Sustainable Purchasing Guidelines

Toyota Motor Europe

Version 2013
Table of contents

Introduction 3

Overview 4

A. Toyota Motor Europe – CSR 5

Guiding Principles at Toyota 5
Toyota CSR Policy: Contribution towards Sustainable Development 5
Basic Policies at Toyota Purchasing 7
1. Fair competition based on an open-door policy 7
2. Mutual benefit based on mutual trust 7
3. Contributing to local economic vitality through localization: good corporate citizenship 7

Supplier CSR Guidelines 7

1. Share Basic Management Philosophy 7
2. Toyota's Expectations of Suppliers for providing "Products and Services" 8
3. Toyota's Expectations of Suppliers in the Process of Developing "Products and Services" 8

B. Toyota Motor Europe – Quality 12

C. Toyota Motor Europe – Environment 13

Toyota Earth Charter 13
Enhancing and Reinforcing Environmental Management 14
1. Establishment of an Environmental Management System 14
2. Management of Products and Materials delivered to Toyota 15
3. Environmental Initiatives Related to Supplier Business Activities 18
4. Reduction of CO2 Emissions and Packaging Materials in Logistics 18
5. Renewable, Recoverable, Recycled Materials 19
6. Whole Life Cycle Thinking 20

Glossary 21

Note to Reader

• In the context of this document , ‘Toyota’ refers to both Toyota brand and Lexus brand
• These Guidelines replace the Green Purchasing Guidelines – GPG – January 2007
& Sustainability Purchasing Guidelines 2010

2 TME | Sustainable Purchasing Guidelines 2013

Introduction

Dear Toyota Suppliers and Business Partners,

Toyota Motor Corporation (TMC) and Toyota Motor Europe (TME) have continuously striven to contribute to
the sustainable development of society through the manufacturing and distribution of high-quality and innovative
products and services, as indicated in the ‘Guiding Principles at Toyota’ and the ‘Toyota Earth Charter’.

As Toyota’s business operations have expanded globally, more and more attention has been paid to sustainable
development, to corporate social responsibilities and to environmental preservation, including climate change issues.

In 2002, we provided you with TME Environmental Purchasing Guidelines.

Addressing the increased expectations towards sustainable development, TME revised the guidelines in 2007 to
become the Green Purchasing Guidelines, which included ‘Contribution towards Sustainable Development’, focusing
on good corporate citizenship.

In the 2010 edition, named Sustainability Guidelines, we have included the Corporate Social Responsibility (CSR)
Policy and Guidelines and added a separate chapter on chemical substance management, REACh, substances
of concern, and recycling.

In our 2013 edition we have closely aligned our Sustainable Purchasing Guidelines with TMC Green Purchasing
& Supplier CSR Guidelines. This will help TME support our suppliers to meet global Toyota expectations with
a background of a fast moving regulatory environment such as chemical management (REACh, etc.)

We would like our Suppliers and Business Partners to gain full understanding of our expectations towards sustainable
development & good corporate citizenship, to assure legal compliance at all times, and to work together with TME
in the spirit expressed in these Sustainable Purchasing Guidelines.

Didier Leroy Masahisa Nagata Takeshi Numa Karl Schlicht

President & CEO Executive VP Executive VP Executive VP
Toyota Motor Europe R&D & Purchasing Manufacturing Sales

TME | Sustainable Purchasing Guidelines 2013 3

 Overview

Toyota expects its Suppliers and Business Partners We ask that you always engage in the development
to ensure ‘long-term and stable procurement of the and manufacture of products from the perspective of
best products at the most competitive prices, in the customers who purchase Toyota products. We further
the most speedy and timely manner’, based on thorough request that you undertake initiatives such as those
compliance with all applicable laws, regulations, and social described below.
norms and with full consideration for the environment.

Type of Suppliers

Materials
(substances, Equipment Logistics
preparations) Construction
Parts
Cleaning
(articles)
Landscaping
Facilities
Service Parts
Direct Indirect Vehicle Parts Materials
& Accessories

A Toyota Motor Europe • • • • • • • •

– CSR

B Toyota Motor Europe • •

– Quality

C Toyota Motor Europe • • • • • • • •

– Environment

1. Establishment of Environmental • • • • • • • •
Management System

2. Management of Products and

• • • •
Materials delivered to Toyota

3. Environmental Initiatives • • • • • • • •
Related to Suppliers Business
Activities

4. Reduction of CO2 Emissions • • • • • •

and Packaging Materials in
Logistics

5. Renewable, Recoverable, •
Recycled materials

6. Whole Life Cycle Thinking •

& Life Cycle Assessment

For details of Toyota Motor Europe expectations,

please refer to the relevant pages in this Sustainable Purchasing Guideline

4 TME | Sustainable Purchasing Guidelines 2013

A. Toyota Motor Europe – CSR

Guiding Principles at Toyota

1. Honor the language and spirit of the law of every nation 5. Foster a corporate culture that enhances individual
and undertake open and fair corporate activities to be creativity and teamwork value, while honoring mutual
a good corporate citizen of the world. trust and respect between labor and management.

2. Respect the culture and customs of every nation 6. Pursue growth in harmony with the global community
and contribute to economic and social development through innovative management.
through corporate activities in the communities.
7. Work with business partners in research and creation to
3. Dedicate ourselves to providing clean and safe products achieve stable, long-term growth and mutual benefits,
and to enhancing the quality of life everywhere through while keeping ourselves open to new partnerships.
all our activities.

4.
Create and develop advanced technologies and
provide outstanding products and services that fulfill
the needs of customers worldwide.

Toyota CSR Policy: Contribution towards

Sustainable Development

We, TOYOTA MOTOR CORPORATION and our In order to contribute to sustainable development,
subsidiaries, take initiative to contribute to harmonious we believe that management interacting with its
and sustainable development of society and the earth stakeholders as described below is of considerable
through all business activities that we carry out in each importance, and we will endeavor to build and maintain
country and region, based on our Guiding Principles. sound relationships with our stakeholders through open
We comply with local, national and international laws and and fair communication.
regulations as well as the spirit thereof and we conduct We expect our business partners to support this initiative
our business operations with honesty and integrity. and act in according with it.

Customers Employees

• Based on our philosophy of “Customer First,” we • We respect our employees and believe that
develop and provide innovative, safe and outstanding the success of our business is led by each individual’s
high quality products and services that meet a wide creativity and good teamwork. We stimulate personal
variety of customers’ demands to enrich the lives of growth for our employees. (Guiding Principle 5)
people around the world. (Guiding Principles 3 and 4) • We support equal employment opportunities,
• We will endeavor to protect the personal information diversity and inclusion for our employees and do not
of customers and everyone else we are engaged in discriminate against them. (Guiding Principle 5)
business with, in accordance with the letter and spirit • We strive to provide fair working conditions and
of each country’s privacy laws. (Guiding Principle 1) to maintain a safe and healthy working environment
for all our employees. (Guiding Principle 5)

TME | Sustainable Purchasing Guidelines 2013 5

 • We respect and honor the human rights of people Global Society / Local Communities
involved in our business and, in particular, do not use
or tolerate any form of forced or child labor. (Guiding Environment
Principle 5) • We aim for growth that is in harmony with the
• Through communication and dialogue with our environment by seeking to minimize the environmental
employees, we build and share the value “Mutual impact of our business operations, such as by working
Trust and Mutual Responsibility” and work together to reduce the effect of our vehicles and operations on
for the success of our employees and the company. climate change and biodiversity. We strive to develop,
We recognize our employees’ right to freely associate, establish and promote technologies enabling the
or not to associate, complying with the laws of the environment and economy to coexist harmoniously,
countries in which we operate. (Guiding Principle 5) and to build close and cooperative relationships with
• Management of each company takes leadership a wide spectrum of individuals and organizations
in fostering a corporate culture, and implementing involved in environmental preservation. (Guiding
policies, that promote ethical behavior. (Guiding Principle 3)
Principles 1 and 5)
Community
• We implement our philosophy of “respect for people”
Business Partners by honoring the culture, customs, history and laws
of each country. (Guiding Principle 2)
• We respect our business partners such as suppliers • We constantly search for safer, cleaner and superior
and dealers and work with them through long-term technology that satisfy the evolving needs of society
relationships to realize mutual growth based on for sustainable mobility. (Guiding Principles 3 and 4)
mutual trust. (Guiding Principle 7) • We do not tolerate bribery of or by any business
• Whenever we seek a new business partner, we partner, government agency or public authority and
are open to any and all candidates, regardless of maintain honest and fair relationships with government
nationality or size, and evaluate them based on their agencies and public authorities. (Guiding Principle 1)
overall strengths. (Guiding Principle 7)
• We maintain fair and free competition in accordance Social Contribution
with the letter and spirit of each country’s competition • Wherever we do business, we actively promote
laws. (Guiding Principles 1 and 7) and engage, both individually and with partners,
in social contribution activities that help strengthen
communities and contribute to the enrichment
Shareholders of society. (Guiding Principle 2)

• We strive to enhance corporate value while achieving

a stable and long-term growth for the benefit of our
shareholders. (Guiding Principle 6)
• We provide our shareholders and investors with
timely and fair disclosure on our operating results
and financial condition. (Guiding Principles 1 and 6)

6 TME | Sustainable Purchasing Guidelines 2013

Basic Policies at Toyota Purchasing

All Purchasing at Toyota is oriented toward creating It takes place in accordance with the following
vehicles that will earn the satisfaction of customers. three policies:

1. Fair competition based on 2. Mutual benefit

an open-door policy based on mutual trust

Toyota is open to any and all suppliers, regardless of We believe in developing mutually beneficial, long-
nationality, size, or whether they have done business term relationships based on mutual trust. To foster
with us before. Our choice of suppliers is purely on that trust, we pursue close and wide-ranging
the basis of business considerations. We evaluate communication with suppliers.
the overall strengths of prospective suppliers,
including their quality, technological capabilities, and 3. Contributing to local economic
reliability in delivering the required quantities on time. vitality through localization: good
corporate citizenship
Also, we evaluate their potential strengths, as
evidenced in such ways as their amenability to Our production outside Japan is increasing rapidly as
continuing, kaizen improvements. In addition, we we globalize our operations.
evaluate suppliers' commitment to addressing social We work to make an economic and industrial
expectations, especially in regard to environmental contribution that is fully commensurate with our
issues. market presence in each region. That includes
purchasing parts, materials, tools, equipments and
others from local suppliers.

Supplier CSR Guidelines

At Toyota, we remain committed to advancing the a sustainable society through the following philosophy
quality of life through the products and services we offer. and activities in addition to implementing thorough
Therefore, we hope to contribute to the realization of environmental management:

1. Share Basic Management • Monozukuri based on Genchi-Genbutsu

Philosophy Genchi-Genbutsu - focusing all corporate activity on
the actual needs in the marketplace and on conditions
We would like to carry out the following philosophy in the workplace. We practice Genchi-Genbutsu,
together with our suppliers: go to the source to find the facts to make correct
decisions, build consensus, and achieve goals at our
• Creation of Work Environment based on Respect best speed.
for our Employees
Organize the environment to foster trust between
workers and management and develop a work
climate to promote human development.

TME | Sustainable Purchasing Guidelines 2013 7

 • Relentless Kaizen Efforts • Delivery and Production
We improve our business operations continuously, We at Toyota maximize efficiency through lean
always driving for innovation and evolution. manufacturing, producing only what is needed,
only when it is needed, and only the amount that is
• Two-way Communication needed. We expect suppliers to contribute to this
Automobile manufacturing at Toyota is a joint lean efficiency through flexible, error-free execution in
endeavor with suppliers and Toyota. preparation for mass production, in mass production,
To succeed in that endeavor, we and our suppliers and in delivery.
need to work together as a single company. We must
maintain close communication, exchanging ideas • Cost
frankly and coming to terms with each other on all We expect suppliers to offer the most competitive
matters of importance. cost in the world. Suppliers need to develop new
technologies and innovative production technologies
2. Toyota's Expectations of Suppliers to support their continuing cost reduction.
for providing "Products and
Services" • Technological Capabilities
Customer and social expectations are mounting in
We expect suppliers to provide the best possible three main areas; technologies for environmental
products at the lowest possible cost. This must also protection, safety, and comfort. Our suppliers need
consider providing in the most timely manner on to grasp these expectations and to address them
a stable and long-term basis. a step ahead of their competition through innovative
products and technologies. Our suppliers also need
Suppliers need to undertake product development to broaden the marketability of their products through
and deploy manufacturing processes that address the dramatic cost reduction.
customers' needs and wants of today and tomorrow.
3. Toyota's Expectations of Suppliers
Therefore, our five main expectations are as follows: in the Process of Developing
"Products and Services"
• Safety
Manufacturing is carried out by people, so it is most We expect suppliers to comply with the following
important to secure a safe environment for people items to undertake CSR activities.
to carry out manufacturing without worry. In a safe We also expect suppliers to deepen and expand
working environment, workers can concentrate their CSR initiatives with business partners by developing
efforts on manufacturing, and make products of and deploying individual CSR policies and guidelines
good quality. incorporating the following items:

• Quality
Our highest priority at Toyota is quality. Consistently 3.1. Legal Compliance
high quality is the biggest reason for the excellent
reputation of our products around the world and for <Compliance with Laws and the Spirit thereof>
the trust we enjoy from customers. We need to keep • Comply with applicable laws and regulations of each
up with customers' increasing expectations of vehicle country and region as well as the spirit thereof.
quality. We appreciate suppliers' understanding that • Establish and implement policies, structure and
quality is an absolute prerequisite for our business, mechanisms for ensuring and verifying legal
and we assume that all Toyota suppliers will devote compliance including a code of conduct, confidential
themselves to quality in development and production. compliance hotline* and training.

* For Toyota Motor Europe: appropriate Code of Conduct violation procedure with Compliance Officer handling serious offences.

8 TME | Sustainable Purchasing Guidelines 2013

<Management and Protection • Do not engage in giving or receiving presents,
of Confidential Information> entertainment or money with customers, suppliers
•
Manage and protect company’s confidential and other business partners in order to acquire
information such as trade secrets and use such or maintain unjust interest or wrongful preferential
information in an appropriate manner. treatment.
• Obtain confidential information concerning other
companies only from authorized personnel by 3.2. Human Rights/Labor
legitimate means. Verify the permissible scope of use
and other conditions concerning such confidential <Non-Discrimination>
information and use it only within the scope allowed, • Do not discriminate on the basis of personal
while maintaining its confidentiality and not infringing characteristics protected by local applicable laws and
upon the rights of the other companies. regulations, such as race, ethnic and national origin,
• Obtain personal information concerning employees, religion, age, gender, etc.-with regards to all aspects
customers and business partners only by legitimate of employment, including application process, hiring,
means. Manage and protect such information in promotion, compensation, access to training, job
a secure manner, and use the information only within assignment, wages, benefits, discipline, termination
the scope allowed. and/or retirement.

<Protection of Intellectual Property> <Respect and Dignity – Harassment>

• Continually monitor and protect all intellectual • Do not tolerate any form of harassment in the
property of the company against any infringement workplace based upon the personal characteristics
by others. protected by local applicable laws and regulations,
• Do not infringe the intellectual property (such as such as race, ethnic and national origin, religion, age,
patents, utilities, designs and trademarks) of others, gender, etc.
illegally use such intellectual property or make illegal • Harassment may involve verbal, visual or physical
copies of software or publications. conduct that negatively interferes with work
performance, diminishes the dignity of any employee,
<Compliance with the Competition Laws> or creates an intimidating, hostile or otherwise
• Do not engage in illegal acts against the competition offensive work environment.
laws and regulations of each country and region • Implement procedures for prompt reporting and
including private monopolies, unreasonable restraint examination of any harassment complaints and enable
of trade (cartel, collusive bidding, etc.) or unfair trade employees to report any instances of harassment
practices. without fear of reprisal, intimidation, or harassment.

<Export Controls> <Child Labor>

• Comply with laws and regulations concerning export • Do not use child labor.
controls, thoroughly implement such controls and • The minimum age for employment shall be 15 years
establish management as confirming whether of age, the legal minimum age for employment, or
products, technology or other exports are subject to the age for completing compulsory education,
regulations, and prepare and provide documentation whichever is greatest under the local applicable laws
of such confirmation. and regulations.
• Do not use employee under 18 years of age for
<Anticorruption Measures>* hazardous work.
• Comply with applicable laws and regulations • Bona fide job training or apprenticeship programs
concerning political donations or contributions and permitted under the local applicable laws and
strive to build transparent and fair relationships regulations may be allowed.
with political parties or administrative bodies.

* In addition, Toyota Motor Europe also publishes its own Policy on Anti-bribery, anti-corruption, gifts, hospitality and other favours.

TME | Sustainable Purchasing Guidelines 2013 9

 <Forced Labor> 3.3. Local/Global Community
• Do not use forced labor.
• Ensure that all work is voluntary and employees are <Environment>
free to leave work or terminate their employment. • Pursue growth in harmony with the environment and
• Do not require employees, who must work in a legal aim for zero-emissions in your business activities.
status, to surrender passports, government-issued • Establish an Environmental Management System
identifications, or work permits as a condition of (EMS) that can promote environmental preservation
employment. activities and continuously improve them, in addition
to comply with applicable environmental laws and
<Wages and Benefits> regulations in each company.
• Pay wages in compliance with local applicable laws • Promote proper management for environmental
and regulations, including those relating to minimum substances of concern as well as improving
wages, overtime hours, deduction from wage, piece environmental performance.
rates and other elements of compensation.
• Provide legally mandated benefits. (Refer to the Green Purchasing Guidelines of each
• Ensure wages, other compensation, benefits and region/country)*
deductions are detailed and explained, in compliance
with local applicable laws and regulations, clearly and <Responsible Material Procurement>
regularly to employees. • Obtain materials with full deliberation and care to
avoid the procurement or usage of materials which
<Working Hours> are unlawful or which are obtained through unethical
• Comply with local applicable laws and regulations or otherwise unacceptable means (such as conflicts
governing employees’ working hours, including minerals*) . We expect suppliers to take appropriate
overtime work. steps to discontinue procurement of these materials if
usage is detected.
<Freedom of Association>
• Recognize employees’ right to freely associate, or *Minerals originating from the DRC and neighbouring
not to associate, complying with local applicable laws countries that have directly or indirectly
and regulations in which we operate. contributed to the financing of armed groups.
• Ensure employees to communicate openly and
directly with management without fear of reprisal, <Social Contribution>
intimidation, or harassment. • Strive to pay attention to the societal challenges of
each community in order to promote its prosperity
<Safe and Healthy Working Environment> and development, and to conduct social contribution
• Place the highest priority on safety and health activities leading to the solution of such challenges
programs and policies at work, so that each employee in cooperation with the local communities.
is able to work without undue concerns, and strive
to prevent accidents and injuries from happening
at work.
• Support efforts to improve the health of employees
through health promotion activities at work, guidance
for preventing illness, and other means.
`

* For Toyota Motor Europe the Green Purchasing Guidelines are incorporated in section C of the Sustainable Purchasing Guidelines.

10 TME | Sustainable Purchasing Guidelines 2013

<Disclosure of Information to Stakeholders> Developing and Deploying Policies
• Strive to disclose to stakeholders such information as and Guidelines for Business Partners
is pertinent to them, including management, financial
condition, environmental preservation, community • Strive to deepen and expand CSR initiatives with
and social contribution, in a timely and fair manner business partners (e.g., tier 2 level) by developing
and to build and maintain positive relationships with and deploying individual CSR policies and guidelines
stakeholders through open and fair communication. incorporating the guidelines outlined above.
• Promote the above activities in consideration of
the whole supply chain and conduct the necessary
countermeasures for follow-up and improvement
of business partners.

Documents to be submitted for Toyota Motor Europe

Documents Suppliers might be requested to provide CSR information through

to be submitted the Sustainability Questionnaire by TME Purchasing.

When to submit Upon request

To who to submit To your Toyota Purchasing contact

TME | Sustainable Purchasing Guidelines 2013 11

B. Toyota Motor Europe – Quality

In line with Toyota's basic quality policy, we strongly

cooperate with our Suppliers to meet and exceed
our Customers’ quality expectations. We support our
Suppliers both during production preparation and
mass production stages to assure good quality parts
to be installed on Toyota vehicles and delivered to our
Customers.

We communicate our expectations and requirements

to our Suppliers through Supplier Quality Assurance
Manual (SQAM) to support their quality assurance
system and to ensure the quality of supplied parts.
SQAM provides procedures and documents for
management of an effective quality system based on
built-in-quality, problem prevention and continuous
improvement.

As part of one team spirit and kaizen mind, and to deliver

"always better cars" to our Customers, we continuously
encourage open and free communication of ideas
and information between our Suppliers and Toyota.

12 TME | Sustainable Purchasing Guidelines 2013

C. Toyota Motor Europe – Environment

Toyota Earth Charter

The Toyota Earth Charter sets out four basic policies:

Contribution toward a prosperous Voluntary actions

21st century society
Develop voluntary improvement plans, not only based on
In order to make our contribution toward a prosperous thorough preventive measures and compliance to laws
21st century society, we will aim to achieve growth that but that addresses environmental issues on the global,
is harmonious with the environment and challenges national and regional scales and promotes continuous
to achieve zero emissions throughout all our business implementation.
activities.

Pursuit of environmental technologies Working in cooperation with society

Toyota will pursue all possible environmental In addition to cooperation with affiliated companies and
technologies, including developing and establishing related industries, Toyota will build close and cooperative
new technologies to enable environment and economy relationships with a broad spectrum of society concerned
to coexist harmoniously. with environmental protection including individuals,
organizations, and local governments.

Since the implementation of the Earth Charter, Toyota

has focused on incorporating these policies into its
day-to-day activities, by enhancing its environmental
management systems.

TME | Sustainable Purchasing Guidelines 2013 13

 Enhancing and Reinforcing
Environmental Management
Toyota expects its business partners to ensure “long- for Toyota products, from development to production
term and stable procurement of the best products at and shipment/logistics.
the most competitive price in the most speedy and
timely manner,” based on thorough compliance with We further request that you undertake environmental
all applicable laws, regulations, and social norms initiatives such as those described below.
and consideration for the environment.
Toyota will periodically confirm the status of
From the standpoint of customers who purchase our implementation of the activities described in these
products, we ask you to “build quality” into all processes Guidelines based on the content of each activity.

1. Establishment of an Environmental The implementation of an Environmental Management

Management System System is a strong tool for understanding and
managing environmental impacts, and for driving
Addressing environmental impacts are one of the major continuous improvement in environmental performance.
challenges across the globe, with pressure to minimize Toyota itself has ensured that its production plants, part
that impact coming from many sources, including logistics sites, vehicle logistic sites & distributors are
governments, trade associations, supply chains and certified to ISO14001.
other social and financial stakeholders. Addressing
these issues in a systematic manner can be a significant Convinced about the benefit of such an approach, TME
challenge for organizations. expects suppliers, which supply to Toyota to implement
a certified environmental management system
An Environmental Management System (EMS) provides (such as ISO 14001 or EMAS), to systematically control
a framework for managing environmental responsibilities and promote environmental protection activities and
efficiently in a way that is integrated into your overall achieve continuous improvements in environmental
operations. ISO 14001 or EMAS are two commonly performance.
implemented environmental management system
standards that are designed to address the delicate Suppliers that cannot offer a certified Environmental
balance between maintaining profitability and reducing Management System will be requested to give alternative
environmental impact. evidence of environmental compliance and performance
improvement.

Documents Proof of ISO14001, EMAS

to be submitted or other Environmental Management System

When to submit Upon request

To who to submit To your Toyota Purchasing contact

14 TME | Sustainable Purchasing Guidelines 2013

2. Management of Products and SDS shall be prepared or updated, according to changes
Materials delivered to Toyota in material composition and legally required information,
in accordance with the applicable European legislation
REACh including REACh (1907/2006 EC) and CLP (1272/2008
REACh is a regulation of the European Union, adopted EC). SDS approval is required before the launch of a new
to improve the protection of human health and part or material.
the environment from the risks that can be posed
by chemicals. For Toyota Motor Europe, all substances TME and EMC’s will ensure that all Toyota employees
alone or within mixtures, which are manufactured involved in the handling of parts and materials with
or imported at or above one tonne per year shall a SDS are trained in order to perform their job safely.
be classified and registered with ECHA (European
Chemicals Agency). Key points for SDS and Labelling
•
The product labels and MSDS data must include
The registration timeline is shown in the REACh consistent information.
regulations. • SDS and labelling shall be consistent with current legal
requirements
Material Safety Data Sheets & Safety Labelling • A copy of any revised SDS shall be sent to the relevant
TME and EMC operations are committed to comply purchasing contact
with all the applicable rules and regulations relating to
the provision and use of safety data sheet (SDS) & safety Guidance to Business Partners regarding
labelling. Management of Substances of Concern
In order to comply with relevant local chemical
All articles and materials that are classified as hazardous legislation, all business partners are requested to deliver
an element substance that is classified as hazardous, parts and raw materials in compliance with laws and
have to be packaged, marked, labelled and documented Toyota standards and Quality Management Manuals
in accordance with all applicable regulations to ensure as described in the following table:
clear hazard communication.

REACh Timeline

Set up of agency Autho- Publication 1st version of 2nd version of 3rd version of
risation of candidate priority list for priority list for priority list for
list between authorisation authorisation authorisation
09/08 and
09/09
Information in Regi- List of pre- Restrictions Notification of SVHCs
the supply chain stration registrated (Title IX) present in articles
(Title IV) (Title II) substances six months after inclusion
REACH enters Down- in candidate list
into force stream
users
obligation
(Title V)
2007 2008 2009 2010 2011 2013 2018

01/06/07 01/06/08 01/12/08 01/06/09 01/12/10 01/06/11 01/06/13 01/06/18

Pre-
registration

Registration of phase-in substances above 1000 t/a

& CMR R50/53 above 100 t/a and substances for
authorisation

Registration of phase-in substances above 100 t/a

Registration of phase-in substances above 1 t/a

Registration of non phase-in substances and non pre-registered substances above 1t before manufacturing/importing/putting on the market

TME | Sustainable Purchasing Guidelines 2013 15

 Business Partners Documents to be submitted

Cleaning, Landscaping
Packaging materials

Equipments, Design
and constructionm,
Indirect Material [2]

Document required
Direct Material [1]
Management of

Submit to whom
Substances of Concern

Accessories

Logistics

Due date
Parts
a) Develop/Design stage at supplier
• Follow Toyota Techinal Standard TSZ001G "Methods of • • • • During
Assessing Substances of Concern", when managing the parts
information on use of Substances of Concern and development /
reducing or eliminating their use. Design stage,
• Suppliers are requested to enter the data on materials Material data and
and chemical substances used in product into IMDS • • IMDS
(IMDS) • During
by the designated deadline. Engineering
• Toyota uses IMDS-based material data management change in
globally as a tool for controlling chemical substances production
as well as vehicle recyclability rates [see Section 5 of Material data part
• • IMDS
Vehicle parts (including parts for customized vehicles), accessories, and direct materials (including packaging materials for these items)

this Sustainable Purchasing Guidelines]. (IMDS)

b) Production stage at supplier - Confirmation

• Follow Toyota Quality Management Standard: document:
"Substances of Concern Management Standard" and non-usage To your Before SOP
other relevant quality management manuals (such as of SoC Purchasing of any new part
SQAM) as the requirements to control, prevent use of - Material contact or modified part
the 10 substances of concern which are specified below: Datasheet
• • •
Lead PBB for materials
Cadmium PBDE (1-9)
Mercury Deca-BDE Note: If supplier has submitted data to IMDS,
Hexavalent Chromium HBCD there is no need to fill in "Confirmation
Asbestos PFOS of non use of Soc" document

c) Packaging materials at supplier

• Follow the Packaging Manual issued by your Toyota - REACh
contact. regulation
• When introducing new packaging material, select compliance
material that do not contain any of the prohibited or status
restricted substances specified in TSZ0001G. - Declaration
• When delivering the initial version of newly-adopted of no use of
packaging material,ensur elimination in the use of the banned SoC
above 10 SoCs, but also for Dimethyl Fumarate (DMF); For Parts & When delivering
- Report of Accessories: newly-adopted
and in addition any product prohibited by relevant local • • • • contents
regulation. to TME PQ & packaging
- Packaging PAD contact materials
• Consider the use of Rust Preventive Material (* VCI ): specification
Toyota Motor Europe may provide contacts of current sheet (if
Business Partners which have received prior approval you have
by Toyota. connection,
( Reason : Packaging material from current Business input via
Partners are already submitted to European Chemical "Supplier
Agency) Portal")
* VCI = Volatile Corrosion Inhibitor

d) Material labeling on plastic/rubber parts

• Indicate material in compliance with the relevant laws
and regulations in Europe, Japan, Korea, USA
• Follow material labelling guidelines of the Japan
Automobile Manufacturers Association (JAMA)

• •
Weight Requirements

Rubber Parts > 200 g Mandatory Follow material

labeling system
for plastic/
> 100 g Mandatory rubber parts
Plastic Parts
< 100 g Voluntary

e) Improving SoCs management system

• Follow Toyota Standards such as
• • • • •
"Substances of Concern Management Standard"

16 TME | Sustainable Purchasing Guidelines 2013

 Business Partners Documents to be submitted

Cleaning, Landscaping
Packaging materials

Equipments, Design
and constructionm,
Indirect Material [2]

Document required
Direct Material [1]
Management of

Submit to whom
Substances of Concern

Accessories

Logistics

Due date
Parts
• The introduction of any new or changed direct or indirect
material needs to be approved by TME via the Chemical
Direct Materials, Indirect Materials, and Packaging Materials Used at Plants or Logistic Centers

Change Procedure (PE-PLE-017) and at European - Material

Manufacturing Centers by local procedures. Safety Data
TME Materials At least 4 weeks
• Any materials that are used by contractors (construction, • • • Sheet (SDS)
Engineering before any trials
cleaning & landscaping companies as well as equipment for chemical
suppliers) must not contain any of the banned substances
substances found on Toyota Standard TMR SAS0126n.

• When planning to adopt a new direct or indirect material, - Material To your

deliver the Material Safety Data Sheet (SDS)[in local Safety Data Purchasing
language and English version] for chemical substances, At least 4 weeks
• • Sheet (SDS) contact at the
Declaration of no use of Toyota Banned substance. before any trials
for chemical Manufacturing
substances Centre

• Follow the Packaging Manual issued by your Toyota

Purchasing contact.
• When introducing new packaging material, select - Declaration
material that do not contain any of the prohibited or of non-use of
restricted substances specified in TSZ0001G banned SoCs
• When delivering the initial version of newly-adopted
packaging material,ensure that any elimination and
reduction in the use of the above 10 SoCs , but also for - Material
For packaging
Dimethyl Fumarate (DMF); and in addition any product Safety Data When delivering
materials
banned by relevant local regulation. sheet a newly-
for logistics
• adopted
• Consider the use of Rust Preventive Material (* VCI ): centres to
packaging
Toyota Motor Europe may provide contacts of current TME, PQ&PAD
- Report on material
Business Partners which have received prior approval contact
contents
by Toyota.

- Packaging
( Reason : Packaging material from current Business specification
Partners are already submitted to European Chemical sheet
Agency)
*VCI = Volatile Corrosion Inhibitor

[1] Direct materials = Raw materials which form part of the finished product (car).
[2] Indirect materials = Supplementary materials which are used within production but do not form part of Toyota finished products

TME | Sustainable Purchasing Guidelines 2013 17

Relevant Standards / Manuals
Business partners Toyota standard, etc

Equipments, Design
and constructionm,
Packaing materials
Indirect Materials
Direct Materials
Service Parrts

Landscaping
Vehicle parts

Accessories

Standard Number Standard Name

Cleaning,
Logistics

• • • • • TSZ0001G Methods of Assessing Substances of concern

• • • TSZ6005G Method of Material Labeling on Plastic and Rubber Parts

• • TMR SAS0126n Substances Whose Use in Raw or Supplementary Materials is Prohibited
• • PE-PLE-017 Chemical Change Procedure
Standard

• • • LMS SAZ0001n Supplier Manual for Management of Chemical Substances in Packaging Materials
Mechanical Equipment Oiling/Lubrication Standard; Lubricant Labeling Manual
• MMR SOM6003n
(for consumable materials)

• • • Packaging Specification sheet by part number or commodity

• • • • Quality Standard Substances of Concern Management Standard

• • Quality Standard Rules on Management of Material Labeling on Plastic and Rubber Parts

• • SQAM for production parts Quality Assurance Manual for Toyota Purchase Parts
Manual

• SQAM for accessories Supplier Quality Assurance Manual for Toyota Genuine Accessories

• SQAM for material Quality Assurance Manual for Toyota Purchase Parts

• • • Packaging manual Service and Accessory parts packaging manual

3. Environmental Initiatives Related to emissions. Such suppliers are further requested to

Supplier Business Activities work with Toyota and cooperate with Toyota’s efforts
to implement these measures.
Toyota Motor Europe continuously works on improving
its environmental performance throughout its operations. In order to make steady improvements, suppliers
In addition to legal mandatory compliance, Toyota are requested to maintain data on fuel consumption,
Motor Europe expects its suppliers to also take distance travelled, fuel efficiency, and other items that
an active approach to environmental initiatives in their indicate annual performance and CO2 emissions per
business activities, such as reduction of Volatile Organic unit transported, and to report periodically on the status
Compounds emissions, reduction of waste, energy, of activities.
water and CO2 throughout operations.
Reduction of Packaging Materials
Toyota works to reduce usage of packaging and
4. Reduction of CO2 Emissions and wrapping materials. Suppliers involved are also
Packaging Materials in Logistics requested to integrate environmental measures in their
packaging design and logistics activities.
Reduction of CO2 Emissions
Transportation of goods account for a considerable Suppliers which develop and deliver parts or packaging
amount of total energy consumption (transport of goods equipment to Toyota are requested to adopt a pro-active
within all transportation categories). As a result, reducing attitude and to cooperate with Toyota’s efforts to reduce
this consumption of energy is a major issue. To this end, usage of packaging and wrapping materials.
Toyota undertakes active measures to reduce CO2
emissions (fuel consumption) in logistics. During packaging design the impact on the environment
at each step of the packaging life cycle should be taken
Logistics Performed at the Request of Toyota into account. Obviously, also bear in mind an optimal
Suppliers who are contracted to carry out logistics of cost balance between parts quality, material usage and
completed vehicles, production parts, and service parts logistics handling.
must fully understand Toyota’s initiatives to reduce CO2

18 TME | Sustainable Purchasing Guidelines 2013

5. Renewable, Recoverable, Recycled Toyota's suppliers are requested to input the data for
Materials their responsible parts into IMDS (International Material
Data System).
Re-usability, Recoverability, Recyclability (RRR)
Toyota is working on improving the recovery / recycling Promotion of the Use of Renewable
rate and reducing the volume of automotive shredder and Recycled Materials
residue (ASR), in line with the EU End of Life Vehicle (ELV) Toyota promotes the expansion of the use of renewable
Directive 2000/53/EC. resources and recycled materials. Applicable suppliers
are requested to discuss with the department in charge
Since December 2008, the '3R' certificate (Directive at Toyota for the material introduction, and must submit
2005/64/EC on the type-approval of motor vehicles the declaration of renewable resources and recycled
with regard to their re-usability, recoverability and materials upon request.
recyclability) is mandatory for new vehicle types under
Whole Vehicle Type Approval (2007/46/EC). In order to
calculate the re-usability, recoverability and recyclability
rate of a vehicle, material data is collected through the
supply chain.

Documents to be submitted for Toyota Motor Europe

Parts (articles)
Documents
to be submitted
OE Service Parts Accessories

IMDS •
*
Declaration of Renewable
•
and Recycled Material

When to submit Upon request

To who to submit

IMDS To Homologation Division

Declaration of Renewable
To Material Engineering Division
and Recycled Material

* When included in WVTA: whole vehicle type approval. Accessories data not collected via IMDS but through Toyota Motor Corporation.

TME | Sustainable Purchasing Guidelines 2013 19

 6. Whole Life Cycle Thinking

Life Cycle Thinking (LCT) and Assessment (LCA) are associated with the full life cycle of a product, from
essential to Toyota as a global company. design through production, driving and final recycling.

The objective is to discover how much we have improved Whole Life Cycle Assessment
the new generation product in comparison to the previous Life Cycle Assessment (LCA) is an internationally
one. Then to ensure that all the learning’s are integrated standardized methodology (ISO 14040 series) that
into the new product design and development. supports Life Cycle Thinking. LCA helps to quantify
Life Cycle Thinking (LCT) is the process of taking the resources consumed and the potential environmental
into account in decision making both the resources impacts of the produced product.
consumed and the environmental and health pressures

Life Cycle Thinking Life Cycle Assessment framework

1 Design Goal & Scope definition

Supplier
g

parts
2P
cyclin

environmental data
roductio

360° approach Inventory analysis Interpretation

4 Re

3 Driving Impact assessment

Documents to be submitted for Toyota Motor Europe

No documents to be submitted
Documents
Suppliers might be requested separately to provide
to be submitted
detailed parts environmental performance data

When to submit Upon request

To who to submit To your Toyota Purchasing contact

20 TME | Sustainable Purchasing Guidelines 2013

 Glossary

ASR Automotive Shredder Residue SDS (Material) Safety Data Sheet, in accordance with EU Commission
Directives 2001/58/EC, 1999/45/EC, 1967/548/EC and changes as
CLP The CLP Regulation 1272/2008 (Classification, Labeling and published in the Official Journal of the European Union.
Packaging) is a European Union regulation which aligns the European
Union system of classification, labeling and packaging chemical Parts (articles):
substances and mixtures to the Globally Harmonized System 1. An object which during production is given a special shape, surface
(GHS). It is expected to facilitate global trade and the harmonized or design which determines its function to a greater degree than its
communication of hazard information of chemicals and to promote chemical composition.
regulatory efficiency. It complements the Registration, Evaluation,
Authorization and Restriction of Chemicals (REACh) Regulation and 2. Parts that were developed for the vehicle and are delivered to
replaces the current system contained in the Dangerous Substances Toyota plants
Directive 67/548/EEC and the Dangerous Preparations Directive
1999/45/EC 3. Service parts and accessories
Examples: bumper, engine, seat, wiper, windscreen, screw
CSR Corporate Social Responsibility

ELV End-of-life Vehicle REACh European Regulation 1907/2006 concerning the Registration,
Evaluation, Authorization and Restriction of Chemical
EMAS The Eco-Management and Audit Scheme (EMAS) is the EU voluntary
instrument, which acknowledges organizations that improve their SOC Substances of Concern
environmental performance on a continuous basis.
TPCE Toyota Parts Centre Europe
EMC European Manufacturing Company
Vehicle Accessories & Service Parts
IMDS International Material Data System Genuine parts mounted on a vehicle.
Example: floor mats, side visors, navigation systems, audio equipment
ISO 14001 This ISO standard outlines the requirements for an environmental
management system to enable an organization to develop and VOC Volatile Organic Compound
implement a policy and objectives, which take into account legal
requirements and information about significant environmental WVTA Whole Vehicle Type Approval
aspects.

LCA Life Cycle Assessment. A method of evaluating a product’s

environmental impacts throughout its entire lifecycle, from production
to disposal.

Materials (substances, preparations)

A. Definitions

1. Substance: means a chemical element and its compounds in the
natural state or obtained by any manufacturing process, including
additives necessary to preserve its stability and any impurity
deriving from the process used, but excluding any solvent which
may be separated without affecting the stability of the substance or
changing its composition

2. Preparation: means a mixture or solution composed of two or more
substances

B. Categories

1. Direct materials:
- Used in Toyota plants and that become part of the vehicle
- Service parts and accessories
Examples: steel, paint, automotive fluids

2. Indirect materials:
- Used in Toyota plants, but will not become part of the vehicle
Examples: cleaning solvents, cutting oil

TME | Sustainable Purchasing Guidelines 2013 21

Toyota Motor Europe

Avenue du Bourget 60 – 1140 Brussels, Belgium

T +32 2 745 21 11

Published by Toyota Motor Europe - Environmental Affairs Group