Toyota Motor Corporation

No leading practices were identified for this company.

Toyota has a comprehensive low-carbon transition plan informed by climate scenario analysis that has considered the implications of a 1.5°C scenario.

No leading practices were identified for this company.

Toyota uses several levers, such as information collection, engagement and incentivisation, and innovation and collaboration, to encourage its suppliers/vehicle manufacturers to reduce greenhouse gas (GHG) emissions and supply low-carbon products. Toyota has also implemented a strategy to influence clients to reduce their GHG emissions. The strategy focuses on actions related to education and information sharing, collaboration and innovation, and customer motivation via marketing and choice architecture, and it covers 92% of the company’s client-related scope 3 emissions.

While Toyota has set targets for scope 1, 2 and 3 emissions, it only discloses its scope 1 and 2 emissions. The lack of company disclosure of other emission values makes it difficult to track its progress on targets.

Toyota has developed a low-carbon transition plan covering its scope 1, 2 and 3 emissions and aiming to achieve carbon neutrality for GHG emissions throughout the life cycle of its products. Further, the company has implemented board-level oversight of climate change. However, it has not linked executive incentives with climate-related targets and key performance indicators.

Toyota invested USD 8.6 billion in research and development (R&D) in 2023. However, the company does not disclose the proportion of its R&D expenditure invested in low-carbon technologies. Additionally, Toyota does not disclose its low-carbon capital expenditure (CapEx) and its low-carbon revenue share for 2023. In 2023, the company reported that the sales of BEVs and FCEVs accounted for less than 5% of its total sales for the year. However, the company’s BEV strategy targets an annual production of 1.5 million BEVs by 2026 and 3.5 million per year globally by 2030, with an investment of around USD 35.6 billion in BEVs, including batteries.

Although Toyota has implemented a supplier engagement strategy, it does not specifically include quantified GHG emissions reduction requirements for suppliers. Creating quantified targets will provide clearer direction to the company’s whole supply chain. There is evidence of the company having a strategy for client-related emissions covering 92% of total sales. There is also evidence of what actions the company would take in cases where associations, alliances and coalitions it is a member of are found to take a climate-negative stance. The company’s action plan includes engaging with the associations, alliances, coalitions or think tanks to influence them to change their position. It may include making public statements, but it does not specify withdrawing funding for the association or suspending or ending the company’s membership.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.  The company engages in social dialogue and stakeholder engagement in its just transition planning. However, no evidence was found that the company has a set of time-bound, measurable indicators to mitigate the social impacts of the low-carbon transition on workers, affected stakeholders and its business relationships. 

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. No public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups. 

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.  No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers. 

The company commits to respecting human rights. Furthermore, the company discloses a human rights due diligence process that includes the identification and assessment of salient human rights risks, such as issues surrounding migrant labour. The company takes action to mitigate these risks in its own operations and its supply chain, and it engages with affected stakeholders. Additionally, the company has a grievance mechanism available to workers and external stakeholders.  

The company commits to respecting the health and safety of its workers and expects the same commitment from its business relationships. However, no evidence was found of the company having a time-bound target for paying all workers a living wage. While the company discloses the proportion of its direct workforce covered by collective bargaining agreements, no relevant disclosure was found of the company’s required working hours. The company discloses some indicators of workforce diversity, including gender of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. Nevertheless, the company has a commitment towards gender equality and women’s empowerment. 

The company commits to protecting personal data. However, no evidence was found of the company having a privacy statement regarding the collection, sharing and access to personal data. While the company discloses its global tax strategy, no relevant disclosure was found of the corporate income tax it pays in each relevant jurisdiction. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. Furthermore, the company has a lobbying and political engagement policy, and it specifies that it does not make political contributions. Yet, no relevant disclosure was found of the company’s expenditure on lobbying activities.