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Toyota Motor Corporation

Known for Toyota, Lexus, Hino

Toyota Motor Corporation is an auto manufacturer headquartered in Toyota City, Japan, publicly listed on the Tokyo stock exchange. In 2019 it had US$272.6 billion in revenue and sales of over 9.7 million vehicles. Toyota is present in all major world vehicle markets with the majority of its sales in the US, Japan & China.

Summary

Toyota Motor Corporation has a performance score of 7.1 out of 20 against a well below 2-degree pathway. This is lower than the company’s 2019 performance score of 10.4, when it was assessed using the less ambitious 2-degree pathway.

Toyota led the development of conventional hybrids to make its internal combustion engine (ICE) vehicles more efficient. This focus seems to have held the company back from developing a fleet of truly low-carbon, electric vehicles. So far, Toyota’s low-carbon focus has been on hydrogen fuel cell vehicles and the company will only launch its first battery electric vehicle in 2021. Its current low-carbon vehicle sales share is just 0.6 percent, falling short of 5.9 percent needed to align with Toyota’s well below 2-degree pathway. Incidentally, the efficiency of Toyota’s ICEs has barely improved in five years and is currently very poorly aligned to its company decarbonisation pathway for this indicator.

Total score: 7.1/20
Assessment Note: Toyota Motor Corporation received a full ACT assessment in 2019.

Performance module name	Performance module score	Rank (0-30)
Targets	1.1 / 3	#8
Material Investment	0.4 / 0.4	#1
Intangible Investment	1.2 / 2.4	#10
Sold product performance	2.2 / 7	#25
Management	1.1 / 2.2	#10
Supplier	0.6 / 1.2	#4
Client	0.0 / 0.8	#15
Policy Engagement	0.2 / 1.2	#17
Business Model	0.3 / 1.8	#13

Across most indicators, the company is less transition aligned than in its 2019 assessment. This reflects a lack of transparency and ambition in its current activities. Toyota is doing little to encourage its customers to adopt low-carbon vehicles. Although it has a number of new Mobility-as-a-Service (MaaS) business streams, it is not clear how significant or profitable these will be.

As the world’s second largest car manufacturer by vehicle sales, Toyota can quickly pivot its activities to the low-carbon economy of the future, by using its significant research and development (R&D) experience and spend, and setting Science Based Targets Initiative-validated targets for vehicle in-use emissions reductions aligned with the well below 2-degrees pathway. The company should ensure that it does not become as overly focussed on hydrogen cars to achieve emissions reductions as it did on conventional hybrids.

See results for

2019

More about the company

Headquarters: Japan
Ownership structure: Publicly listed
Revenue (2019): US$272.6 billion
Number of vehicles sold (2019): 9,778,589
Website: https://global.toyota/