Sustainability Policy

toyota csr case study

Toyota is working on initiatives that contribute to the sustainable development of society and the world through all its business activities in cooperation with global society. At the root of these initiatives are the Five Main Principles of Toyoda, passed down as the foundation of our corporate management, and the Guiding Principles at Toyota, which lay out how we want to be as a company.

Since its foundation, Toyota has made continuous kaizen (improvement) and provided high quality products. This spirit is exemplified in the initiatives that support sustainability.

toyota csr case study

Five Main Principles of Toyoda

The Five Main Principles of Toyoda embody the thinking of Toyota Group founder, Sakichi Toyoda. To be faithful in one's duties, thereby contributing to society, is one of the five principles valued by all Toyota employees. Since our foundation, we have applied this philosophy of sustainability to all our activities.

toyota csr case study

Guiding Principles at Toyota

The Guiding Principles at Toyota illustrate how Toyota is expected to be and contribute to the development of the society and the world.

toyota csr case study

The CSR policy is an adaptation of the Guiding Principles at Toyota and brings in focus our relationships with stakeholders. In order to contribute to sustainable development, we believe it is essential that management fosters strong communication with all stakeholders.

toyota csr case study

  • SDGs Initiatives

Toyota is working on initiatives that contribute to the sustainable development of society and the world through all its business activities in cooperation with global society throughout each region. At the root of these initiatives are the Five Main Principles of Toyoda and our corporate principles. Toyota's ideas and values are in line with the aims of the UN Sustainability Development Goals (SDGs * ).

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In keeping pace with the rising expectations of stakeholders, Toyota is committed to actively promoting ESG initiatives

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Toyota Stakeholders, Corporate Social Responsibility (CSR) & ESG

Toyota corporate social responsibility strategy CSR, ESG, stakeholders, corporate citizenship, sustainability, automotive business case study analysis

Toyota’s corporate social responsibility (CSR) and environmental, social, and corporate governance (ESG) strategy covers a wide variety of concerns among stakeholders. These stakeholders influence the company’s brand image, human resource capabilities, and financial soundness. Stakeholder management and corporate citizenship affect business development and the realization of Toyota’s mission and vision . The automotive company recognizes the importance of these stakeholders. As such, the firm maintains corporate social responsibility measures that directly address stakeholders’ interests, like fuel or energy efficiency, business sustainability, and green operations. While maintaining emphasis on business strength in the global automobile market, Toyota continues as one of the best firms in terms of CSR programs that satisfy the relevant interests of stakeholders.

Toyota’s corporate social responsibility efforts are comprehensive in addressing all its major stakeholder groups. Different programs and initiatives are included in these efforts for the corporate citizenship of the automotive business. Successful corporate citizenship improves brand image and strengthens the business against the aggressive competition illustrated in the Five Forces analysis of Toyota . The company’s CSR and ESG programs and sustainability status support competitiveness against other automakers, such as Tesla , General Motors , Ford , and BMW .

Toyota’s Stakeholder Groups, CSR & ESG Initiatives

As a global firm in the automotive industry, Toyota’s corporate social responsibility activity deals with various stakeholders with disparate interests and demands. However, the following are the most relevant groups among Toyota’s stakeholders, arranged according to significance in affecting the company:

  • The natural environment
  • Communities

Employees . Toyota considers employees as its most significant stakeholders. This stakeholder group aims for job security, career development, and fair employment practices. The automaker’s CSR and ESG strategies address the interests of these stakeholders through competitive salaries and wages and a career development program for advancing employees in the organization. For example, the business has an On-the-Job Development (OJD) program, as well as training courses specific to career paths in the automotive firm. These training courses address The Toyota Way development, technical development, and management development. Also, in support of its corporate citizenship, the company offers financial assistance for employees’ continuing formal education. Moreover, Toyota’s business culture (work culture) helps enhance job satisfaction. Thus, the automotive company’s corporate social responsibility strategy satisfies the interests of employees as stakeholders.

Customers . Customers are the second-priority stakeholders in Toyota’s strategies for CSR and ESG. The interests of this stakeholder group are high-quality automobiles and service, along with reasonable pricing. Many customers also prefer to buy vehicles from sustainable and green businesses with a good corporate citizenship standing. The company addresses these interests through rapid innovation based on The Toyota Way and the Toyota Production System (TPS), which aim to maximize efficiency, quality, and innovation. Toyota’s marketing mix (4P) also involves competitive pricing that satisfies this stakeholder group. Thus, the firm’s corporate social responsibility programs properly cover the interests of customers as stakeholders.

Investors . Toyota’s CSR and ESG strategy considers investors as another major stakeholder group. These stakeholders are interested in business profitability. The automotive company addresses these interests through emphasis on global business strength. Toyota’s competitive strategy and growth strategies continue to prioritize improved business resilience over rapid expansion, although growth and expansion are also among the strategic objectives. This prioritization ensures a stronger business organization that can continue its long-term growth. This corporate citizenship strategy is also geared toward sustainability, higher energy efficiency, and the business opportunities shown in the SWOT analysis of Toyota . Thus, the automaker’s corporate social responsibility strategies address the interests of investors as stakeholders.

Environment . Toyota has CSR and ESG initiatives targeting environmental goals. The main interests regarding the natural environment as a stakeholder include environmental conservation and business sustainability, which is an opportunity considered in the external analysis of Toyota . The company addresses these interests through the Toyota Environmental Activities Grant Program. Through this CSR program, the firm donates automobiles and funds for environmental conservation. For example, the company donates hybrid cars and funds to support parks. In addition, the automotive company’s corporate citizenship programs support a network of environmental advocates and initiatives throughout the United States and other countries. Thus, Toyota’s corporate social responsibility programs effectively fulfill interests regarding the natural environment.

Communities . As stakeholders, communities are interested in their socioeconomic development, with consideration for social trends, like the ones shown in the PESTLE/PESTEL analysis of Toyota . The automaker’s strategy for CSR and ESG addresses this stakeholder group through community development and support programs. For example, the company has education programs to promote literacy. Also, the company’s initiatives provide safe driving education and tools for families. Moreover, the automotive firm’s corporate citizenship programs work with other organizations, like the American Red Cross, to support community development. Thus, Toyota’s corporate social responsibility strategies satisfy the interests of the stakeholder group of communities.

Toyota’s CSR & ESG Performance in Addressing Stakeholders’ Interests

Toyota is a role model for using corporate social responsibility strategies to fulfill the interests of its stakeholders. The automaker has a comprehensive CSR and ESG approach that addresses all its stakeholder groups. The CSR programs address community development, sustainability and green business practices, human resource development, customer satisfaction, and other concerns relevant to the automotive business. Toyota is on the right track in maintaining its successful efforts to satisfy stakeholders for high corporate social responsibility performance and successful corporate citizenship.

  • Fatima, T., & Elbanna, S. (2023). Corporate social responsibility (CSR) implementation: A review and a research agenda towards an integrative framework. Journal of Business Ethics, 183 (1), 105-121.
  • Homer, S. T., Yee, K. V., & Khor, K. S. (2023). Developing a measurement instrument for perceived corporate citizenship using multi-stakeholder, multi-industry and cross-country validations. Quality & Quantity, 57 (1), 277-300.
  • Toyota Motor Corporation – Form 20-F .
  • Toyota Motor Corporation – Social Contribution .
  • Toyota Motor Corporation – Sustainability .
  • U.S. Department of Commerce – International Trade Administration – Automotive Industry .
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  • Press Release
  • July 24 2019

Posted on July 24 2019

Toyota Kirloskar Motor’s [TKM] unique CSR Initiative ‘Project ABCD’ makes it way to Harvard Case Study List

  • TKM case study on Project ABCD was accepted for publication by Ivey Publishing and then made its way to Harvard Business Review case collection
  • TKM has been successful in ensuring 100% sanitation in 92 villages
  • Over 12517 toilets are constructed by individuals across villages in Ramanagara District, post implementation of ABCD - a motivational initiative on sanitation at schools
  • ABCD has covered 44773 school children and 2,93,023 community members creating awareness on the importance of sanitation and basic hygiene, which has resulted in 407 schools being Open Defecation Free
  • TKM’s girl child sanitation initiatives have effectively contributed in reduction of girl child school missing hours to zero in Ramanagara district

Bangalore, 24 July 2019: Toyota Kirloskar Motor’s [TKM] CSR case study titled “Toyota Kirloskar Motors: Evaluating A CSR Project” and authored by Prof. Utkarsh Majumdar and Namrata Rana on the unique CSR initiative, Project ABCD (A Behavioral Change through Demonstration), has been accepted for publication by the prestigious Ivey Publishing and is made available on Harvard Business Review and Harvard Business School Publishing case collections. Project ABCD, in support of Government of India’s “Swachh Bharat Mission”, was rolled out in the year 2015 being implemented in 527 schools covering 44,773 children at Ramanagara district (Karnataka) to improve public health and sanitation in villages.

India is the second most populous country in the world, with more than 1 billion citizens, and as per records, roughly half of its population, a staggering 522 million, practice open defecation. The World Bank estimates that 21 percent of communicable diseases in India are linked to unsafe water and the lack of hygiene practices, with more than 500 children under the age of five dying each day from diarrhea.

Importance of hygiene and sanitation

Lack of Sanitation facilities causes serious health hazards in the local communities especially affecting safety of women and adolescent children. To achieve sustainable sanitation practices in the local communities, TKM incorporated a two-pronged approach: firstly, working on building the sanitation facilities in schools and household, and then sustaining the impact with the introduction of ‘A Behavioural Change through Demonstration’ program.

Toyota ABCD program has been significantly contributing to the Government’s Sustainable Development Goal of ending open defecation in India. In the local villages of Karnataka, children hesitated to attend or would drop out from schools because of lack of toilets and hygiene issues. Sanitation was a serious issue for girl children who had to face safety and health risks due to open defecation. TKM partnered with an NGO called SNEHA, to carry out the activities and spread the awareness at the grass-root level. Students, teachers and villagers were educated about the unhygienic impact of open defecation, the necessity of washing hands, maintaining cleanliness of toilets and precautionary measures against infections.

TKM believes that the children would act as catalyst and using ABCD they could create a bigger impact in the community. As a result of the ABCD program, and motivated by TKM’s participation and children’s determination, individual families have started championing community sanitation. With government scheme linkages for toilet construction, residents have built their own sanitation units, with no monetary support from TKM.

Owing to TKM’s girl child sanitation initiatives and ABCD project implementation, school missing hours have also drastically reduced to zero (Earlier, an adult girl child used to go to their home for toilet usage and miss the school for over one-two hours). By the year 2018-19, TKM has further set a target to cover 100% sanitation in 1000 schools in Ramanagara to make Open Defecation Free across the state of Karnataka. Until now, more than 2,70,000 village population have been trained on sanitation through this uniquely-designed CSR program while motivating the community to initiate and construct household toilets.

Additionally, Project ABCD was taken as the case study by two IIM professors and have been published by Ivey Publishing, a leader in providing business case studies with a global perspective.

Speaking on this recognition, Mr. Masakazu Yoshimura, Managing Director, Toyota Kirloskar Motor said, “We are happy that our unique CSR initiative, Project ABCD, that began in the villages of Karnataka has been globally recognized now. It gives us great motivation that our dedicated efforts towards improving sanitation facilities and changing the mindset of local community has earned us the acknowledgement in a case available on Harvard Business Review case collection. TKM had adopted Toyota Business Practices Methodology to manage this project. Problem’s point of occurrence was identified, root cause analysis done, targets were set by further breaking it down into activities and then outcomes were measured periodically to maximize the impact and achieve the objective of 100% sanitation in target villages, by this year.

We have been witnessing a rising awareness about the sanitation levels in the villages and it’s heartening to see the project’s impact on the behavioral changes among the school children and their families. Consistent awareness created by Project ABCD amongst children on better sanitation has helped to achieve 407 school children using toilets at home. As a result of the behavioral change training, 12,517 toilets have been built across villages in Ramanagara District. This is a further testament of our belief that instilling behavioral change is the key to sustain Health and Hygiene practices.”

One of the beneficiary, Indiramma, Mother of Monisha – a class VIII student at Government High school, Billagumba, Ramnagara said, “We never had sanitation facility at home, so we never knew the advantages of having one. But, my daughter was very determined to get a sanitation facility constructed at our home. I could experience the real difference only when I started using it. I was not educated, I couldn’t teach my daughter anything. Now that my daughter is educated, she is not only following the right practices, but educating me as well. And, all the credit goes to TKM’s Project ABCD initiative.”

Till date, TKM has constructed more than 795 units of sanitation facilities in 237 government schools across India, including: 124 units in Varanasi (UP), 497 units in Ramnagara district, 80 unit in Bangalore (Karnataka) and 94 units in Vaishali (Bihar).

About the Author of Case Study:

Utkarsh majmudar.

Utkarsh is a professional with nearly two decades of experience encompassing teaching, research and administration at premier business schools in India and working with large corporations in India at GE Capital, iGATE and HSBC. He has a Fellow Title (Doctorate) from the Indian Institute of Management Ahmedabad, where his thesis proposal won the outstanding thesis proposal award instituted by the Industrial Finance Corporation of India. His interest areas include corporate finance, CSR and sustainability.

Namrata Rana

Director-Strategy and Brand, at Futurescape and India Ambassador of University of Cambridge Institute for Sustainability Leadership, Namrata Rana is the author of BALANCE – Responsible business for the digital age. She is Director-Strategy and Brand, at Futurescape and India Ambassador of University of Cambridge Institute for Sustainability Leadership.

Toyota Kirloskar Motor Private Limited
TMC: 89%, Kirloskar Systems Limited (Mr. Vikram S. Kirloskar): 11%
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Corolla Altis, Toyota Yaris, Etios, Etios Liva, Etios Cross, Camry & Camry Hybrid
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toyota csr case study

  • News National

Toyota Kirloskar Motor CSR initiative makes it to Harvard as a case study

The carmaker’s CSR initiative ensures 100 percent sanitation in 92 villages in Ramanagara of Karnataka; Project ABCD being implemented in 527 schools and covers 44,773 children

Autocar Pro News Desk

School children being educated about the importance of hygiene and sanitation.

School children being educated about the importance of hygiene and sanitation.

School children being educated about the importance of hygiene and sanitation.

Toyota Kirloskar Motor’s CSR (Corporate Social Responsibility) case study titled 'Toyota Kirloskar Motors: Evaluating A CSR Project' and authored by Prof Utkarsh Majumdar and Namrata Rana on the company social initiative — Project ABCD (A Behavioral Change through Demonstration) — has been accepted for publication by Ivey Publishing and is made available on Harvard Business Review and Harvard Business School Publishing case collections.

India, which is the second most populous nation in the world with over a billion citizens and as per records, roughly half of its population, a staggering 522 million, practice open defecation. The World Bank estimates that 21 percent of communicable diseases in India are linked to unsafe water and the lack of hygiene practices, with more than 500 children under the age of five dying each day from diarrhea.

Lack of sanitation facilities cause serious health hazards in the local communities especially affecting safety of women and adolescent children. To achieve sustainable sanitation practices in the local communities, TKM incorporated a two-pronged approach: firstly, working on building the sanitation facilities in schools and household, and then sustaining the impact with the introduction of ‘A Behavioural Change through Demonstration’ program.

The Project ABCD was started in 2015 in support of the government 'Swachh Bharat Mission', and was being implemented in 527 schools covering 44,773 children at Ramanagara district (Karnataka) to improve public health and sanitation in villages.

The OEM partnered with an NGO called Sneha to carry out the activities and spread awareness at the grass-root level. Students, teachers and villagers were educated about the unhygienic impact of open defecation, the necessity of washing hands, maintaining cleanliness of toilets and precautionary measures against infections.

The company says on the back of its girl child sanitation initiatives and ABCD project implementation, school missing hours have also drastically reduced to zero (earlier, an adult girl child used to go to their home for toilet usage and miss the school for over one-two hours). By the year 2018-19, Toyota Kirloskar has further set a target to cover 100 percent sanitation in 1,000 schools in Ramanagara to make Open Defecation Free across the state of Karnataka. Till now, more than 270,000 village population have been trained on sanitation through this uniquely-designed CSR program while motivating the community to initiate and construct household toilets.

Additionally, Project ABCD has been taken up as the case study by two IIM professors and have been published by Ivey Publishing, a leader in providing business case studies with a global perspective.

Speaking on this recognition, Masakazu Yoshimura, MD, Toyota Kirloskar Motor, said, “We are happy that our unique CSR initiative – Project ABCD – that began in the villages of Karnataka has been globally recognised now. It gives us great motivation that our dedicated efforts towards improving sanitation facilities and changing the mindset of local community have earned us the acknowledgement in a case available on Harvard Business Review case collection. TKM had adopted Toyota Business Practices Methodology to manage this project. Problem’s point of occurrence was identified, root cause analysis done, targets were set by further breaking it down into activities and then outcomes were measured periodically to maximise the impact and achieve the objective of 100 percent sanitation in target villages, by this year."

Till date, TKM has constructed more than 795 units of sanitation facilities in 237 government schools across India, including: 124 units in Varanasi (UP), 497 units in Ramnagara district, 80 unit in Bangalore (Karnataka) and 94 units in Vaishali (Bihar).

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Resilience Tested: Toyota Crisis Management Case Study

Crisis management is organization’s ability to navigate through challenging times. 

The renowned Japanese automaker Toyota faced such challenge which shook the automotive industry and put a dent in the previously pristine reputation of the brand.

The Toyota crisis, characterized by sudden acceleration issues in some of its vehicles, serves as a compelling case study for examining the importance of effective crisis management. 

Toyota crisis management case study gives background of the crisis, analyze Toyota’s initial response, explore their crisis management strategy, evaluate its effectiveness, and draw valuable lessons from this pivotal event. 

By understanding how Toyota tackled this crisis, we can glean insights that will help organizations better prepare for and respond to similar challenges in the future.

Let’s start reading

Brief history of Toyota as a company

Toyota, one of the world’s largest automobile manufacturers, has a rich history that spans over eight decades. The company was founded by Kiichiro Toyoda in 1937 as a spinoff of his father’s textile machinery business. 

Initially, Toyota focused on producing automatic looms, but Kiichiro had a vision to expand into the automotive industry. Inspired by a trip to the United States and Europe, he saw the potential for automobiles to transform society and decided to steer the company in that direction.

In 1936, Toyota built its first prototype car, the A1, and in 1937, they officially established the Toyota Motor Corporation. The company faced numerous challenges in its early years, including the disruption caused by World War II, which halted production.

However, Toyota persisted and resumed operations after the war, embarking on a journey that would eventually lead to global recognition.

Toyota’s breakthrough came in the 1960s with the introduction of the compact and affordable Toyota Corolla, which quickly gained popularity worldwide. This success laid the foundation for Toyota’s reputation for producing reliable, fuel-efficient, and high-quality vehicles.

Throughout the following decades, Toyota expanded its product lineup, launching models like the Camry, Prius (the world’s first mass-produced hybrid car), and the Land Cruiser, among others.

Toyota’s commitment to continuous improvement and efficiency led to the development and implementation of the Toyota Production System (TPS), often referred to as “lean manufacturing.” TPS revolutionized the automotive industry by minimizing waste, improving productivity, and enhancing quality.

Over the years, Toyota successfully implemented many change initiatives.

By the turn of the 21st century, Toyota had firmly established itself as a global automotive powerhouse, consistently ranking among the top automakers in terms of sales volume.

However, the company would soon face a significant challenge in the form of the sudden acceleration crisis, which tested Toyota’s crisis management capabilities and had far-reaching implications for the brand.

Description of the sudden acceleration crisis

The sudden acceleration crisis was a pivotal event in Toyota’s history, which unfolded in the late 2000s and early 2010s. It involved a series of incidents where Toyota vehicles experienced unintended acceleration, leading to accidents, injuries, and even fatalities. Reports emerged of vehicles accelerating uncontrollably, despite drivers attempting to apply the brakes or shift into neutral.

The crisis gained significant media attention and scrutiny , as it posed serious safety concerns for Toyota customers and raised questions about the company’s manufacturing processes and quality control. The issue affected a wide range of Toyota models, including popular ones such as the Camry, Corolla, and Prius.

Investigations revealed that the unintended acceleration was attributed to various factors. One prominent cause was a design flaw in the accelerator pedal assembly, where the pedals could become trapped or stuck in a partially depressed position. Additionally, electronic throttle control systems were also identified as potential contributors to the issue.

The sudden acceleration crisis had severe consequences for Toyota. It tarnished the company’s reputation for reliability and safety, and public trust in the brand was significantly eroded. Toyota faced a wave of lawsuits, regulatory investigations, and recalls, as it scrambled to address the issue and restore consumer confidence.

The crisis prompted Toyota to launch one of the largest recalls in automotive history, affecting millions of vehicles worldwide. The company took steps to redesign and replace the faulty accelerator pedals and improve the electronic throttle control systems to prevent future incidents. Toyota also faced criticism for its initial response, with accusations of a lack of transparency and timely communication with the public.

The sudden acceleration crisis served as a wake-up call for Toyota, highlighting the importance of effective crisis management and the need for proactive measures to address safety concerns promptly.

Toyota crisis management case study helps us to understand how company’s respond to this crisis and set a precedent for handling future challenges in the years to come.

Timeline of events leading up to the crisis

To understand the timeline of events leading up to the sudden acceleration crisis at Toyota, let’s explore the key milestones:

  • Early 2000s: Reports of unintended acceleration incidents begin to surface, with some drivers claiming their Toyota vehicles experienced sudden and uncontrolled acceleration. These incidents, although relatively isolated, raised concerns among consumers.
  • August 2009: A tragic incident occurs in California when a Lexus ES 350, a Toyota brand, accelerates uncontrollably, resulting in a high-speed crash that claims the lives of four people. The incident receives significant media attention, highlighting the potential dangers of unintended acceleration.
  • September 2009: The National Highway Traffic Safety Administration (NHTSA) launches an investigation into the sudden acceleration issue in Toyota vehicles. The probe focuses on floor mat entrapment as a possible cause.
  • November 2009: Toyota announces a voluntary recall of approximately 4.2 million vehicles due to the risk of floor mat entrapment causing unintended acceleration. The recall affects several popular models, including the Camry and Prius.
  • January 2010: Toyota expands the recall to an additional 2.3 million vehicles, citing concerns over sticking accelerator pedals. This brings the total number of recalled vehicles to nearly 6 million.
  • February 2010: In a highly publicized event, Toyota halts sales of eight of its models affected by the accelerator pedal recall, causing a significant disruption to its production and sales.
  • February 2010: The U.S. government launches a formal investigation into the safety issues related to unintended acceleration in Toyota vehicles. Congressional hearings are held, during which Toyota executives are questioned about the company’s handling of the crisis.
  • April 2010: Toyota faces a $16.4 million fine from the NHTSA for failing to promptly notify the agency about the accelerator pedal defect, violating federal safety regulations.
  • Late 2010 and 2011: Toyota faces a wave of lawsuits from affected customers seeking compensation for injuries, deaths, and vehicle damages caused by unintended acceleration incidents.
  • 2012 onwards: Toyota continues to address the sudden acceleration crisis by implementing various measures, including improving quality control processes, enhancing communication with regulators and customers, and establishing an independent quality advisory panel. 

Toyota’s initial denial and dismissal of the problem

During the early stages of the sudden acceleration crisis, one notable aspect was Toyota’s initial response, which involved a degree of denial and dismissal of the problem. This response contributed to the escalation of the crisis and further eroded public trust in the company. Let’s delve into Toyota’s initial reaction to the issue:

  • Downplaying the Problem: In the initial stages, Toyota downplayed the reports of unintended acceleration incidents, attributing them to driver error or mechanical issues. The company maintained that their vehicles were safe and reliable, asserting that the incidents were isolated and not indicative of a systemic problem.
  • Lack of Transparency: Toyota faced criticism for its perceived lack of transparency regarding the issue. The company was accused of withholding information and failing to disclose potential safety risks to the public and regulatory agencies promptly. This lack of transparency fueled suspicions and raised questions about the company’s commitment to addressing the problem.
  • Slow Response: Toyota’s response to the growing concerns regarding unintended acceleration was relatively slow, leading to accusations of negligence. Critics argued that the company should have acted more swiftly and decisively to investigate and address the issue before it escalated into a full-blown crisis.
  • Reluctance to Acknowledge Defects: Initially, Toyota resisted the notion that there were inherent defects in their vehicles that could lead to unintended acceleration. The company’s reluctance to accept responsibility and acknowledge the problem further strained its relationship with consumers, regulators, and the media.
  • Impact on Customer Trust: Toyota’s initial denial and dismissal of the problem had a significant impact on customer trust. As more incidents were reported and investigations progressed, customers began to question the integrity of the brand and its commitment to safety. This led to a decline in sales and a tarnishing of Toyota’s once-sterling reputation for reliability.

Lack of transparency and communication with the public

One critical aspect of Toyota’s initial response to the sudden acceleration crisis was the perceived lack of transparency and ineffective communication with the public. This deficiency in open and timely communication further intensified the crisis and eroded trust in the company. Let’s explore the key issues related to transparency and communication:

  • Delayed Public Announcement: Toyota faced criticism for the delay in publicly acknowledging the safety concerns surrounding unintended acceleration. As reports of incidents surfaced and investigations commenced, there was a perception that Toyota withheld information and failed to promptly address the issue. This lack of transparency fueled public skepticism and eroded confidence in the company.
  • Insufficient Explanation: When Toyota did address the sudden acceleration issue, their explanations and communications were often vague and lacking in detail. Customers and the public were left with unanswered questions and a sense that the company was not providing comprehensive information about the problem and its resolution.
  • Ineffective Recall Communication: Toyota’s communication regarding the recalls linked to unintended acceleration was criticized for its inadequacy. Some customers reported confusion and frustration with the recall process, including unclear instructions and delays in obtaining necessary repairs. This lack of clarity and efficiency in communicating recall information further strained the company’s relationship with its customers.
  • Limited Engagement with Stakeholders: Toyota’s engagement with key stakeholders, such as regulatory bodies, industry experts, and affected customers, was perceived as insufficient. The company’s communication efforts were criticized for being reactive rather than proactive, lacking a comprehensive plan to engage stakeholders and address their concerns promptly.
  • Perception of Cover-up: The lack of transparency and ineffective communication led to a perception that Toyota was attempting to cover up the severity of the sudden acceleration issue. This perception further damaged the company’s credibility and fueled public skepticism about the company’s commitment to consumer safety.

Impact on the company’s reputation and customer trust

The sudden acceleration crisis had a profound impact on Toyota’s reputation and customer trust, which were previously regarded as key strengths of the company. Let’s explore the repercussions of the crisis on these crucial aspects:

  • Reputation Damage: Toyota’s reputation as a manufacturer of reliable and safe vehicles took a significant hit due to the sudden acceleration crisis. The widespread media coverage of incidents and recalls associated with unintended acceleration eroded the perception of Toyota’s quality and reliability. The crisis challenged the long-standing perception of Toyota as a leader in automotive excellence.
  • Loss of Customer Trust: The crisis shattered the trust that customers had placed in Toyota. The incidents of unintended acceleration and the subsequent recalls created doubts about the safety of Toyota vehicles. Customers who had been loyal to the brand for years felt betrayed and concerned about the potential risks associated with owning or purchasing a Toyota vehicle.
  • Sales Decline: The erosion of customer trust and the negative publicity surrounding the sudden acceleration crisis resulted in a significant decline in sales for Toyota. Consumers were hesitant to buy Toyota vehicles, leading to a loss of market share. Competitors seized the opportunity to capitalize on Toyota’s weakened position and gain a foothold in the market.
  • Legal Consequences: Toyota faced a wave of lawsuits from individuals and families affected by incidents related to unintended acceleration. These lawsuits not only had financial implications but also further damaged the company’s reputation as it faced allegations of negligence and failure to ensure the safety of its vehicles.
  • Regulatory Scrutiny: The sudden acceleration crisis brought increased regulatory scrutiny upon Toyota. Government agencies, such as the National Highway Traffic Safety Administration (NHTSA), conducted investigations into the issue, which further dented the company’s reputation. Toyota had to cooperate with regulatory bodies and demonstrate its commitment to rectifying the problems to restore trust.
  • Long-Term Brand Perception: The sudden acceleration crisis left a lasting impression on how Toyota is perceived by consumers. Despite the company’s efforts to address the issue and improve safety measures, the crisis served as a reminder that even renowned brands can face significant challenges. It highlighted the importance of transparency, accountability, and a proactive approach to crisis management.

Recognition and acceptance of the crisis

In the face of mounting evidence and public scrutiny, Toyota eventually recognized and accepted the severity of the sudden acceleration crisis. The company’s acknowledgment of the crisis marked a significant turning point in their approach to addressing the issue. Let’s explore how Toyota recognized and accepted the crisis:

  • Admitting the Problem: As the number of reported incidents increased and investigations progressed, Toyota eventually acknowledged that there was a problem with unintended acceleration in some of their vehicles. This admission was a crucial step towards recognizing the crisis and accepting the need for immediate action.
  • Apology and Responsibility: Toyota’s top executives, including the company’s President at the time, issued public apologies for the safety issues and the negative impact on customers. The company took responsibility for the unintended acceleration problem, acknowledging that there were defects in their vehicles and accepting accountability for the consequences.
  • Collaboration with Authorities: Toyota actively collaborated with regulatory bodies, such as the NHTSA, and other government agencies involved in investigating the sudden acceleration issue. This collaboration demonstrated a commitment to resolving the crisis and addressing the concerns of the authorities.
  • Openness to Independent Investigation: In an effort to ensure transparency and unbiased assessment of the crisis, Toyota welcomed independent investigations into the unintended acceleration incidents. The company engaged external experts and formed advisory panels to evaluate their manufacturing processes, safety systems, and quality control measures.
  • Recall and Repair Initiatives: Toyota initiated a massive recall campaign to address the safety issues associated with unintended acceleration. The company implemented comprehensive repair programs aimed at fixing the defects and improving the safety features in affected vehicles. These initiatives were crucial in demonstrating Toyota’s commitment to rectifying the problems and ensuring customer safety.
  • Internal Process Evaluation : Toyota conducted internal evaluations and reviews of their manufacturing processes and quality control systems. They identified areas for improvement and implemented changes to prevent similar issues from arising in the future. This internal introspection showed a dedication to learning from the crisis and strengthening their processes.

Appointment of crisis management team

In response to the sudden acceleration crisis, Toyota recognized the need for a dedicated crisis management team to effectively handle the situation. The appointment of such a team was crucial in coordinating the company’s response, managing communications, and implementing appropriate strategies to address the crisis.

Toyota appointed experienced and senior executives to lead the crisis management team. These individuals had a deep understanding of the company’s operations, values, and stakeholder relationships. They were entrusted with making critical decisions and guiding the organization through the crisis.

The crisis management team comprised representatives from various functions and departments within Toyota, ensuring a comprehensive approach to addressing the crisis. Members included executives from engineering, manufacturing, quality control, legal, public relations, and other relevant areas. This cross-functional representation facilitated a holistic understanding of the issues and enabled effective collaboration.

Implementation of recall and repair programs

In response to the sudden acceleration crisis, Toyota implemented extensive recall and repair programs to address the safety concerns associated with unintended acceleration. These programs aimed to rectify the defects, enhance the safety features, and restore customer confidence.

Toyota identified the models and production years that were potentially affected by unintended acceleration issues. This involved a thorough examination of reported incidents, investigations, and collaboration with regulatory agencies. By pinpointing the specific vehicles at risk, Toyota could direct their efforts towards addressing the problem efficiently.

Toyota launched a comprehensive communication campaign to reach out to affected customers. The company sent notifications via mail, email, and other channels to inform them about the recall and repair programs. The communication highlighted the potential risks, steps to take, and the importance of addressing the issue promptly.

Toyota actively engaged its dealership network to support the recall and repair initiatives. Dealerships were provided with detailed information, training, and necessary resources to assist customers in scheduling appointments, conducting inspections, and performing the required repairs. This collaboration between the company and its dealerships aimed to ensure a seamless and efficient recall process.

Toyota developed a structured repair process to address the unintended acceleration issue in the affected vehicles. This involved inspecting and, if necessary, replacing or modifying components such as the accelerator pedals, floor mats, or electronic control systems. The company ensured an adequate supply of replacement parts to minimize delays and facilitate timely repairs.

Collaboration with regulatory bodies and industry experts

During the sudden acceleration crisis, Toyota recognized the importance of collaborating with regulatory bodies and industry experts to address the safety concerns and restore confidence in their vehicles. This collaboration involved working closely with relevant agencies and seeking external expertise to investigate the issue and implement necessary improvements.

Let’s delve into Toyota’s collaboration with regulatory bodies and industry experts:

  • Regulatory Engagement: Toyota actively engaged with regulatory bodies, such as the National Highway Traffic Safety Administration (NHTSA) in the United States and other similar agencies globally. The company cooperated with these organizations by providing them with relevant data, participating in investigations, and adhering to their guidelines and recommendations. This collaboration aimed to ensure a thorough and unbiased assessment of the sudden acceleration issue.
  • Joint Investigations: Toyota collaborated with regulatory bodies in conducting joint investigations into the unintended acceleration incidents. These investigations involved sharing data, conducting extensive testing, and evaluating potential causes and contributing factors. By working together with the regulatory authorities, Toyota aimed to gain a comprehensive understanding of the problem and find effective solutions.
  • Advisory Panels and External Experts: Toyota sought the expertise of external industry experts and formed advisory panels to provide independent assessments of the sudden acceleration issue. These panels consisted of experienced engineers, scientists, and safety specialists who analyzed the data, evaluated the vehicle systems, and offered recommendations for improvement. Their insights and recommendations helped guide Toyota’s response and ensure a thorough and impartial evaluation.
  • Safety Standards Compliance: Toyota collaborated with regulatory bodies to ensure compliance with safety standards and regulations. The company actively participated in discussions and consultations to contribute to the development of robust safety standards for the automotive industry. By actively engaging with regulatory bodies, Toyota aimed to demonstrate its commitment to maintaining high safety standards and fostering an environment of continuous improvement.
  • Sharing Best Practices: Toyota collaborated with industry peers and participated in industry forums and conferences to share best practices and learn from others’ experiences. By engaging with other automotive manufacturers, Toyota aimed to gain insights into safety practices, quality control measures, and crisis management strategies. This exchange of knowledge and collaboration helped Toyota strengthen their approach to safety and crisis management.

Final Words 

Toyota crisis management case study serves as a valuable reminder to all automobiles companies on managing crisis. The sudden acceleration crisis presented a significant challenge for Toyota, testing the company’s crisis management capabilities and resilience. While Toyota demonstrated strengths in their crisis management strategy, such as a swift response, transparent communication, and a customer-focused approach, they also faced weaknesses and shortcomings. Initial denial, lack of transparency, and communication issues hampered their crisis response.

The crisis had profound financial consequences for Toyota, including costs associated with recalls, repairs, legal settlements, fines, and a decline in market value. Legal settlements were reached to address claims from affected customers, shareholders, and other stakeholders seeking compensation for damages and losses. The crisis also resulted in reputation damage that required significant efforts to rebuild trust and restore the company’s standing.

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Managing Sustainability to Be First: The Toyota Case

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Sustainability matters along with attention to a company’s social and environmental commitment and the related (complex) performance is far from new in the literature, but the last years have pressed both academics and managers by urgent issues such as climate changes and disasters, poverty, economic and social crisis in many countries, human rights violations, health concerns and so on. Also, the end of twentieth century saw unprecedented changes in corporate strategy and management towards sustainable thinking—the emergence of sustainability as corporate strategy, and making sustainability an integral part of a company’s business strategy in order to gain bottom-line benefits and to accomplish new law requirements. In such a global, unstable, market, sustainability becomes an investable concept, crucial in driving interest and investments to the mutual benefit of companies and investors. Toyota’s commitment for a sustainable management has been developed since decades ago and continues nowadays, representing a perfect example for the whole market, and witnessing the urgency of an integrated approach along the supply chain, in order to gain competitive advantage through ‘sustainability’.

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Garbelli, M. (2016). Managing Sustainability to Be First: The Toyota Case. In: Bilgin, M., Danis, H., Demir, E., Can, U. (eds) Business Challenges in the Changing Economic Landscape - Vol. 2. Eurasian Studies in Business and Economics, vol 2/2. Springer, Cham. https://doi.org/10.1007/978-3-319-22593-7_4

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The Contradictions That Drive Toyota’s Success

  • Hirotaka Takeuchi,
  • Norihiko Shimizu

Stable and paranoid, systematic and experimental, formal and frank: The success of Toyota, a pathbreaking six-year study reveals, is due as much to its ability to embrace contradictions like these as to its manufacturing prowess.

Reprint: R0806F

Toyota has become one of the world’s greatest companies only because it developed the Toyota Production System, right? Wrong, say Takeuchi, Osono, and Shimizu of Hitotsubashi University in Tokyo. Another factor, overlooked until now, is just as important to the company’s success: Toyota’s culture of contradictions.

TPS is a “hard” innovation that allows the company to continuously improve the way it manufactures vehicles. Toyota has also mastered a “soft” innovation that relates to human resource practices and corporate culture. The company succeeds, say the authors, because it deliberately fosters contradictory viewpoints within the organization and challenges employees to find solutions by transcending differences rather than resorting to compromises. This culture generates innovative ideas that Toyota implements to pull ahead of competitors, both incrementally and radically.

The authors’ research reveals six forces that cause contradictions inside Toyota. Three forces of expansion lead the company to change and improve: impossible goals, local customization, and experimentation. Not surprisingly, these forces make the organization more diverse, complicate decision making, and threaten Toyota’s control systems. To prevent the winds of change from blowing down the organization, the company also harnesses three forces of integration: the founders’ values, “up-and-in” people management, and open communication. These forces stabilize the company, help employees make sense of the environment in which they operate, and perpetuate Toyota’s values and culture.

Emulating Toyota isn’t about copying any one practice; it’s about creating a culture. And because the company’s culture of contradictions is centered on humans, who are imperfect, there will always be room for improvement.

No executive needs convincing that Toyota Motor Corporation has become one of the world’s greatest companies because of the Toyota Production System (TPS). The unorthodox manufacturing system enables the Japanese giant to make the planet’s best automobiles at the lowest cost and to develop new products quickly. Not only have Toyota’s rivals such as Chrysler, Daimler, Ford, Honda, and General Motors developed TPS-like systems, organizations such as hospitals and postal services also have adopted its underlying rules, tools, and conventions to become more efficient. An industry of lean-manufacturing experts have extolled the virtues of TPS so often and with so much conviction that managers believe its role in Toyota’s success to be one of the few enduring truths in an otherwise murky world.

toyota csr case study

  • Hirotaka Takeuchi is a professor in the strategy unit of Harvard Business School.
  • EO Emi Osono ( [email protected] ) is an associate professor;
  • NS and Norihiko Shimizu ( [email protected] ) is a visiting professor at Hitotsubashi University’s Graduate School of International Corporate Strategy in Tokyo. This article is adapted from their book Extreme Toyota: Radical Contradictions That Drive Success at the World’s Best Manufacturer , forthcoming from John Wiley & Sons.

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Esg case study – toyota motor corporation.

This article was originally published on ETFTrends.com.

By Sara Rodriguez, Sage ESG Research Analyst

About Toyota Motor Corporation

Toyota Motor Corporation is a Japanese multinational automotive company that designs, manufacturers, and sells passenger and commercial vehicles. The company also has a financial services branch that offers financing to vehicle dealers and customers. Toyota is the second-largest car manufacturer in the world and ranked the 11th largest company by Forbes — and produces vehicles under five brands: Toyota, Hino, Lexus, Ranz, and Daihatsu. Toyota also partners with Subaru, Isuzu, and Mazda.

Environmental

Motor vehicles are one of the largest contributors to greenhouse gas (GHG) emissions and, as a result, climate change, with the transportation sector accounting for a third of U.S. GHG emissions in 2018. Although most emissions come from vehicle usage rather than the process of manufacturing vehicles, government regulations place the burden on auto companies to improve fuel efficiency and reduce overall emissions. While climate change regulations present financial risk to automakers, they also offer opportunities; increased fuel efficiency requirements are likely to lead to more sales of electric vehicles and hybrid systems. Toyota pioneered the first popular hybrid vehicle with the 1997 release of the Prius, the world’s first mass-produced hybrid. Since then, Toyota has sold 15 million hybrids worldwide . In 2018, hybrids accounted for 58% of Toyota’s sales, contributing to Toyota reaching substantially better carbon dioxide (CO2) emissions from new vehicles than regulatory standards and the best levels in the industry (102.1g/km compared to U.S. regulation of 119g/km). In 2020, Toyota reduced global average CO2 emissions from new vehicles by 22% compared to 2010 levels by improving vehicle performance and expanding its lineup. Toyota’s goal is to increase that number to 30% by 2025, with the goal of 90% total reduction by 2050. The company aims to offer an electric version of all Toyota and Lexus models worldwide by 2025. (Toyota does not yet sell any all-electric vehicles to the U.S., but it does outside the U.S.)

In addition to greenhouse gases, cars emit smog-forming pollutants that contribute to poor air quality and trigger negative health effects. Recently, a London court ruled that air pollution significantly contributed to the death of a nine-year-old girl with asthma who had been exposed to excessive nitrogen dioxide (NO2) levels. NO2 is a toxic gas emitted by cars that use diesel fuel, and although European Union laws set regulatory levels for NO2 in the air, Britain has missed its targets for a decade due to a lack of enforcement. As Toyota expands into European markets, the smog rating of its cars will be financially material and an important aspect of risk management.

Compared to industry peers, Toyota excels in addressing emissions and fuel efficiency. In 2014 Toyota Motor Credit Corporation, the financial arm of Toyota Motor Corporation, introduced the auto industry’s first-ever asset-backed green bond and has since issued five total green bonds. The newest $750 million bond will go toward developing new Toyota and Lexus vehicles to possess a hybrid or alternative fuel powertrain, achieve a minimum of 40 highway and city miles per gallon, and receive an EPA Smog Rating of 7/10 or better. The bond program was reviewed by Sustainalytics, which found that Toyota leads its competitors in supporting its carbon transition through green bond investments.

In addition to curbing emissions caused by Toyota’s vehicles, the company seeks to reduce plant emissions to zero by 2050 by utilizing renewable energy and equipment optimization. In automaking, water is used in painting and other manufacturing processes. Toyota has implemented initiatives to reduce the amount of water used in manufacturing and has developed technology that allows the painting process to require no water. In 2019, Toyota reduced water usage by 5% per vehicle, with the goal of 3% further reduction by 2025, for an overall reduction of 34% from 2001 levels. To reduce the environmental impact of materials purchased from suppliers, Toyota has launched Green Purchasing Guidelines to prioritize the purchase of parts and equipment with a low environmental footprint. We would like to see Toyota continue to develop its supply chain environmental policies.

As the global population grows, so does number of cars on the road, which creates waste when they’ve reached the end of their useful lives. Toyota’s Global 100 Dismantlers Project was created to establish systems for appropriate treatment of end-of-life vehicles through battery collection and car recycling. Toyota aims to have 15 vehicle recycling facilities by 2025. Toyota is also working to minimize waste by prolonging the useful life of its vehicles. Toyota has a strong reputation for producing quality, reliable vehicles. Consumer Reports lists Toyota’s overall reliability as superb, and Toyota and Lexus often take the top spots in Consumer Reports Annual Auto Reliability Survey. An Iseecars.com study found that Toyota full-size SUV models are the longest-lasting vehicles and most likely to reach over 200,000 miles.

Driving is an activity with inherent risk. The World Health Organization estimates that 1.35 million people die in car accidents each year. Accidents are worse in emerging nations where transportation infrastructure has not kept up with the increase in the number of cars on the road; without countermeasures, traffic fatalities are predicted to become the seventh-leading cause of death worldwide by 2030. Demand for personal vehicles will continue to increase as developing countries experience higher standards of living, and product safety will be paramount to automaker’s reputations and brand values. Toyota has put forth a goal of Zero Casualties from Traffic Accidents and adopted an Integrated Safety Management Concept to work toward eliminating traffic fatalities by providing driver support at each stage of driving: from parking to normal operation, the accident itself, and the post-crash. Toyota and Lexus models regularly earn top safety ratings by the National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety. In addition to traditional safety features, Toyota actively invests in the development of autonomous vehicles, including a $500 million investment in Uber and autonomous ridesharing. If fully developed, autonomous driving can offer increased safety to passengers, lower accident rates, and provide mobility for the elderly and physically disabled.

Accidents caused by defective vehicles can have significant financial repercussions for auto manufacturers. Toyota experienced significant damage to its reputation and brand value in 2009 when unintended acceleration caused a major accident that killed four people riding in a dealer-loaned Lexus in San Diego. Toyota subsequently began recalling millions of vehicles, citing problems of pedal entrapment from unsecured floor mats and “sticky gas pedals.” Toyota’s failure to quickly respond resulted in a $1.2 billion settlement with the Justice Department and $50 million in fines from the NHTSA. The scandal generated an extraordinary amount of news coverage, and the Toyota recall story ranked among the top 10 news stories across all media in January and February 2010. Litigation costs, warranty costs, and increased marketing to counter the negative publicity of the event were estimated to cost Toyota over $5 billion (annual sales are about $275 billion). As a result of bad press, Toyota’s 2010 sales fell 16% from the previous year and its stock price fell 10% overall, while competitors like Ford benefitted and experienced stock price growth of 80% over the same period. Future recalls and quality issues are certain to prove costly for Toyota and may continue to negatively impact its consumer reputation.

Another social issue that can be financially material for automakers is human rights. Automobiles consist of about 30,000 parts, making their supply chain extensive and at high risk for human rights abuses. Toyota addresses human rights concerns in its Corporate Sustainability Report (CSR) and cites Migrant Workers and Responsible Sourcing of Cobalt as its priorities for 2020; however, Toyota does not have a clean labor record. A 2008 report published by the Institute for Global Labour and Human Rights accused Toyota of a catalog of human rights abuses, including stripping foreign workers of their passports and forcing them to work grueling hours without days off for less than half of the legal minimum wage. Toyota was also accused of involvement in the suppression of freedom of association at its plant in the Philippines. Toyota’s CSR lists a host of external nongovernmental organizations the company partners with to promote fair working conditions, however; due to the high-risk present in its supply chain and its past offenses, we would like to see the company further develop its labor and human rights policies.

Lastly, we would mention that Toyota has been accused of discriminatory practices. In 2016, Toyota Motor Credit Corporation, the financial arm of Toyota Motor Corporation, agreed to pay 21.9 million in restitution to thousands of African American, Asian, and Pacific Islander customers for charging them higher interest rates on auto loans than their white counterparts with comparable creditworthiness. Toyota has since taken measures to change its pricing and compensation system to reduce incentives to mark up interest rates.

Toyota shows strength in its transparency, and its Corporate Sustainability Report (CSR) is prepared in accordance with multiple sustainability reporting agencies, including the Global Reporting Initiative, Sustainable Accounting Standards Board, and the Task Force on Climate-Related Financial Disclosures; the CSR data is also verified by a third party. Starting in 2021, Toyota’s CSR will be updated whenever necessary to ensure timely disclosure, rather than annually. In 2019 Toyota created a Sustainability Management Department and added the role of Chief Sustainability Officer to its executive management team in 2020. Toyota’s CSR offers thorough information on its executive compensation policies, however; the composition of Toyota’s board of directors is an area of weakness for the company. There is a lack of independence among board members, and the chair of the board is not independent. In general, when compared to the U.S., Japanese companies have a smaller percentage of outside directors due to a history of corporate governance emphasizing incumbency and promotion from within. However, since the release of the Japanese Corporate Governance Code in 2015, companies have felt pressure to make meaningful board composition changes. We hope to see Toyota strengthen its board composition and adopt executive renumeration policies that are tied to sustainability performance.

Like other automakers, Toyota has lobbied aggressively to weaken Obama-era fuel economy standards. In 2017, the Environmental Protection Agency announced plans to work with Toyota to overhaul internal management practices at the agency. Inviting a company regulated by the agency to alter internal practices has been previously unprecedented and raises concerns over how Toyota could wield influence over EPA functions. Toyota is a member of the Alliance of Automobile Manufacturers, the most powerful automotive industry lobbying association, which has strongly opposed climate change motivated regulation since 2016, contradicting the company’s public stance on emissions.

Risk & Outlook

Sage believes Toyota to be well adapted to manage sustainability challenges, despite the high environmental and social risks in the automotive industry. We expect the auto industry to see an increase in regulatory risk surrounding vehicle emissions and fuel efficiency; however, we believe Toyota will continue to innovate to meet and exceed emission standards and the company is well positioned to benefit from future fuel efficiency regulations. We hope to see Toyota continue to improve its social performance and expand on its recently introduced human capital policies. In addition to regulation, the auto industry faces disruption caused by new areas of technology such as automated driving, electrification, and shared mobility, and these areas will be important to monitor. Toyota’s strong management of ESG issues makes the company a leader amongst its peers; however, due to risk present in the automotive industry we rank Toyota a 3/5 for its Sage ESG Leaf Score.

Sage ESG Leaf Score Methodology

No two companies are alike. This is exceptionally apparent from an ESG perspective, where the challenge lies not only in as­sessing the differences between companies, but also in the differences across industries. Although a company may be a leader among its peer group, the industry in which it operates may expose it to risks that cannot be mitigated through company management. By combining an ESG macro industry risk analysis with a company-level sustainability evaluation, the Sage Leaf Score bridges this gap, enabling investors to quickly assess companies across industries. Our Sage Leaf Score, which is based on a 1 to 5 scale (with 5 leaves representing ESG leaders), makes it easy for investors to compare a company in, for example, the energy industry to a company in the technology industry, and to understand that all 5-leaf companies are leaders based on their individual company management and the level of industry risk that they face.

For more information on Sage’s Leaf Score, click here.

Originally published by Sage Advisory

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Toyota Motor Credit Corporation Green Bond Framework Second-Party Opinion January 21, 2020.

Toshihiko Hiura and Junya Ishikawa. "Corporate Governance in Japan: Board Membership and Beyond" Bain & Company. February 23, 2016.

Taylor, Lin. ”Landmark ruling links death of UK schoolgirl to pollution" December 16, 2020.

Disclosures

Sage Advisory Services, Ltd. Co. is a registered investment adviser that provides investment management services for a variety of institutions and high net worth individuals. The infor­mation included in this report constitute Sage’s opinions as of the date of this report and are subject to change without notice due to various factors, such as market conditions. This report is for informational purposes only and is not intended as investment advice or an offer or solicitation with respect to the purchase or sale of any security, strategy or investment product. Investors should make their own decisions on investment strategies based on their specific investment objectives and financial circumstances. All investments contain risk and may lose value. Past performance is not a guarantee of future results. Sustainable investing limits the types and number of investment opportunities available, this may result in the Fund investing in securities or industry sectors that underperform the market as a whole or underperform other strategies screened for sustainable investing standards. No part of this Material may be produced in any form, or referred to in any other publication, without our express written permission. For additional information on Sage and its investment management services, please view our web site at www.sageadvisory.com, or refer to our Form ADV, which is available upon request by calling 512.327.5530.

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toyota csr case study

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toyota csr case study

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Toyota Kirloskar Motor’s CSR Initiative ‘Project ABCD’ Makes It To Harvard Case Study List

Toyota kirloskar motor’s [tkm] csr case study titled “toyota kirloskar motors: evaluating a csr project” and authored by prof. utkarsh majumdar and namrata rana on the unique csr initiative, project abcd (a behavioral change through demonstration), has been accepted for publication by the prestigious ivey publishing and is made available on harvard business review and harvard business school publishing case collections. project abcd, in support of government of india’s “swachh bharat mission”, was rolled out in the year 2015 being implemented in 527 schools covering 44,773 children at ramanagara district (karnataka) to improve public health and sanitation in villages., india is the second most populous country in the world, with more than 1 billion citizens, and as per records, roughly half of its population, a staggering 522 million, practice open defecation. the world bank estimates that 21 percent of communicable diseases in india are linked to unsafe water and the lack of hygiene practices, with more than 500 children under the age of five dying each day from diarrhea., to achieve sustainable sanitation practices in the local communities, tkm incorporated a two-pronged approach: firstly, working on building the sanitation facilities in schools and household, and then sustaining the impact with the introduction of this program., in the local villages of karnataka, children hesitated to attend or would drop out from schools because of lack of toilets and hygiene issues. sanitation was a serious issue for girl children who had to face safety and health risks due to open defecation. tkm partnered with an ngo called sneha, to carry out the activities and spread the awareness at the grass-root level. students, teachers and villagers were educated about the unhygienic impact of open defecation, the necessity of washing hands, maintaining cleanliness of toilets and precautionary measures against infections., individual families have also started championing community sanitation. with government scheme linkages for toilet construction, residents have built their own sanitation units, with no monetary support from tkm., owing to tkm’s girl child sanitation initiatives and abcd project implementation, school missing hours have also drastically reduced to zero (earlier, an adult girl child used to go to their home for toilet usage and miss the school for over one-two hours). by the year 2018-19, tkm has further set a target to cover 100% sanitation in 1000 schools in ramanagara to make ‘open defecation free’ across the state of karnataka. until now, more than 2,70,000 village population have been trained on sanitation through this uniquely-designed csr program while motivating the community to initiate and construct household toilets., project abcd was taken as the case study by two iim professors and have been published by ivey publishing, a leader in providing business case studies with a global perspective., speaking on this recognition, mr. masakazu yoshimura, managing director, toyota kirloskar motor said, “we are happy that our unique csr initiative, project abcd, that began in the villages of karnataka has been globally recognized, and earned us the acknowledgement in a case available on harvard business review case collection. tkm had adopted toyota business practices methodology to manage this project. problem’s point of occurrence was identified, root cause analysis done, targets were set by further breaking it down into activities and then outcomes were measured periodically to maximize the impact and achieve the objective of 100% sanitation in target villages, by this year., we have been witnessing a rising awareness about the sanitation levels in the villages and it’s heartening to see the project’s impact on the behavioral changes among the school children and their families. consistent awareness created by project abcd amongst children on better sanitation has helped to achieve 407 school children using toilets at home. as a result of the behavioral change training, 12,517 toilets have been built across villages in ramanagara district. this is a further testament of our belief that instilling behavioral change is the key to sustain health and hygiene practices.”, one of the beneficiary, indiramma, mother of monisha – a class viii student at government high school, billagumba, ramnagara said, “we never had sanitation facility at home, so we never knew the advantages of having one. but, my daughter was very determined to get a sanitation facility constructed at our home. i could experience the real difference only when i started using it. i couldn’t teach my daughter anything. now that she is educated, she is not only following the right practices, but educating me as well. and, all the credit goes to tkm’s project abcd initiative.”, till date, tkm has constructed more than 795 units of sanitation facilities in 237 government schools across india, including: 124 units in varanasi (up), 497 units in ramnagara district, 80 unit in bangalore (karnataka) and 94 units in vaishali (bihar)., disclaimer: this media release is auto-generated. the csr journal is not responsible for the content, related articles more from author.

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ESG Case Study – Toyota Motor Corporation

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By Sara Rodriguez, Sage ESG Research Analyst

Toyota Case Study 1

About Toyota Motor Corporation

Toyota Motor Corporation is a Japanese multinational automotive company that designs, manufacturers, and sells passenger and commercial vehicles. The company also has a financial services branch that offers financing to vehicle dealers and customers. Toyota is the second-largest car manufacturer in the world and ranked the 11th largest company by Forbes — and produces vehicles under five brands: Toyota, Hino, Lexus, Ranz, and Daihatsu. Toyota also partners with Subaru, Isuzu, and Mazda.

Environmental

Motor vehicles are one of the largest contributors to greenhouse gas ( GHG ) emissions and, as a result, climate change, with the transportation sector accounting for a third of U.S. GHG emissions in 2018. Although most emissions come from vehicle usage rather than the process of manufacturing vehicles, government regulations place the burden on auto companies to improve fuel efficiency and reduce overall emissions. While climate change regulations present financial risk to automakers, they also offer opportunities; increased fuel efficiency requirements are likely to lead to more sales of electric vehicles and hybrid systems. Toyota pioneered the first popular hybrid vehicle with the 1997 release of the Prius, the world’s first mass-produced hybrid. Since then, Toyota has sold 15 million hybrids worldwide . In 2018, hybrids accounted for 58% of Toyota’s sales, contributing to Toyota reaching substantially better carbon dioxide (CO2) emissions from new vehicles than regulatory standards and the best levels in the industry (102.1g/km compared to U.S. regulation of 119g/km). In 2020, Toyota reduced global average CO2 emissions from new vehicles by 22% compared to 2010 levels by improving vehicle performance and expanding its lineup. Toyota’s goal is to increase that number to 30% by 2025, with the goal of 90% total reduction by 2050. The company aims to offer an electric version of all Toyota and Lexus models worldwide by 2025. (Toyota does not yet sell any all-electric vehicles to the U.S., but it does outside the U.S.)

In addition to greenhouse gases, cars emit smog-forming pollutants that contribute to poor air quality and trigger negative health effects. Recently, a London court ruled that air pollution significantly contributed to the death of a nine-year-old girl with asthma who had been exposed to excessive nitrogen dioxide (NO2) levels. NO2 is a toxic gas emitted by cars that use diesel fuel, and although European Union laws set regulatory levels for NO2 in the air, Britain has missed its targets for a decade due to a lack of enforcement. As Toyota expands into European markets, the smog rating of its cars will be financially material and an important aspect of risk management.

Compared to industry peers, Toyota excels in addressing emissions and fuel efficiency. In 2014 Toyota Motor Credit Corporation, the financial arm of Toyota Motor Corporation, introduced the auto industry’s first-ever asset-backed green bond and has since issued five total green bonds. The newest $750 million bond will go toward developing new Toyota and Lexus vehicles to possess a hybrid or alternative fuel powertrain, achieve a minimum of 40 highway and city miles per gallon, and receive an EPA Smog Rating of 7/10 or better. The bond program was reviewed by Sustainalytics, which found that Toyota leads its competitors in supporting its carbon transition through green bond investments.

In addition to curbing emissions caused by Toyota’s vehicles, the company seeks to reduce plant emissions to zero by 2050 by utilizing renewable energy and equipment optimization. In automaking, water is used in painting and other manufacturing processes. Toyota has implemented initiatives to reduce the amount of water used in manufacturing and has developed technology that allows the painting process to require no water. In 2019, Toyota reduced water usage by 5% per vehicle, with the goal of 3% further reduction by 2025, for an overall reduction of 34% from 2001 levels. To reduce the environmental impact of materials purchased from suppliers, Toyota has launched Green Purchasing Guidelines to prioritize the purchase of parts and equipment with a low environmental footprint. We would like to see Toyota continue to develop its supply chain environmental policies.

As the global population grows, so does number of cars on the road, which creates waste when they’ve reached the end of their useful lives. Toyota’s Global 100 Dismantlers Project was created to establish systems for appropriate treatment of end-of-life vehicles through battery collection and car recycling. Toyota aims to have 15 vehicle recycling facilities by 2025. Toyota is also working to minimize waste by prolonging the useful life of its vehicles. Toyota has a strong reputation for producing quality, reliable vehicles. Consumer Reports lists Toyota’s overall reliability as superb, and Toyota and Lexus often take the top spots in Consumer Reports Annual Auto Reliability Survey. An Iseecars.com study found that Toyota full-size SUV models are the longest-lasting vehicles and most likely to reach over 200,000 miles.

Driving is an activity with inherent risk. The World Health Organization estimates that 1.35 million people die in car accidents each year. Accidents are worse in emerging nations where transportation infrastructure has not kept up with the increase in the number of cars on the road; without countermeasures, traffic fatalities are predicted to become the seventh-leading cause of death worldwide by 2030. Demand for personal vehicles will continue to increase as developing countries experience higher standards of living, and product safety will be paramount to automaker’s reputations and brand values. Toyota has put forth a goal of Zero Casualties from Traffic Accidents and adopted an Integrated Safety Management Concept to work toward eliminating traffic fatalities by providing driver support at each stage of driving: from parking to normal operation, the accident itself, and the post-crash. Toyota and Lexus models regularly earn top safety ratings by the National Highway Traffic Safety Administration ( NHTSA ) and the Insurance Institute for Highway Safety. In addition to traditional safety features, Toyota actively invests in the development of autonomous vehicles, including a $500 million investment in Uber and autonomous ridesharing. If fully developed, autonomous driving can offer increased safety to passengers, lower accident rates, and provide mobility for the elderly and physically disabled.

Accidents caused by defective vehicles can have significant financial repercussions for auto manufacturers. Toyota experienced significant damage to its reputation and brand value in 2009 when unintended acceleration caused a major accident that killed four people riding in a dealer-loaned Lexus in San Diego. Toyota subsequently began recalling millions of vehicles, citing problems of pedal entrapment from unsecured floor mats and “sticky gas pedals.” Toyota’s failure to quickly respond resulted in a $1.2 billion settlement with the Justice Department and $50 million in fines from the NHTSA . The scandal generated an extraordinary amount of news coverage, and the Toyota recall story ranked among the top 10 news stories across all media in January and February 2010. Litigation costs, warranty costs, and increased marketing to counter the negative publicity of the event were estimated to cost Toyota over $5 billion (annual sales are about $275 billion). As a result of bad press, Toyota’s 2010 sales fell 16% from the previous year and its stock price fell 10% overall, while competitors like Ford benefitted and experienced stock price growth of 80% over the same period. Future recalls and quality issues are certain to prove costly for Toyota and may continue to negatively impact its consumer reputation.

Another social issue that can be financially material for automakers is human rights. Automobiles consist of about 30,000 parts, making their supply chain extensive and at high risk for human rights abuses. Toyota addresses human rights concerns in its Corporate Sustainability Report ( CSR ) and cites Migrant Workers and Responsible Sourcing of Cobalt as its priorities for 2020; however, Toyota does not have a clean labor record. A 2008 report published by the Institute for Global Labour and Human Rights accused Toyota of a catalog of human rights abuses, including stripping foreign workers of their passports and forcing them to work grueling hours without days off for less than half of the legal minimum wage. Toyota was also accused of involvement in the suppression of freedom of association at its plant in the Philippines. Toyota’s CSR lists a host of external nongovernmental organizations the company partners with to promote fair working conditions, however; due to the high-risk present in its supply chain and its past offenses, we would like to see the company further develop its labor and human rights policies.

Lastly, we would mention that Toyota has been accused of discriminatory practices. In 2016, Toyota Motor Credit Corporation, the financial arm of Toyota Motor Corporation, agreed to pay 21.9 million in restitution to thousands of African American, Asian, and Pacific Islander customers for charging them higher interest rates on auto loans than their white counterparts with comparable creditworthiness. Toyota has since taken measures to change its pricing and compensation system to reduce incentives to mark up interest rates.

Toyota Case Study 2

Toyota shows strength in its transparency, and its Corporate Sustainability Report ( CSR ) is prepared in accordance with multiple sustainability reporting agencies, including the Global Reporting Initiative, Sustainable Accounting Standards Board, and the Task Force on Climate-Related Financial Disclosures; the CSR data is also verified by a third party. Starting in 2021, Toyota’s CSR will be updated whenever necessary to ensure timely disclosure, rather than annually. In 2019 Toyota created a Sustainability Management Department and added the role of Chief Sustainability Officer to its executive management team in 2020. Toyota’s CSR offers thorough information on its executive compensation policies, however; the composition of Toyota’s board of directors is an area of weakness for the company. There is a lack of independence among board members, and the chair of the board is not independent. In general, when compared to the U.S., Japanese companies have a smaller percentage of outside directors due to a history of corporate governance emphasizing incumbency and promotion from within. However, since the release of the Japanese Corporate Governance Code in 2015, companies have felt pressure to make meaningful board composition changes. We hope to see Toyota strengthen its board composition and adopt executive renumeration policies that are tied to sustainability performance.

Like other automakers, Toyota has lobbied aggressively to weaken Obama-era fuel economy standards. In 2017, the Environmental Protection Agency announced plans to work with Toyota to overhaul internal management practices at the agency. Inviting a company regulated by the agency to alter internal practices has been previously unprecedented and raises concerns over how Toyota could wield influence over EPA functions. Toyota is a member of the Alliance of Automobile Manufacturers, the most powerful automotive industry lobbying association, which has strongly opposed climate change motivated regulation since 2016, contradicting the company’s public stance on emissions.

Risk & Outlook

Sage believes Toyota to be well adapted to manage sustainability challenges, despite the high environmental and social risks in the automotive industry. We expect the auto industry to see an increase in regulatory risk surrounding vehicle emissions and fuel efficiency; however, we believe Toyota will continue to innovate to meet and exceed emission standards and the company is well positioned to benefit from future fuel efficiency regulations. We hope to see Toyota continue to improve its social performance and expand on its recently introduced human capital policies. In addition to regulation, the auto industry faces disruption caused by new areas of technology such as automated driving, electrification, and shared mobility, and these areas will be important to monitor. Toyota’s strong management of ESG issues makes the company a leader amongst its peers; however, due to risk present in the automotive industry we rank Toyota a 3/5 for its Sage ESG Leaf Score.

Sage ESG Leaf Score Methodology

No two companies are alike. This is exceptionally apparent from an ESG perspective, where the challenge lies not only in as­sessing the differences between companies, but also in the differences across industries. Although a company may be a leader among its peer group, the industry in which it operates may expose it to risks that cannot be mitigated through company management. By combining an ESG macro industry risk analysis with a company-level sustainability evaluation, the Sage Leaf Score bridges this gap, enabling investors to quickly assess companies across industries. Our Sage Leaf Score, which is based on a 1 to 5 scale (with 5 leaves representing ESG leaders), makes it easy for investors to compare a company in, for example, the energy industry to a company in the technology industry, and to understand that all 5-leaf companies are leaders based on their individual company management and the level of industry risk that they face.

Toyota Case Study 3

For more information on Sage’s Leaf Score, click here.

Originally published by Sage Advisory

  • ISS ESG Corporate Rating Report on Toyota Motor Corporation.
  • Environmental Report 2020 Toyota Motor Corporation.
  • Sustainability Data Book 2020 Toyota Motor Corporation.
  • Lambert, Lisa. “Toyota Motor Credit settles with U.S. over racial bias in auto loans” February 2, 2016.
  • “Automobiles” Sustainability Accounting Standards Board. September, 2014.
  • Kaufman, Alexander. “Scott Pruitt’s Plan to Outsource Part Of EPA Overhaul to Automaker Raises Concerns” December 12, 2017.
  • “How the US auto industry accelerated lobbying under President Trump” November, 2017.
  • Charles Kernaghan, Barbara Briggs, Xiaomin Zhang, et al. “The Toyota You Don’t Know” Institute for Global Labour and Human Rights. 2008.
  • Road Safety World Health Organization.
  • Toyota Motor Credit Corporation Green Bond Framework Second-Party Opinion January 21, 2020.
  • Toshihiko Hiura and Junya Ishikawa. “Corporate Governance in Japan: Board Membership and Beyond” Bain & Company. February 23, 2016.
  • Taylor, Lin. ”Landmark ruling links death of UK schoolgirl to pollution" December 16, 2020.

Disclosures

Sage Advisory Services, Ltd. Co. is a registered investment adviser that provides investment management services for a variety of institutions and high net worth individuals. The infor­mation included in this report constitute Sage’s opinions as of the date of this report and are subject to change without notice due to various factors, such as market conditions. This report is for informational purposes only and is not intended as investment advice or an offer or solicitation with respect to the purchase or sale of any security, strategy or investment product. Investors should make their own decisions on investment strategies based on their specific investment objectives and financial circumstances. All investments contain risk and may lose value. Past performance is not a guarantee of future results. Sustainable investing limits the types and number of investment opportunities available, this may result in the Fund investing in securities or industry sectors that underperform the market as a whole or underperform other strategies screened for sustainable investing standards. No part of this Material may be produced in any form, or referred to in any other publication, without our express written permission. For additional information on Sage and its investment management services, please view our web site at www.sageadvisory.com, or refer to our Form ADV , which is available upon request by calling 512.327.5530.

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Research-Methodology

Toyota Corporate Social Responsibility

CSR programs and initiatives are launched as a part of Toyota Global Vision that was formulated in March 2011. Toyota Global Vision is represented in the form of a tree where Toyota values represent the roots of the tree, stable base of the business is the trunk of the tree. The concepts of ‘Always Better Cars’ and ‘Enriching Lives of Communities’ are positioned as fruits of the tree. In other words, Toyota Global Vision places an equal emphasis on the primary objective of profit maximization (Always Better Cars) and CSR (Enriching Lives of Communities).

Toyota CSR

Overview of Toyota’s CSR activities [1]

The company releases Global Responsibility Report annually and it includes the details of Toyota CSR programs and initiatives engaged by the company. Table 3 below illustrates highlights from the latest report for 2014:

2.14% of all workforce are disabled people
 

 

Quality Control (QC) circles have been instituted at Toyota to increase the vitality of people and workplaces. As of March 2015, approximately 4,100 circles involving approximately 36,000 members were active in Japan, and approximately 13,000 circles involving approximately 99,000 members were active abroadToyota conducts genchi genbutsu safety inspections regularly to ensure the safety of employees and visitors to the company.

Rainwater collection has been implemented by Toyota to reduce the amount of water usage in its plants

Toyota engages in recycling in the following four directions:

(1) utilization of eco-friendly materials; (2) making use of parts longer; (3) development of recycling technology; (4) making vehicles from the materials of end-of-life vehicles.

The company aims to improve the global average fuel efficiency by 25% by FY2015, compared to FY2005

As of December 31, 2013, use of Toyota hybrids* had resulted in approximately 41 million fewer tons of CO2 emissions

“New Vehicle Zero CO2 Challenge,” initiative aims to reduce vehicle CO2 emissions by 90 percent in comparison with 2010 levels, by 2050

Toyota promotes local purchasing globally
As a result of relevant set of initiatives the number of women in managerial positions has increased from 16 in 2004 to 111 in 2015.Toyota aims to increase the number of women in managerial positions in 2020 by three times the number in 2014
Toyota has initiated a number of road safety education programs which include issuing nearly 134 million copies of traffic safety picture books to preschool and kindergarten children around Japan, and nearly 1.5 million copies of traffic safety picture-card sets. Moreover, TeenDrive in the US and White Road Campaign in Thailand are among road safety educational initiatives launched by Toyota outside of Japan.CSR workshop and education programs are organized for suppliers in Japan and abroad participation in which is voluntary

 Toyota CSR performance

Figures taken from Toyota Annual Report (2014) and Sustainability Report (2015)

Discussion of Toyota Corporate Social Responsibility and Criticism of Toyota’s CSR programs and initiatives is given in Toyota Motor Corporation Report . The report also contains an application of SWOT, PESTEL, Porter’s Five Forces and Value Chain Analyses on Toyota.  Moreover, Toyota’s marketing strategy is analyzed in this report in a detailed manner.

Toyota Company Report

[1] Annual Report (2014) Toyota Motor Corporation

Toyota Ethical Issues and Social Responsibility

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Identification of ethics and social responsibility issues facing the company

Toyota Motor Corporation is an international automobile and financial company, respected for its quality and reliable products; to remain competitive; the company’s management makes timely decisions. In all operations, the company aims to be ethical; it also extends a hand of appreciation to the public through corporate social responsibilities (CSRs). When determining the operation base and the CSRs to undertake, the company considers different issues likely to influence the direction of the projects or decisions.

There has been come ethical issues faced by the company, for example in early 2010, Toyota Company was faced by a problem when some fault vehicles got their way to the market and lead to deaths particularly in the United States of America. The company was considered not to be taking good care of its customers and the public.

The brands of vehicle could accelerate themselves to an uncontrollable level they even led to death. The move or the experience that the company got at the time forced the management to appraise in person on the case and recalled all faulty automobiles.

The case of Toyota was broadcasted in international and national media a point that made the sales of the company reduce (Habisch, Jonker and Martina 1-123).

Toyota being in the automobile industry has been blamed for environmental damage; the damage has been attributed to the company’s products, vehicles, which use fossil fuels to run.

When fossil fuels are burnt, they produce green house gasses that have been a major talk in environmental debates, for the reason the company has been considered unethical. However, despite the moves and criticism gotten from environmental conservatisms, the company has continued to improve its products and has innovated battery vehicles (electronic vehicles).

Identification of key stakeholders and explanation of their involvement and influence

There are a number of stakeholders in Toyota as far as ethics and corporate social responsibilities plans are concerned. The stakeholders are both internal and external players; internally Toyota is divided into departments performing different tasks. Internal team is expected to be creative, inventive and innovative to come up with approaches to ethical and CRS programs.

The company has embarked on enforcement of its operating strategies: the company operates under five principals, they are Kaizen (continuo’s improvement), teamwork, Challenges, Respect and Genchi Genbutsu (go and see): to be ethical, the company aims at fulfilling the above objectives.

Another set of the company’s stakeholders that affect the ethical code of business in the company is the external environment like customers and the society; there is a level of quality that customers expect from the company, the level forces the company to adopt high ethical operations. The company takes social corporate responsibilities as advertising and marketing tools, they offer the company a competitive advantage as communities value the efforts made by the company.

The government and community-based organizations are other stakeholders; the main areas that these organizations get involved is in offering a minimal base and rate of operation that the company should uphold, for instance the environment movements require some level of emission from the company’s products and operations.

When the company is compiling with such regulations, then it has to conduct its businesses ethically. International bodies and regulations are other stakeholders which the company has as stakeholders, there are a number of international conventions, protocols , and agreements that define the way business should be conducted, they include Kyoto protocol, Stockholm agreements, Doha round of talks, Rio de Janeiro, 3-14 June 1992, European Commission, and The International Institute for Sustainable Development (IISD).

However, these organizations are more concerned on pollution matters and environmental protection. The company is listed in Asian stock exchange whereby the public can buy shares in the company. The employees have a policy that ensures that they also have shares in the company, all this are stakeholders.

The government and the public also would like to get ethically correct products from whichever the company and thus are included in the context of stakeholders. Shareholders are recognized by paying them dividends and the government by taxes. The public benefit from social corporate responsibilities programs (Habisch, Jonker and Martina 1-123)

Identification of company’s stance

Although Toyota has been concerned on ethical and CSR issues, it waited until 2005 when the company developed a CSR policy, in the policy the company’s stance which is “CSR POLICY: Contribution towards Sustainable Development.” The policy team section has been upgraded to full departmental level managed by team of experts; the sector looks into economic, social, political and environmental issues in the company. The department has been successful in innovating environmental technologies in both products and processes.

The stance is seen as a combination of pragmatic, ethical, or strategic stance; the broad approach of the stance offers flexibility in country. The success of the structure can be seen in different areas which include development of products that are internationally accepted and automating its process to meet international standards. The stance is not limited to guidance in CSR and ethical issues but takes massive research to advice the company on consumers expectations. The following are the policies that are contained in the stance:

  • Contribution towards a prospectus 21 st century society
  • Pursuit of environmental technologies
  • Voluntary actions and
  • Working in corporation with society

The above action policies are implemented using the framework of:

  • Action plan
  • Toyota Green purchasing Guidelines
  • Biodiversity guidelines
  • Initiative at the new Toyota R&D center

Let us evaluate the success of the company using a Carroll’s Pyramid of Corporate Social Responsibility.

Carroll Pyramid of Corporate Social Responsibility is as follows:

Carroll Pyramid of Corporate Social Responsibility.

At the base of the pyramid, the company profit objectives; when the company economic welfare has been looked into, the company lays the base of other corporate responsibilities and ethical code of conducts.

The pyramid can be expanded as follows:

Basic policyaction guideline
Economic responsibilitythe company has futuristic actions and strategies that target the continuity of the business, according to the CRS plan, the company aims at improving its products and improves the quality of the products to meet the demands of 21st century. When doing this, the company aims at maintaining harmony with the environment.
Legal responsibilitiesIt is the company’s policy that it should comply with national and international ethical standards; when the standards are being developed, it is one of the companies consulted for their inputs, it advises these organizations with customer as the main concern.
Ethical responsibilityThe company has ethical policies that it should attain in its operations, the ethical responsibilities include the need to conserve the environment and create harmony with the environments its is operating.
Philanthropic responsibilitiesthe company has created good citizenship with the communities it is operating in, it aims at adding value to stakeholders.

The efforts of the company look into all areas of ethical concern, the major drive of the company is to have products that are accepted internationally and whose connect with the people (Toyota official website).

The automobile industry is quite demanding as far as ethical and social responsibilities are concerned, they are at the point of focus by national and international bodies more so when it comes to the issues of environmental conservation and being efficient.

Mitsubishi is another international automobile company; it has ethical and corporate social responsibility functions at it heart, in every automobile it produces, it ensures it meets international accreditation of quality, before releasing to the market, the company quality team has to ensure that ever thing is intact.

The efforts have not gone untested; the company’s Glanti model has been accused of brake failures and color fades. There are a number of corporate social responsibilities that the company has embarked on; they include environmental conservations, public educations, and has embarked on massive automation to facilitate ethical business.

According to environmental report 2009 by US Environmental Agency, Mitsubishi has reduced its water wastage by 50%, this is through recycling and proper water use. The recycling is seen as a move to conserve the environment in line with EU environmental rules and Kyoto protocol.

US Environmental Agency has congratulated the efforts taken by Mitsubishi to conserve the environment. It is of the view that if other motor industries follow the same trend, then the world is likely to reduce emissions by half. Pollution from Mitsubishi Motors Corporation can be controlled as a form of corporate responsibility (internal) or a company can embark on massive cleaning of the environment.

Mitsubishi is also a key player in carbon emission reduction through:

  • Adopting fuel efficient production methods like use electricity instead of coal when heating, this is estimated to reduce its in factory emission by 20% A project to develop electric motor vehicles is in an advanced stage
  • The company has embarked on improved technology on it vehicles to ensure that they are fuel efficient
  • The company have started making bio-diesel engine vehicles; they are seen as the breakthrough to future environmental conservation

When comparing Toyota and Mitsubishi, Toyota is doing better; this is so because of the massive innovations that it has come up with in products and processes. Although Mitsubishi is having effective CRS, its coverage is lower than that of Toyota, this may be agued its because of the differences in operating base, since Toyota is the world largest automobile maker while Mitsubishi comes in as seventh (Mitsubishi Corporate website)

The areas that both companies should look into are weak points and leakages in the company resulting from lack of 100% seal of holes that might result to unethical businesses. The company’s quality report of 2009 has almost claimed that the company’s products quality is incomparably high, however, it was a matter of time before they believe failed the test of time.

The five operating policies adopted by the company are strong source of drive and should shape the company’s direction, when it comes to ethical matters, the policies should be adhered to the dot. Advocators for good citizenship acknowledge the benefits that can be acquired from continuous improvements; they are of the view that businesses need to undertake research in their line of business to invent and innovate better ways of working than the current ones.

From the course, I have appreciated the benefits that a company can derive from being ethical and the power of corporate social responsibility as a marketing tool. Previously, I had less interest in CSR programs and their effect on a business, after the course I clearly understand the benefits and the approaches it should take. The course was an eye opener; I now can tell companies that are ethical, them who respect stakeholders and those who have no interest.

The efforts made by Toyota can be applauded, the company has automated its internal structures and is making products that are ethically accepted; to attain the ethical objective as required by the policies; the company is constantly innovating and inventing other ways of operating that are environmentally friendly.

Some of the projects that the company has implemented as corporate social responsibilities have continued to change lives; for example the company’s education programs in developing countries has eradicated poverty and assisted communities. Such systems have a life touching effect; other programs that are aimed at environmental conservation are building to much needed sustainable development agendas attainments.

The efforts made by Toyota has slightly made me respect the company and wish I would get a chance to work with the compact; at least it has made efforts and the efforts are yielding positive results. On paper and according to Toyota code of conduct, the company complies with internationally ethical values and has CSR efforts. The processes that the company has adopted in the efforts of being ethical are a great blessing to the company and societies; they include automation, recycling processes and refurbishment of products.

The moves are compliant with international environmental conservation measures; the invention of electronic motor vehicles (EMVs) is seen as a major breakthrough in energy industry which has been threatened by increasing use and chances of depletion of oil reserves. on the other hand emissions from motor vehicles have been a major contributor to green gasses, the invention is expected to assist in a great deal.

The company has embarked on quality management policies, they include TQM (total Quality Management), Six Sigma, and CRM (Customer relations management) policies; although the policy has made the company more profitable, its spillovers are ethically accepted moves like reliable, affordable and efficient automobiles.

In modern contemporary societies, there is a growing concerns on environmental conservation, management and restoration; this has been facilitated by enlighten among consumers and other business stakeholders calling for companies to act ethically and involve themselves in corporate social responsibilities.

Toyota has embarked a number of measures to make its compliant with international ethical code of conducts. To act ethically, the company is guided by its CSR Policy document of 2005 and guidance of its implementation team.

Works Cited

Habisch, André, Jonker Jan, and Martina Wegner. Corporate Social Responsibility across the Europe . Heidelberg: Springer. 2005. Print

Mitsubishi Corporate website. Mitsubishi,2011. Web.

Toyota official website. Toyota , 2011. Web.

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IvyPanda. (2019, March 13). Toyota Ethical Issues and Social Responsibility. https://ivypanda.com/essays/toyota-ethics-case-study/

"Toyota Ethical Issues and Social Responsibility." IvyPanda , 13 Mar. 2019, ivypanda.com/essays/toyota-ethics-case-study/.

IvyPanda . (2019) 'Toyota Ethical Issues and Social Responsibility'. 13 March.

IvyPanda . 2019. "Toyota Ethical Issues and Social Responsibility." March 13, 2019. https://ivypanda.com/essays/toyota-ethics-case-study/.

1. IvyPanda . "Toyota Ethical Issues and Social Responsibility." March 13, 2019. https://ivypanda.com/essays/toyota-ethics-case-study/.

Bibliography

IvyPanda . "Toyota Ethical Issues and Social Responsibility." March 13, 2019. https://ivypanda.com/essays/toyota-ethics-case-study/.

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Mobile Microgrids: Toyota, Electric Utility Pepco Researching Vehicle-to-Grid Impacts in Maryland

6672d6f1142f580b438429d4 Toyota Evcs Exelon Pepco V2g Watershed House

Toyota Motor North America (Toyota) and Pepco, a local energy utility, have partnered on vehicle-to-grid (V2G) research for battery electric vehicles (BEVs) using a Toyota bZ4X to explore bidirectional power flow technology enabling BEV owners to not only charge their vehicle's battery but also send power back to the local energy grid.

The collaboration aims to understand the requirements of EV owners through their charging habits and vehicle usage to drive widespread adoption of V2G technology. Currently, nearly 80 percent of owners charge their EVs at home overnight when demand for energy is lower.

The vehicles can send power back to the local energy grid during peak demand hours or at severe weather conditions using bidirectional capability. In this way, many V2G proponents envision bidirectional technology as enabling EVs to become mobile microgrids . 

The research will be conducted at Pepco's Watershed Sustainability Center located at the company's Rockville Service Center in Montgomery County , Maryland, using a bidirectional charger. Pepco will design and evaluate a variety of EV charging and discharging use-cases providing grid and customer benefits.

Maryland expects to have 300,000 EVs on the road by 2025 and Pepco is helping the state achieve the target by installing 250 EV chargers across Montgomery and Prince George's Counties. Maryland also passed vehicle-to-grid legislation, HB 1256, the Distributed Renewable Integration and Vehicle Electrification (DRIVE) Act, requiring utilities to develop interconnection processes for bidirectional chargers.

The demonstration project will assist Pepco in understanding the infrastructure required to enable the rapid growth of EV charging infrastructure and the nuances of interconnecting V2G assets to the grid. This will help the utility implement requirements of the DRIVE Act and support customer adoption of the V2G technology.

Toyota plans to introduce two three-row BEV SUVs to be assembled at Toyota Motor Manufacturing Kentucky (TMMK) and Toyota Motor Manufacturing Indiana (TMMI). By 2030, Toyota intends to offer 30 BEV models globally across its Toyota and Lexus brand nameplates and produce up to 3.5 million BEVs annually.

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Tracking cop28 progress.

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The world now invests almost twice as much in clean energy as it does in fossil fuels…, global investment in clean energy and fossil fuels, 2015-2024, …but there are major imbalances in investment, and emerging market and developing economies (emde) outside china account for only around 15% of global clean energy spending, annual investment in clean energy by selected country and region, 2019 and 2024, investment in solar pv now surpasses all other generation technologies combined, global annual investment in solar pv and other generation technologies, 2021-2024, the integration of renewables and upgrades to existing infrastructure have sparked a recovery in spending on grids and storage, investment in power grids and storage by region 2017-2024, rising investments in clean energy push overall energy investment above usd 3 trillion for the first time.

Global energy investment is set to exceed USD 3 trillion for the first time in 2024, with USD 2 trillion going to clean energy technologies and infrastructure. Investment in clean energy has accelerated since 2020, and spending on renewable power, grids and storage is now higher than total spending on oil, gas, and coal.

As the era of cheap borrowing comes to an end, certain kinds of investment are being held back by higher financing costs. However, the impact on project economics has been partially offset by easing supply chain pressures and falling prices. Solar panel costs have decreased by 30% over the last two years, and prices for minerals and metals crucial for energy transitions have also sharply dropped, especially the metals required for batteries.

The annual World Energy Investment report has consistently warned of energy investment flow imbalances, particularly insufficient clean energy investments in EMDE outside China. There are tentative signs of a pick-up in these investments: in our assessment, clean energy investments are set to approach USD 320 billion in 2024, up by more 50% since 2020. This is similar to the growth seen in advanced economies (+50%), although trailing China (+75%). The gains primarily come from higher investments in renewable power, now representing half of all power sector investments in these economies. Progress in India, Brazil, parts of Southeast Asia and Africa reflects new policy initiatives, well-managed public tenders, and improved grid infrastructure. Africa’s clean energy investments in 2024, at over USD 40 billion, are nearly double those in 2020.

Yet much more needs to be done. In most cases, this growth comes from a very low base and many of the least-developed economies are being left behind (several face acute problems servicing high levels of debt). In 2024, the share of global clean energy investment in EMDE outside China is expected to remain around 15% of the total. Both in terms of volume and share, this is far below the amounts that are required to ensure full access to modern energy and to meet rising energy demand in a sustainable way.

Power sector investment in solar photovoltaic (PV) technology is projected to exceed USD 500 billion in 2024, surpassing all other generation sources combined. Though growth may moderate slightly in 2024 due to falling PV module prices, solar remains central to the power sector’s transformation. In 2023, each dollar invested in wind and solar PV yielded 2.5 times more energy output than a dollar spent on the same technologies a decade prior.

In 2015, the ratio of clean power to unabated fossil fuel power investments was roughly 2:1. In 2024, this ratio is set to reach 10:1. The rise in solar and wind deployment has driven wholesale prices down in some countries, occasionally below zero, particularly during peak periods of wind and solar generation. This lowers the potential for spot market earnings for producers and highlights the need for complementary investments in flexibility and storage capacity.

Investments in nuclear power are expected to pick up in 2024, with its share (9%) in clean power investments rising after two consecutive years of decline. Total investment in nuclear is projected to reach USD 80 billion in 2024, nearly double the 2018 level, which was the lowest point in a decade.

Grids have become a bottleneck for energy transitions, but investment is rising. After stagnating around USD 300 billion per year since 2015, spending is expected to hit USD 400 billion in 2024, driven by new policies and funding in Europe, the United States, China, and parts of Latin America. Advanced economies and China account for 80% of global grid spending. Investment in Latin America has almost doubled since 2021, notably in Colombia, Chile, and Brazil, where spending doubled in 2023 alone. However, investment remains worryingly low elsewhere.

Investments in battery storage are ramping up and are set to exceed USD 50 billion in 2024. But spending is highly concentrated. In 2023, for every dollar invested in battery storage in advanced economies and China, only one cent was invested in other EMDE.

Investment in energy efficiency and electrification in buildings and industry has been quite resilient, despite the economic headwinds. But most of the dynamism in the end-use sectors is coming from transport, where investment is set to reach new highs in 2024 (+8% compared to 2023), driven by strong electric vehicle (EV) sales.

The rise in clean energy spending is underpinned by emissions reduction goals, technological gains, energy security imperatives (particularly in the European Union), and an additional strategic element: major economies are deploying new industrial strategies to spur clean energy manufacturing and establish stronger market positions. Such policies can bring local benefits, although gaining a cost-competitive foothold in sectors with ample global capacity like solar PV can be challenging. Policy makers need to balance the costs and benefits of these programmes so that they increase the resilience of clean energy supply chains while maintaining gains from trade.

In the United States, investment in clean energy increases to an estimated more than USD 300 billion in 2024, 1.6 times the 2020 level and well ahead of the amount invested in fossil fuels. The European Union spends USD 370 billion on clean energy today, while China is set to spend almost USD 680 billion in 2024, supported by its large domestic market and rapid growth in the so-called “new three” industries: solar cells, lithium battery production and EV manufacturing.

Overall upstream oil and gas investment in 2024 is set to return to 2017 levels, but companies in the Middle East and Asia now account for a much larger share of the total

Change in upstream oil and gas investment by company type, 2017-2024, newly approved lng projects, led by the united states and qatar, bring a new wave of investment that could boost global lng export capacity by 50%, investment and cumulative capacity in lng liquefaction, 2015-2028, investment in fuel supply remains largely dominated by fossil fuels, although interest in low-emissions fuels is growing fast from a low base.

Upstream oil and gas investment is expected to increase by 7% in 2024 to reach USD 570 billion, following a 9% rise in 2023. This is being led by Middle East and Asian NOCs, which have increased their investments in oil and gas by over 50% since 2017, and which account for almost the entire rise in spending for 2023-2024.

Lower cost inflation means that the headline rise in spending results in an even larger rise in activity, by approximately 25% compared with 2022. Existing fields account for around 40% total oil and gas upstream investment, while another 33% goes to new fields and exploration. The remainder goes to tight oil and shale gas.

Most of the huge influx of cashflows to the oil and gas industry in 2022-2023 was either returned to shareholders, used to buy back shares or to pay down debt; these uses exceeded capital expenditure again in 2023. A surge in profits has also spurred a wave of mergers and acquisitions (M&A), especially among US shale companies, which represented 75% of M&A activity in 2023. Clean energy spending by oil and gas companies grew to around USD 30 billion in 2023 (of which just USD 1.5 billion was by NOCs), but this represents less than 4% of global capital investment on clean energy.

A significant wave of new investment is expected in LNG in the coming years as new liquefaction plants are built, primarily in the United States and Qatar. The concentration of projects looking to start operation in the second half of this decade could increase competition and raise costs for the limited number of specialised contractors in this area. For the moment, the prospect of ample gas supplies has not triggered a major reaction further down the value chain. The amount of new gas-fired power capacity being approved and coming online remains stable at around 50-60 GW per year.

Investment in coal has been rising steadily in recent years, and more than 50 GW of unabated coal-fired power generation was approved in 2023, the most since 2015, and almost all of this was in China.

Investment in low-emissions fuels is only 1.4% of the amount spent on fossil fuels (compared to about 0.5% a decade ago). There are some fast-growing areas. Investments in hydrogen electrolysers have risen to around USD 3 billion per year, although they remain constrained by uncertainty about demand and a lack of reliable offtakers. Investments in sustainable aviation fuels have reached USD 1 billion, while USD 800 million is going to direct air capture projects (a 140% increase from 2023). Some 20 commercial-scale carbon capture utilisation and storage (CCUS) projects in seven countries reached final investment decision (FID) in 2023; according to company announcements, another 110 capture facilities, transport and storage projects could do the same in 2024.

Energy investment decisions are primarily driven and financed by the private sector, but governments have essential direct and indirect roles in shaping capital flows

Sources of investment in the energy sector, average 2018-2023, sources of finance in the energy sector, average 2018-2023, households are emerging as important actors for consumer-facing clean energy investments, highlighting the importance of affordability and access to capital, change in energy investment volume by region and fuel category, 2016 versus 2023, market sentiment around sustainable finance is down from the high point in 2021, with lower levels of sustainable debt issuances and inflows into sustainable funds, sustainable debt issuances, 2020-2023, sustainable fund launches, 2020-2023, energy transitions are reshaping how energy investment decisions are made, and by whom.

This year’s World Energy Investment report contains new analysis on sources of investments and sources of finance, making a clear distinction between those making investment decisions (governments, often via state-owned enterprises (SOEs), private firms and households) and the institutions providing the capital (the public sector, commercial lenders, and development finance institutions) to finance these investments.

Overall, most investments in the energy sector are made by corporates, with firms accounting for the largest share of investments in both the fossil fuel and clean energy sectors. However, there are significant country-by-country variations: half of all energy investments in EMDE are made by governments or SOEs, compared with just 15% in advanced economies. Investments by state-owned enterprises come mainly from national oil companies, notably in the Middle East and Asia where they have risen substantially in recent years, and among some state-owned utilities. The financial sustainability, investment strategies and the ability for SOEs to attract private capital therefore become a central issue for secure and affordable transitions.

The share of total energy investments made or decided by private households (if not necessarily financed by them directly) has doubled from 9% in 2015 to 18% today, thanks to the combined growth in rooftop solar installations, investments in buildings efficiency and electric vehicle purchases. For the moment, these investments are mainly made by wealthier households – and well-designed policies are essential to making clean energy technologies more accessible to all . A comparison shows that households have contributed to more than 40% of the increase in investment in clean energy spending since 2016 – by far the largest share. It was particularly pronounced in advanced economies, where, because of strong policy support, households accounted for nearly 60% of the growth in energy investments.

Three quarters of global energy investments today are funded from private and commercial sources, and around 25% from public finance, and just 1% from national and international development finance institutions (DFIs).

Other financing options for energy transition have faced challenges and are focused on advanced economies. In 2023, sustainable debt issuances exceeded USD 1 trillion for the third consecutive year, but were still 25% below their 2021 peak, as rising coupon rates dampened issuers’ borrowing appetite. Market sentiment for sustainable finance is wavering, with flows to ESG funds decreasing in 2023, due to potential higher returns elsewhere and credibility concerns. Transition finance is emerging to mobilise capital for high-emitting sectors, but greater harmonisation and credible standards are required for these instruments to reach scale.

A secure and affordable transitioning away from fossil fuels requires a major rebalancing of investments

Investment change in 2023-2024, and additional average annual change in investment in the net zero scenario, 2023-2030, a doubling of investments to triple renewables capacity and a tripling of spending to double efficiency: a steep hill needs climbing to keep 1.5°c within reach, investments in renewables, grids and battery storage in the net zero emissions by 2050 scenario, historical versus 2030, investments in end-use sectors in the net zero emissions by 2050 scenario, historical versus 2030, meeting cop28 goals requires a doubling of clean energy investment by 2030 worldwide, and a quadrupling in emde outside china, investments in renewables, grids, batteries and end use in the net zero emissions by 2050 scenario, 2024 and 2030, mobilising additional, affordable financing is the key to a safer and more sustainable future, breakdown of dfi financing by instrument, currency, technology and region, average 2019-2022, much greater efforts are needed to get on track to meet energy & climate goals, including those agreed at cop28.

Today’s investment trends are not aligned with the levels necessary for the world to have a chance of limiting global warming to 1.5°C above pre-industrial levels and to achieve the interim goals agreed at COP28. The current momentum behind renewable power is impressive, and if the current spending trend continues, it would cover approximately two-thirds of the total investment needed to triple renewable capacity by 2030. But an extra USD 500 billion per year is required in the IEA’s Net Zero Emissions by 2050 Scenario (NZE Scenario) to fill the gap completely (including spending for grids and battery storage). This equates to a doubling of current annual spending on renewable power generation, grids, and storage in 2030, in order to triple renewable capacity.

The goal of doubling the pace of energy efficiency improvement requires an even greater additional effort. While investment in the electrification of transport is relatively strong and brings important efficiency gains, investment in other efficiency measures – notably building retrofits – is well below where it needs to be: efficiency investments in buildings fell in 2023 and are expected to decline further in 2024. A tripling in the current annual rate of spending on efficiency and electrification – to about USD 1.9 trillion in 2030 – is needed to double the rate of energy efficiency improvements.

Anticipated oil and gas investment in 2024 is broadly in line with the level of investment required in 2030 in the Stated Policies Scenario, a scenario which sees oil and natural gas demand levelling off before 2030. However, global spare oil production capacity is already close to 6 million barrels per day (excluding Iran and Russia) and there is a shift expected in the coming years towards a buyers’ market for LNG. Against this backdrop, the risk of over-investment would be strong if the world moves swiftly to meet the net zero pledges and climate goals in the Announced Pledges Scenario (APS) and the NZE Scenario.

The NZE Scenario sees a major rebalancing of investments in fuel supply, away from fossil fuels and towards low-emissions fuels, such as bioenergy and low-emissions hydrogen, as well as CCUS. Achieving net zero emissions globally by 2050 would mean annual investment in oil, gas, and coal falls by more than half, from just over USD 1 trillion in 2024 to below USD 450 billion per year in 2030, while spending on low-emissions fuels increases tenfold, to about USD 200 billion in 2030 from just under USD 20 billion today.

The required increase in clean energy investments in the NZE Scenario is particularly steep in many emerging and developing economies. The cost of capital remains one of the largest barriers to investment in clean energy projects and infrastructure in many EMDE, with financing costs at least twice as high as in advanced economies as well as China. Macroeconomic and country-specific factors are the major contributors to the high cost of capital for clean energy projects, but so, too, are risks specific to the energy sector. Alongside actions by national policy makers, enhanced support from DFIs can play a major role in lowering financing costs and bringing in much larger volumes of private capital.

Targeted concessional support is particularly important for the least-developed countries that will otherwise struggle to access adequate capital. Our analysis shows cumulative financing for energy projects by DFIs was USD 470 billion between 2013 and 2021, with China-based DFIs accounting for slightly over half of the total. There was a significant reduction in financing for fossil fuel projects over this period, largely because of reduced Chinese support. However, this was not accompanied by a surge in support for clean energy projects. DFI support was provided almost exclusively (more than 90%) as debt (not all concessional) with only about 3% reported as equity financing and about 6% as grants. This debt was provided in hard currency or in the currency of donors, with almost no local-currency financing being reported.

The lack of local-currency lending pushes up borrowing costs and in many cases is the primary reason behind the much higher cost of capital in EMDE compared to advanced economies. High hedging costs often make this financing unaffordable to many of the least-developed countries and raises questions of debt sustainability. More attention is needed from DFIs to focus interventions on project de-risking that can mobilise much higher multiples of private capital.

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    Bangalore, 24 July, 2019: Toyota Kirloskar Motor's [TKM] CSR case study titled "Toyota Kirloskar Motors: Evaluating A CSR Project" and authored by Prof. Utkarsh ...

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  8. Managing Sustainability to Be First: The Toyota Case

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  11. The Contradictions That Drive Toyota's Success

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  12. Environmental dimension of Corporate Social Responsibility (Case study

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  16. Toyota motors and CSR case study

    Toyota motors and CSR case study. Toyota Motors has a long history of corporate social responsibility practices dating back to the early 20th century. It established welfare programs for employees as early as 1917 and has consistently increased its social spending over time, allocating over 1.36 billion rupees in 1999-2000. As one of Pakistan's ...

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  24. Toyota, Electric Utility Pepco Researching Vehicle-to-Grid to Study EV

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  25. Overview and key findings

    This year's World Energy Investment report contains new analysis on sources of investments and sources of finance, making a clear distinction between those making investment decisions (governments, often via state-owned enterprises (SOEs), private firms and households) and the institutions providing the capital (the public sector, commercial lenders, and development finance institutions) to ...