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August 29, 2000

Toyota Leads Suppliers into Green Parade

In the greening of the automobile industry, Toyota once again asserts its leadership by requiring suppliers to be environmentally responsible.

SocialFunds.com -- Auto manufacturers have launched a number of environmental initiatives to respond to the concerns of investors and consumers, from emissions controls to futuristic alternative fuel vehicles. Toyota Motor Corporation continues to raise the bar of environmental responsibility, this time by issuing environmental guidelines to suppliers.

Toyota challenged 500 suppliers across North America to adopt environmental standards specified in its publication, "Green Supplier Guidelines: Leadership in Environmental Performance" distributed this month. The suppliers, who provide parts, materials, and components directly or indirectly to Toyota, are now required to participate in environmental initiatives launched at Toyota plants.

"Toyota has a unique relationship with its suppliers," said Teruyuki Minoura, President and CEO of Toyota Motor Manufacturing of North America (TMMNA). "We are known for expecting them to share our high quality standards. Now we are asking them to join us in becoming environmental leaders."

Toyota, the Japanese auto giant employing more than 30,000 in North America, has been an environmental leader in both product and process since it established its worldwide "Earth Charter" in 1992. Now their "Green Supplier Guidelines" extend the company's environmental commitment beyond its own direct processes to the business relationships and partnerships it maintains with its North American supplier community.

Among the initiatives being promoted by Toyota is for their suppliers to obtain International Standardization Organization (ISO) 14001 certification, a globally recognized certification of environmental management standards, by the end of 2003. Toyota itself has committed to gaining ISO 14001 certification for all of its North American manufacturing plants and facilities by the end of 2000.

Toyota is also requiring compliance with a chemical ban, identifying approximately 450 chemicals and substances that suppliers of raw materials must phase out from new and/or reformulated materials beginning immediately. Toyota developed its initial chemical ban list based on an evaluation of toxic chemicals regulated worldwide, a list which will be updated regularly.

Suppliers are also required to develop policies and procedures to comply with all applicable state, federal, and international requirements for transporting hazardous materials. Once again, this mandate merely follows Toyota's own commitment to safe transportation of hazardous materials, including training Toyota employees to perform their jobs safely.

"For our own North American plants, we have defined tough standards for being environmentally responsible," said Kevin Butt, TMMNA assistant general manager for environmental affairs. "We are now working with our business partners to join Toyota to continually improve environmental performance."

Toyota's attention to environmentally responsible production is only surpassed by its products, including the Prius, the world's first passenger vehicle in mass production to be powered by a gasoline/electric hybrid power train. On the road in Japan since 1997, this car is now available through U.S. dealerships and gets a stunning 52 miles per gallon in city driving.

In recognition of Toyota's environmental leadership, the United Nations Environmental Programme (UNEP) awarded the company their Global 500 Award last year, the first such award received by an automaker. Toyota's "Green Supplier Guidelines" initiative to boost the environmental performance of suppliers stands to confirm the company's commitment to the Earth.

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