TOYOTA GREEN PURCHASING GUIDELINES

Transcription

1 TOYOTA GREEN PURCHASING GUIDELINES TOYOTA MOTOR NORTH AMERICA, INC. SEPTEMBER 30, 2016

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. 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 2

3 Table of Contents Dear Toyota Suppliers... 4 Introduction... 6 Overview: Request to Suppliers... 8 Environmental Compliance Environmental Management Systems Carbon Reduction of CO2 Emissions from Supplier Facilities Reduction of CO2 Emissions from Transport Activities Water Materials Chemical Management Packaging & Wrapping Materials Waste Minimization & Recycling Biodiversity Glossary

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. 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. 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 U.S. 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. 4

5 We are asking you, our suppliers, to help us in our efforts. 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, U.S.A., 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. 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 Craig Grucza Group Vice President Corporate Shared Services Robert Young Group Vice President Purchasing, Supplier Engineering Development & Cost Planning Kevin Butt Regional Director Environmental Sustainability 5

6 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. 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. 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

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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. 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 *Parts, Accessories & Components *Direct T-1 Supplier Type * Raw Materials *Indirect *Logistics Environmental Compliance 1) Compliance with Environmental laws & regulations Ù Ù Ù Ù Environmental Management Systems 1) Current production suppliers that are not certified Acquire certification Ù Ù 2) New production supplier/plant Acquire certification 2 years after SOP Ù Ù 3) Maintenance of certification (recertify every 3 years) Ù Ù 4) Post-production parts and accessories suppliers Implement and maintain an EMS Ù Ù Ù Reduction of CO2 Emissions from Supplier Facilities 1) Maintain tracking of electricity and natural gas consumption and CO2 emissions 2) Pursue opportunities to reduce energy use and CO2 emissions. Consider renewable energy options. Consider establishing 5-year reduction targets. 3) Pursue opportunities to reduce VOC emissions Ù Ù Ù Ù Reduction of CO2 Emissions from Transport Facilities 1) Maintain tracking of fuel consumption, distance traveled, fuel efficiency Ù 2) Assist TMNA with identifying best available alternative transport technologies for use in logistics and help TMNA to pilot these technologies 3) Improve trucking CO2 efficiency 1 percent per year Water Conservation 1) Decrease the amount of water used in operations and track reductions Existing request New request New Request to some suppliers 8

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10 Environmental Activity *Parts, Accessories & Components Chemical Management 1) TSZ0001G Compliance Ù Ù Ù 2) IMDS Reporting Ù 3) Mark material for recycling Ù *Direct 4) Process audit 5) TMR SAS0126n Compliance Ù Ù 6) SOC Compliance Evidence Summary Sheet (ESS) Ù Ù T-1 Supplier Type * Raw Materials *Indirect 7) Environmental Data Sheet (EDS)* Ù Ù *Logistics 8) Safety Data Sheet (SDS)* Ù Ù Packaging & Wrapping Materials 1) Reduce packaging material use by 1% per year, ) Increase use of returnable and/or recycled packaging O O O 3) Reduce disposal of wood pallets, cardboard and plastic packaging 4) Reduce the use of hazardous packaging and wrapping materials, including corrosion inhibitors and VCIs, without impacting quality Waste Minimization & Recycling 1) Decrease waste generated and increase recycling 2) Consider becoming certified as a Zero Waste Business *Biodiversity 1) Consider applying for Conservation Certification from the Wildlife Habitat Council 2) Support wildlife corridors and development of natural habitat 3) Through volunteer activities or financial support, consider helping to protect or preserve natural habitat Existing request New request New Request to some suppliers Note: Terms marked with an asterisk (*) are defined in the Glossary 10

11 Environmental Compliance Toyota s compliance record and indeed our reputation depends on our actions as well as the actions of our business partners. Therefore, we expect our business partners to support and fully comply with all applicable environmental and hazardous materials/dangerous goods laws and regulations. Many of Toyota s activities as well as those of our business partners are subject to local, state, provincial and federal laws that regulate, among other things, chemical management, air emissions, water discharges, storm water management, greenhouse gas emissions, and waste treatment and disposal. These regulations vary by facility based on the type of equipment operated and the functions performed. Toyota expects our business partners to stay current and in compliance with all applicable environmental laws and regulations. See the Materials/Chemical Management section for information related to laws and regulations governing the use of chemicals. Requirements: Environmental Activity *Parts, Accessories & Components *Direct T-1 Supplier Type * Raw Materials *Indirect *Logistics Environmental Compliance 1) Compliance with Environmental laws & regulations Ù Ù Ù Ù Existing request New request New Request to some suppliers Documents to Submit: Documents to submit to TMNA When to submit Whom to submit to There are no documents to submit at this time. Toyota will confirm improvement activities / compliance as needed Contact: Production Suppliers TMNA Purchasing Service Parts and Accessories Suppliers TMNA Service Parts and Accessories Organization 11

12 Environmental Management Systems Toyota develops and maintains environmental management systems to continuously improve environmental performance, and we request that all suppliers do the same. Certain suppliers are requested to acquire, maintain and submit ISO or Responsible Care certification; others are requested to develop, implement and maintain an environmental management system (EMS) but are not requested to acquire third-party certification. If you are a production supplier supporting Toyota s manufacturing plants, you are required to have your EMS certified to ISO or Responsible Care by a third party. If you support post-production activities (such as supplying finished parts to a parts distribution center), you must implement an EMS but are not required to have your EMS certified. If you supply to both, you must follow the requirements for production suppliers. Requirements: T-1 Supplier Type *Direct *Parts, Environmental Activity * Raw *Indirect *Logistics Accessories & Materials Components Environmental Management System 1) Current production suppliers that are not certified Acquire ISO or RC certification Ù Ù 2) New production supplier or plant Acquire ISO or RC certification 2 years after SOP Ù Ù 3) Current production suppliers that have already been ISO or RC-certified Maintenance of Ù Ù certification (recertify every 3 years) 4) Post-production parts and accessories suppliers Implement and maintain an Environmental Ù n/a Ù Ù Management System Existing request New request New Request to some suppliers Documents to Submit: Documents to submit to TMNA When to submit Whom to submit to ISO 14001/ Responsible Care Survey Form & Certificate if applicable Upon request See contacts below Contact: Production Suppliers TMNA Purchasing Service Parts and Accessories Suppliers TMNA Corporate Shared Services Indirect Procurement 12

13 FAQs: ISO & Responsible Care Q1. What is ISO 14001? A. ISO is an international standard for establishing and implementing an Environmental Management System (EMS). Q2. What is Responsible Care 14001? A. Responsible Care is based on the ISO EMS and expanded to address the Responsible Care Principles (environment, health, safety and security) Q3. What is the difference between ISO and Responsible Care 14001? A. There are a number of differences, beginning with the expanded scope of the audit. Responsible Care follows ISO 14001's outline in its entirety, except for adding with health, safety and security to the scope of the activity. For those Suppliers using Responsible Care, the environmental policy now becomes an environmental, health, safety and security policy. Q4. How long does it take to implement an EMS that conforms to ISO / Responsible Care standard? A. The time varies, but typically the implementation, development and certification process takes years from start to finish. Q5. Can suppliers self-declare compliance to ISO / Responsible Care or is 3 rd party certification required? A. To maintain the credibility, objectivity and consistency of certification, Toyota is requiring third-party certification from production suppliers. Non-production suppliers are required to have an EMS in place; they may choose to selfdeclare compliance to ISO or RC but are not required to self-declare or acquire third-party certification. 13

14 Carbon Toyota views climate change as a global priority management issue. To combat climate change, Toyota set a goal to reduce life cycle CO₂ emissions to zero as part of the Environmental Challenge Toyota evaluates greenhouse gas (GHG) emissions across the entire vehicle life cycle. At our facilities and in our logistics operations, we set targets through FY2021 to reduce GHG emissions and increase our use of renewable energy. To support our goal of helping to create a net positive impact for carbon, we request that our suppliers take an active approach to reducing GHG emissions and increasing renewable energy use from their own activities. We also request that suppliers seek to reduce GHG emissions across the entire life cycle of their products by reducing raw material use, increasing the use of recycled materials, and designing and developing products that limit or eliminate GHG emissions at end-of-life. Reduction of CO 2 Emissions from Supplier Facilities Toyota undertakes active measures to reduce CO2 emissions from electricity and natural gas consumption. In accordance, suppliers are also requested to implement CO2 reduction measures in their facilities. In order to make steady improvements, suppliers are requested to maintain data on renewable and non-renewable electricity consumption, natural gas consumption and CO2 emissions from these sources Requirements: Environmental Activity Reduction of CO2 Emissions from Supplier Facilities 1) Maintain tracking of electricity and natural gas consumption and CO2 emissions 2) Pursue opportunities to reduce energy use and CO2 emissions. Consider renewable energy options. Consider establishing 5-year reduction targets. *Parts, Accessories & Components *Direct T-1 Supplier Type * Raw Materials *Indirect *Logistics 3) Pursue opportunities to reduce VOC emissions Ù Ù Ù Ù Existing request New request New Request to some suppliers See next page See next page Documents to Submit: Documents to submit to TMNA When to submit Whom to submit to Those suppliers who respond to CDP s Climate Change Investor Request, By August 15 and/or whom Toyota has requested information from through CDP s Supply th of TMNA Environmental each year Sustainability Chain Program, are requested to submit their completed CDP reports. 14

15 Contact: TMNA Environmental Sustainability Reduction of CO 2 Emissions from Transport Activities Toyota undertakes active measures to reduce CO2 emissions from diesel and gasoline consumption in logistics. Toyota set a target to improve GHG efficiency by 5 percent from owned and third-party logistics by FY2021. In accordance, logistic providers are requested to implement environmental measures in their logistics activities. Suppliers who are contracted by Toyota to carry out logistics to and from a Toyota facility or cross dock must fully understand Toyota s initiatives to reduce CO2 emissions. Logistics providers are further requested to cooperate with Toyota s efforts to collect information on CO2 emissions from transportation activities and to help Toyota identify alternative transport technologies that have the potential to further reduce CO2 emissions. Requirements: Environmental Activity Reduction of CO2 Emissions from Transport Activities 1) Maintain tracking of fuel consumption, distance traveled, fuel efficiency 2) Assist TMNA with identifying best available alternative transport technologies for use in logistics and help TMNA to pilot these technologies *Parts, Accessories & Components *Direct T-1 Supplier Type * Raw Materials *Indirect *Logistics Ù 3) Improve trucking CO2 efficiency 1 percent per year Existing request New request New Request to some suppliers Documents to Submit: Documents to submit to TMNA When to submit Whom to submit to Service Parts & Accessories Suppliers: GHG Service Parts & Accessories emissions report containing fuel consumption, Beginning of each month Organization s Transportation, distance traveled, fuel efficiency, and GHG (for the previous month) Continuity & Compliance group efficiency data Production Logistics Suppliers: GHG emissions report containing fuel consumption, distance traveled, fuel efficiency, and GHG efficiency data Beginning of each month (for the previous month) TMNA Logistics Control Contacts: Service Parts & Accessories Suppliers Data tracking requirements vary for rail, trucking and marine logistics carriers. Please contact either TLS or the Service Parts & Accessories Organization s Transportation, Continuity & Compliance group for detailed requirements. Production Suppliers Contact TMNA Indirect Purchasing for submission of CO2 reduction ideas. Submit Monthly CO2 data to TMNA Logistics Control. 15

16 Water Toyota recognizes water as a global issue that must be addressed regionally, and intends to roll out a range of measures globally to reduce the amount of water used in operations and improve water quality. To address the global challenge to minimize and optimize water use, Toyota Motor North America set a target to reduce water withdrawals. To support our goal of helping to create a net positive impact for water, we request that our suppliers implement water conservation initiatives at their facilities, including reducing the amount of water used, increasing water recycling and improving the quality of water discharged. Requirements: Water conservation Environmental Activity 1) Decrease the amount of water used in operations and track reductions *Parts, Accessories & Components *Direct T-1 Supplier Type * Raw Materials *Indirect *Logistics Existing request New request New Request to some suppliers Documents to Submit: Documents to submit to TMNA When to submit Whom to submit to Those suppliers who respond to CDP s Water Information Request, and/or whom Toyota has requested information from through CDP s Supply Chain Program, are requested to submit their completed CDP reports. By August 15 th of each year TMNA Environmental Sustainability Contact: TMNA Environmental Sustainability 16

17 Materials Toyota recognizes the world must transition to a recycling-based society to avoid large-scale exploitation and depletion of natural resources and environmental pollution from increasing amounts of waste. To address the global challenge to establish a recycling-based society, Toyota Motor North America set targets through FY2021 to enhance chemical management, reduce the use of packaging material 1 percent per year, increase the amount of waste reduced/reused/recycled, and certify five major facilities as Zero Waste Businesses according to the *U.S. Zero Waste Business Council definition. To help us establish a recycling-based society, we request that our suppliers undertake similar activities. We also request that suppliers consider *end-of-life vehicle issues as well as sustainable materials those that are made of recycled, recyclable or renewable content in the development of parts, components and accessories. Chemical Management In recent years, an increasing number of chemical substance regulations have been implemented globally. The trend in chemical substance regulation is changing from hazard management, which focuses only on the toxicity of individual substances, to risk management, which takes into consideration the degree of impact on people, plants and animals. For this reason, it is necessary to enhance chemical management. Regulations in Japan, Europe and North America, including REACH and TSCA, require companies to collect information on the chemical content of their product and manage their supply chains. As an employer, OSHA regulations dictate that we must maintain SDSs on all incoming shipments of hazardous chemicals and ensure that the SDSs are accessible to employees who may come into contact with the chemicals. TMNA has an online SDS management program for this purpose, but we must rely on suppliers to generate and submit accurate SDSs so that our system is up-to-date and in compliance. Toyota suppliers must comply with applicable regulations, Toyota standards and quality manuals, and report chemical usage as summarized in this section. 17

18 Product Management PROTECTED 関係者外秘 Requirements: : All applicable parts/materials/services : Partially applicable (as requested or otherwise communicated) - : Not Applicable REQUIREMENT Compliance with Toyota Standards (which cover Toyota-specific and regulatory requirements) Report chemical substance use Product/ material content management for production Process audit by Toyota *Parts, Accessories & Components * Raw Materials Product Packaging (Limited to packaging for parts, accessories and service parts for import or export to a regulated region) *Raw Materials *Indirect Materials Facilities Equipment, construction, landscaping, cleaning Target - TSZ0001G - TSZ6005G - TSZ0001G - LMS SAZ0001n - TMR SAS0126n - TMR SAS0126n Reference Target - Toyota requests - Toyota requests - New raw materials/ - Timing - New/changed parts indirect materials - New/changed materials Format Reference RESPONSIBLE DIVISION - IMDS - SDS and EDS for imported chemicals - - EDS - SDS (both are required for imported materials) - TMNA IMDS Manual Target - - Timing - Design stage - New parts/design change/process change (ex. ECI/PCR) Reference - SQAM - SLIM QAPSOCC Format - SOC ESS Target - Development - As requested - As requested - As requested - Design Timing - Production preparation - Mass production - Raw: QE - IMDS: PRA - Indirect: PE ENV - SOC ESS: QD - Logistics Control - SPAO - SPAO - TLS - PE ENV - 18

19 1. CHEMICALS AND MATERIALS USED IN PRODUCT Parts & Components, Raw Materials, Service/Accessory Parts, Packaging Toyota business partners are required to eliminate or reduce certain chemical substances at design, development and mass production stages for parts and materials and their packaging, and mark plastic and rubber products for the purpose of recycling. Engineering Standard TSZ0001G, Control Method for Substances of Environmental Concern, defines substances that are prohibited or restricted for use within parts and materials delivered to Toyota, or that require declaration of their use. TSZ0001G is updated periodically to align with global regulations and the Global Automotive Declarable Substance List (GADSL). The latest TSZ0001G can be viewed after secure login to Toyota suppliers are required to proactively report part and material composition via the International Material Data System (IMDS). Rules and timing for reporting new products and engineering changes are provided within the TMNA IMDS Manual. Toyota may also periodically request IMDS information for specific parts or materials, with a fixed due date. Suppliers should follow the requirements outlined in the Quality Assurance Policy for Substance of Concern Compliance for Parts, Raw Materials and Fasteners (QAPSOCC) along with the Supplier Quality Assurance Manual (SQAM). Toyota-approved test methods for identifying substances of concern are specified in qualityrelated documents QSF 122, 122-1, and QAPSOCC and the QSF are available via In cooperation with Toyota, applicable suppliers must also identify and/or develop alternative chemicals for parts or materials containing restricted or prohibited chemicals. Additionally, suppliers are requested to conduct periodic audits to ensure thorough management of materials and chemicals. Toyota may carry out its own supplier audits as needed to verify the overall condition of the chemical management system. Toyota requires plastic and rubber parts marking for recycling as required by regional regulation. Part marking applies to plastics parts greater than 100 g and rubber parts greater than 200 g. Specific marking requirements are provided within Toyota Standard TSZ6005G. Environmental Data Sheets (EDSs) and Safety Data Sheets (SDSs) are required for all chemicals in service parts and accessories. These documents are used to verify compliance with regulations and conformance to Toyota internal standards. Toyota exports domestically sourced service parts and accessories abroad. Chemicals found in these parts could be subject to TSCA Section 12(b) depending on their chemical makeup. Toyota requires that suppliers provide a TSCA export certificate for all domestically sourced parts that contain chemicals. This certificate should be completed by the manufacturer or importer with the most knowledge of the chemical (in some cases, the chemicals used by a direct supplier to Toyota are sourced from a third party). 19

20 2. MATERIALS USED AT TOYOTA FACILITIES In addition to management of chemicals within Toyota products, business partners are required to eliminate or reduce certain chemical substances used in raw materials, indirect materials and packaging used within Toyota facilities. Materials delivered or brought in to Toyota must not contain prohibited substances specified in TMR SAS0126n, Banned Substances in Raw Materials and Indirect Materials (see Examples of relevant materials include raw and indirect materials as well as oil contained in equipment, agrochemicals and other chemicals. The Toyota Environmental Data Sheet (EDS) is used to collect chemical-specific information about the materials used at Toyota facilities. This information is used to comply with federal, state and local environmental regulations. When shipping materials to a Toyota facility in the U.S., applicable suppliers must submit a Safety Data Sheet (SDS) that complies with the Globally Harmonized System of Classification and Labeling of Chemicals (GHS) requirements as implemented under the U.S. OSHA Hazard Communication Standard (29 CFR ). When shipping materials to a Toyota facility in Canada, applicable suppliers must submit a Safety Data Sheet (SDS) that complies with the requirements of Health Canada s WHMIS 2015 (Hazardous Products Act/Regulation). 20

21 Packaging & Wrapping Materials Toyota is working to reduce the use of packaging and wrapping materials. We ask that all Tier 1 suppliers initiate a reduction plan in line with Toyota s goal to reduce the use of packaging material by 1 percent per year. We also ask that suppliers use nonhazardous packaging material, both for environmental sustainability and industrial hygiene purposes, without impacting quality. All in-bound packaging must be shipped in containers approved by Toyota. Refer to standard design specifications provided in the Supplier Logistics Instruction Manual (SLIM) chapter 3.0.H for North American destination parts, and chapter for export parts. Requirements: Environmental Activity *Parts, Accessories & Components *Direct T-1 Supplier Type * Raw Materials *Indirect *Logistics Packaging & Wrapping Materials 1) Reduce packaging material use by 1% per year, ) Increase use of returnable and/or recycled packaging O O O 3) Reduce disposal of wood pallets, cardboard and plastic packaging 4) Reduce the use of hazardous packaging and wrapping materials, including corrosion inhibitors and VCIs, without impacting quality Existing request New request New Request to some suppliers Documents to Submit: Documents to submit to TMNA When to submit Whom to submit to There are no documents to submit at this time. Toyota will confirm improvement activities / compliance as needed Contact: TMNA Environmental Sustainability 21

22 Waste Minimization & Recycling As part of the Environmental Challenge 2050, Toyota set a goal to establish a recycling-based society and is working toward car-to-car recycling (producing new vehicles from end-of-life vehicles). Toyota has been actively pursuing reductions in resource consumption, increased recycling and reductions in waste, and we request that suppliers implement similar initiatives. Requirements: Environmental Activity Waste Minimization & Recycling 1) Decrease waste generated and increase amount of waste recycled 2) Consider becoming certified as a Zero Waste Business *Parts, Accessories & Components *Direct T-1 Supplier Type * Raw Materials *Indirect *Logistics Existing request New request New Request to some suppliers Documents to Submit: Documents to submit to TMNA When to submit Whom to submit to There are no documents to submit at this time. Toyota will confirm improvement activities / compliance as needed Contact: TMNA Environmental Sustainability 22

23 Biodiversity Toyota recognizes *biodiversity as a global issue that must be managed locally, regionally and globally. If humans and nature are to coexist into the future, we need to conserve forests and other ecosystems in all regions. To address the global challenge to establish a society in harmony with nature, Toyota Motor North America set targets through FY2021 to achieve Conservation Certification from the Wildlife Habitat Council at two new sites per year, support wildlife corridors including the migration pathway of the monarch butterfly, and protect and preserve natural habitat in North America. To support our goal of helping to create a net positive impact for biodiversity, we request our suppliers implement similar conservation initiatives at their facilities. Requirements: *Biodiversity Environmental Activity 1) Consider applying for Conservation Certification from the Wildlife Habitat Council 2) Support wildlife corridors and development of natural habitat 3) Through volunteer activities or financial support, consider helping to protect or preserve natural habitat *Parts, Accessories & Components *Direct T-1 Supplier Type * Raw Materials *Indirect *Logistics Existing request New request New Request to some suppliers Documents to Submit: Documents to submit to TMNA When to submit Whom to submit to There are no documents to submit at this time. Toyota will confirm improvement activities / compliance as needed Contact: TMNA Environmental Sustainability 23

24 FAQs: Biodiversity Q1. What is biodiversity? A. Biological diversity or biodiversity is the term given to the variety of life on Earth and the natural patterns it forms. This diversity is often understood in terms of the wide variety and interdependence of plants, animals and microorganisms that inhabit the planet. So far, about 1.75 million species have been identified. Scientists estimates on the number of species range between 3 and 100 million. Biodiversity also includes genetic differences within each species, for example, between varieties of crops and breeds of livestock. Chromosomes, genes and DNA the building blocks of life determine the uniqueness of each individual and each species. Another aspect of biodiversity is the variety of ecosystems such as those that occur in deserts, forests, wetlands, mountains, lakes, rivers and agricultural landscapes. In each ecosystem, living creatures, including humans, form a community, interacting with one another and with the air, water and soil around them. Q2. Why is biodiversity important? A. The combination of life forms and their interactions with each other and with the rest of the environment has made Earth a uniquely habitable place for humans. Biodiversity provides a large number of goods and services that sustain our lives. For example: Biodiversity is essential to global food security and nutrition and also serves as a safety net to poor households during times of crisis. Increased diversity of genes within species, e.g. as represented by livestock breeds or strains of plants, reduces risk from diseases and increases the potential to adapt to changing climates. More than 70,000 plant species are used in traditional and modern medicine. The value of global ecosystem services is estimated at $16-$64 trillion. Q3. What are some of the biodiversity concerns in North America? A. Endangered and threatened species: In the U.S., there are 497 endangered and 202 threatened animal species and 732 endangered and 166 threatened plant species. 1 Habitat loss: Of the 36 internationally recognized biodiversity hotspots (where 30 percent or less of the original natural vegetation still exists), five are in North and Central America: California Floristic Province, Caribbean Islands, Madrean Pine-Oak Woodlands 2, Mesoamerica and the North American Coastal Plain. Declining pollinator populations: In the U.S., 30 percent of crop production depends on pollinators. Of this, honey bees are responsible for almost 80 percent of all crop pollination. The monetary value of honey bees as commercial pollinators is estimated at about $15 billion annually. 3 Declines in the diversity of flowering plants, loss and degradation of habitat, introduction of non-native species, toxicity and widespread use of pesticides, air pollution and climate change all play a role in the decline of pollinator populations. For example, the monarch butterfly population has declined 90 percent over the past two decades. Q4. What is the Wildlife Habitat Council? 1 U.S. Fish & Wildlife Service s Environmental Conservation Online System, accessed July 19, The Madrean Pine-Oak Woodlands are subtropical woodlands found in the mountains of Mexico and the southwestern U.S. 3 The estimated value of honey bee pollination in Canada is about $2 billion. 24

25 A. The Wildlife Habitat Council (WHC) promotes and certifies habitat conservation and management on corporate lands through partnerships and education. To WHC, every act of conservation matters. Whether it s a small pollinator garden or a complex wetlands restoration, each and every conservation action contributes to the collective positive outcome for the environment. WHC s certification program, Conservation Certification, is built on best practices of global recognition programs, reflects contemporary conservation efforts and aligns WHC s collective works with the future of biodiversity, not only in the U.S., but across the globe. Conservation Certification helps companies demonstrate a long-term commitment to managing quality habitat for wildlife, conservation education and community outreach initiatives. For more information about WHC and Conservation Certification, please visit 25

26 Glossary Accessories Toyota parts that are equipped at Toyota dealers, ports or in-line (for example, floor mats, spoilers, body side molding, navigation systems, etc.). Biodiversity Biological diversity or biodiversity is the term given to the variety of life on Earth and the natural patterns it forms. This diversity is often understood in terms of the wide variety and interdependence of plants, animals and microorganisms that inhabit the planet. So far, about 1.75 million species have been identified. Scientists estimates on the number of species range between 3 and 100 million. Biodiversity also includes genetic differences within each species, for example, between varieties of crops and breeds of livestock. Chromosomes, genes and DNA the building blocks of life determine the uniqueness of each individual and each species. Another aspect of biodiversity is the variety of ecosystems such as those that occur in deserts, forests, wetlands, mountains, lakes, rivers and agricultural landscapes. In each ecosystem, living creatures, including humans, form a community, interacting with one another and with the air, water and soil around them. Direct Supplier A supplier who provides parts, components or raw materials that go directly on a Toyota vehicle or unit. EDS (Environmental Data Sheet) A Toyota document that requests suppliers to provide the full disclosure of ingredient information prior to shipping materials to a Toyota plant or facility (see ELV (End-of-Life Vehicle) The European Commission enacted the End of Life Vehicle Directive to address pollution resulting from vehicles that have reached the end of their useful life, also known as End of Life Vehicle (ELV). The legislation identifies requirements for the EU Member States to set legislation to encourage reuse, recycling or other forms of recovery of ELVs and their components. EMS (Environmental Management System) A set of processes and practices that help an organization reduce its environmental impacts and increase its operating efficiency. Greenhouse Gas (GHG) GHGs are gases that trap heat in the atmosphere. The most commonly recognized GHGs are the six gases listed in the Kyoto Protocol, an international agreement that established internationally binding emission reduction targets: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulfur hexafluoride (SF6). Indirect Materials Materials used within a Toyota facility as part of the manufacturing process, facility operations or maintenance that are not/do not become part of the vehicle (e.g., construction, equipment, landscaping, cleaning fluids). Indirect Supplier A supplier who provides goods, services or raw materials that are used in Toyota facilities producing Toyota vehicles and/or units (for example: construction, equipment, machinery and cleaning suppliers). ISO International Organization for Standardization (ISO) is an international standard for establishing and implementing an environmental management system (EMS). Logistics A supplier who manages freight movement. NAMC North American Manufacturing Center Parts, Accessories & Components Supplier A supplier who provides parts, accessories and components (including service parts and accessories) that go directly on Toyota vehicles and/or units. Raw Materials Materials used by Toyota to make parts, or that are otherwise used on or in a Toyota vehicle (e.g., steel, resin, paint, adhesives, engine oil). Toyota requires suppliers to manage and report raw materials based on their use both on a Toyota vehicle (product requirement) and within a Toyota facility. 26

27 Responsible Care Responsible Care (RC14001 ) and Responsible Care Management System (RCMS ) are performance improvement initiatives launched by the American Chemistry Council (ACC) to ensure that the chemical industry makes health, safety, security and the environment top priorities. RC14001 incorporates RCMS and all the requirements of ISO environmental certification into a single, more cost-effective process. SDS (Safety Data Sheet) Provides safe use and handling of chemical products according to the Globally Harmonized System (GHS) and the U.S. OSHA Hazard Communication Standard. SOCs (Substances of Concern) See Toyota Engineering Standard TSZ0001G for a complete list of substances. Toyota Plant Toyota plant refers to the following facilities where vehicles and/or units are produced: BODINE, CAPTIN, TABC, TMMAL, TMMBC, TMMC, TMMI, TMMK, TMMMS, TMMTX, and TMMWV. U.S. Zero Waste Business Council (USZWBC) The USZWBC mission is to educate, inform and document the performance of Zero Waste Businesses using scientific methods to help businesses and communities become more healthy and sustainable. USZWBC has created the first third-party Zero Waste Business Certification program for facilities that meets the Zero Waste Principles of the Zero Waste International Alliance (ZWIA). The USZWBC facility certification program goes beyond diversion numbers and focuses on the upstream policies and practices that make Zero Waste successful in an organization. USZWBC has crafted the facility certification to meet the requests of Zero Waste Businesses for a valid, comprehensive verification of their Zero Waste achievements. Visit for more information. Volatile Organic Compounds (VOCs) VOCs are emitted as gases from certain solids or liquids and include a variety of chemicals subject to regulation. 27