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TOYOTA Green Purchasing Guidelines

TOYOTA Green Purchasing Guidelines TOYOTA MOTOR north AMERICA, INC. SEPTEMBER 30, 2016 PROTECTED 2 These Guidelines are not intended as legal advice and do not release our suppliers and business partners from the responsibility of complying with applicable laws and regulations. TOYOTA Motor north America, Inc. (TMNA) and our affiliated companies expect our suppliers to have the relevant expertise and to identify and comply with all applicable legal and regulatory requirements, including current versions of existing laws and regulations as well as new ones, and to comply with all contractual obligations to TMNA and our affiliated companies.

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Transcription of TOYOTA Green Purchasing Guidelines

1 TOYOTA Green Purchasing Guidelines TOYOTA MOTOR north AMERICA, INC. SEPTEMBER 30, 2016 PROTECTED 2 These Guidelines are not intended as legal advice and do not release our suppliers and business partners from the responsibility of complying with applicable laws and regulations. TOYOTA Motor north America, Inc. (TMNA) and our affiliated companies expect our suppliers to have the relevant expertise and to identify and comply with all applicable legal and regulatory requirements, including current versions of existing laws and regulations as well as new ones, and to comply with all contractual obligations to TMNA and our affiliated companies.

2 TMNA may from time to time revise or update these Guidelines to reflect new legal requirements or otherwise improve environmental performance. If you have questions, please contact the listed group under each activity or PROTECTED 3 Table of Contents Dear TOYOTA Suppliers .. 4 Introduction .. 6 Overview: Request to Suppliers .. 8 Environmental Compliance .. 11 Environmental Management 12 Carbon .. 14 Reduction of CO2 Emissions from Supplier Facilities .. 14 Reduction of CO2 Emissions from Transport Activities .. 15 Water .. 16 Materials .. 17 Chemical Management.

3 17 Packaging & Wrapping Materials .. 21 Waste Minimization & Recycling .. 22 Biodiversity .. 23 26 PROTECTED 4 Dear TOYOTA Suppliers, As one of the world s largest automakers, TOYOTA is in a unique position to shape the future of mobility. That s why last fall, our parent company announced the TOYOTA Environmental Challenge 2050, an ambitious set of six challenges that will move our company and society as a whole closer to a sustainable future over the next 35 years and beyond. The six challenges address four complex environmental issues facing communities all around the world.

4 Challenges 1, 2 and 3 focus on carbon and call for eliminating not just reducing greenhouse gas emissions from our vehicles, operations and supply chain. Challenge 4 addresses water availability and quality; Challenge 5 seeks to move us closer to a recycling-based society; and Challenge 6 is devoted to protecting nature. All six challenges address some of the world s most pressing environmental issues and ultimately seek to create a net positive impact on the planet. And all of them require cooperation if we are to succeed. Here in north America, we are already taking action to move us toward meeting the six challenges.

5 We are working on reducing GHG emissions, energy consumption and water use; improving materials management; and taking action to protect biodiversity. We also joined the Environmental Protection Agency s Suppliers Partnership for the Environment, a forum for auto companies and their suppliers to work together to improve environmental performance. We see this partnership as a key mechanism for sharing best practices and collaborating to develop new and innovative approaches to addressing our environmental impacts. PROTECTED 5 We are asking you, our suppliers, to help us in our efforts.

6 We believe that by working together, we can scale up our positive impacts to make a significant difference. We have updated the Green Purchasing Guidelines (formerly the Green Supplier Guidelines ) to align with TOYOTA s global Environmental Challenge 2050 and to consolidate the Guidelines from three of TOYOTA s north American companies: TOYOTA Motor Engineering & Manufacturing north America, Inc. (TEMA); TOYOTA Motor Sales, , Inc. (TMS); and TOYOTA Canada Inc. (TCI). We request that you incorporate these revised Guidelines into your environmental programs and engage in initiatives that are in accordance with TOYOTA s environmental activities.

7 TOYOTA strives to become a global leader in environmental protection and needs your full support and commitment to make it happen. Please note, these revised Guidelines and other important supplier information can be found on Thank you for your support, Nobuhisa Tanaka Executive Advisor Purchasing & Supplier Engineering Development Robert Young Group Vice President Purchasing , Supplier Engineering Development & Cost Planning Craig Grucza Group Vice President Corporate Shared Services Kevin Butt Regional Director Environmental Sustainability Introduction TOYOTA s global Environmental Challenge 2050 is a set of six challenges that go beyond zero environmental impact to achieve a net positive impact on society.

8 These six challenges direct TOYOTA companies worldwide in efforts toward sustainable development. TOYOTA Motor north America, Inc. (TMNA) developed an environmental action plan for fiscal years 2017 to 2021 that puts us on a path to meeting, and in some cases going beyond, the six challenges put forth by our parent company. Our action plan is arranged around four core focus areas: Carbon, Water, Materials and Biodiversity. Within each of these core focus areas, we conduct Outreach activities with Suppliers and Dealers as well as other Stakeholders to expand our positive impacts.

9 We are committed to managing these priority issues as well as promoting awareness and sharing know-how with business partners and other stakeholders to promote positive change. 6 PROTECTED 7 PROTECTED 8 Overview: Request to Suppliers TOYOTA is committed to long-term, stable and mutually beneficial relationships with our north American suppliers. We expect our suppliers to provide the best products at the lowest price in a timely manner. We also expect thorough compliance with all applicable laws, regulations and social norms as well as consideration for the environment.

10 We ask that suppliers always engage in the development and manufacture of products from the perspective of the customers who purchase TOYOTA products. We also request that you undertake the environmental activities described in the following table. For certain activities, TOYOTA will track the status of implementation through surveys or document collection. Detailed information about each request can be found in the corresponding sections of this document. Environmental Activity T-1 Supplier Type *Direct*Indirect*Logistics*Parts,Accesso ries & Components * RawMaterials Environmental Compliance 1) Compliance with Environmental laws &regulations Environmental Management Systems 1) Current production suppliers that are notcertified Acquire certification 2) New production supplier/plant Acquirecertification 2 years after SOP 3) Maintenance of certification (recertify every 3years) 4)


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