Toyota Meets Third Toyota Environmental Action Plan (2001 - 2005) Goals

TOKYO - June 20, 2006: Toyota Motor Corporation announced today that it has achieved all of its goals for the Third Toyota Environmental Action Plan that outlined TMC's environmental initiatives.

The plan was adopted as a medium-to-long-term action plan covering the five-year period from 2001 to 2005(1). It served as the foundation for environmental management in all areas of TMC's business activities, including products, production and logistics and cooperation with society. Goals were achieved in all 23 categories adopted as action items, including improvement of fuel efficiency, management and reduction of substances of concern and development of recycling systems.

Results for specific action items include the following:

1) Helping to Prevent Global Warming

- The Japanese 2010 Fuel Efficiency Standards were achieved by 2005, well ahead of schedule, in all seven weight categories for gasoline-engine passenger vehicles.
- Worldwide cumulative hybrid vehicles sales reached 610,000 units by the end of March 2006.
- A goal to reduce CO2 emissions during production processes in 2005 to 2.02 million tons was set for TMC on an unconsolidated basis. However, emissions were reduced to just 1.71 million tons (19 percent less than in 1990) through improvements in operations that included precise curtailment during production changes (consolidation or shutting down of lines, processes and facilities) as well as production technology innovations such as size reductions and increasing the energy efficiency of facilities.

2) Management of Substances of Concern

- The voluntary targets set by the Japanese automobile industry regarding four substances of concern (lead, mercury, cadmium and hexavalent chromium) were almost completely reached in June 2006. Measures were implemented globally for complete elimination of these substances.
- The introduction of water-borne paints for use in the top coat of body painting process was completed on all nine Toyota painting lines in Japan. Water-borne paints were also introduced for bumper painting lines. As a result, VOC (volatile organic compounds) emissions on all body painting lines were reduced to an average of 30g/m2, making them among the cleanest in the world.

3) Recycling

- The Toyota Recycle Vision was announced in 2003 and recycling systems were created in response to Japanese and European automobile recycling laws in 2005.
- The cumulative number of Toyota vehicles in Japan that use the highly functional RSPP(2) soundproofing material that TMC started adopting for Toyota-brand vehicles in 1996 exceeded 10 million at the end of 2005.

* Recycled Sound-Proofing Products (soundproofing material made from recycled urethane and fiber found in automobile shredder residue)

4) Engagement with Society and Environmental Management

- TMC's corporate vision and philosophy regarding contributing to sustainable development was firmly outlined and announced in January 2005.
- "Green" procurement guidelines were established in March 2006.
- The Toyota Dealers Association issues a declaration to carry out corporate social responsibility in January 2006.
- Consolidated environmental management was enhanced and strengthened at production affiliates worldwide. In 2002, TMC began collecting and publishing production-related environmental data from all companies subject to consolidated environmental management.

In response to the implementation of the Toyota Earth Charter in 1992, TMC adopted the first version of the Toyota Environmental Action Plan in 1993 with a broad range of goals. In 1996, the plan was revised, focusing on environmental goals in production areas and re-adopted as the Second Toyota Environmental Action Plan. Following the Third Toyota Environmental Action Plan adopted in 2001 TMC has begun implementing the Fourth Toyota Environmental Action Plan covering the period from 2006 to 2010. TMC will remain committed to undertaking proactive environmental management in pursuit of achieving a balance between Toyota's growth and harmony with society.

(1) Years mentioned are business years starting on April 1 (except where otherwise noted).
(2) Recycled Sound-Proofing Products (soundproofing material made from recycled urethane and fiber found in automobile shredder residue)