2017 Toyota Global Environment Month Celebration

2017 TOYOTAGlobal Environment Month “Let’s do it for the future!” WELCOME to TMP’s ECO-FAIR 13-16 June 2017 Message from TMC President Toyoda Toyota Global Environment Month has been celebrated every June since 1973. For over four decades, we have been fostering our passion for the environment and using it to create ever-better cars and to enrich the lives of our communities. I would like to express my sincere gratitude to all Toyota employees for your continuous efforts to promote a sustainable environment. In the fall of 2015, the Toyota Environmental Challenge 2050 was launched. Every one of us living in this moment bear the responsibility to unfailingly hand over our beautiful and diverse earth to the next generation. The Toyota Environmental Challenge 2050 gives shape to this responsibility and thus must be realized. Some of you may think 2050 is too far in the future to directly relate to or actually feel. However, during the Toyota Global Environment Month, I would like you to recall my 2017 New Year’s Remarks once again. In my remarks, I said that I want you to develop like-minded friendships with your colleagues so you can work to achieve the future of automotive society. To accomplish this, it is important to interact with others honestly, forthrightly and with passion to build a better future. Also, every one of you must truly aspire to build a better country and better society. So, I want each one of us to start this year’s Toyota Global Environment Month sincerely wishing to make our one and precious earth more beautiful. Think what you can do and take action, no matter how small the action will be. Let us take action with the belief that all small actions every one of you takes, will impact both your colleagues and even further, the global Toyota. It is our responsibility to protect this beautiful earth for the next 100 years. It’s now or never, let us take action for the smiles of the next generation! — AKIO TOYODA

To go beyond zero environmental impact and achieve a net positive impact, Toyota has set itself six challenges. All these challenges, whether in climate change or resource and water recycling, are beset with difficulties, however we are committed to continuing toward the year 2050 with steady initiatives in order to realize sustainable development together with society.Looking far ahead into the future, Toyota has set goals that would help address the environmental challenges that facebusiness operations today. The “Toyota Environmental Challenge 2050” will guide the global Toyota Family in realizingsustainable development together with society. Launched in 2016, Toyota takes on the challenge to go beyond zeroenvironmental impact and achieve a net positive impact.

CHALLENGE 1 New Vehicle Zero CO2 Emissions ChallengeAs if to demonstrate the fact of global warming, extreme weatherpatterns worldwide have been provoking successive disasters. Ifcurrent conditions continue and increased measures are not takento reduce greenhouse gases, it is estimated that by 2100, the world’saverage temperature will have risen by 3.7–4.8°C. It is furtherestimated that, to hold the temperature rise since before the IndustrialRevolution to “below 2°C,” we will not only have to reduce additionalCO2 emissions to zero, but will need to achieve an actual positive trend through absorption.*eWietnlsehegcililtfnerteiotc-h,dreaernidwvdueocnfreulvdeveleihschiecitcrlllelyevsine,CgThOoit2cyoeloemmtsaioaswvnseiidloltnfpousrwrobtamhyredo9rt0“eabpcteheclreeoclwdeeerna2vtt°eienClot”cphosmemcseeppnnartaeroriasifodon,noeTowfxtyti-hotgheteas2ne0he1avras0e,thlieuoicvnnleedvlsese.r,hWbtihcyhle2ees0“nN5wt0ehi.wtehTsoVeloreeewhcaiocolil-rzefezrZeitehernoirsdoC,lyiOCnO2vaee2dhmCdihciistlaiesolslineocnntoogsm—em,”eihldeiynaebtgcroiieddwie,mipddlpeutrosgop-vcirenhemaahldeylebnunrtsgiodeef,,they can start making a contribution to society. Toyota will also cooperate with relevant stakeholders to provide possible support as an automobilemanufacturer toward the provision of the infrastructure for widespread adoption of electric and fuel cell vehicles. *5th Assessment Report of IPCC Working Group III (2014)ECO-FRIENDLY PRODUCTSPart of the “Quality” that the Toyota brand is known for globally is the Company’s commitment in producing vehicles that have little or no impactto the environment. Over the years, Toyota continues to improve its gasoline and diesel engine technology for better fuel efficiency and loweremissions. In fact, it has always been at the forefront of designing vehicles that would have zero or less impact to the environment. AmongToyota’s flagship eco-friendly vehicles include the Prius and the Mirai.FUEL CELL VEHICLE: TOYOTA MIRAIThe Mirai features the Toyota Fuel Cell System, which combines fuel cell technology with hybridtechnology. The system is more energy efficient than internal combustion engines and offersexcellent environmental performance without emitting CO2 or other harmful substances duringdriving. WHAT TOYOTA MOTOR PHILIPPINES DOESHYBRID VEHICLE: TOYOTA PRIUSThe Prius uses Hybrid Technology, which means it uses twopower sources - the internal combustion engine, whichalways operates at maximum efficiency, and the electricmotor, which provides backup and recovers surplus energy.By efficiently switching between these two power sources,the vehicle combines high fuel efficiency with a comfortabledriving style.In the Philippines, the “Prius c” is made available in themarket, giving our customers the choice for eco-friendlyvehicles. Equipped with a 1.5 liter VVT-i engine and Toyota’sHybrid Synergy Drive technology, the Prius gives customersgreat fuel mileage. Its engines switch alternately dependingon the situation for the perfect blend of power and economy.

CHALLENGE 2 Life Cycle Zero CO2 Emissions ChallengeCBhyaLlilfeencgyec,lewZeemroeCanO2eEffmoritsssitoonrseduceto zero not simply the aCnOd2 emissionsproduced in traveling manufacturing,bpurotcaellssCeOs2 emissions including in the of materials production, anddisposal and recycling of vehicles. Forinstance, there are some next-generationvehicles that do awdcrehiviweenvile,l bfruuertdthuaeccrteudparClolyOm2coatueseenivnircorenamseendtaClOly2 emissions at the material and vehicle production stages. way,emissions when friendly design by choosing appropriate materials. In thisBecause of this,we are going to pursue “Always Better Cars.” For example, we will develop and expand the use of materials with wloiwll earlsCoO2emissions during production and will reduce the quantity of materials and number of parts used in a vehicle. Weadopt more recycling and biological materials for vehicle production and enhance the initiative aimed at easy-to-dismantledesign. WHAT TOYOTA MOTOR PHILIPPINES DOESIn order to ensure proper environmental management, TMP requires all of its suppliersto abide by Toyota’s Green Purchasing Guidelines. Under this, suppliers are obligatedto acquire and maintain ISO 14001 certification. They are also required to ensure theenvironmental compliance of all products and raw materials delivered to TMP. Thisincludes the elimination of Substances of Concern (SoCs) in all parts and components.Moreover, suppliers are encouraged to continuously enhance their respective environmentalperformance and introduce initiatives that preodlluutcieonCdOi2secmhaisrgseio.nS,uVpOpClieerms iasrseioanl,swo aetnejroined toconsumption, solid waste generation, andtake measures in their logistics operations to reduce CO2 emission and packaging materials.International Wiring Systems Philippines Corporation (IWSP), TMP’s wiring harnesssupplier for Vios and Innova, committed to reduce their energy consumption iamnpdleCmOe2 netmedissionby at least 6% in relation to production volume. To achieve this target, IWSPseveral kaizen activities in their operations. Among theseinclude IWSP’s installation of energy-saving devices in airconditioning units, which reduced harmonics in the systemand improved power consumption.Another activity by IWSP was the transition fromconventional lighting to a more efficient and environment-friendly lighting. IWSP replaced conventional fluorescentlights with LEDs and Solatubes in its production line andwarehouse facility. Likewise, conventional perimeter lightingwere replaced with solar-powered lights.

CHALLENGE 3 Plant Zero CO2 Emissions ChallengeCpiNsrOo,ot2tchoiesensralseyl.fsodRoroeegd,veueanhclseiioncralgaetesCcdOeh2dmaultlioertinCrneggOse2ttrhfwaoeihrinritlhcemelitamrpnalauvatefnealticscnthgutah,renagt emanufacture automobiles. The two main pillarsof our strategy to achieve zero mCOa2neumfaicstsuiroinnsg atour plants are improvement oftechnology and switching to different formsof energy. Taking first the manufacturingtechnology, we will carry out simplification andrationalization of the manufacturing process tosCResohmOeuog2irrsaectsremedinosiinnsistgssu.iaotcInhnmhdespareisrennodsveauoerlcllgdaepyrertsaofhofncieucedritseciwsmneictsenyy,duptisehnpesuoed,swnf,,oeewcrrru,egitnaytwnsinutdiaglslnbecCcyucOeuta2btnCiylOiazi2lnisnetogrmorhidesyudsdcuiroiconneggseCmbnOye2eacnehdmeaorinpgsityssi.nimognsrset.hnWaetewdwaobilnlleofuteruntseheregreyrneedrugcy.e WHAT TOYOTA MOTOR PHILIPPINES DOESTMP carefully monitors its emissions to theenvironment, especially in its manufacturingoperations. With the continuous improvement, orkaizen of its processes, TMP continues its effortsin reducing its carbon footprint to contribute tothe overall goal of achieving zero CO2 emission inPlant Operations by 2050.Among its efforts itnosrtaeldlautcioenCoOf2 emission inproduction is the the Boiler FeedbackController in Painting line’s 2 boilers. This mechanismensures optimum efficiency in boiler combustion byautomatically adjusting air-to-fuel ratio. As an effect,less fuel (diesel) is used, which contributes to lesserCO2 emission in boiler operations.

CHALLENGE 4 Challenge of Minimizing and Optimizing Water UsageAccording to forecasts, the world’s population willclimb to 9.1 billion by 2050, demand for water willincrease by 55 percent from current levels, andas a result, the percentage of the total populationsuffering water shortages will reach 40 percent.*In automobile manufacturing, water is used inpainting, forging and other processes. Therefore,even a small reduction of its impact on the waterenvironment is important. Our two measures toachieve this are comprehensive reduction of theamount of water used and comprehensive water purification and returning it to the earth.So far, Toyota has implemented rainwater collection to reduce the amount of water used by production plants, filtering toincrease the water recycling rate, and re-use of wastewater through recycling. The local water environment differs greatlydepending on region. Going forward, we intend to roll out a range of measures globally to deal with the water environmentin a way that is sensitive to local needs. *Toyota data WHAT TOYOTA MOTOR PHILIPPINES DOESIn its effort to reduce water consumption in the plant, TMP introduced the use of Biochemical Treatment in the paintingsludge pool. Its effectiveness resulted in generation of less waste water and correspondingly, a decrease in water volumenecessary for replenishment.Likewise, TMP has a Waste Water Treatment Plant (WWTP) designed with a 3-treatment system (physical, chemicaland biological) to ensure that the effluent regulatory requirements are met. The WWTP has its own laboratory capable ofconducting daily analysis of the main water parameters to ensure that the water discharge is safe. Safe water coming fromthe WWTP is being reused to water the plants and refill the man-made lagoon, while the rest are released to Laguna Lake.Waste Water Treatment Plant Man-made Lagoon

CHALLENGE 5 Challenge of Establishing a Recycling-Based Society & SystemsWith the worldwide increase in population and the pressurefor economic growth and convenient lifestyles, theconsumption of resources is accelerating. If present trendscontinue, large-scale exploitation of natural resourceswill result in depletion, and appropriate disposal will beunable to keep pace with the increasing amounts of wastegenerated by mass consumption, resulting in environmentalpollution.To improve resource efficiency toward an ideal resource-recycling based society (circular economy), initiatives areneeded in four key areas: (1) utilization of eco-friendlymaterials; (2) making use of parts longer; (3) development ofrecycling technology; (4) making vehicles from the materialsof end-of-life vehicles. These last two apply to the whole ofthe automotive industry.Toyota has been working for 40 years on the challenge of resource recycling, leading the world by developing world-firsttechnologies and in terms of scale of operations. Going forward, by rolling out to the world the technology and systems evolvedin Japan and developing them into the future, we will continue working on the challenge of establishing a recycling-basedsociety. WHAT TOYOTA MOTOR PHILIPPINES DOESTMP established its very own Green Home model. A green home is a house designed to be environment-friendly by utilizingdifferent ways and means to use energy and resources efficiently. TMP’s Green Home is made of fifty-one percent (51%)recycled materials. The furniture and fixtures inside the house were fabricated from Toyota manufacturing plant’s scrapmaterials such as metal and wooden pallets used for packaging, tubes, wire rollers, plastics, pipes, excess tiles, and crushedglass. The Green Home features environment-friendly solutions such as natural and LED lighting, natural ventilation, greenroof, and rainwater harvesting.To raise awareness and engage Team Members, TMP also introduced the “Green Home Designs” contest, wherein participantscreated home furniture and fixtures using recycled scrap materials from TMP’s manufacturing plant. THE GREEN HOMEFacade Living Room Kitchen Dining Room

CHALLENGE 6Challenge of Establishing a Future Societyin Harmony with NatureIf humans and nature are to coexist into the future, we need to Toyota Forest inside TSEZconserve forests and other rich natural systems in all regions. TMP Team Members planting tree-seedlingsHowever, deforestation is progressing around the world, sothat every year, forest equivalent to 14 percent of Japan’s inside the Toyota Forestland area is lost.* To realize our aim of “enriching lives of TMP volunteer Team Members planting seedlingscommunities” in each region, the Toyota group companieshave engaged in planting trees at plants, environmental inside the Makiling Botanical Gardenconservation activities in their surrounding area, andenvironmental education. Going forward, the insightsgathered so far will be used to promote activity at Group,region, and organization level.Among the variety of activities we are rolling out are theToyota Green Wave Project, which aims to connect regionswith green corridors; the Toyota Today for Tomorrow Project,providing assistance for environmental activities that connectto the world; and the Toyota ESD Project, contributing toenvironmental education that connects to the future. Our aimis to establish a society where humans and nature coexist inharmony. *Toyota data WHAT TOYOTA MOTOR PHILIPPINES DOESOn top of ensuring environmental compliance, TMP directlycontributes to Mother Earth through its various tree-plantinginitiatives.In its own yard inside the Toyota Special Economic Zone(TSEZ) in Santa Rosa City, Laguna is a Toyota Forest and aTree Nursery developed and cultivated to breed biodiversity.Every June, in celebration of the Global Toyota EnvironmentMonth, Team Members are encouraged to join the tree-planting activities inside the Toyota Forest.On a larger scale, TMP supports the Toyota Adopt-a-ForestProject, which was forged through a collaborative partnershipwith the University of the Philippines Los Baños Foundation,Inc. (UPLBFI). The project includes: the reforestation of ten(10) hectares inside the Makiling Botanic Gardens (MBG); thecreation of a 3-hectare Toyota Palmetum Garden, which willexhibit endemic palm species in the Philippines; and the 300-sqm. Toyota Environment Education Theater.