecificuses.

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inside an Fchv

Hydrogen Water Air 1 3 4 2

1. Fuel cell stack 2. Battery 3. Control unit 4. Motor

hydrogen fuel cells ­ as pure as water One of the most promising technologies developed to use alternative energy is `fuel cell'. A fuel cell works by combining two common elements - hydrogen and oxygen - to generate electricity that powers an electric motor. The by-products of this reaction are only water vapour and heat, making thistechnologytheultimatezeroemissionsolution forvehicleuse,eventhoughtheactualproduction process for hydrogen is not emission-free. Toyota has been conducting research into fuel cells since 1992. It believes fuel cell driven vehicles will becomeamainstayofmobilityinthefuture.

developed fuel cell. The full commercialisation of fuelcellvehicles,however,willrequiretheestablishment of a hydrogen supply network similar to that forpetrolanddieselfuel-alarge-scaleandcostly undertaking.Butwhilethemarketoffuelcellpoweredvehiclesislimitedfortheimmediatefuture,their potentialremainsprovenandclear. Toyota has been researching a number of other sources of cleaner fuel for some time now, in its questfortheultimateeco-car. For example, Toyota has researched Compressed Natural Gas (CNG) for over two decades, with limited-scale commercialisation. Compared to conventional diesel and petrol vehicles, natural gas powered vehicles emit very small amounts of ParticulateMatter,andmuchlesscarbondioxide. However, CNG requires very large storage tanks for the fuel, and tends to deliver less energy than conventional fossil fuels, limiting its long-term applicationstoveryspecificdrivingcontextssuchas bus or taxi transport in city centres. Gas-to-Liquid (GTL)­asyntheticdieselfuelproducedfromCNG -isanotherpromisingenergyalternative,asituses existing diesel fuel infrastructures. It provides the benefitoffurtheremissionsreductionandthebetterfueleconomyofthelatestcleandieselengines ­ such as Toyota D-CAT and Toyota's Diesel ParticulateFilter. Toyotaalsosupportstheuseofalternativefuelsincluding bio-fuels for cars to help reduce fossil fuel consumptionandtopreventclimatechange.

CO2 output from oil well to car wheel

0 0.2 0.4

(Gasoline vehicle = 1)

0.6 0.8 1.0

Petrol vehicle Diesel vehicle Petrol Hybrid Toyota FCHV (target)

Well-to-Tank CO2 Tank-to-Wheel CO2

In the Japanese 10-15 test cycle, Toyota in-house testing FCHV: Hydrogen fuel

Well-to-Tank CO2 = CO2 emitted from the oil well until the fuel arrives at the fuel station Tank-to-Wheel CO2 = CO2 emitted by a vehicle during use, including refueling

VehiclesequippedwithfuelcellsandusingToyota's hybrid system configuration are 2 - times more efficient than petrol-powered cars in terms of fuel tank-to-wheelefficiency. In2002,Toyotawasthefirstautomobilemanufacturer to commercialise Fuel Cell Hybrid Vehicles (FCHVs)inJapanandtheU.S.Theyareequipped with the Toyota FC Stack, a completely in-house

Gsi - GEar shiFt indicator Fuel consumption in vehicles can also be reduced by making more efficient use of existing technology.The"GearShiftIndicator"isagoodexample.It'satechnologythataimstoencourage fuelefficientdrivingbehaviour.Itdoesthisbyindicatingtheoptimumpointtochangegearfor eco-driving. By doing so, awareness of fuel efficient driving is increased. Depending on the circumstances,fuelconsumptioncanbereducedbyover%.

1

The 3 Rs:

For car makers, truly sustainable mobility also means manufacturing vehicles and processing them at the end of their lifetime in ways that ensure maximum energy efficiency and minimum waste. The 2015 target is to have 85% of the vehicle weight being reused or recycled and 10% energy recovery, leaving the remaining 5% for disposal.

Reduce, Reuse, Recycle

End-of-life vehicles

End-of-life vehicles (ELVs) contain materials ranging from steel and rubber to plastic and solvents. Some of these contain Substances of Concern (SoCs) which would contaminate the soil and the groundwater reserves if an ELV is simply thrown away. Toyota's Eco-VAS (Vehicle Assessment System) sets targets and consistently tracks measures for limiting SoCs and reducing other forms of environmental burden. And further improvements will follow in the future. toyota makes vehicle recycling easier: 1. Designing cars for easier recovery. 2. Manufacturing cars with recovery in mind. 3. Recovery of used parts and components that are replaced during the life of a vehicle. 4. Minimising the remaining waste of an ELV.

How does recycling reduce CO2 emissions? Making new cars involves the use of many materials, from metals and synthetic products to cardboard, which all have to be first produced industrially. By recycling materials where and when appropriate, the amount of energy used can be reduced, along with factory emissions.

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Build recoverability into design

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Using shredder residue effectively

Resin recycling and reuse

ling cyc e Re Centre obil l tom chnica Au Te

DIS

designing for recycling Inordertosimplifythedismantlingprocess,Toyota designed a new `Easy to Dismantle Mark'. Thismarkisaddedtovehiclepartsclearlyindicatingcertainpointsthatassistininitialdismantling,suchasthepositionsatwhichlargeresin partscanbeeasilyseparatedandthelocations atwhichholescanbedrilledforremovingfuel. Cars contain plastics that are hard to recycle. ToyotahasthereforedevelopedaspecialrecyclableplasticcalledToyotaSuperOlefinPolymer, orTSOP,thatcanbeusedtomakecarbumpersandotherpartswhichcanthenberecycled manytimesover.

Greening spare parts Batteries,tyres,andoilfiltersallneedtobereplaced during a vehicle's lifetime. Toyota has thereforesetupawastecollectionsystemthat retrievesusedpartsfromEuropeandealersand sendsthembackforrecovery.Inaddition,Toyota'sremanufacturedpartsofferingnowincludes air conditioning compressors, power steering racks,cylinderheads,starters,automatictransmissions,alternators,enginesandclutchkits. substances of concern Lead, together with Mercury, Cadmium and Hexavalent Chromium, are heavy metals that cause long-term damage to the environment if buried unprocessed in landfills. In line with the year2000EuropeanUniondirectiveonEnd-ofLifeVehicleswhichlimitstheuseoftheseSubstancesofConcern(SoCs)inmaterialsandvehiclecomponentsstartingin200,Toyotanow usesanumberofzero-leadcarpartsandanticorrosion coatings, mercury-free lighting and switches, and asbestos-free friction materials andenginegaskets.ItalsoavoidsSoCsinvariouskindsofpaintsandinsolvents.

R rem eplac anu eme n fac ture t par d ts

The recycling Process

The European End-ofLife Vehicle Directive (Environmental Directive 2000//EC) was adopted by the European Parliament and Council on September 18, 2000, to improve the recycling and recovery of ELVs, and toincreasetheenvironmentalperformanceofall economicplayersintheprocessingchain.Since then,allEUMemberStateshaveenactedlaws toimplementthisDirective.

ry te at em s b yst iu s Pr g ta lin yo yc To rec

USE

ste wa ystem s ler Dea ection l col

Ap rec plic yc atio led n ma of ter ial

s

19

the end is a new beginning ToyotahascreatedadedicatedAutomobileRecyclingTechnicalCentreinJapantoexperiment withnewtechniquesfordismantlingvehiclesfor recovery. This has resulted in the construction ofanoperationalAutomobileShredderResidue RecyclingPlantwhichin2001achievedToyota's voluntarygoalofdevelopingthetechnologyfor acommercialsystemtoachieveahighrecovery rateforcomponentmaterials. OnceEurope'send-of-lifecarshavebeenshredded to extract usable materials, they still leave 2 milliontonnes of residue behind. Traditionally thishasbeenburiedinlandfillorincinerated.But theEuropeanELVandLandfillDirectivesnowin forcelimittheuseofthissolution.

In Japan, Toyota has developed ways of using certain foam products found in vehicle residue to create recycled soundproofing products. Thanks to the high-quality characteristicsofautomotiveglass,powderedglass from shredder residue is recycled into tiles for useinlandscapingpavement. Shredder residue that cannot be recycled can nevertheless be melted down into extremely smallpacksforlandfill,reducingoncemorethe environmentalimpactofvehiclesonfuturegenerations.

Toyota Avensis and the 3 Rs

Two parts use plastic recycled from production waste. Plastic recycled from polypropylene is used in four separate parts.

Recycled plastic for the bumper, instrument panel and other coverings.

Renewable materials (recycled cotton and wool) for sound absorption and insulation.

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The next horizon

Cars have benefited society for over a century. During this time, car makers have explored a variety of technologies, and fine-tuned the internal combustion engine into the high-performance machine we know today. For Toyota, the automobile's future will be dedicated to improving relations between cars, people and the environment.

Toyota has promised to achievesustainablemobility. And our company is well recognised for its innovative products and technologies. Toyota is developingtheseadvanced technologies in order to protect the environment, and ensure its continued growth. Our company recognises the link between mobility, a sustainable environment and economic growth, and believes that thegrowthofourbusinessdependson thesuccessofsustainablemobility. Through the concepts it builds today for tomorrow's society, Toyota is seeking to expand the scope of personal mobility while ensuring minimal environmental impact. For example, Toyota has developed the i-swing, a personal, light-weight mobility vehicle that creates a seamless transformation between vehicle and human movement. The batterypowered i-swing minimizes occupied space andenergyconsumptionwithitsultracompact size, operating in two-wheel mode when movingamongpeopleinthecityandswitching

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RA iS i nG E nV i R On mEnTAl AwA R EnE S S Th R O U Gh Th E TO Y O TA F u nD F O R E uR O P E:

to three-wheel mode on the road with other vehicles. The driver of the i-swingcanremaininpermanentcontactwiththeirvehiclethroughamobile phoneoraPC,bringingpersonalmobilitytoanotherlevel. Beyond its product range, Toyota recognises the importance of good corporate citizenship and is taking concrete steps to positively impact Europeansociety. In2002,ourcompanyestablishedafund­theToyotaFundforEurope­to enhanceitsgoodcorporatecitizenshipthroughsocialcontributionactivities inEurope.ThestrategicfocusofthisFundislinkedtoourcorecorporate sustainabilitychallenges:environment,roadsafetyandtechnicaleducation. Toyota's advanced technologies already provide a proven new platform for building an even wider range of cleaner and more fuel-efficient engines, while offering an enticing driving experience. And other technologies such as fuel cells promise longterm alternatives for specific applications. With its effective production methods, leading technology and constant attention to customer requirements, Toyota is developing many solutions to theglobalchallengeofsustainable mobility.

Green pack Since2000,Toyotahas supportedtheRegional EnvironmentalCenterforCentral andEasternEuropeinthe developmentandproductionof theGreenPack­auniquemultimediaenvironmentaleducation kitdesignedtobeusedby schools. schools for sustainable development In200,ToyotaEuropelaunched theSchoolsforSustainable Developmentprogrammein partnershipwiththeNGOs GroundworkUKandthe EnvironmentalPartnership (CEEurope).Theprojectaims topromotelocalcommunity environmentalactionsbygiving schoolstheopportunityto makeimprovementsintheir neighbourhoods. Eco-schools Thisproject,rolledoutin WesternEurope,isaimedat promotinginnovationinschools´ environmentalproblemsolving, throughtheawardingofgrants projectsonsustainablemobility.

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Genchi Genbutsu

"Going to the source to find the facts to make correct decisions, build consensus and achieve goals."

This report has been printed on CyclusPrint© paper, produced with 100% recycled pulp and without the use of OBA (Optical Bleaching Agent).

Toyota Motor Europe Corporate Affairs Avenue du Bourget 60 - 1140 Brussels, Belgium Tel. +32 2 745 21 11 / Fax +32 2 745 20 68 e-mail: [email protected] www.toyota.eu

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