Sustainability Report 2021 - Toyota Material Handling Europe - TOGETHER WE MOVE THE WORLD
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Sustainability Report 2021
Toyota Material Handling Europe
TOGETHER WE MOVE THE WORLD
TOWARDS EASY AND SUSTAINABLE
About us About this report People Planet Prosperity GRI indexes Glossary
Sustainability Report 2021
< 2 >
Content
GET STARTED
ABOUT TOYOTA MATERIAL HANDLING EUROPE
3 |
4 | About Toyota Material Handling Europe
5 | Message from our Management
7 | Quality, the foundation of our business strategy
8 | Organisational structure
10 | Our value foundation
11 | Corporate governance
12 | Risk management
13 | Compliance
13 | Bribery and corruption
14 | ABOUT THIS REPORT
16 | Get started
17 | Materiality assessment
19 | Sustainability reporting
OUR 3 SUSTAINABILITY PRIORITIES
22 | People | How we optimise opportunities for people to thrive
25 | Our people strategy
26 | Employee health and safety
30 | Attract and retain talent
31 | Training and development
35 | Equal opportunities and diversity
36 | Employee engagement
43 | KPIs and targets
44 | Planet | How we minimise environmental impact
47 | Joining the UN Race To Zero
48 | Zero-carbon emissions from our products and solutions
51 | Zero-carbon emissions from our suppliers
52 | Zero-carbon emissions from our operations
57 | Environmental management
61 | Circular economy
63 | KPIs and targets
64 | Prosperity | How we maximise quality and customer safety
67 | Customer safety & operator training
70 | Quality of products
72 | Quality of service
74 | Quality of the experience
76 | Responsible purchasing
78 | Transparency and accountability
80 | KPIs and targets
DATA
81 | ADDITIONAL DATA
81 | Overview of legal entities covered by GRI, EcoVadis and ISO
82 | GRI Indexes
84 | Glossary
Material issues as defined by our stakeholders, read pages 17-18 to understand Toyota Material Handling Europe
how they prioritised these issues to be selected for our report
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Sustainability Report 2021
< 3 >
About
us
Toyota Material Handling Europe
helps businesses of all sizes
across Europe to meet today’s
material handling challenges.
Active in 42 countries across
Europe and with headquarters
in Sweden and a European
Marketing Office near Brussels,
Toyota Material Handling has
five operational factories in
France, Italy and Sweden. With
11,600 employees, along with
a network of independent
distributors and dealers, Toyota
Material Handling Europe is part
of Toyota Industries Corporation
(TICO) – the global leader in
material handling equipment.
Toyota Material Handling Europe
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Sustainability Report 2021
< 4 >
About
Toyota
Material 42 countries
Active in
5 177,500 438,000 trucks
Handling factories units sold on service agreements
Europe Part of a strong global network
TOYOTA INDUSTRIES FY21 TOYOTA MATERIAL FY21 TOYOTA MATERIAL FY21
CORPORATION vs FY13 HANDLING GROUP vs FY13 HANDLING EUROPE vs FY13
Employees 66,947 +41% 46,980 +125% 11,608 +39%
QUICK FACTS
Toyota Material Handling Turnover 17,1 bn EUR +23% 11,6 bn EUR +59% 2.4 bn EUR +41%
Europe is part of Toyota
Industries Europe AB, a fully
owned subsidiary of Toyota Structure
3 business segments
Material Handling,
5 regions
Japan, Europe,
30 operational
entities
Industries Corporation, Automotive, Textile North America,
the global number one in Machinery China, International
material handling.
* Includes several acquisitions: Vanderlande, Bastian, Tailift; numbers for Vanderlande in Europe are not included in Toyota Material Handling Europe
** Change from Japanese to IFRS standard makes comparisons with previous years difficult - but growth rates are broadly in line with those displayed for employees
4 21 200 +300 3,437 4,4 million
support entities sales and service
dealers suppliers trained service service visits
companies
and 15 distributors technicians per year
About us > Quick facts Toyota Material Handling Europe
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Sustainability Report 2021
< 5 >
Ernesto: As countries across Europe were entering Ernesto: As sustainability is core to our purpose,
COVID-19 lockdowns, my first day as CEO was on we were able to fully achieve 50% of our long-
April 1st, 2020. From day one it became clear that term sustainability targets for 2021, even amidst
we had three priorities: the safety of our employees, the COVID-19 pandemic. Some of our proudest
our customers and society at large including, not at achievements – such as moving to 100% renewable
least our local communities. electricity across all our locations, attaining a
platinum rating from EcoVadis, and achieving net
Peter: Our pan-European People Strategy, first zero emissions manufacturing at our Swedish
launched in 2015, with safety and health as one factory – have come during the last two years.
of its priorities gave us a good starting point from
which to develop our COVID-19 priorities – priorities Peter: Through the combined efforts of 30
that will remain, high pandemic or not. sustainability champions across Europe, we cut
CO2 emissions by 29% while growing revenues by
Ernesto: The disruption to our businesses was 50%. A significant part of our CO2 savings is due to
significant, but we quickly developed measures to improved energy efficiency in those entities that
manage the impact and support critical operations, are ISO 50001 certified. With today’s energy prices,
both our own and not at least our customers’. it shows that sustainability is a smart business
investment.
Peter: I am grateful to all the colleagues who
endured furlough to support the endurance of our Ernesto: Vision and ambition are the keys to
company but also proud that we found ways to unlocking change. Of all the sustainability goals we
avoid dramatic and hasty countermeasures. No one set, it is the bold and ambitious ones that had a
Let's Move the World towards had to leave our company due to Corona. transformative effect, like the Mjölby factory target
to be the first net-zero emission factory.
Easy and Sustainable
Ernesto: We are maybe especially thankful to our
service technicians who continued supporting our Peter: Metrics alone don’t drive action. We strive for
customers while most of Europe was in lockdown. a sustainability culture, one in which we encourage
The pandemic made us realise how critical our role all our teams to innovate, dare to make mistakes,
was in the supply chains of hospital supplies and and become leaders in the industry transition.
medicines, food and other essentials.
Ernesto Domínguez, President and CEO, and Peter Damberg, Ernesto: This is why we joined the United Nations
Senior Vice President Human Resources, Corporate Communications Peter: The commitment and resilience of all our Race To Zero. By signing the Business Ambition
and Sustainable Development discuss how Toyota Material Handling European colleagues connected us even stronger to Letter for 1.5°C from the Science Based Targets
Europe’s ten-year sustainability journey enabled the company to our company’s Purpose which also forms the basis initiative, we are committed to publish, within the
for our new Employer Branding approach. While all next two years, science-based emission targets
manage through the pandemic while continuing to prepare for a processes where on hold, it was our shared purpose that put us in line with the Paris Agreement’s most
net‑zero future. that got us through this difficult time. That’s why we ambitious scenario.
want to work with it in an even more strategic way.
About us > Message from our Management Toyota Material Handling Europe
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Peter: We are confident that this challenge will Ernesto: Our existing sustainability partnerships
bring out the best in our people. In the war for with EU OSHA and EcoVadis have brought us
talent, we know that the type of people that we business benefits, in ways we couldn’t have
want to attract, want to work for an employer imagined at the start of the journey. That’s why
where they can contribute on solutions to combat we’ll look at which strategic partnerships we
climate challenge. can join to help us accelerate on our journey to
Net Zero.
Ernesto: Emissions from our customers using
our products and solutions represent 80% of Peter: There is a long way to go on the journey –
our company’s overall carbon footprint. Our but we will go further, faster, when we all work ‘Vision and ambition
commitment represents an opportunity for us to together. Togetherness is something that has
develop the products and solutions our customers made a huge difference at Toyota, with every
are the keys to
will expect from us in a net-zero future. colleague contributing to a sustainability culture unlocking change. It is
that encourages real innovation and change. easy to assume that
Peter: EcoVadis has been our partner for ten years Teamwork is one of our core values.
small, low-impact
in driving sustainability performance across our
European network. As a next step, they will be Ernesto: targets are the easiest
partnering with our purchasing function to onboard We’re humble and grateful for the way our to achieve, but our
our suppliers on the journey to Net Zero. employees and partners rallied together to experience tells us the
achieve these results to contribute to a more
Ernesto: Advocacy is core to our commitment. We comfortable society and a net-zero economy.
opposite’.
will invite all our business partners and our local Now, as we look towards a post-pandemic future, Ernesto Domínguez,
communities to join us on the Race to Zero. By let’s resolve to go further and faster than ever! President and CEO
signing up, we also become part of a movement Toyota Material Handling Europe
of over 6,000 organisations worldwide appealing
to global political leaders to come to a strong
agreement at COP26 in Glasgow.
Peter: Working in partnership with other
organisations is a key capability for companies to
achieve ambitious sustainability goals. Since 2010,
we have been an active Campaign Partner with the
European Agency for Safety and Health at Work. We
promote every safety campaign to our own network
as well as to our customers, and we exchange best
practices with other campaign partners.
About us > Message from our Management Toyota Material Handling Europe
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Quality,
the foundation QUALITY IN EVERYTHING WE DO
of our business
strategy Automation
Connectivity
&
Productivity QUALITY
services Customer First
of the experience Turn TMHE outside in
Transform the offer
QUALITY
Efficient, safe and sustainable Lead in the digital era
ZERO MUDA
of services
material handling – that is Services Rental Lean thinking
the value we aim to bring to Improve and harmonise processes
our customers. We continue QUALITY
Competence advantage
of products
to execute our strategy in Premium
Increase innovation and speed
order to increase speed and to forklifts and tow
trucks
continue to be the best partner
for our customers and their
transformation.
Broadened core offer complex future full of new technology, integrated more efficiently makes the world more sustainable.
systems, new services, new competitors, and new We aim to save energy and reduce waste. We make
Premium forklift and tow trucks, related service partners that they face. We strive to take quality use of digitalisation, automation and new services
solutions, and rental solutions have been our to the next level and widen it to provide a superior and believe this will be the focal point of our industry
core offer for a long time, and continue to be customer experience. Fast, easy and reliable is the in the coming decade. Logistics and material handling
so. In addition, and of growing importance, we new quality. are next in line after manufacturing.
offer solutions within the fields of automation,
Passionate people move Zero Muda will change
connectivity and productivity services in our core
offer. Being a leader in these areas is necessary to
stay relevant. the world everything
Quality in everything
Our company culture is special. People and quality The future we want to create is a future where
have always been at the heart of our corporation. We Muda is history. All goods produced and services
we do see problems as opportunities, we like to solve them provided are value-adding for end users. Constraints,
and help customers to be even more successful. like waiting, deficiencies and errors are gone. This
Quality has always been the focus in Toyota and This culture is deeply rooted within our company is a future where material handling equipment and
the foundation of our success. Redefining and and goes back to our founder Sakichi Toyoda and his systems are connected and integrated end-to-end
raising quality in all parts of our business is key to Precepts. We create positive delivery experiences over all types of borders and automated as far as
our strategy and essential for our customers in a all over the globe and we believe that moving goods possible. Zero Muda, that is our vision.
About us > Quality, the foundation of our business strategy Toyota Material Handling Europe
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Organisational structure
Toyota Industries
Corporation
Toyota Industries
Europe
Our owner Toyota Industries Toyota Material Handling
Corporation (TICO) is the world’s Europe
market leader in forklifts and Toyota Industries Europe AB is a privately held
company in Sweden that reports annually to the
warehouse trucks. TICO operates authorities under Swedish accounting standards In 2006, the integration of BT Industries AB into
three business segments: for larger companies. Toyota Industries Europe AB Toyota Industrial Equipment was completed. We are
material handling equipment is the legal parent company to a number of other headquartered in Mjölby, Sweden, with a European
(67%), automotive (engines, air companies, including Toyota Material Handling Marketing & Sales office based in Belgium, and we
conditioning, car electronics) Europe AB (representing the majority of revenues and operate out of 42 countries. We employ around
employees) as well as Vanderlande BV. Vanderlande
(28%), and textile machinery publishes their own sustainability report.
11,600 people, and generated a turnover of 2,4
billion EUR in FY21.
(2%). The company employs over
64,000 people and had a turnover The latest Toyota Industries Europe AB Group Lift Truck Equipment S.p.A. in Ferrara is a fully owned
of 17,1 billion EUR in its FY21. annual report, with consolidated financial supplier of masts for forklifts, and supplier to our truck
The company is listed on the Tokyo statements and other company information, can be factories. In FY17, Simai, based in Milan, was acquired.
and Nagoya stock exchange. requested (in Swedish) from BolagsverketL, the Our Italian site now also produces tow tractors for
Swedish Companies Registration Office. airports and employs about 30 people. We have not
Find out more about Toyota Industries Corporation’s consolidated any data for Simai in this report. Less
latest annual, environmental and CSR reportsL. than 5% of the volume our company sells in Europe is
imported from factories in other regions in the Toyota
By establishing a new company and centre Material Handling Group, the global organisation for
Our internal and external network
of expertise – T-Hive – operating from The Material Handling business within TICO.
Netherlands since April 2021, TICO will bundle its Headquarters
software development in autonomous vehicles. Our company has 21 national sales and service
companies and four support entities, complemented Factories
T-Hive's main focus will be to provide a seamless
control system encompassing all Automated by more than 200 dealers and 15 independent Sales and service companies
Vehicles (AVs) within TICO, such as automated distributors in 20 countries. National Toyota representation
guided forklifts (AGFs), automated guided vehicles Independent distributors
(AGVs) and autonomous mobile robots (AMRs). The other regions the group covers are Japan, North
America, China and International - serving all other
markets across the world. Toyota Material Handling
Group is the global leader in material handling
equipment across 5 continents.
About us > Organisational structure Toyota Material Handling Europe
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Toyota Material Handling Europe
Executive Management Team
Board of Directors To lead and manage subsidiaries inside Toyota
Material Handling Europe Group, certain SVP’s
Norio Wakabayashi
Our company has a three member Board of and VP’s are appointed as Chairmen.
Chairman
Directors comprising of Norio Wakabayashi,
Yoichiro Yamazaki and Ernesto Domínguez, Our work within Sustainable Development,
and trade unions have appointed three Board including this report, is led by our SVP Human
Ernesto Domínguez Members in accordance with Swedish law. Resources.
President & CEO Mr. Norio Wakabayashi acts as the Chairman and
Mr. Ernesto Domínguez is President & CEO of our A number of committees ensure cross-functional
group’s Executive Management Team. decision making including topics related to
product strategy, compliance, risk management,
Hiroyuki Taniguchi Per Fyrenius audit, and executive and director level employees’
The board is ultimately responsible for the
Executive Coordinator SVP
organisation and the stewardship of the company's compensation.
TICO/TMHG Corporate Development
affairs and operations. It acts as a link between
TICO and Toyota Material Handling Europe and is The Executive Management Team holds
Lars Hägerborg Peter Damberg scheduled to meet once a month. operational and strategic meetings on a regular
basis during which directors and, at set intervals
SVP SVP
or when required, other members of various
Executive Management
& CFO Human resources,
Corporate Communications departments are invited.
Team
and Sustainable Development
The members of the Executive Management Team
The Executive Management Team consists of seven have diverse backgrounds, combining a track
Kristian Björkman Hiroyuki Taniguchi Ralph Cox Patric Hed record of material handling industry expertise
Senior Vice Presidents (‘SVP’), our President & CEO,
SVP SVP SVP SVP and our Chairman. The Executive Management with strategic topic specialisation, and in-depth,
Supply Operations R&D and CTO Market Operations Logistics Solutions
Team sets, implements and reviews the company long-term knowledge of our company. View our
vision, purpose and strategy. Executive Management Team’s detailed profiles
by clicking on their names in the governance
The SVP's are responsible for either different structure map.
Committees
business areas or functions. Within Market
IS/IT Audit Compliance Compensation Product Strategy Risk management Investment Operations, three Vice Presidents (‘VP’) are
responsible for Marketing & Sales, Service &
Logistics and Rental & Used and report to the SVP
Market Operations. Within Supply Operations, one
VP is responsible for purchasing, he reports to the
SVP Supply Operations.
About us > Organisational structure Toyota Material Handling Europe
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< 10 >
Our value
foundation
Toyoda Precepts Toyota Way
Challenge Maintaining a long-term vision
Toyota Industries Corporation formulated the The Toyota Way are our and meeting all challenges
Toyoda PreceptsL in 1935 to captivate the
innovative principles on which Sakichi Toyoda
shared corporate values, with the courage and creativity
founded the company, and to ensure they would live adopted by Toyota Material needed to realise that vision.
on after him passing away. The Toyoda Precepts are Handling in 2004. They Kaizen Kaizen means ‘continuous
sometimes referred to as our Corporate Creed and were inspired by the Toyoda improvement’ and suggests that
our Corporate History.
Precepts and are the every product or process can
foundation of our corporate always be improved.
Always be faithful to your duties, culture: ‘Continuous Genchi Gaining a complete
thereby contributing to the Company improvement’ (Challenge, Genbutsu understanding of a problem
and the overall good. Kaizen and Genchi Genbutsu) requires ‘going to the source’
Always be studious and creative,
and ‘Respect for people’ (genchi genbutsu) and assessing
it for yourself.
striving to stay ahead of the times. (Respect and Teamwork).
Respect Toyota respects its partners,
The Toyota Way helps us to speak a common makes every effort to
Always be practical and avoid
language and share common goals across the understand others, accepts
frivolousness. company and its entities. responsibility and does its best
to build mutual trust.
Always strive to build a homelike We teach our five corporate values to all
atmosphere, that is warm and friendly. employees as part of their introductory training.
Teamwork We value the importance
Processes, practices and business-related tools
of sharing knowledge and
Always have respect for spiritual ensure the embedding of the Toyota Way values
motivation to learn from each
matters, and remember to be grateful within our decision-making culture, our ways of
other. We practice teamwork to
at all times. communicating and our workplace behaviours.
maximise individual and team
An assessment of employee alignment with
performance.
the Toyota Way values is included in annual
performance reviews.
The five statements forming the Precepts are the
most important set of principles for all companies
in the Toyota Industries Corporation. Employees
and leaders are encouraged to use them as
guidance for everything they do, from daily
behaviours to strategic business decisions.
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Corporate
governance
Policies and guidelines
Toyota Material Handling Europe has established
policies and guidelines to set internal standards,
In this report we disclose data on which leads to a harmonised way of working and
our governance more extensively “kaizen”, continuous improvements which is one
than in previous reports: a of the Toyota Way values. Policies are mandatory,
clear organisational structure, guidelines give space for local implementation.
strong leadership, policies Central policies and guidelines are issued for
and guidelines, besides fair relevant business areas and published on our
business practices dealing with Intranet. Our Group entities should adopt them to
risk management, compliance, their local languages where applicable.
bribery and corruption.
In 2019, the implementation of our new intranet,
T-Space, started. First with headquarter functions
Code of Conduct and pilot entities and later with a continued roll
out to the entire European organisation. This has
The governing internal document hierarchy starts improved visualisation of all central policies and
with the Toyota Material Handling Europe Code of guidelines as well as localised versions thereof in
Conduct, which contains a set of binding rules and one portal. Major work was done during FY21 to
guidance regarding responsible behaviours for all improve the accessibility by a user-friendly filter
Toyota Material Handling Europe Group employees. Our Code of Conduct for suppliers specifies Our Code of Conduct Helpline, a third-party platform function.
minimum standards expected of all suppliers with accessible 24/7 for employees, can be reached by
Our value foundation is manifested through our focus on socially and environmentally responsible phone or website to raise concerns. The information
Code of Conduct. The Code of Conduct stipulates the behaviour. Read the full Code of Conduct for is communicated to our employees on the intranet.
expected ethical behaviour of our employees, when SuppliersL.
interacting with each other, with customers, with In FY20:
suppliers, with other stakeholders, or with society Our Responsible Procurement Policy (internal • We trained 100% of our employees in Code of
at large. It covers a broad range of topics, such as document), reflects our corporate principles and Conduct.
discrimination and respect for human rights, and values, states that employees should focus on • We have had follow-up trainings on Responsible
situations, such as use of company assets, insider socially responsible suppliers and stimulates them Procurement Policy with our factory in Mjölby.
trading, compliance with local laws and regulations to promote the awareness of environmentally • We have all our major suppliers signing our Code
and environmental preservation. Read the full Code responsible purchasing. of Conduct for Suppliers.
of ConductL.
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Risk management The MD of each entity is responsible for performing
risk assessments and defining mitigation
ETHICS SCORE
- According to EcoVadis
measures. This also includes coordination and
Toyota Material Handling preparation, as well as reporting, tracking and
Europe faces internal and monitoring the status of mitigation measures.
>=80% Outstanding 70% Advanced
external factors and influences 60% Confirmed 50% Intermediate
that make it uncertain if and As Toyota Industries Corporation is listed on the 40% Partial 30% Pass
when we will achieve our Japanese stock market, most of our entities areAbout us About this report People Planet Prosperity GRI indexes Glossary
Sustainability Report 2021
< 13 >
Fair business
practices Conduct e-learning version, available in fifteen DATA PROTECTION AT TOYOTA The main focus for Toyota Material Handling
languages complements face-to-face training MATERIAL HANDLING EUROPE GROUP Europe and the DPWG have been, and continuous
conducted by the LCOs. to be, the protection of our employees personal
The General Data Protection Regulation (GDPR) data and the protection of personal data related
Compliance In FY20, Toyota Material Handling Europe has
initiated the biannual mandatory Code of Conduct
has now been with us for more than three years
and it continuous to have a broad impact on our
to our customers’ employees. Our efforts within
information security awareness – through
In line with our Code of Conduct, training for all of its employees. The purpose of the business. At Toyota Material Handling Europe, e-learnings and other communication activities –
training is to remind ourselves of the content and compliance with the GDPR and other similar laws are key drivers of Toyota Material Handling Europe
we aim to behave with integrity spirit of the Code of Conduct to keep it alive and is an integrated part of our Code of Conduct and GDPR compliance.
and to ensure that our company strengthen our sustainable and ethical business a topic that fits well into Kaizen, our continuous
complies with all applicable laws
Bribery and Corruption
culture. This training is now repeated in FY22. improvement, approach that we apply for our
and regulations in the countries operations.
where we operate. We consider In FY21, End User IT Policy training was launched
Our Code of Conduct forbids us
it our responsibility to be familiar as a part of our Code of Conduct related training
to, directly or indirectly, demand
programme in order to improve awareness of cyber Back in FY19, we established a Data
with the laws applicable to attacks and fraud attempts. or accept any unjustified gifts,
Protection Working Group (DPWG) to
us in any business situation, or other unjustified advantages
work with GDPR and data protection
including competition laws and Our tools for risk assessment in the compliance
related issues. DPWG supports the from any supplier, customer or
environmental laws. area consist of the general Compliance Risk
organisation and monitors that the other third party (including any
Assessment (CRA), which is a part of the Enterprise
ORGANISATION Risk Management (ERM) process applied at Toyota
implemented processes are followed. public organs, authorities and
Material Handling Europe today. LCOs of all local We issued a Personal Data Protection similar bodies) in connection
Our Compliance Committee has the oversight entities performs the CRA, identify potential risks Policy based on seven fundamental with business transactions or
principles – (1) lawfulness, fairness
responsibility for matters of non-financial for our company and discuss risks and mitigation otherwise.
compliance, including the Toyota Material Handling strategies with relevant management. The and transparency, (2) purpose
Europe Compliance System with respect to legal Managing Director of every local entity is ultimately limitation, (3) data minimisation, In support, we have implemented a Gifts and
and regulatory compliance. responsible to perform and carry out mitigation (4) accuracy, (5) storage limitation, Hospitality Guideline which we integrated in our
measures and monitor progress. (6) confidentiality and integrity and Code of Conduct trainings. This guideline builds on the
Our Compliance Organisation is chaired by our (7) accountability – governing all existing legal guidance in relation to the acceptance
General Counsel and is made up of a 29-member We aim to hold European LCO conferences with
processing of personal data across all and provision of gifts, benefits and hospitality;
team of Local Compliance Officers (LCO), with regular intervals in order to discuss relevant topics it offers guidance and implements minimum
of our operations, as well as guiding
representatives from our factories, sales and and share best practices. It is challenging for the LCO requirements for all our employees. According to the
service companies and support entities. Alongside organisation to work with and develop compliance
documents for secure development
and maintenance of IT services. gift test, in difficult cases, employees are required
their positions within finance, HR, quality functions, from a rule based law-abiding approach to create to contact colleagues, managers or their local
LCO's assume their role within Compliance. An LCO an integrated ethical and culture-based way of compliance officer for guidance.
is responsible for implementing the Compliance working. We apply a continuous improvement
System, including policies and guidelines in the approach in order to effectively improve capabilities
compliance area. An interactive online Code of and manage emerging risks.
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Sustainability Report 2021
< 14 >
About
Our sustainability
report shows how we
act as a responsible
this report
company and how we
contribute to society.
It creates a dialogue
with our customers,
it supports them to achieving their own
sustainability goals.”
Ralph Cox,
Senior Vice President
Market Operations
Toyota Material Handling Europe
Toyota Material Handling EuropeAbout us About this report People Planet Prosperity GRI indexes Glossary
Sustainability Report 2021
< 15 >
Quick facts
about this
report
New in this report
Our commitment to set GRI
Standard
Transparency is becoming
Science Based Targets Core Option Reporting
the new paradigm for
doing business. It helps
by 2023
us tell our story, but most
importantly, it drives internal
17
conversations and actions on material
how we can do better.
issues
covered
>95%
Join the conversation of our revenues and
Amidst a global pandemic
via our social channels
employees covered
we fully achieved 50% of our
2021 sustainability targets Top 1%
of global suppliers
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Sustainability Report 2021
< 16 >
Get
started
Dialogue with in setting reporting priorities, our approach is set
out in this report. Among the many internationally
Switzerland and the UK); and four support function
offices (our headquarters in Mjölby, our European
stakeholders recognised guidelines and standards these guidelines Marketing Office in Belgium, Logistics Solutions in
recommend, this report has been prepared in Gothenburg, and our European Trucks and Parts
This 2021 report is the completion of our first set accordance to the GRI Standards: Core Option. Logistics based in Belgium).
OUR STAKEHOLDERS of long-term sustainability targets for 2021. Our Chapters focussed on climate change are prepared
targets were first developed following a first round in line with the Greenhouse Gas Protocol Corporate
Employees of formal dialogue with stakeholders in 2012 and StandardL and their Scope 2 GuidanceL. Toyota Verification
Prospective employees updated in a second round of formal stakeholder Industries Corporation includes our data in its CDP
Students dialogue in 2017. We aim to use this 2021 report disclosuresL on climate change and water security Our European operations have been assessed by
Customers as a conversation for a third round of formal EcoVadis for the 8th time resulting in a Platinum
Suppliers for all its global subsidiaries.
stakeholder dialogue, to align on our new set of level. We do consider this a first step towards
Distributors
2031 targets. We are in constant conversation an independent external assessment of our
Toyota Industries and its group companies
Local communities with each of our stakeholders individually. The Scope sustainability governance in line with GRI Standards.
Public authorities added value of formal stakeholder engagement is External verification, while advised by both EU
European Works Council
understanding how we can best align our priorities This sustainability report covers the operations and GRI, and implemented by most companies
among those of different stakeholder groups. of Toyota Material Handling Europe (TMHE), a producing GRI reports, is still on our to-do list for
* The European Works Council (EWC) takes a special
interest in labour-related issues. Performance subsidiary of Toyota Industries Europe (TIE). TIE is future reports. Additionally, all our factories and
against HR and safety KPIs are shared every year itself a fully owned subsidiary of Toyota Industries sales companies have been individually assessed by
at the EWC meeting and the views of employee
representatives are considered when developing Reporting requirements Corporation (TICO). EcoVadis for the fifth time in FY21, with over 50% of
action plans. entities rated at either Gold or Platinum level.
The EU Commission plans to transform the Except where otherwise stated, the numerical
European economy through the implementation performance data refers to our Financial Years
of the EU Green Deal. Zero emissions and zero FY21 and FY20 (ending 31 March 2021 and 2020 Changes
OUR APPROACH waste are its goals, sustainable economic recovery respectively) and covers over 95% of our employees.
its purpose, and ever-increasing legislation on Descriptive sections in the report reflect the state of On April 1st 2020, Ernesto Domínguez was
We engage with our partners to meet those transparency and accountability are part of its the organisation on October 1st 2021. appointed as the new President and CEO of
sustainability targets we have in common. toolkit. Between 2025 and 2030 companies Toyota Material Handling EuropeL. On April 1st
Together, we can make a bigger impact by will need to increase capabilities to provide 2021 the company appointed Patric Hed to the
Most KPI data cover four out of our five factories
concentrating our efforts.
sustainability data, at company level as well as on (France, Sweden, and three in Italy). SIMAI in Italy European Management Team as Senior Vice
the level of each individual product and part sold. is our most recently acquired factory, with under President Logistics Solutions. On June 10th 2021,
40 employees. They are not currently included in Norio Wakabayashi took office as chairman of the
Today, large companies must report on central sustainability KPIs. KPIs are followed up European Management Team.
THREE DIFFERENT ICONS environmental matters, social matters and treatment locally as part of their local management systems
FOR LINKS of employees, respect for human rights, anti- certified to ISO 9001, ISO 14001 and ISO 45001 Since our previous report we had one important
corruption and bribery and diversity on boards under standards. It also covers 21 sales and service change in the status of our reporting entities when
S Reference to other part of report or glossary Directive 2014/95/EUL. The EU Commission has companies (Austria, the Baltic countries, Belgium, Toyota Material Handling Europe acquired 100%
developed GuidelinesL and FAQL on Non‑Financial Czech Republic, Denmark, France, Finland, Germany, ownership of its Swiss subsidiaryL. As previous
L Reference to website or external document
Reporting; as well as climate reportingL. Both Greece, Hungary, Italy, the Netherlands, Norway, reports already included data for our Swiss subsidiary,
{ Video emphasise the importance of the use of materiality Poland, Romania, Russia, Slovenia, Spain, Sweden, this does not result in a change in reporting scope.
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Sustainability Report 2021
< 17 >
Materiality
assessment
2019 MATERIALITY MATRIX
Prioritisation of material issues
Material issues integrated into business strategy
Energy-efficient
customer
This report is the final capstone on our first decade in sustainability reporting, so we chose solutions
to include the materiality matrix on which our past sustainability framework has been based. Attract
For more information on how we developed our materiality matrix through stakeholder & retain
talent
engagement we refer readers to pages 16 and 17 of our 2019 sustainability reportL.
Employee
The material issues in this report determine the priorities in our sustainability strategy, Responsible purchasing engagement Quality
our three headline priorities, the material issues to be included in this report, as well as Corporate governance
the over 70 different FY21 sustainability targets and KPIs. Compliance
Transparency & disclosure Customer
safety
Local value Circular economy
PEOPLE – How we optimise opportunities for people to thrive creation
Our employees build our success: talent management, remuneration, training and Risk management
External Stakeholders
development, employee engagement, equal opportunities & diversity and employee
health and safety were identified as priorities in this area. Employee
health & safety
Delivering through Training & development
PLANET – How we minimise environmental impact business partners
In line with Toyota Industries Corporation’s 2030 Vision, we increase our expertise in Bribery
Environmental & corruption
Material issues
developing energy-efficient products and services for our customers. We also want Lifecycle carbon management
footprint
to reduce our energy use in our operations, and through environmental management Energy management
monitor our water use and waste. We encourage our commercial partners to also take in operations
action to protect the planet. Equal opportunities & diversity
PROSPERITY – How we maximise quality and customer safety
UN Sustainable
Throughout our production and processes, quality is key so as to offer our customers Development goals
Social
high-quality products and services, guaranteeing them maximum safety. contribution
Local market conditions
We set high standards on business conduct Business travel
Non-material issues
We disclose data on our foundations, being our business structure and organisation. & mobility
We provide more information on internal regulations, policies, and guidelines
Water management
assuring that we have an appropriate level of compliance with European and
national legislations in areas of risk management, corporate governance, bribery and
corruption and compliance.
Internal Stakeholders
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Sustainability Report 2021
< 18 >
Stakeholder Updates Our stakeholders confirm our significant progress with a 30% cut in absolute
emissions since 2012 whilst growing revenues by
customers also require evidence in the form of e.g.
a sustainability report in line with GRI standards,
existing priorities over 50% over the same period. Several customers or an EcoVadis evaluation of both our European
We decided to postpone a round also require evidence of our commitment in this operations and for each of our local entities.
of stakeholder interviews to focus HEALTH, SAFETY AND WELL-BEING area in the form of ISO 50001 certificates, a
everyone’s efforts on supporting commitment to a Science Based Target and/or to INFORMATION SECURITY
our people and our customers In 2020 we elevated employee health and safety use 100% renewable electricity.
as our number-one priority, in response to the
through the pandemic. In the COVID-19 crisis. Extended lockdowns highlighted the
As digitalisation and automation became pillars
absence of an updated materiality BUSINESS ETHICS of our new business strategy, we experienced an
importance of extending our focus to employee well- increase in the number of customers that require
matrix, we do want to include being. An increasing number of external stakeholders This has been a priority for us since we launched information security management systems
a high-level summary of how views, all people-related topics from the perspective our code of conduct in 2009, addressing a wide in place to securely handle data from their
stakeholder views are evolving. of employee well-being: compensation and benefits, range of issues such as legal compliance, anti- employees and customers.
training and development, employee engagement bribery and corruption and responsible purchasing.
We plan to interview our stakeholders again in 2022 and diversity and inclusion. As our customers dealt Several customers also required evidence of our CIRCULAR ECONOMY
to gain input on our sustainability roadmap for with a similar change of perspective, we witnessed commitment in this area. On a regular basis, we
2031. This will result in a new materiality matrix to a significant increase in customer health and safety execute mandatory code of conduct trainings for all Next to climate change, the circular economy is a
be published latest in our 2023 sustainability report. requirements. Promoting it to our number-one our employees. As an important part of supply chain second major focus of the EU Green Deal, with the
priority was only possible because of our 10-year management we have processes for our suppliers aim to reduce emissions, stimulate employment,
journey as partner of EU-OSHA. Several customers to commit to our code of conduct for suppliers. reduce dependency on imported materials and
require evidence of our commitment in this area in human rights issues in raw material supply
the form of ISO 45001 certificates. chains. Also here, disruptive new regulations will
Stakeholders prioritise provide many opportunities for business model
In 2021, we did get more spontaneous
CLIMATE CHANGE additional issues innovation. Our customers increasingly expect
information on Life Cycle Assessments (LCA) for
engagement from stakeholders than ever
before on sustainability: customers start
Climate change is one of the key focus areas of CUSTOMER EXPERIENCE – EASE OF our products and solutions. Part of the challenge
including sustainability clauses in contracts;
the EU Green Deal, a package of new and revised DOING BUSINESS is that customers have different expectations on
EU legislation to transform the EU economy, what standards should be used.
many suppliers start their sales pitch with their
create new jobs and make the EU less dependent There is a marked shift in customer priorities
sustainability credentials; over 2,000 employees
on imported energy and raw materials. This from purely technical to more holistic topics. More Each of these six is a key issue in the EcoVadis
got involved in volunteering efforts to support
will create several new challenges and new customers require evidence of process quality e.g questionnaire used by over 200 of our customers
local communities; over 50% of job candidates
opportunities for business. As 30% of Fortune 500 our Net Promoter Score or NPS, product quality as well as all customer-specific supplier
in our largest factory asked detailed questions
companies publicly committed to Science Based e.g. ISO 9001, responsible purchasing e.g. EcoVadis sustainability questionnaires. With the exception
on the company’s sustainability commitments.
Targets, we experience an exponential increase evaluation of our suppliers, energy‑efficient of Information Security, all topics are treated
in customer requests to deliver energy-efficient customer solutions e.g. SBTs and customer safety. within this sustainability report. The first three
customer solutions and provide evidence of topics contain a lot of information and details as
energy management in operations. Within our Across all these topics, customers and other they have been long-standing priorities.
focus to minimise environmental impact, climate stakeholders expect an exponential increase in
change topics is where we have made the most transparency and accountability. Increasingly,
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Sustainability Report 2021
< 19 >
Sustainability
reporting
Coverage
All 29 entities report on
HR, health & safety, and
environmental data on a quarterly
basis into our cloud-based
sustainability software solution
since 2012. This platform enables
efficient data collection and
performance management for
our defined KPIs based on our
material sustainability issues
identified in previous reports.
Toyota Industries Corporation has started rolling
out its own cloud‑based environmental reporting
software to its global operations. Currently 4 of our
factories have implemented this solution in parallel
with the Toyota Material Handling Europe solution.
Extending our sustainability network
The exponential increase in reporting requirements
Scope % of employees for sustainability data means that the planned
covered review of our sustainability reporting platforms is on
Scope of report 2013 > 58% hold. We are currently working on a new set of 2031
Added to report 2015 > 82%
sustainability targets, which we aim to review and
finalise in dialogue with various stakeholders.
Added to report 2018 > 95%
Independent dealer network Since we published our latest sustainability report in
(currently out of scope)
2019, the number of entities reporting sustainability
data has remained the same, covering over 95% of
our employees.
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Sustainability Report 2021
< 20 >
Sustainability SUSTAINABILITY CONFERENCES
management Local sustainability champions participate in
annual sustainability conferences. Since 2013
Health, safety and well-being health & safety accounts for 50% of the agenda. In
are on the agenda every time FY20, 60 local sustainability champions gathered
the management team meets. at the good practice event with participants from
Toyota Motor Europe, Vanderlande, and other
Sustainability in general is on European entities. Workshops were held on the
the agenda of our executive status of health and safety activities in Europe
management team twice a year, and we were also setting plans and targets for
when members discuss how the future. All of this to reinforce our safety
sustainability issues interact with culture and improve health and safety technology
and measures. The European central team
other business priorities and set
presented performance on local and group targets
future priorities and targets. regarding accident rates and absenteeism, while
local entities presented their best practices.
The sustainability development department is
based in our headquarters in Mjölby and in our
Brussels office. The department reports directly
to our senior vice president of HR, corporate
communications & sustainable development who
in turn reports directly to our president & CEO.
In FY21 we could not arrange a physical meeting
due to the pandemic. Instead we have formed
Local sustainability champions, appointed by the
• coordinating the local EcoVadis submission In 2019, we organised our most recent annual smaller working groups that have met digitally
managing director in each of our local entities, are
• promoting good practice with local meeting of sustainability champions. In 2020, on a regular basis focusing on health, safety and
responsible for:
management and local employees the meeting was cancelled due to the pandemic. well-being as well as on climate change.
• implementing TICO’s environmental commitment, • participating in monthly online meetings Throughout the pandemic, the sustainability
health & safety vision and CSR policy organised by the sustainability department community continued to meet monthly where
• managing legal compliance in to align with directives of the executive TICO level experts share new corporate level
sustainability‑related areas management team sustainability requirements; European level
• reporting progress on sustainability KPIs versus • attending the annual sustainability meeting experts follow up on the status of FY21
targets with a focus on sharing good practices sustainability targets, e.g. the switch to 100%
renewable electricity; and local level experts share
local good practices to inspire each other.
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Sustainability Report 2021
< 21 >
United Nations Sustainable Development Goals (SDGs)
TOYOTA MATERIAL HANDLING EUROPE Since our 2018 sustainability
Goal 17 ‘Partnership for the Goals’ is the single report we address some of
most important of all the SDG’s, as no organisation the priorities covered by 8 of
can achieve a sustainable future on its own. the 17 SDGs:
Throughout the report we focus on examples of
how we partner with our customers, suppliers,
employees, industry bodies, institutions, universities
and local communities. Our partnership since FY10
with EU‑OSHA is an excellent example of how we
collaborate with EU institutions and customers to
Pages Pages Pages Pages Pages Pages Pages Pages
promote “Good Health and Well-being for people” to 23 to 29, 31, 43 44 to 47, 51, 64 to 66, 23 to 29, 61 to 62 44 to 47, 5, 6, 21, 33,
our employees, customers and suppliers, in line with 64 to 69 52 to 57 76 to 80, 83 58 to 60 52 to 57 38, 42, 47, 66,
the general aspiration of Goal 3. 74, 75, 29
TOYOTA INDUSTRIES CORPORATION CSR Materiality SDGs to contribute
In our 2019 report, we explained how our owners
Toyota Industry Corporation link their business • Mitigation of Global Warming
strategy to the UN Sustainable Development Goals • Contribution to Circular Economy
(SDGs) in its Value Creation ProcessL.
Resolving Social
In 2020, TICO formalised nine Material IssuesL
Issues through
through formal stakeholder dialogue. Through • Creation of Innovative Values
our Business
this process, the company was able to focus on Respect
nine out of seventeen SDG’s where it can make
the most significant contribution to make the
earth a better place to live, enrich lifestyles, and • Products and Services which contribute to Safety, Security and Comfort
promote a compassionate society in line with • Mutual Prosperity through Partnerships with Local Communities
Vision 2030L.
Foundation • Safe and Healthy Environments
Supporting • Leveraging Diversity and Inclusion
our Business • Sustainable Procurement
Operations • Compliance and Risk Management
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Sustainability Report 2021
< 22 >
People
Managing the company
in times of a pandemic
puts even more focus
on our people”
Peter Damberg,
Senior Vice President
Human Resources, Corporate Communications
How we
and Sustainable Development
Toyota Material Handling Europe
optimise
opportunities
for people to
thrive
Toyota Material Handling EuropeAbout us About this report People Planet Prosperity GRI indexes Glossary
Sustainability Report 2021
< 23 >
Our journey so far – the first 10 years
Health and Safety – Our Number One Priority
Health and Safety
Toyota Material Policy ‘Move the
Handling Europe Health and With the introduction COVID-19 world towards
partners with Safety KPIs of Health and Safety response team easy and
EU-OSHA Policy, Toyota Material sustainable’
Start collection Handling Europe set Robust response
to use its network of of company wide minimum standards and of HR & known The company put
employees, suppliers data on injury recommended best practice experts across Toyota sustainability at
and customers to rates, near misses levels across 10 Health and Material Handling the core of its
campaign for Healthy and sickness Safety priorities + annual Europe to adapt local employee value
Workplaces in Europe absence self‑assessments prevention strategies proposition
2010 2014 2014 2017 2019 2020 2020 2021 2021
All factories EU-OSHA No lost workdays Lost workday rate
certified awards due to injuries in -10%
Toyota Material our mast factory
All factories achieved Handling Spain LTE in three years Over a period of five years,
OSHAS 18001 for we focused on reducing
their Health & Safety EU Commissioner Fully owned mast major injuries among our
management systems, presents Toyota factory in Italy is employees. As a result
now converted to Material Handling the first in Toyota we recorded 10% lost
ISO 45001 Spain with Material Handling workdays due to injuries.
commendation for its Europe to have three We continue working
prevention approach years without injuries towards zero accidents
resulting in at least one
lost working day
PEOPLE | How we optimise opportunities for people to thrive > Our Journey so far – the first 10 years Toyota Material Handling EuropeAbout us About this report People Planet Prosperity GRI indexes Glossary
Sustainability Report 2021
< 24 >
Labour and
Human Rights
>=80% Outstanding
70% Advanced
Score
60% Confirmed
50% Intermediate
40% Partial
According to EcoVadis
30% Pass
2011 > 2012 > 2013 > 2014 > 2015 > 2016 > 2017 > 2018 > 2019 > 2020 > 2021 > 2022
50% 60% 70% 70% 70% 70% 80% 80% 80% 80%
PEOPLE | How we optimise opportunities for people to thrive > Labour and Human Rights Score - According to EcoVadis Toyota Material Handling EuropeAbout us About this report People Planet Prosperity GRI indexes Glossary
Sustainability Report 2021
< 25 >
Our people
strategy Our success as a first-choice employer lies
in our continued investment in our people,
Leadership
their professional competencies, and personal Our Leadership Philosophy, first established in
development. Since 2014, we have stepped up 2012, is a set of principles that guide the behaviour
investments in our employees and developed of our leaders in their daily work and relations with
programmes and processes to recruit the right others. The Leadership Philosophy was updated
In February 2020 the COVID-19 people and retain a workforce that is motivated in FY20 to further advance the implementation
pandemic started to influence and performs well. of our revised strategy. By having a Leadership
our operations. Managing the Philosophy we aim to:
In line with our Code of Conduct, we enhance
pandemic has been challenging. business performance so we can continue to ‘During the challenging
• harmonise leadership with our company’s value
We have maintained production provide employment and maintain fair and stable foundation and strategy times of the pandemic
in our factories, performed working conditions. We also aim to create a • certify common expectations and we still kept on pursuing
service at our customers’ sites harmonious and stimulating work environment. accountabilities of our leaders
and sales with the health, safety • widen the scope of leadership, focussing more
our people strategy. This
and well-being of our employees, With our Return to Work and Future of Work on cross-functional leadership gave our employees the
programmes, we prepare our employees for a safe
customers and other stakeholders • put stronger emphasis on change-oriented feeling of security and
return to the work environment and we aim to
being the priority. create an attractive work place in the future.
leadership
reassurance that we will
• and set expectations for desired leadership
behaviours successfully continue
The pandemic has influenced in several different
People Strategy our sustainable growth
ways. Parts of our employees have been on
furloughs, limiting their working time. It has also
Leaders have three different, but complementary and that Toyota Material
roles to play: as a manager, supporting teams to
meant that many have been working from home
All our entities approved local People Strategies,
secure deliverables and achieve business goals; as
Handling Austria cares for
so local HR teams can support the business in
and digital meetings have been the rule. With the
developing the local workforce it needs to execute a coach, providing feedback and encouraging open its employees. Together
uncertainty and furloughs in place recruitment of
personnel have been limited.
the business strategy, each focusing on at least three communication within teams; and as a strategist, with our continuous and
local HR priorities out of our five pillars that make up stimulating innovation and business improvements transparent communication
that contribute to the mission and vision of the
the Toyota Material Handling Europe People Strategy.
company. Leaders also have responsibilities for
we succeeded in becoming
results as well as for progress. stronger as a team and
Speed and Competence Communication Sustainability
Going digital accountability advantage driving change frontrunner organisation.’
In the past five years, our European HR
organisation has mainly focussed on the training Melanie Flanitzer,
• New digital • Agile leadership • Employer brand • Trust • Values in action and development of leaders. General research Finance and HR Director
workspace and performance • New competence • Transparency • Safe and Healthy Toyota Material Handling Austria GmbH
shows that when people leave an organisation, the
• Talentsoft • Delegation • Increase capacity • Strategic clarity • Climate and
quality of leadership is the most important reason
• Cross functional • One direction Energy
• Talents and • New business why people leave.
management
trainees
PEOPLE | How we optimise opportunities for people to thrive > Our people strategy Toyota Material Handling EuropeYou can also read
