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About this Report 

This is the sixth report Toyota South Africa Motors has 

produced which details the company’s social, environmental 

and economic footprint and activities, and the second to 

be called a Sustainability Report. This report follows the 

structure of Toyota Motor Corporation’s Sustainability Report 

2010 in order to present a consistent picture to stakeholders 

across South Africa and the globe. 

Links to Online Information 

An electronic version of this report is available on the 

Toyota South Africa Motors website: www.toyota.co.za 

For a comprehensive GRI G3 self-assessment table, email 

sustainability@toyota.co.za 

Period covered by this Report 

The period covered by this report is from April 2008 to 

March 2010. In some instances, the most recent status 

update in 2010 has been included. 

• FY08 refers to the period 1 April 2008 to 31 March 2009. 

• FY09 refers to the period 1 April 2009 to 31 March 2010. 

Toyota South Africa Motors did not produce a Sustainability 

Report in 2009. 

Scope of this Report 

Environmental Aspects: Includes Toyota South Africa 

Motors’ own initiatives and the progress of the company’s 

consolidated environmental management in South Africa. 

Social Aspects: Includes Toyota South Africa Motors’ own 

initiatives and continued progress. 

Economic Aspects: Includes financial results and 

production information. 

Parent Company Profile 

Name: Toyota Motor Corporation 

Date of establishment: August 1937 

Principal operations: Manufacturing and sales of 

automobiles and housing 

Capital: R31.2 billion 

Number of shareholders: 660 922 

Total number of shares issued: 3 447 997 000 

Stock exchanges on which shares are listed: Tokyo, 

Nagoya, Osaka, Fukuoka, Sapporo, New York and London. 

Company Profile 

Holding company: Toyota South Africa Ltd 

Operations company: Toyota South Africa Motors Pty (Ltd) 

Date of establishment: 26 May 1961 

Principal operations: Manufacturing and sales of 

automobiles 

Capital: R2.16 billion 

Enquiries 

sustainability@toyota.co.za

Contents 

Executive message from the President and CEO ..................2 

Highlights of FY08 and FY09 ....................................................3 

Special Features 

Campaign to correct faulty accelerator mechanism .....................4 

30 years of market leadership ......................................................6 

About the Company 

An Introduction to Toyota South Africa Motors .............................8 

Corporate Philosophy ...................................................................9 

Corporate Governance ...............................................................11 

Environmental Aspects 

Environmental Philosophy ..........................................................13 

Principles, policies and the Toyota Environmental Action Plan ...........13 

The TSAM Fourth Environmental Action Plan .....................................15 

Incidents and near misses ...................................................................20 

The Fifth Toyota Environmental Action Plan ........................................21 

Energy/Global Warming .............................................................22 

Towards sustainable mobility ...............................................................22 

CO2 emissions and energy use ...........................................................23 

Toyota Motor Corporation’s commitment to hybrid technology ............26 

Recycling of Resources ..............................................................27 

Use of Water Resources ............................................................29 

Atmospheric Quality ...................................................................30 

Substances of Concern ..............................................................31 

Environmental Management.......................................................32 

Strengthening environmental management ........................................32 

Environmental management of business partners ..............................33 

Risk reduction activities .......................................................................34 

Greening activities ...............................................................................35 

Appendix.....................................................................................35 

Social Aspects 

Relations with Customers ...........................................................36 

Customer satisfaction ..........................................................................36 

Integrated safety management ............................................................37 

Relations with Employees ..........................................................38 

Sharing the Toyota Way.......................................................................38 

Total employment ................................................................................38 

Benefits and remuneration ..................................................................38 

Human rights .......................................................................................40 

Empowerment and Employment Equity ..............................................40 

Training ................................................................................................42 

Labour relations ...................................................................................43 

Occupational safety and health ...........................................................45 

Occupational health and wellbeing ......................................................48 

Relations with Business Partners ...............................................50 

Global Society/Local Communities .............................................51 

Economic Aspects 55 

Independent Assurance Statement ............................................56 

Global Reporting Initiative Index.................................................58 

Glossary of terms and acronyms ................................................60 

Toyota South Africa Motors Sustainability Report 2010 1

MESSAGE 

Executive message from the President and CEO, 

Toyota South Africa Motors 

Sustainability is a key focus area for 

Toyota globally and as such we are 

proud to present Toyota South Africa 

Motors’ sixth sustainability report, addressing 

the past two fiscal years (FY08 and FY09). 

I want to take a moment to reflect on the 

conditions experienced over the reporting 

period, with the two periods in stark contrast 

with each other. While FY08 was one of 

growth, FY09 was one of rapid market 

contraction and recession. During these 

turbulent times we continually reviewed our 

cost structures to compete for production 

volume and ensure the sustainability of the 

company. These challenges contributed to 

making Toyota a better, stronger and more 

vibrant company with a clear view on how to 

achieve sustainable growth. 

As I am of the view that over the next 

few years there will be moderate sustained 

growth in market conditions, with subsequent 

improvement in our sales and production 

volumes, this will stand the company in good 

stead. The contraction in the vehicle market in 

2009 not only resulted in a significant drop in 

vehicle production, but also impacted on our 

environmental performance when expressed 

in per unit performance. 

We are in the process of developing our 

next Five Year Environmental Action Plan and 

these trends will be addressed in our future 

environmental performance efforts. 

As a company we experienced a 

particularly trying time during the last part 

of FY09 when the global recall campaign 

around some of our core models occurred. 

Teamwork and fast action when an issue 

needs to be addressed are critical ingredients 

of the Toyota Way. These core values of 

our philosophy were illustrated earlier this 

year when 52 546 Corolla, Auris and Verso 

vehicles and 216 Prius vehicles were recalled 

as a precautionary measure. 

It was a difficult time for us, but our 

business partners – in this case our dealers – 

responded excellently with the execution of 

this campaign, and in only three months more 

than 90% of the possibly affected vehicles 

were recalled. 

I want to take this opportunity to thank 

2 Toyota South Africa Motors Sustainability Report 2010 

Dr Johan van Zyl during a walkabout at the Prospecton manufacturing operation. 

With the support of our stakeholders 

we will continue to provide safe and 

reliable vehicles to our customers. 

“ 

” 

all our dealers, but also to express my 

appreciation to our customers for their 

understanding and the trust they showed 

in our company and its products during this 

time. 

You can be assured that we are fully 

committed to your safety and satisfaction 

with our product. We will continue to build on 

the quality, durability and reliability that are by 

now synonymous with Toyota. 

The same values are also incorporated in 

our CSI initiatives as we believe good corporate 

citizenship is as important to the sustainability 

of our company as good product. We have 

initiated and also support a variety of social 

responsibility programmes and these activities 

will be strengthened further in future. 

In closing, we take sustainability, in all 

its forms, very seriously and therefore have 

also taken major steps to improve the safety 

culture in our company. The results are 

positive, but strong leadership will be needed 

to fundamentally change the culture we want 

to see in our organisation. 

We continue to investigate alternative 

energy sources as to us it is clear that society 

will increasingly demand low carbon emission 

vehicles and energy efficient production, 

and are positioning ourselves to be ready to 

respond to these expectations. 

With the support of our stakeholders 

we will continue to provide safe and reliable 

vehicles to our customers and we invite you to 

engage with us as we move along the path to 

achieve true sustainable growth in harmony 

with people and the environment. 

Dr Johan van Zyl 

President and CEO, 

Toyota South Africa Motors

Highlights of FY08 and FY09 


-14 million tons CO 2 

The amount of CO 2 emissions saved by Toyota’s 

hybrid vehicles (cumulatively). 

Environmental Philosophy pgs 13-21 

The Fourth Environmental Action Plan, 

based on the Toyota Motor Corporation 

(TMC) plan, provided the framework for 

TSAM’s environmental activities during 

FY08 and FY09. The plan detailed specific 

issues and actions including reduction of 

carbon dioxide (CO2) emissions, resource 

conservation, reduction in substances of 

concern, risk reduction and legal compliance. 

Implementation of the plan was monitored 

and further actions identified. TMC has 

developed the Fifth Environmental Action 

Plan, which commences in FY11 and maps 

the way forward in terms of management of 

environmental impacts. 

Energy/Global Warming pgs 22-26 

Total CO 2 emissions were significantly reduced 

mainly due to the drop in production caused by 

the economic recession and due to a number 

of energy saving projects implemented in 

production and logistics. However, per unit CO2 emissions reduced in FY08 but then rose in 

FY09, also due to the economic recession and 

the drop in production. 

TMC globally continued to increase the 

availability of hybrid vehicles and to improve 

fuel efficiencies of conventional drive trains 

in ongoing efforts to significantly lower global 

CO emissions. 

2 

CO 2 emissions: Production FY08 FY09 

Total CO 2 emissions (tons) 156 112 131 912 

CO 2 emissions per unit (kgs) 1 041.27 1 284.48 

Recycling of Resources pgs 27-28 

Over the past four years, TSAM has reduced 

waste to landfill by 15.5%. Recycling initiatives 

encouraged broad employee participation both 

in the workplace and at home. 

Use of Water Resources pg 29 

Water use efficiencies improved significantly 

in FY08 but lower production figures in FY09 

caused water usage per unit to exceed target. 

TSAM implemented control measures that have 

significantly reduced the risks of contaminated 

water spilling into the stormwater drainage 

system at its production operations. 

Atmospheric Quality pg 30-31 

Actions were taken to further reduce volatile 

organic compounds (VOCs). The full benefits of 

VOC reduction as a result of the commissioning 

of the new, water-based Paint Plant in FY06 are 

yet to be realised, although total VOC emissions 

have decreased consistently. 


FY08 FY09 

Waste generated (kg/unit produced) 21.47 26.84 

FY08 FY09 

Water usage (kilolitre/unit produced) 5.05 6.19 

Waste water discharged (kilolitre/ 

unit produced) 

2.31 3.11 

FY08 FY09 

Body paint VOC (g/m 2 ) 36.5 34.4 

Relations with Customers pgs 36-37 

TSAM excelled in national quality and 

customer satisfaction surveys which compare 

automobile manufacturers in South Africa, 

finishing top or close to the top of the rankings 

in every segment. 

Relations with Employees pgs 38-44 

Total workforce numbers reduced by 16% 

between FY08 and FY09 due to the effects 

HIGHLIGHTS 

of the global recession. TSAM focused on 

providing education and training opportunities 

to enable employees to improve their skills 

and qualifications, thus adding value to their 

lives and their jobs. 

Health and Safety pgs 45-49 

Safety incident and injury frequency rates 

continued to decline thanks to risk reduction 

activities and effective safety structures, 

training and awareness. Increasing numbers 

of employees are taking advantage of 

wellness and assistance programmes. 

Relations with Business Partners pg 50 

Toyota dealers and suppliers must comply 

with stringent environmental standards, and 

suppliers are required to comply with ISO 

14001 standards. Regular audits are carried 

out to confirm compliance. 

Global Society/Local Communities pgs 51-54 

TSAM engages with business, community and 

civil society institutions to foster harmonious 

relations and contribute to the development 

of a thriving and vibrant society. TSAM 

has initiated or participates in educational, 

environmental and empowering projects 

located in local communities. 

Economic Aspects 

FY08 FY09 

Total number of employees 9 089 7 934 

FY08 FY09 

Number of injury cases 533 290 

Tracking Economic Performance pg 55 

TSAM experienced a period of growth in 

FY08, followed by a contraction in business 

during FY09 as a result of the global economic 

recession. Moderate sustained growth in 

market conditions has been forecasted for the 

next year, and a subsequent improvement in 

production and sales volumes is expected. 

FY08 FY09 

Vehicle production 184 087 105 079 


SPECIAL FEATURE 

Toyota South Africa Motors campaign 

to correct accelerator mechanism 

TMC globally has been able to achieve 

strong growth, positioning product 

quality as its corporate mainstay and 

earning acceptance in markets throughout the 

world, based on the reliability of its products. 

However, as TMC grew, its customer base 

expanded and diversified, and customer 

expectations increased. At some point, the 

company believes it was not sufficiently aware 

of these elevated customer expectations. 

These factors form the backdrop for the recent 

issues related to safety and confidence. TMC 

views these issues as an opportunity for 

renewal and improvement and every single 

employee participated proactively in meeting 

the challenge of redressing the issues. 

Following the floor mat issue in the United 

States (US) in November 2009, TMC announced 

a voluntary safety recall on 21 January 2010 on 

some Toyota-brand vehicle models sold in the 

US for the accelerator pedal issue. On 9 February 

2010, TMC announced a recall in Japan, the US 

and Europe on four models, including the new 

Prius, for a brake issue. On 10 February, TSAM 

announced a recall on three models in South 

Africa to correct the accelerator mechanism. 

Details of the issues and countermeasures for 

these markets are listed in Table 1 below: 


The list of affected vehicles was the 

result of an exhaustive technical study which 

covered all Toyota vehicles on sale in South 

Africa. The affected passenger vehicle 

models were: 

• Toyota Corolla (February 2007 to 

January 2010) – 45 040 vehicles 

• Toyota Auris (June 2006 to January 

2010) – 6 665 vehicles 

• Toyota Verso (October 2008 to 

• 

January 2010) – 841 vehicles 

Total vehicles recalled – 52 546 vehicles 

Recall service campaign – 

Corolla, Auris and Verso 

The Corolla, Auris and Verso vehicles were 

recalled as part of a service campaign to 

correct a potentially faulty accelerator pedal 

mechanism. This was done as a proactive 

precaution and was based on the fact that the 

mechanism was similar in operation to those 

which had proven faulty in other regions. 

In these regions the mechanisms, in 

severe circumstances, deteriorated and 

became harder to depress, slow to return to 

idle or had, in just a handful of cases, become 

stuck in a partially depressed position. 

Issues Countermeasures 

Floor mat If improperly secured in the vehicle, some floor mats used 

in the US may move forward and hold the accelerator 

pedal down in a fully or partially open position. 

Accelerator pedal In the accelerator-pedal assembly of affected vehicles, 

condensation resulting from cold-weather use of the 

heater or other causes may form on the worn surface of 

what is known as a friction device. If this occurs, there is 

a possibility that, in the worst case, the accelerator pedal 

returns slowly, or does not return, to its idle position. 

Anti-lock Braking 

System (ABS) 

Table 1 

Braking performance may be reduced, resulting in 

increased braking distance (compared to performance 

before ABS activation) when vehicles switch at low speed 

to hydraulic braking-only to activate ABS, which is used 

to stabilise handling on slippery surfaces, such as snowy 

and icy roads. 

• 

• 

• 

• 

• 

Above and below: The potentially faulty accelerator 

pedal mechanism. 

In more detail, the problem related to the 

operation between the mechanism’s friction 

shoe that provides pedal feel and ensures 

pedal stability, and the adjoining surface. 

Exchange for the proper floor mat. 

Reconfigure the shape of the accelerator pedal. 

Change the shape of the driver’s side footwell on some 

models. 

Install a precision-cut steel reinforcement bar into the 

accelerator-pedal assembly that creates a space to 

reduce the surface tension between the friction device 

and a component called the pedal arm. The bar also 

strengthens the reaction force of the spring that returns the 

accelerator pedal to its non-pressed position. 

Correct ABS software programme to prevent a reduction 

in braking performance.

The corrective action took the form of 

a small precision-cut steel plate that was 

placed in the assembly to alleviate the friction 

between the friction shoe and the adjoining 

surface. This prevents the problem from 

surfacing in vehicles equipped with this steel 

bar for the life of the vehicle. 

Reasons for the recall 

service action in South Africa 

TSAM chose to participate in this worldwide 

recall service action as a precautionary 

measure. The action took place despite the 

fact that the problem had not surfaced to 

the same result in the hot and dry climate of 

South Africa. 

“We would like to apologise to all Toyota 

vehicle owners for the uncertainty and 

inconvenience that this process may have 

caused. We value the trust and confidence that 

Toyota owners have put in our brand over the 

past five decades and we will do everything in 

our power to honour that,” said Dr Johan van Zyl, 

President and CEO of TSAM. 

Actions taken 

TSAM and its nationwide dealer network 

immediately started contacting owners of the 

identified vehicles to inform them of the recall 

service action. All Toyota dealers in South 

Africa and the countries that TSAM serves 

were involved. These include Botswana, 

Namibia, Lesotho and Swaziland. Owners 

were given the opportunity to contact their 

nearest Toyota dealer at their convenience 

and schedule a time for the insertion of the 

steel bar. Repairs started on 23 February 2010 

and more than 90% of the affected vehicles 

had been repaired by 31 August 2010. 

There are two major reasons why the 

balance of the affected vehicles have not yet 

been repaired. Many fleet owners with large 

fleets of working vehicles opted to postpone 

the corrective action in order to schedule 

the repairs for when it suits them. Cars that 

have been resold more than once are very 

difficult to trace, meaning that TSAM has 

not been able to get in contact with every 

affected vehicle owner. However, regardless 

of when or from whom an affected car was 

purchased, owners can bring in their vehicle 

for the corrective action at no cost. 

The full cost of the corrective process 

was borne by TSAM. No owner was required 

to pay, regardless of the state of his or her 

service plan, warranty or the ownership 

status of the vehicle. 

As further support to the campaign, 

concerned customers were able to visit 

www.toyota.co.za or phone the Customer 

Contact Centre on 0800 139 111 for upto-date 

information on the recall service 

campaign. 

“We would like to apologise in advance 

to our customers for the inconvenience this 

campaign might cause them. We believe 

the action of fitting the accelerator pedal 

component with a safeguard mechanism 

is in line with our commitment to customer 

safety and satisfaction and we trust that 

our customers will continue to experience 

the trouble free motoring they have come to 

expect from Toyota,” said Dr Van Zyl. 

In the case of the locally produced Corolla 

models, before the recall announcement 

TSAM had already implemented the 

corrective action in all vehicles in production. 

This means that no newly sold Corolla from 

the date of the recall and onwards requires 

the corrective action. This also applies to the 

Auris and Verso models that TSAM imports 

from Europe, where the vehicles in production 

at the time of the recall and onwards received 

the necessary upgrades. 

This programme was a preventative 

measure from TSAM. Customers should 

experience no difference between the pedal 

feel and operation before or after the service 

action. 

Special service campaign – 

Prius 

In an unrelated service action, TSAM decided 

to recall all new generation Prius models 

(August 2009 to February 2010) for a software 

upgrade to the electronic brake system. This 

action involved 216 vehicles. 

This upgrade addressed the delayed 

brake feel on slippery surfaces that was 

experienced elsewhere in the world. 

TSAM contacted each Prius owner to 

inform them of this upgrade and scheduled a 

convenient appointment time at their closest 

Prius dealer. All 216 affected vehicles were 

repaired by the beginning of June 2010. 

GLOBAL STRATEGY 


Special Committee for 

Global Quality launched to 

achieve a more safety and 

confidence-based 

customer interface 

Any time a problem should occur, it is 

TMC’s practice to thoroughly determine 

the root cause, take corrective actions and 

press ahead with further improvements. 

This is an article of faith that has been 

firmly embraced since the foundation of the 

company. In response to the recent series 

of problems, TMC formed the Special 

Committee for Global Quality, chaired by 

President Akio Toyoda, on 30 March 2010. 

The purpose of the committee is to listen 

more respectfully than ever to customers 

from every region. It demonstrates the 

company’s concerted commitment to 

a fundamental review of operational 

attitudes and establishing a customer 

interface across TMC’s entities worldwide, 

in every business sector. Improvement 

plans worked out by the committee will 

be verified and assessed by four external 

advisors as well. In line with this, TSAM 

also instituted its own quality committee 

that reports back to the global committee 

on these matters. 

TMC’s internal functions, including 

newly appointed Chief Quality Officers, 

represent customer voices from North 

America, Europe, China, Asia, Oceania, 

the Middle East, Africa and Latin America. 

Key objectives identified by 

the Special Committee for 

Global Quality 

• 

• 

• 

• 

• 

Genchi Genbutsu, Early Detection 

and Early Resolution based on 

customers’ voices; 

Human resource development that 

reinforces TMC’s Customer First 

approach; 

Assessment by outside experts; 

Product development focused on 

customer safety and confidence; and 

Independence of quality management 

activities in each region of the world. 



30 years of market leadership for 

Toyota South Africa Motors 

Toyota South Africa Motors (TSAM) 

ended 2009 with a market share 

of 23% for the year. TSAM’s total 

domestic sales in 2009 were 90 701 units in a 

total market of 395 230 vehicles. Not only has 

TSAM been the overall market leader in South 

Africa since 1980, but it is also the country’s 

largest exporter of built-up vehicles. 

South Africa felt the full impact of the 

global financial crisis during 2009 and saw 

total vehicle sales drop off sharply from the 

533 387 units for 2008 to 395 230 units for 

2009, a decrease of 25.9%. 

Toyota dominates South African 

market 

Through 2009 the star performer in TSAM’s 

market leading product line was the Hilux, 

which ended 2009 on a high as the top 

selling vehicle in South Africa. The Corolla 

and Fortuner also performed well in the 

passenger vehicle sector. The success of 

these vehicles, based on a solid reputation of 

reliability, durability, overall value for money 

and low cost of operation, has seen TSAM 

lead the market in vehicle sales for the past 

30 years in succession. 

This extended term of market leadership 

is all the more remarkable as it has been 

achieved in a sector of the economy 

renowned for its cyclical nature. The motor 

industry is easily influenced by volatility in 

the social and business environments but 

TSAM has stood the test of time in a rapidly 

changing South Africa, not only as a domestic 

supplier of vehicles but as a leading exporter 

of vehicles as well. 

TSAM’s success over the past 30 years is 

founded on a combination of forward thinking 

and the rigid application of a range of internal 

and external strategies. TSAM’s market 

philosophy has been formulated to ensure 

that a wide-ranging product line-up provides 

effective transport solutions, together with 

the highest levels of customer support and 

satisfaction. 


TSAM’s market leading vehicles, the Stout (above), the latest Hilux model (opposite page, left) and the top-selling 

Corolla sedan (opposite page, right). 

Dr Albert Wessels founded TSAM in 1961. Celebrating the sale of the 100 000 th Corolla in 1971. 

A new approach to the local market 

From the outset TSAM set about changing 

the outlook of the South African motorist 

by demonstrating that there were better 

efficiencies and customer support levels 

available in a market that up until then had 

been dominated by large American type 

vehicles with largely centralised distribution 

and service networks. TSAM took its effective 

transport solutions to the people, with support 

in rural communities that had not been seen 

before. Today the company still has the 

widest and most stable dealer network in the 

country. 

TSAM’s success was founded on its 

reputation as a supplier of light commercial 

vehicles with the one-and-a-half-ton Stout 

an immediate success. This was followed 

by the smaller Tiara and Corona pick-ups, 

both derived from passenger vehicles, and 

the two-ton Dyna. A significant breakthrough 

came with the introduction of the Hilux in 

1969, a pick-up that proved to be just the 

right vehicle for South Africa at the time. The 

Hilux has built on that success, dominating 

the light commercial vehicle market for the 

40 years since its release. TSAM has built in 

excess of one million left and right hand drive 

Hilux vehicles, which have been exported to 

Europe and the rest of Africa.

The Corolla leads the passenger 

vehicle market 

TSAM first entered the passenger vehicle 

market in 1975 with the Corolla. Again this 

was a vehicle that arrived in the local market 

at just the right time. The country, like many in 

the western world, was severely impacted by 

a global fuel crisis that would shape the motor 

industry through the 1970s. TSAM was the first 

local company to offer a compact, economic 

and comfortable vehicle solution as the market 

downscaled overnight. 

It took just five years for the Corolla to 

place its stamp on the passenger vehicle 

market and, together with the Hilux as the 

other core product in the range, moved 

TSAM into a position of market leadership 

in 1980. Despite aggressive challenges from 

competitors and a fundamental change in 

the structure of the local motor industry over 

the past 10 years, TSAM has remained the 

undisputed market leader in South Africa. 

TSAM has a proud record of providing 

the right product built to the highest quality 

standards and supported by a stable dealer 

network. These are the fundamentals of the 

positive ownership experience for which 

Toyota is renowned, and they will remain 

fundamental to the Toyota ownership 

experience going forward. 

TSAM achievements and awards 

FY08 

Organisation Award 

Synovate Quality Toyota was voted one of the best in the following categories and attained the following 

Awards 

awards: 

• Best Volume Passenger Car Brand Overall 

• Best Local Plant Manufacturing Light Commercial Vehicles 

• Best One Ton Diesel Light Commercial Vehicle Overall 

• Best One Ton Petrol Light Commercial Vehicle 

• Best Overall LCV Brand 

• Entry: Toyota Yaris T1 

• Small Hatch: Toyota Yaris T3 

• Small Sedan: Toyota Yaris Sedan 

• Top Sedan: Toyota Corolla 

• Medium: Toyota Avensis 

• MPV / Station Wagon: Toyota Corolla Verso 

• Small Recreational Vehicle: Toyota Rav4 

• Large Recreational Vehicle: Toyota Prado 

• Out of 24 awards, Toyota won 13 gold, six silver and one bronze. 

JD Power Awards Toyota was once again judged the best in the JD Power Quality Study for the following vehicles: 

• Toyota Corolla Verso – Best Compact MPV 

• Toyota Yaris (Hatch back) – Best Lower Small Car 

• Toyota Hilux – Best One Ton SC 

• Toyota Hilux – Best One Ton DC 

Focus on Excellence • Hino: Best vehicle distribution with best service support 

Awards 

• Dyna: Best MCV 

• Hilux: Best LCV for the 3rd consecutive year 

SA Top Selling Vehicle Toyota products hold four spots in the top six best selling vehicles. 

SAVRALA Awards Toyota won the Rental and Overall sections at the Southern African Vehicle Renting and 

Leasing Association’s (SAVRALA) Manufacturer of the Year. 

Car of the Year Finalist 

FY09 

Corolla 1.8 Exclusive was nominated in the category. 

Award Award for 

Synovate Quality Toyota was voted one of the best in the following categories and attained the following 

Awards 

awards: 

• Best Customer Satisfaction when servicing a Light Commercial Vehicle 

• Best Volume Passenger Car Brand Overall 

• Best One Ton Diesel Light Commercial Vehicle Overall 

• Best One Ton Petrol Light Commercial Vehicle Overall 

• Entry: Toyota Yaris T1 

• Top Sedan: Toyota Corolla 

• Petrol Double Cab: Toyota Hilux 

• Diesel Double Cab: Toyota Hilux 

• Large Recreational Vehicle: Toyota Prado 

Car of the Year Finalist New Generation Prius 

Table 2 


ABOUT THE COMPANY 

About the Company 

An Introduction to Toyota South Africa Motors 

Toyota South Africa Motors (TSAM) 

was established as an independent 

company on 26 May 1961, by the 

late Dr Albert Wessels. A few years later 

TSAM began manufacturing operations, and 

is today the largest vehicle manufacturer on 

the African continent, and the largest vehicle 

exporter in South Africa. 

In August 2008 TSAM became a fully 

owned subsidiary of Toyota Motor Corporation 

(TMC), and is ranked among the top ten TMC 

distributors worldwide. 

TSAM employs 7 934 people and manufactures 

the Corolla, Hilux, Fortuner, Dyna 

and Hino models. These models, as well 

as the Auris, Avanza, Land Cruiser, Prado, 

Prius, Quantum, RAV4, Ses’fikile, Verso and 

Yaris, are marketed and sold through 184 

dealerships countrywide. TSAM supports a 

further 22 dealerships in southern Africa – in 

Botswana, Lesotho, Namibia and Swaziland. 

The Lexus and Hino brands are also 

marketed through 16 and 53 dealerships 

respectively in southern Africa. 

Toyota has been the overall market 

leader in South Africa since 1980, and is the 

country’s largest exporter of built-up vehicles 

(Corolla, Hilux and Fortuner). South African 

built Toyota vehicles are being sold in more 

than 80 countries worldwide. 

Total sales of Toyota vehicles in South 

Africa since the formation of the company 

exceed 3.27 million units. 

The Corolla is South Africa’s best selling 

sedan, the Hilux is the country’s best selling 

pick-up and outright best selling vehicle, and 

the Toyota Fortuner is the most popular sports 

utility vehicle in the South African market. 

Other vehicles, such as the Ses’fikile taxi, 

continue to dominate their market segments. 

Manufacturing 

TSAM’s manufacturing operations are situated 

in Prospecton, close to Durban. A multi-billion 

Rand investment programme over the past 

few years has geared the plant to become fully 

Figure 1 


Cape Town 

Johannesburg 

SOUTH AFRICA 

integrated with TMC’s global production network. 

It employs the latest manufacturing technologies, 

production and quality assurance systems. 

The vehicle supply department is online 

to members of the dealer network via 

a sophisticated computer system called 

e-Toyota which enables them to track orders 

and keep customers informed of progress. 

Models manufactured at Prospecton include 

the Corolla, Hilux, Fortuner, Dyna and Hino. 

TSAM is responsible for the development 

of numerous downstream businesses, with 

more than 50 major manufacturers supplying 

components to the motor assembly plant. 

In addition there are many more secondary 

suppliers providing individual components or 

raw materials to the component manufacturers. 

Sales and marketing 

The marketing operations, Toyota South Africa 

Trucks (Hino), the National Parts Distribution 

Centre and the Toyota Academy of Learning is 

based in Sandton, Johannesburg. 

TSAM Sales and Marketing provides 

comprehensive support to 206 dealers in 

South and southern Africa. 

A responsible corporate citizen 

TSAM has taken positive steps to reduce 

Durban 

TOYOTA SOUTH AFRICA MOTORS 

Manufacturing plant in Durban: Corolla, 

Hilux, Fortuner, Dyna, Hino 

Marketing office in Johannesburg 

184 dealers in SA (+22 in southern Africa) 

7 934 employees 

Vehicles sold through domestic and export 

markets 

environmental impacts across all of its 

activities and operations, and has engaged 

and involved employees and suppliers in 

various environmental programmes. 

The company’s environmental approach 

stems from TMC’s Guiding Principles, 

the Corporate Social Responsibility Policy, 

which defines its contribution to sustainable 

development, and Global Vision 2020. This 

defines the imperative of being a responsible 

member of local and global communities, and the 

imperative of reducing environmental impacts, 

particularly in terms of emissions, energy 

efficiency, water usage and waste reduction. 

Social investment programmes 

From its earliest days, TSAM has been directly 

involved with the communities in which it 

operates. This is achieved through initiatives by 

various departments within TSAM, but also on 

a broader scale through the Toyota Foundation. 

The Foundation is a joint operation between TMC 

and TSAM, and this year it celebrates 20 years 

of contributing to community development. 

The main thrust of TSAM’s multi-faceted 

social development programme is education 

and training. The primary beneficiaries are the 

communities in which the company operates – 

mainly in the provinces of Gauteng and 

KwaZulu-Natal.

Corporate Philosophy 

TMC has continuously strived to contribute 

to the sustainable development of society 

through the manufacturing and provision of 

innovative and quality products and services 

that lead the times. The Guiding Principles 

at Toyota (adopted in 1992 and revised in 

1997) reflect the kind of company that TMC 

seeks to be in light of the unique management 

philosophy, values and methods that it has 

GUIDING PRINCIPLES AT TOYOTA 

1. Honour the language and spirit of the 

law of every nation and undertake open 

and fair corporate activities to be a good 

corporate citizen of the world. 

2. Respect the culture and customs of every 

nation and contribute to economic and 

social development through corporate 

activities in the communities. 

3. Dedicate ourselves to providing clean and 

safe products and to enhancing the quality 

of life everywhere through all our activities. 

4. Create and develop advanced 

technologies and provide outstanding 

products and services that fulfill the needs 

of customers worldwide. 

5. Foster a corporate culture that enhances 

individual creativity and teamwork value, 

while honouring mutual trust and respect 

between labour and management. 

6. Pursue growth in harmony with the 

global community through innovative 

management. 

7. Work with business partners in research 

and creation to achieve stable, long-term 

growth and mutual benefits, while keeping 

ourselves open to new partnerships. 

THE TOYOTA WAY 2001 

Continuous Improvement + Respect 

for People 

Guiding Principles at Toyota 

CSR Policy: Contribution to 

Sustainable Development 

Toyota Global Vision 2020 

Medium to long-term 

management plans 

Company policies 

Day-to-day business activities 

TOYOTA CODE OF CONDUCT 

Figure 2 Figure 3 

embraced since its foundation. TMC, together 

with its consolidated subsidiaries, hopes 

to contribute to sustainable development 

through its corporate activities based on 

understanding and sharing the Guiding 

Principles at Toyota. 

Vision and Guiding 

Principles 

TSAM’s vision is to develop a company 

that is globally competitive. This vision is to 

be achieved through three pillars: domestic 

market leadership, being a reliable supplier 

of quality products to the TMC global supply 

network, and being a profitable operation that 

is able to fund future growth. 

TSAM strives continuously to improve 

systems and technologies to deliver the 

best quality vehicles to customers, vehicles 

that meet customers’ needs and their high 

expectations of what the Toyota brand 

epitomises. 

The Guiding Principles at Toyota spell 

out the unique philosophy by which all TMC 

operations around the world are conducted. 

This is based on respect for people and the 

cultures, customs and laws in each country, 

on teamwork and the ongoing pursuit of 

excellence. 

An important document that was 

developed out of the Guiding Principles at 

Toyota is the Corporate Social Responsibility 

(CSR) policy which spells out TMC’s 

commitment to sustainable development. 

This provides a framework for TSAM’s 

relationships with people, both employees, 

partners and the communities within which it 

CHALLENGE 

We form a long-term vision, meeting 

challenges with courage and creativity 

to realise our dreams. 

KAIZEN 

We improve our business operations 

continuously, always striving for 

innovation and evolution. 

GENCHI GENBUTSU 

We practise Genchi Genbutsu, which 

means going to the source to find 

the facts to make correct decisions, 

build consensus and achieve goals as 

quickly as possible. 

Continuous 

Improvement 

Respect 

for People 


operates. It also provides a framework for the 

development of systems and technologies 

designed to eliminate harmful environmental 

impacts and to produce vehicles that lead the 

way in fuel efficiency, emissions reduction 

and recyclability. 

CSR Policy: Contribution 

towards Sustainable 

Development 

In January 2005, Toyota drafted and 

announced the Contribution towards 

Sustainable Development, an interpretation 

of the Guiding Principles at Toyota that takes 

into consideration Toyota’s relations with 

stakeholders. This was revised in July 2008 

to become the CSR Policy: Contribution 

toward Sustainable Development to take 

into account subsequent environmental 

changes and heightened societal interest in 

CSR. TMC has shared the statement with 

its consolidated subsidiaries and is taking 

relevant action. Toyota also expects business 

partners to support this initiative and act in 

accordance with it. 

The Toyota Way 2001 

The Guiding Principles at Toyota reflect the 

kind of company that Toyota seeks to be. 

The Toyota Way 2001 clarifies the values 

and business methods that all employees 

should embrace in order to carry out the 

Guiding Principles at Toyota throughout the 

company’s global activities. 

continued over the page > 

The Toyota Way 

RESPECT 

We respect others, make every 

effort to understand each other, 

take responsibility and do our 

best to build mutual trust. 

TEAMWORK 

We stimulate personal and 

professional growth, share the 

opportunities of development and 

maximise individual and team 

performances. 



The Toyota Way is supported by two 

main pillars: 'Continuous Improvement' 

and 'Respect for People'. Toyota works to 

improve its business by putting forward new 

ideas and ensuring all employees work to 

the best of their abilities. TMC respects all 

its stakeholders, and believes its success 

is created by individual effort and good 

teamwork. 

Toyota Code of Conduct 

The Toyota Code of Conduct is aimed at 

helping TMC fulfill its social responsibilities 

through the application of the Guiding 

Principles at Toyota. Adopted in 1998 and 

formerly known as the Code of Conduct for 

Toyota Employees, the code sets out the 

basic mindset desired of people working at 

TMC and highlights specific principles for 

employees to keep in mind. 

Toyota Motor Corporation: A Global Company 

TMC, established in Japan in 1937, is the 

world’s largest vehicle manufacturer. There 

are a total of 66 TMC manufacturing plants 

around the world – 15 in Japan and 51 

in 26 other countries – as well as 170 000 

distributors and 8 000 dealers worldwide. 

TSAM was established on 26 May 1961, 

and is now a wholly-owned subsidiary of the 

parent company, TMC. It is the largest vehicle 

manufacturer on the African continent, and 

the largest vehicle exporter in South Africa. 

TMC’s corporate philosophy and guiding 

principles inform and guide the way TMC 

operations are conducted around the world. 


Global Vision 2020 

The environment surrounding the 

automotive industry is undergoing drastic 

changes, with economic development 

accelerating in a number of regions 

throughout the world and environmental and 

energy-related issues having an impact on 

a global scale. Amid these changes, TMC 

endeavours to remain a useful member 

Figure 4 

NORTH 

AMERICA 

11 

3 

35 000 

CYCLES OF NATURE 

All people and communities 

are subject to the natural 

cycles of the earth. TMC is 

committed to undertaking 

monozukuri (manufacturing) that 

strikes a harmonious balance with 

nature in order to carefully sustain 

the global environment. 

KEY 

No. of plants & manufacturing companies 

No. of distributors 

No. of employees 

(manufacturers & distributors) 

LATIN 

AMERICA 

4 

43 

24 000 

EUROPE 

8 

29 

22 000 

of the global and local communities and 

toward this end has formulated its 'Global 

Vision 2020', which provides a future vision 

for TMC’s place in the world. TMC is helping 

to promote efforts toward finding a balance 

between the cycles of nature and the cycles 

of industry. 

CYCLES OF INDUSTRY 

An industry creates new value, 

while spawning the birth of a 

new industry – such is the way 

of the cycles of industry. TMC 

endeavours to be a driving force 

behind the development of 

sustainable industries. 

AFRICA 

2 

49 

24 000 

ASIA AND THE 

MIDDLE EAST 

25 

32 

130 000 

OCEANIA 

1 

14 

11 000 

JAPAN 

15 

71 000 

Figure 5 

Source: TMC Sustainability Report 2010

Corporate Governance 

TSAM’s commitment to good corporate 

citizenship is underpinned by governance 

structures and systems that address all aspects 

of sustainability across all operations. TSAM’s 

core values demonstrate the integration of 

sustainability within everyday business. 

International standards such as the King 

Code and Sarbanes-Oxley provide TSAM’s 

governance framework, supported by the 

internally developed Code of Conduct and 

the principles embedded in Hoshin Kanri (a 

strategic planning methodology that helps 

TSAM to focus on a shared goal, communicate 

that goal to all leaders, involve all leaders 

in planning to achieve the goal and holds 

people accountable for achieving their part of 

the plan). In 2007, all managers were trained 

in the application of Sarbanes-Oxley. 

TSAM has a number of systems, policies 

and codes of practice in place, through which 

the Board and its subcommittees oversee 

sustainable development performance. 

These include the Toyota Environmental 

Management System, Employment Equity 

Plan and Policy, Broad Based Black Economic 

Empowerment Procurement Programme, the 

Masibambane Pact (between workers and 

management) and the Code of Conduct. 


The Toyota South Africa Board of Directors. Standing, from left to right: Mr M Mori, Mr Y Sakamoto, Mr M Iwase, Mr Y Morita, Mr M Burger, Mr T Sakai, Mr M Morito. 

Seated, from left to right: Mrs NBD Orleyn, Dr J van Zyl, Dr B Ngubane, Mrs S Mabaso Koyana. 

Not pictured: Mr H Inoue, Mr H Sugai. 

Figure 6 

CORE VALUES 

PEOPLE 

Fair and equal 

opportunity 

Open and honest communication 

Customer satisfaction 

Social responsibilities 

Respect for people and 

property 

Teamwork 

ENVIRONMENT 

Performance 

Risk Reduction 

Compliance 

ECONOMIC 

Quality in everything 

we do 

Recognition and 

reward for effort 



The Toyota Code of Conduct, the Giving and 

Receiving of Gifts Policy, and the Whistle 

Blowing Policy provide employees and 

TSAM management with clear guidance on 

acceptable and unacceptable behaviour, as 

well as the tools to address any shortcomings. 

All TSAM employees are made aware of the 

company’s expectations regarding ethical 

behaviour through induction training. Risk 

analyses processes identify the risks related 

to corruption and other forms of unethical 

behaviour. 

Board and committees 

Toyota South Africa Ltd (TSA) is the holding 

company of Toyota South Africa Motors 

(Pty) Ltd (TSAM). TSA is 100% owned by 

Toyota Motor Corporation (TMC). The TSA 

Board reports to the TMC Board and has 

13 members – five executive directors, 

five directors representing TMC and three 

independent, non-executive directors. The 

chairman of the Board is Mr H Inoue, a TMC 

director. 

TSA provides strategic leadership and 

oversight to the Board of TSAM, which runs 

the operations in South Africa and reports to 

the TSA Board. 

Two committees that play a significant 

role in governance and oversight are the 

Audit and Corporate Compliance and the 

Risk Management Committees. 

The Audit and Corporate Compliance 

Committee reports to the TSA Board and 

meets quarterly. The committee assists the 

Board in fulfilling its oversight responsibilities 

by reviewing and ensuring compliance with 

international policy and local legislation across 

all aspects of sustainability, including safety, 

health and the environment, the systems 

of internal financial, legal and management 

controls, all audit processes and risks. The 

committee has the authority to conduct or 

authorise independent investigations into 

matters falling within the committee’s scope 

of responsibilities. 

The Risk Management Committee, 

established in early 2010, meets quarterly 

and reports to the Audit and Corporate 

Compliance Committee. Its function is to 

identify risks and opportunities that the 

company faces. Prior to the formation of this 


SALES & MARKETING 

EXCO 

Figure 7 

REMUNERATIONS 

COMMITTEE 

EXPORTS 

EXCO 

committee, this function was performed by the 

senior operational management of TSAM. 

The Remunerations Committee, 

comprising members from TMC and TSAM, 

reports to the TSA Board and meets as and 

when issues arise. 

TSAM’s Board meets on a monthly basis 

and reports to the TSA Board. 

Four Executive Committees (Exco), 

namely the Sales and Marketing Exco, 

Exports Exco, Manufacturing Exco and 

Corporate Administration Exco, report to the 

TSAM Board on operational and strategic 

matters. 

In order to prevent a conflict of interests, 

TSA and TSAM Board members sign a 

declaration once a year regarding any outside 

interests. All TSAM staff are required to do 

the same annually. 

TSAM is able to evaluate top management 

with respect to economic, environmental 

and social performance expectations. 

Sustainability criteria (including health, safety 

and environmental indicators) are built into 

performance contracts across management 

levels, and are weighted depending on 

individuals’ roles. 

TOYOTA MOTOR 

CORPORATION 

BOARD 

TOYOTA SOUTH AFRICA 

BOARD 

TSAM BOARD 

MANUFACTURING 

EXCO 

AUDIT AND CORPORATE 

COMPLIANCE COMMITTEE 

Compliance 

RISK MANAGEMENT 

COMMITTEE 

CORPORATE ADMINISTRATION 

EXCO 

TSAM is a member of the National Association 

of Automobile Manufacturers of South 

Africa and the Automobile Manufacturers 

Employers Organisation, and complies with 

the requirements of these institutions.


Toyota South Africa Motors’ (TSAM) direct environmental 

impacts are primarily associated with the manufacturing of 

vehicles and parts at the Prospecton Plant, south of Durban. 

Impacts include energy consumption, water use and waste water 

production, volatile organic compound emissions, carbon dioxide 

(CO2) emissions from the manufacturing process, transport and 

logistics, and waste generation. TSAM undertakes numerous activities 

Environmental Philosophy 

Toyota Earth Charter 

The founding philosophy that informs environmental policies and activities in all TMC 

operations around the world 

I. Basic Policy 

1. Contribution toward a prosperous 21st century society – Aim for growth that is 

in harmony with the environment, and 

set as a challenge the achievement of 

zero emissions throughout all areas of 

business activities. 

2. Pursuit of environmental technologies – 

Pursue all possible environmental 

3. 

technologies, developing and establishing 

new technologies to enable the environment 

and economy to coexist harmoniously. 

Voluntary actions – Develop a voluntary 

improvement plan, based on thorough 

preventive measures and compliance with 

laws, that addresses environmental issues 

on the global, national and regional scales, 

and promotes continuous implementation. 

4. Working in cooperation with society – 

Build close and cooperative relationships 

with a wide spectrum of individuals and 

organisations involved in environmental 

preservation including governments, local 

municipalities, 

industries. 

related companies and 

II. Action Guidelines 

1. Always be concerned about the environment 

– Take on the challenge of achieving 

zero emissions at all stages, i.e., 

ENVIRONMENTAL ASPECTS 

to mitigate environmental impacts from its operations, and these are 

detailed in this section. 

TSAM also has environmental impacts associated with nonproduction 

processes at Prospecton, as well as at the marketing office 

in Sandton, Johannesburg. These impacts include energy and paper 

use, water consumption and waste generation. 

Toyota’s environmental philosophy is based on the principles of working in harmony 

with the environment, zero harm, cooperation and continuous improvement. 

2. 

production, utilisation, and disposal: 

(1) Develop and provide products 

with top-level environmental 

performance; 

(2) Pursue production activities that do 

not generate waste; 

(3) Implement thorough preventive 

measures; and 

(4) Promote businesses that contribute 

toward environmental improvement. 

Business partners are partners in 

creating a better environment – 

Cooperate with associated companies. 

3. As a member of society – Actively 

participate in social actions: 

(1) Participate in the creation of a 

recycling-based society; 

(2) Support government environmental 

policies; and 

(3) Contribute also to non-profit 

activities. 

4. Toward better understanding – Actively 

disclose information and promote 

environmental awareness. 

III. Organisation in Charge 

• Toyota Environment Committee (Global) 

• South Africa Environment Committee 

(South Africa) 

Principles, policies and the 

Toyota Environmental Action 

Plan 

TSAM’s environmental policies and activities 

stem from the Toyota Earth Charter (formulated 

in 1992, revised in 2000). The Charter 

is based on the Toyota Guiding Principles 

and reflects Toyota Motor Corporation’s 

(TMC) comprehensive approach to environmental 

issues, and has been adopted by 

some 530 affiliates worldwide. To implement 

the Charter, TMC formulated the Fourth 

Toyota Environmental Action Plan, which 

covers the period FY06-FY10. TSAM used 

the TMC Action Plan as a framework to 

develop the TSAM Fourth Environmental 

Action Plan, which sets targets in the areas of: 

• Energy and Global Warming; 

• Recycling of Resources; 

• Substances of Concern; 

• Atmospheric Quality; and 

• Environmental Management. 

The TSAM Fourth Environmental Action 

Plan, including targets, achievements and 

the way forward, is tabulated on pages 

15-20 of this report. 



Figure 8 

Global Toyota Environmental Plan 

1. Guiding 

Principles 

and 

2020 Vision 

A framework for 

setting long-term 

business goals and policy 

2. Toyota Earth Charter 

Applies principles and vision to 

environmental aspects of business 

3. Environmental Action Plan 

Translates long-term vision and policy into 

annual and medium-term objectives 

and action plans 

4. Environmental Management Systems 

Promote environmental action across the 

company by various divisions 

Manufacturing vehicles at TSAM’s Prospecton Plant. 


Production Environmental 

Policy: Toyota South Africa 

Motors 

TSAM accepts its responsibility to the 

environment and, in the manufacturing 

and assembly of motor vehicles and 

parts, is committed to: 

1. Compliance with all applicable 

environmental policies, legislation, 

regulations, and other requirements 

to which TSAM subscribes. 

2. Liaise closely with the relevant 

authorities and local environmental 

interest groups and to maintain a 

policy of openness and cooperation 

with these bodies. 

3. Prevent pollution through effective 

control measures and where 

pollution may occur, take the 

necessary steps to prevent it from 

recurring. 

4. Consider possible environmental 

impacts of its processes, activities 

or materials before implementation 

and to take effective measures to 

minimise adverse environmental 

impacts. 

5. Reduce or prevent environmental 

impacts by setting and regularly 

reviewing environmental objectives 

and targets, which are supported 

by sustainable environmental 

management programmes in all 

relevant operations. 

6. Promote the environmental 

awareness of employees and 

provide training to those persons 

involved in TSAM’s activities or 

processes, which may impact on 

the environment. 

7. Keep the public, interested parties 

and employees informed of TSAM’s 

environmental performance, 

which is focused on continuous 

improvement.

The TSAM Fourth Environmental Action Plan 

Energy/Global Warming 

TMC Plan Requirements for TSAM 

Action item 

and goal 

Production and Logistics – Reduce CO2 emissions in production and logistics activities. 


Major implementation items Specific actions Status of action Actions to be undertaken in 

FY10 and beyond 

Production 

• Improve the efficient use 

of energy in production 

facilities and processes. 

• All new or upgraded 

facilities/installations staff to 

identify specific initiatives to 

be implemented to reduce 

CO2 emissions and/or 

energy usage. Reductions 

and targets to be quantified. 

• Establish and maintain 

an effective energy usage 

monitoring and reporting 

network. 

Logistics 

• Investigate and understand 

CO2 emissions from logistics 

operations. 

• Determine reduction 

strategies that will reduce 

CO2 emissions and improve 

productivity. 

Total TSAM 

• Energy reduction activity 

in every department 

throughout TSAM. 

Key statement 

• Improve link between energy 

use and output. 

• Minimise energy use during 

non-production times, 

weekends and shutdowns. 

• Focus on energy wasting 

activities. Study and 

implement energy efficiency 

improvement initiatives on 

three year ROI principle 

across all operations. 

• Actively share and 

implement Yokoten 

improvements. 

• CO2 

emission reduction target 

to be specified and quantified 

for all projects. 

• Implementation and results to 

be tracked and verified. 

• Actively pursue ‘Green 

Building’ objectives and use 

of ‘cleaner energy’ where 

feasible. 

• Improve energy usage 

monitoring network. 

• Process owners to take 

responsibility for energy 

consumption. 

• Study and grasp CO2 

generation in logistics activities. 

• Establish goal management 

activities. 

• Optimise travel routes, 

distances, loading, fuel 

consumption. 

• Energy management activities, 

awareness and display in all 

areas. 

• Automate energy controls 

where practical. 

• Energy targets based on 

volume output have been set 

up in all plants/areas (GJ/u & 

CO2/u). 

• Energy profiles are now 

generated per plant/area 

on a daily basis to confirm 

weekend, shutdown and 

between shift usage. 

• Weekend and shutdown 

electricity consumption 

targets have been set for all 

plants/areas. 

• Energy Reduction 

Department established to 

focus on energy reduction 

kaizen through PDCA cycle 

and assist plants to identify 

energy wasting activities. 

• All project implementation 

tracked with schedule and 

results captured for verification. 

• Solar energy for ablution 

water heating has been 

implemented in four locations 

to date. 

• An improved energy monitoring 

network, with ‘real time’ 

measurement has been 

introduced. 

• Process owners have energy 

consumption as a KPI 

and take responsibility for 

achievement. 

• CO2 

emissions are currently 

being tracked for the Logistics 

group. 

• Kaizens are in place to 

improve loading efficiency, 

fuel consumption and route 

simplification. 

• Energy reduction activities 

established in all business 

areas. 

• Controls implemented. 

• Focus on Energy Reduction 

Department team members’ 

skill development to maintain 

achievement of energy targets. 

• Focus on non-production time 

energy consumption and eliminate 

waste. 

• Increase efforts of plant activities to 

show continuous improvement. 

• Consistent implementation of 

efficiency improvement activities. 

• Improve energy project management 

skills. 

• Achieve targets set out. 

• Implement improvement activities in 

all feasible situations (Yokoten). 

• 

Promote activities to achieve targets. 

• Focus on establishing efficiency 

targets for airfreight, road freight and 

sea freight. 

• Investigate and implement new 

kaizen activities to improve CO2 

reduction. 

• 

• 

Continue improvement activities. 

Continue implementation. 



The TSAM Fourth Environmental Action Plan continued... 

Recycling of Resources 

Substances of Concern 

Action item 

and goal 

Production and Logistics – Promote the effective use of resources to further contribute to the 

realisation of a recycling-based society. 

Production and 

Logistics – 

Reduce water 

consumption. 

Production and Logistics – Promote management 

and further reductions in the use of substances of 

concern (SOC). 

Production and 

Logistics – Reduce the 

discharge of substances 

subject to the PRTR law. 



Production 

• Reduce waste disposal to 

landfill per unit produced. 

Logistics 

• Reduce packaging and 

wrapping material used by 

suppliers and increase the 

use of returnable containers. 

Total TSAM 

• Waste reduction activity 

in every department 

throughout TSAM. 

Production 

• Monitor and manage water 

consumption reduction 

activities at all facilities 

and high water consuming 

processes. 

Production 

• Total elimination of any 

product that contains the 

four banned substances 

(mercury, chromium VI, 

cadmium and lead). 

Parts and Accessories 

• Total elimination of any part 

or accessory containing 

any of the TMC banned 

substances. 

Total TSAM 

• Maintain list of SOC and 

phase out of use in all 

operations. 

Production 

• Reduce the usage of 

selected chemicals in 

support of Pollutant Release 

and Transfer Registers 

(PRTR) programme. 


• Reduce wet waste produced in 

production activities. 

• Improve waste recovery/ 

segregation/sorting practices. 

• Improve waste collection and 

recycling facilities and systems. 

• Reduce waste by: 

• Changing non-recyclable 

material to recyclable. 

• Reduce volume of 

packaging/wrapping 

material. 

• Switch to returnable 

containers. 

• Waste reduction activities and 

display in all areas. 

• Improve general employee 

awareness and support for 

waste reduction programmes. 

• Monthly water consumption 

monitoring of all facilities, high 

water consuming processes 

and construction projects. 

• Water reduction activity via 

target driven activity. 

• All parts and chemicals used 

in production to be free of any 

banned substance (according 

to EU ELV requirements). 

• Screening of all parts and 

accessories. 

• Phase out the use of any 

banned substance. 

• Revise list, based on TMC 

guidance. 

• Communicate to business 

partners and phase out where 

in use. 

• Reduce the use of xylene and 

toluene in painting processes. 

• Nineteen waste segregation 

areas established throughout 

plant resulting in significant 

improvement in segregation 

practices and waste recovery. 

• Central recycling and cardboard 

baling area established. 

• Introduction of: 

• Euro plastic pallet base 

which eliminated rented 

wooden Chep pallets. 

• Pallet caps to improve 

stackability. 

• Fixed covers to avoid use of 

non-returnable covers. 

• Own packaging to reduce 

rented packaging. 

• Euro boxes. 

All IMV/Corolla packaging is now 

100% returnable. 

• Various training courses cover 

aspects of waste management 

and recycling. 

• Regular distribution of awareness 

bulletins and posters. 

• Monthly water monitoring of all 

facilities achieved. 

• Steadily promote waste reduction. 

• Promote waste recycling activities. 

• Continue initiatives to reduce 

packaging waste. 

• Promote standardisation of TSAM 

packaging to global standards. 

• Promote employee awareness 

programmes focusing on energy and 

waste reduction. 

• Implement requirements of new 

waste legislation. 

• Promote activities to reduce water 

usage. 

• No banned substances in use. • Maintain zero use of products 

containing banned substances. 

• SOC declarations completed 

by suppliers, ensuring all direct 

and indirect products are free 

from banned substances. 

• Banned substances list revised 

in May 2009. 

• Revised list communicated to all 

suppliers via Purchasing. 

• Reduced usage of toluene and 

xylene by 60% during 2007- 

2009. This equates to 239 

kilolitres. 

• With the introduction of new models, 

continue to screen all direct/indirect 

parts. 

• Promote initiatives to switch to 

substances with lower environmental 

impacts. 

• Promote activities to reduce use of 

substances containing toluene and 

xylene.

Atmospheric Quality 

Environmental Management 

Action item 

and goal 

Development and Design – 

Reduce emissions to improve 

air quality in urban areas. 

Production and Logistics – Initiatives to reduce 

volatile organic compounds (VOC) emissions. 

Management – Strengthen consolidated environmental management. 




Marketing and Sales 

• Introduce Euro 3 and 4 

level vehicles into the South 

African market. 

Production 

• Introduce the use of waterbased 

paints in painting 

operations. 

• Reduce the use of solventbased 

paints in body 

painting. 

• Reduce VOC emissions 

from painting operations. 

Production 

• Environmental Management 

Systems (EMS) in place at 

production operations must 

be elevated to TMC EMS 

levels. 

• Risk Reduction. 

• Compliance/no 

complaints. 

• Meet environmental 

objectives and targets. 

• Strengthen ECO programme 

by maintaining and improving 

the presence of Euro 3 and 4 

level vehicles in South African 

market. 

• Commission upgrade of paint 

line from solvent-based paint 

line to water-based paint line. 

• Commission water-based paint 

line for bumper paint process. 

• Optimise water-based 

paint lines to achieve VOC 

emissions to international 

competitive performances. 

• Successful and eco-sensitive 

closure of Paint Line 2. 

• Optimise use of solvent-based 

paints and reduce solvent use. 

• Improve EMS to TMC EMS 

standard. 

• Improve controls over 

environmentally significant 

processes. 

• Legal compliance/ 

performance monitoring. 

• No complaints. 

• Yokoten and prevention 

activity. 

• Achievement of 

environmental objectives 

and targets. 

• Eco-patrols to important 

environmental activities/ 

facilities. 

• Reduce oil consumption in all 

plants. Improved maintenance 

and reuse. 

• Improve primary and 

secondary waste water 

treatment to meet legal 

requirements for waste water. 

• Promote vehicles using Hybrid 

Synergy Drive. 

Commissioning of water-based 

paint lines successfully completed 

in both bumper and body paint 

plants. 

• Paint Line 2 closed successfully. 

• Continued reduction in use of 

solvents in paint operations. 

• EMS improved to TMC EMS 

standards. 

• Physical and management 

controls of environmentally 

significant processes improved. 

• Replacement of bulk fuel 

pipes above ground. 

• Pokayoke Pit Project 

• Global environmental 

Yokoten system 

implemented. 

• Regular eco-patrols in place. 

• Biennial implementation 

of legal compliance audits 

instituted. 

• Upgrade of Waste Water 

Treatment Plant (WWTP) 

and improved monitoring and 

process chemicals to ensure 

effluent discharge meets 

legal compliance standards. 

• Compliance with legal 

requirements including waste 

water quality. 

• Promote sales of vehicles using 

Hybrid Synergy Drive. 

• Improve understanding of Hybrid 

Synergy Drive. 

• Further reduction of VOC emissions 

in body paint plant. 

• Expand VOC reduction activities to 

bumper paint operations. 

• Maintain TMC EMS standards. 

• Ensure all physical and management 

controls of environmentally 

significant processes are maintained. 

• Maintain global Yokoten system. 

• Maintain regular eco-patrols. 

• 

Maintain legal compliance audits. 





Action item 

and goal 

Management – Strengthen consolidated environmental 

management. 

Management – Further promotion of environmental management as business partners 



Non-production 

• TSAM Sandton operations 

to achieve ISO 14001 and 

TMC EMS. 

• Investigate and understand 

CO2 emissions from Parts 

Distribution operations. 

• Reduce use of packaging 

material and waste 

generated by Parts 

Distribution operations. 

Suppliers 

• Total ban on mercury, 

chromium VI, cadmium and 

lead in all parts, accessories 

and raw products used in 

production or supplied via 

TSAM. 

• Products supplied to TSAM 

to be SOC free. 

• Suppliers to be ISO 14001 

certified. 

Dealers 

• Dealers to comply with 

Dealer Environmental Risk 

Audit Programme (DERAP) 

requirements. 

• Establish and roll out Green 

Dealer campaign. 

• Dealers to report 

Environmental Performance 

Indicators to TSAM. 

• Provide dealer support. 


• Extend NPDC ISO 14001 

scope to all TSAM Sandton 

operations. 

• Focused activity on CO2 

waste 

and water reduction activity. 

• Study and grasp CO2 

generation by NPDC activities. 

• Commence CO2 

reduction 

activity, driven by targets. 

• Reduce volume of packaging/ 

wrapping material. 

• Study and switch to returnable 

containers where feasible. 

• Parts and raw products 

supplied to TSAM to be free 

from banned SOC as per EU 

ELV regulation. 

• Parts and accessories supplied 

via TSAM to be SOC free. 

• Maintain chemical product 

screening in production. 

• Suppliers to achieve 

and maintain ISO 14001 

certification. 

• Contractors with direct 

environmental impact to be 

ISO 14001 certified. 

• Ensure full understanding 

by dealers of DERAP 

requirements. 

• TSAM audit of dealers 

(repeated annually). 

• Dealers to implement and 

complete improvement 

programmes. 

• Establish/revise ECO Dealer 

facility standards/requirements. 

• Determine ECO Dealer 

requirements and 

communicate. 

• Implement and audit. 

• Determine performance 

indicators. 

• Set up reporting infrastructure. 

• Implementation. 

• Revise Dealer Environmental 

Guidelines. 

• Yokoten activity (ex. Via 

e-Toyota). 

• ISO 14001 was maintained 

in all Sandton operations in 

FY08 and FY09. Successful 

re-certification audit held end 

March 2010. 

• Waste and electricity reduction 

targets set on an annual basis. 

Baseline established for water 

consumption using internal 

metering system. 

• Expanded scope of CO2 

monitoring to include all parts 

logistics routes in FY09. 

Reduction target set and 

achieved. 

• Commenced pilot project to 

introduce returnable packaging 

at the NPDC in FY09. 

• SOC declarations are 

completed ensuring all suppliers 

are mercury, chromium VI, 

cadmium and lead free. 

• Products are pre-approved/ 

screened before use in 

production. 

• Currently 73% of suppliers are 

ISO 14001 certified. 

• Independent unannounced 

audit system introduced for the 

DERAP programme. 

• Dealers required to submit two 

self-audits per year. 

• Ongoing training of Dealer 

Environmental Coordinators 

on ECO requirements (127 

persons trained in FY09). 

• Performance indicators 

recorded manually by dealers. 

Commenced development of 

electronic EPI system. 

• RSA Pocket Environment Guide 

established and distributed to 

dealers. 

• Experiences shared at Dealer 

Conference (Kaizen Marathon). 

• 

Strengthen ISO 14001 certified EMS. 

• Pursue achievement of 

environmental targets. 

• Steady promotion of CO2 

reduction 

initiatives. 

• Promote the use of returnable 

packaging. 

• 

Maintain declaration system. 

• With the introduction of new models, 

continue to screen all suppliers and 

parts used at TSAM. 

• Promote ISO 14001 certification by 

suppliers. 

• Promote all dealers achieving 

DERAP compliance. 

• Continue training on environmental 

requirements. 

• Promote reporting by dealers of 

environmental performance. 

• Issue informative environmental 

legal bulletins. 

• Support voluntary achievement of 

ISO 14001 by dealers.

Action item and 

goal 

Management – Enhance environmental education. 

Cooperation with Society – Contribute to the development of a recycling-based society. 




Environmental Education 

• Establish environmental 

education to a variety 

of target groups to 

support implementation 

and understanding of 

environmental programmes. 

Environmental Awareness 

• Initiate various awareness 

activities to ensure TSAM 

employees and business 

partners understand broader 

environmental issues, 

challenges TSAM is facing 

and how to support TSAM 

activity. 

Social Environmental 

Activities 

• Implement and maintain 

environmental activities 

that will strengthen the 

theme ‘In harmony with 

the environment’. Activities 

must support environmental 

conservation, environmental 

education or use of 

environmental technologies. 

• Environmental modules for 

induction, plant induction and 

contractors. 

• Specialised training to select 

groups. 

• Complement current training 

with relevant environmental 

modules. 

• Regular environmental 

communication. 

• Environmental campaigns (ex. 

Environmental month). 

• Strengthening of rules, 

signage, report-back. 

• Greening of TSAM operations 

and environment. 

• Marketing activities to support 

theme of ‘In harmony with the 

environment’. Partnership with 

business partners. 

• Support environmental 

education or projects making 

use of environmental 

technologies. 

• Safety, health and environment 

modules are covered in all 

induction training for staff and 

contractors. 

• TSAM EMS training. 

• Legal compliance. 

• Enviro-legal. 

• Internal auditors training. 

• Training of dealer 

Environmental Coordinators. 

• Conducted environmental 

awareness programmes in all 

operations. 

• Regular eco-awareness 

bulletins. 

• Environmental Week focus. 

• Water Week focus. 

• National Arbor Week. 

• Issued regular internal 

communications on the 

environment. 

• Waste from Home staff 

recycling project. 

• Planted trees at Prospecton 

Plant during National Arbor 

Week. 

• Published an annual Toyota 

Zone green edition. 

• Prius presentation at the Buy 

Environmental Conference, 

Vodaworld. 

• Prius sponsorship to Google 

Street Map Campaign. 

• Executed national water 

clean-ups during Water Week, 

Environment Week and 

International Coastal Clean-up. 

• Supported the Folweni 

Permaculture gardens. 

• Established a partnership with 

the Department of Tourism and 

Environment of the Free State 

province to support the Toyota 

Enviro Clubs. 

• Sponsored the Enviro Outreach 

carbon benchmarking project. 

• Vehicle sponsorship to 50/50 

environmental TV programme. 

• Prius sponsorship to Cape 

Town Institute of Renewable 

and Sustainable Energy. 

• Prius sponsorship to Food & 

Trees for Africa. 

• Current programmes will continue. 

• TSAM EMS training to expand to 

two days. 

• Promote increased understanding 

of environmental management 

legislation by dealers. 

• Ongoing awareness programmes 

planned, with focus primarily on 

energy and waste reduction. 

• Continue eco-awareness bulletins. 

• Employee awareness and 

participation in Environmental Month 

and National Arbor Week. 

• Continue to promote employee 

participation initiatives. 

• Promote regular communications to 

staff on environmental matters. 

• Continue to publish an annual 

green edition of Toyota Zone on 

environmentally friendly paper. 

• Continue with community and plant 

greening programmes. 

• Continue to support the Folweni 

gardens programme. 

• Continue support for the Enviro 

Outreach programme. 

• Explore and investigate new 

environmental opportunities. 

• Consider sponsorship requests 

that promote sustainable energy 

programmes. 




Action item and 

goal 

Table 3 

Cooperation with Society – Improve disclosures of 

environmental information 

and two-way communications. 



Environmental 

Communication 

• Disclose product 

environmental information to 

consumer. 

• Provide information to 

consumers regarding using 

and maintaining the vehicle 

in an environmentally 

responsible way. 

• Improve environmental and 

social report content. 

• Improve environmental 

information on website. 

• Establish environmental 

communication events with 

local communities at TSAM 

production operations. 

• Regularly share 

environmental information 

via press. 

Incidents and near misses 

TSAM has not had any environmental incidents 

since 2007, however several near misses 

occurred during the reporting period. These 

include a noise complaint, and chemical and 

effluent spills. TSAM responded immediately to 

all near misses and undertook actions to mitigate 

them (see Table 5). 

Toyota did not receive any fines for 

environmental incidents over the reporting 

period. 

No. of incidents 

Figure 9 

No. of fines 

4 

3 

2 

1 

0 

4 

3 

2 

1 

0 

Figure 10 

TSAM environmental incidents 

1 

3 

Zero incidents 

during reporting period 

FY06 FY07 FY08 FY09 

Fines for environmental incidents 

0 

2 

Zero fines 

during reporting period 



• Progressively improve 

reporting to TMC and Global 

Reporting Initiative standards. 

• Improve quality, volume and 

presentation of environmental 

information on TSAM website. 

• Share environmental 

information, performance, 

activities and results with 

local community. Two-way 

communication. Focus on no 

complaints. 

• Readily share information of 

environmental importance with 

press to maintain image of 

environmentally responsible 

company. 

Near misses FY08 and FY09 

Date Description of 

near miss 

• Published environmental related 

information on the corporate 

Toyota website. 


information on the Hybrid 

Synergy Drive website. 


editorials in major publications. 

• Issued sustainability report 

following TMC and GRI 

guidelines. 

8 July 2008 Noise complaint. Two possible sources 

identified: 

1. Paint plant boiler. 

2. Main plant LPG tank 

farm. 

20 December 

2008 

Paint Plant resin 

tank outflow. 

29 July 2009 Battery acid spill in 

Receiving Yard at 

NPDC. 

11 Nov 2009 Overflow of skid 

cleaning area 

effluent pit. 

26 March 2010 Spillage of acidic 

pretreatment 

chemical inside 

Chemical Store. 

Table 5 

• Continue to publish environmental 

information on the corporate website 

and explore opportunities to attract 

visitors to website. 

• Continue to publish information on 

the Hybrid Synergy Drive website. 

• Continue to communicate 

environmental technology 

information through editorials in 

major publications. 

• Issue 2011 Sustainability Report. 

Definitions 

Environmental incident An environmental incident of significance that impacts on 

the environment outside the boundaries of TSAM or requires 

extensive clean-up or reporting to authorities. 

Environmental near miss An incident that is contained within the boundaries of TSAM and 

has minimal environmental impact, if any. 

Table 4 

Cause Mitigatory actions taken 

There were two causes: 

1. Resin tank valve not 

fully closed. 

2. Leak through the 

bund wall (incorrect 

design). 

The pallet transporting 

the battery broke. 

Paint Plant boiler – Valves 

repaired. 

Main Plant Gas Farm tank – 

Gas vaporisers serviced. 

1. 

2. 

3. 

Leak contained and 

cleaned. 

Employees retrained on 

revised instructions. 

Facility improved and 

effectively sealed. 

Spill contained and cleaned 

up. All pallets checked. 

Effluent line blocked. Mesh screen installed, work 

instructions and checksheet 

implemented. 

Pallets made from 

plastic. 

Waste contractor cleaned up 

spill. Plastic pallets changed 

to steel.

The way forward: TMC’s Fifth Toyota Environmental Action Plan FY11 to FY15 

TMC’s environmental activities are dynamic and ongoing. The Fifth 

Toyota Environmental Action Plan has been formulated to guide TMC 

between FY11 and FY15. The aim is to ‘contribute to sustainable 

growth in society and the globe,’ through ‘monozukuri in harmony 

with the global environment, making cars and offering products and 

services.’ 

* 


The new plan will cover three major areas: 

• Establishing a low-carbon community; 

• Establishing a recycling-based society; and 

• Environmental protection and establishing a society in harmony 

with nature. 

TSAM is currently developing its next Five Year Action Plan in line with 

TMC’s Fifth Toyota Environmental Action Plan. 

Fifth Toyota Environmental Action Plan 

Goals of Activities: 

'Contributing to Growth of Sustainable Society and Earth' 

through monozukuri, coexisting with the global environment, making cars and offering quality products and services. 

Establishing a low-carbon society 

Signifi cantly reduce GHG emissions 


Establishing a recycling-based society 

Enhancing recycling of resources through 3R 

[Development and Design] 


* 1 Develop next-generation vehicles that utilise electrical 

energy and ensure wider market acceptance based on 

characteristics of each type of vehicle 

8 Further promote the use of designs based on recycling 

concepts with effective utilisation of resources borne in 

mind 

2 Develop vehicles aiming at the best fuel-efficiency 

Production and Logistics 

and conform to the laws and regulations in respective 

countries and regions 

9 Reduce the volume of waste in production and logistics and 

utilise resources effectively 

Production 

3 Conduct thorough activities to save energy and reduce the 

volume of GHG emissions 

Sales/Recycle 

* 10. Promote effective utilisation of resources on a global basis 

Logistics 

4 Pursue transport efficiency in logistics activities and 

reduce the volume of CO2 emissions 

11 Conform to the laws and regulations concerning vehicle 

recycling in all countries and regions 

Cooperation with Society 

Sales 

12 Promote the new activities and businesses that contribute to 

* 5 Thoroughly conduct activities to save 

energy in sales activities and reduce 

the volume of CO2 emissions 


6 Actively contribute to and propose 

climate change initiatives 

7 Promote integrated approach to reduce 

CO2 emissions in the road transport 

sector 

the creation of a recycling-based society 


13 Reduce emissions to improve air quality in urban areas in all countries 

and regions 

* 14 Strengthen the management of chemical substances contained in 

products 

Production 

15 Reduce substances of concern (SOCs) in production activities 


* 16 Implement initiatives to address biodiversity conservation 

17 Promote social contribution activities that contribute to the creation of a 

* society in harmony with nature 

Environmental protection and creation of a society in harmony with nature 

Enjoying and inheriting natural blessings 

18 Enhance and promote consolidated environmental management 21 Promote ECO-VAS (eco vehicle assessment system) in product development 

19 Promote environmental activities in cooperation with business partners 22 Promote sustainable plant activities 23 Enhance and promote environmental education activities 

* 

20 Promote CO2 management worldwide 24 Actively increase disclosure of environmental information and communication 

New actions since the Fourth Toyota Environmental Action Plan 

Figure 11 

Source: TMC Sustainability Report 2010 




Towards sustainable mobility 

The need to significantly reduce greenhouse 

gases on a global scale was affirmed as a long 

term goal at the 15th Conference of the Parties 

to the United Nations Framework Convention 

on Climate Change, held in Copenhagen at 

the end of 2009. In the medium-term each 

country in the world, both developed and 

developing, will submit a greenhouse gas 

reduction goal and action plan to the United 

Nations, and promote programmes to reduce 

emissions. 

TMC has been engaged in emission 

reduction programmes for more than a 

decade, and has re-committed itself to 

continue to take appropriate and persistent 

action on energy and global warming issues 

in the medium and long terms. 

TMC has been a pioneer in the 

development of next generation vehicles 

utilising hybrid technology, with the key 

objectives of reducing CO2 emissions, 

(10 000 units) 

280 

260 

240 

220 

200 

180 

160 

140 

120 

100 

80 

60 

40 

20 

0 

Accumulated CO 2 reduction benefi t due to 2.5 million hybrid vehicles sold 

(estimated by Toyota) 

CO 2 emissions from 

conventional gasoline 

vehicles of equivalent 

size and power output 

Cumulative hybrid vehicles sales 

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (up to April) 

Figure 12 

Source: TMC Sustainability Report 2010 


CO 2 emissions from the manufacture and usage of motor vehicles is a signifi cant 

contributor to global warming. TSAM’s efforts to reduce CO 2 emissions focuses 

on effi cient production and logistics operations. This is complemented by the 

development of energy effi cient hybrid vehicles by TMC. 

diversifying energy sources and preventing 

atmospheric pollution. By making these 

vehicles available for widespread use, TMC 

is contributing to sustainable mobility through 

low impact transport. 

The accumulated total of TMC hybrid 

vehicles sold around the world reached 2.5 

million as of April 2010. TMC has set a goal 

for annual sales volumes of hybrid technology 

vehicles at one million units per year in the 

early 2010s. 

Cumulatively TMC’s hybrid vehicles are 

estimated to have reduced CO2 emissions by 

around 14 million tons, compared to gasoline 

vehicles of equivalent size and power output 

(see Figure 12). 

TMC now offers 12 hybrid vehicle 

passenger models, including the revolutionary 

Prius. 

TMC will continue to strive to improve the 

fuel efficiency of conventional petrol engines 

CO 2 

emissions from 

hybrid vehicles 

About 14 million 

tons of reduced 

CO2 emissions 

Cumulative total from 

1997 to April 2010 

while continuing to develop hybrid vehicle 

and plug-in hybrid technologies. 

The commitment to CO2 reduction 

extends to TMC operations and affiliates 

around the world, not only in production, but 

also in all other operational areas including 

logistics and distribution. 

Numbers of vehicles sold in 

South Africa during reporting 

period 

Vehicles sold by type FY08 FY09 

Light Commercial Vehicle 1 47 912 45 111 

Passenger 56 428 45 307 

Sports Utility Vehicle 10 161 12 832 

1 Commercial carrier vehicles with a gross vehicle weight 

of up to 3.5 tonnes 

Table 6 

Vehicles sold by fuel FY08 FY09 

Diesel 31 368 34 789 

Hybrid 165 120 

Petrol 

Table 7 

72 838 55 471 

Vehicles sold by powertrain FY08 FY09 

Table 8 

1.0 6 116 3 982 

1.3 659 504 

1.4 5 036 0 

1.5 2 998 2 288 

1.6 9 930 7 858 

1.8 2 917 2 126 

2.0 5 328 4 888 

2.2 53 0 

2.4 51 0 

2.5 11 902 11 877 

2.7 17 871 13 692 

3.0 9 005 10 937 

3.5 0 0 

4.0 604 699 

4.2 1 754 1 520 

4.3 0 0 

4.5 739 994 

4.6 0 0 

4.7 115 78

Average fuel economy and 

carbon dioxide emissions by 

type of vehicle in South Africa 

These figures are weighted according 

to the vehicles sold. Passenger vehicle 

fuel economy appears less efficient in 

FY09, but this is because a higher ratio 

of cars with a bigger powertrain was 

sold in FY09. Passenger vehicle carbon 

dioxide emissions are higher for the 

same reason. 

Average fuel economy 

(litres/100km) 

Average carbon dioxide 

emissions (g/km) 

FY08 FY09 

Passenger 6.9 7.2 

Sports Utility Vehicle 11 10 

Light Commercial Vehicle 

Table 9 

N/A N/A 

FY08 FY09 

Passenger 166 175 

Sports Utility Vehicle 264 248 

Light Commercial Vehicle 

Table 10 

N/A N/A 

South Africa’s new carbon tax law 

In 2007, South Africa was the world’s 

eighteenth largest national emitter of 

CO2 from fuel combustion. Under the 

Copenhagen Accord, South Africa aims 

to reduce greenhouse gas emissions by 

34% by 2020 and by 42% by 2025. The 

South African government has taken 

steps towards minimising CO2 emissions 

by implementing a carbon tax, with effect 

from 1 September 2010. 

New passenger vehicles will be taxed 

based on their certified CO2 emissions at 

R75 a g/km for each g/km above the new 

120g/km emission threshold. Thus the tax 

will favour the sale of vehicles with smaller 

engines or hybrids, which use less fuel, and 

therefore emit less CO2. Buyers of cars with 

bigger engines, which emit more CO2, will 

be hardest hit. 

The tax will be collected from motor 

manufacturers and importers, and will 

most likely be included in the selling 

price of new vehicles, and could push the 

prices of vehicles with bigger engines up 

by about 2%. 

TSAM’s Fourth Environmental Action 

Plan seeks to address global warming by 

focusing on efforts to reduce energy use and 

emissions. This includes reducing electricity 

usage, reducing CO2 emissions from 

production, reducing transport and logistics 

CO2 emissions and improving performance 

and energy efficiency. 

TSAM’s CO2 emissions are directly 

proportional to the amount of energy 

consumed in production. TSAM uses three 

energy sources: 

• Electricity; 


CO2 emissions and energy use in production 

and logistics activities 

• Liquefied petroleum gas (LPG). LPG is 

used to fire the burners in the canteens, 

as fuel for forklifts and tow motors, and to 

fire the burners in the oven in the Exhaust 

Plant; and 

• Methane gas. Methane gas, which is 

cheaper than LPG and has a better CO2 

conversion ratio, has been used to fire 

the burners and boilers in the Paint Plant, 

Bumper Paint Plant and Chassis Paint 

Plant since FY08. TSAM is currently 

conducting a study to convert the forklifts 

to use methane for fuel. 

Energy use and reduction of CO 2 emissions in production activities 

Figure 14 indicates the total energy used in 

production at TSAM. The energy sources 

include electricity, LPG and methane. Total 

energy consumption dropped in FY09 

due to lower production levels and TSAM 

initiatives to reduce energy consumption. 

Figure 13 indicates CO2 emissions per 

unit of production. Emissions performance 

improved slightly between FY08 and FY09, 

but FY09 saw a decline in CO2 emissions 

efficiency, and the target had to be reset 

due to the impact of the global economic 

recession on production levels. Declining 

production levels affect the ratio between 

Table 11 

kg CO2/u 

1 800 

1 600 

1 400 

1 200 

1 000 

800 

600 

400 

200 

0 

Figure 13 

CO 2 conversion coefficients to calculate 

CO 2 emissions volume 

kWh kg LPG m 3 Methane 

0.958 3 1.801 

kWh GJ LPG GJ Methane 

0.958 64.705 53.142107 

TSAM CO 2 emissions per unit (kg CO 2/u) 

1 547.38 

1 113.63 

1 376.41 

1 164.29 

1 041.27 

908.18 

1 284.48 


Actual Target 

1 232.09 

fixed and variable emissions which has a 

negative impact on emissions performance. 

TSAM total energy consumption (tons CO 2) 

tons CO2 

Figure 14 

In terms of total CO 2 emissions, 

measured in tons, there was a reduction in 

emissions over the reporting period. 

Energy saving projects 

TSAM undertook a number of projects 

designed to save energy, including: 

• Lights and ventilation fans in the Weld 

Plant were automated to switch off 

during non-production times; 

• Power equalisers were installed in the 

Exhaust and Weld Plant. These stabilise 

the voltage supplied to welding machines, 

reducing the energy consumed and 

improving the quality of welds (a stable 

power supply provides a stable weld); and 

• Responsible people in each area of the 

operation were tasked with switching off 

lights, fans, etc. during non-production 

times. 

200 000 

180 000 

160 000 

140 000 

120 000 

100 000 

80 000 

60 000 

40 000 

20 000 

0 

168 923 

178 873 

156 112 

131 912 


Methane LPG Electricity 



Reduction of CO 2 emissions 

from logistics activities 

The nature of TSAM’s business requires 

parts and components to be shipped to the 

production facility in Prospecton, and that 

completed parts and vehicles be shipped from 

Prospecton to dealers and service centres in 

southern Africa and around the world. This 

transport by air, ship and road results in CO2 

emissions, which TSAM has taken steps to 

reduce (see Figure 15). 

Logistics CO2 emissions were not tracked 

before FY08, hence the lack of historical data. 

Emissions dropped sharply in FY09 due to a 

number of emissions reduction innovations 

adopted by TSAM, but also as a result of 

decreased vehicle production following the 

global economic recession. 

Reducing logistics CO2 emissions 

TSAM introduced a number of kaizen activities 

to reduce logistics CO2 emissions. The fitting 

of aerodynamic kits to the main route trucks, 

which deliver parts and vehicles, resulted in a 

reduction of 1.57 tons of CO2 emissions per 

month. 

Component export CO 2 

emissions 

The scope of measuring logistics components 

emissions has expanded. Previously, only 

outbound logistics components emissions 

were measured; these refer to shipping 

parts and vehicles to overseas customers. 

In FY09, TSAM started to measure inbound 

components emissions as well – these refer 

to air and road freight routes from suppliers 

to the plant at Prospecton, and road freight 

between the plant and the port. This has 

resulted in a big jump in measured CO2 

emissions from FY08 to FY09. 

kg CO 2 

Component export CO2 emissions (kg CO 2 ) 

9 000 

8 000 

7 000 

6 000 

5 000 

4 000 

3 000 

2 000 

1 000 

0 

Figure 17 

Change in 

measuring scope 

Revised scope 

includes all 

inbound logistics 

Previous scope 

excluded inbound 

logistics 

586 

328 169 

FY08 FY09 FY10 Target 

Outbound 

8 052 

Inbound 

Optimise 

inbound load 

efficiency (air 

and road) 

3 404 

Figure 15 


kilotons 

Logistics CO 2 emissions (kilotons) 

FY08 FY09 

Logistics Control Division 22.17 5.67 

Production Control Division 0 1.84 

Vehicle Distribution 123.85 54.25 

Service Parts 8.54 8.11 

Total 154.56 69.87 

Table 12 

TSAM also improved the loading 

efficiency on trucks, looking at the way parts 

are loaded in order to maximise the use of 

available space. This initiative saved 108 

tons of CO2 emissions per month. 

180 

160 

140 

120 

100 

80 

60 

40 

20 

0 

Logistics CO2 emissions (kilotons) 

154.56 

FY08 

Logistics Control Division 

Vehicle Distribution 

69.87 

FY09 

Production Control Division 

Service Parts 

Energy use – Sandton 

Total energy consumption at Sandton 

continues to decrease as a result of the 

following activities: 

• Automatic timer controls fitted to the 

Parts Warehouse High Bay Lights 

(estimated saving – 250MWh/annum); 

• All 43 geysers’ temperatures re-set 

to 60 o • 

C (estimated saving – 35MWh/ 

annum); 

Movement sensors fitted to Small Parts 

Area of the Warehouse (estimated saving 

– 90MWh/annum); 

• Fitted piping insulation to all 43 geysers 

on site (estimated saving – 500kWh/ 

annum); 

• Fitted movement sensors in Main Building 

and to ablutions at NPDC (estimated 

saving – 24MWh/annum); and 

• Awareness initiative around ‘No 

Work, No Watt’ policy, including 

allocating responsibility for switching off 

equipment. 

Reducing Service Parts CO2 

emissions 

In FY08, Service Parts in Sandton reduced 

CO2 emissions per kg of parts shipped on local 

outbound parts delivery routes by increasing 

off-peak transportation, reducing dedicated 

emergency deliveries and optimising delivery 

routes. 

Activities to reduce CO2 emissions 

in FY09 included strengthening daily 

checks (including checks on tyres), vehicle 

replacement programmes and driver 

incentives for fuel-efficient driving. 

kg CO 2/kg shipped 

Figure 16 

tons CO 2 

Figure 18 

Service Parts CO2 emissions – local 

outbound routes (kg CO2/kg shipped) 

1.50 

1.25 

1.00 

0.75 

0.50 

0.25 

0 

1.32 

1.19 

FY08 FY09 

Actual Target 

1.18 

0.83 

Total energy consumption – Sandton (tons CO 2) 


Electricity 7 327 7 035 6 164 5 983 

LPG* 100 2 2 2 

Total 7 427 7 037 6 166 5 985 

*Since 2007, LPG has only been used in the canteen. 

Table 13 

Total energy consumption – Sandton 

(tons CO2) 

8 000 

6 000 

4 000 

2 000 

0 

7 427 

7 037 

6 166 

5 985 

FY06 FY07 FY08 FY09

CASE STUDY 

Stamping Plant energy reduction project 

TSAM implemented a behavioural change 

in the Stamping Plant in March 2008 which 

resulted in a 20% energy saving in one year. 

TSAM took the following steps: 

• Identified the position of all electric 

switches for non-production equipment 

(these include lights, fans, hydroboils 

and food warmers) and educated 

the workforce to switch off all nonproduction 

equipment during non- 

• 

production hours; 

The plant was broken down into 

MWh 

Behavioural change 

implemented 

Figure 19 

600 

500 

400 

300 

200 

100 

0 

472 

401 

Jan 

2008 

512 517 

507 485 

Feb 

2008 

Mar 

2008 

Apr 

2008 

May 

2008 

Jun 

2008 

Energy Reduction Strategy 

Energy project team established 

Jul 

2008 

In January 2008 South Africa was plunged into 

darkness due to electricity demand exceeding 

supply. The national electricity service provider 

introduced load shedding in April 2008 to protect 

the electricity reserve margin and prevent further 

blackouts. 

Industry was given the opportunity to motivate 

its exclusion from the load shedding programme 

if the company could demonstrate a minimum of 

10% electricity saving for the period October 2006 

to September 2007. Preference was also given to 

the motivation if the company was supplied directly 

from the national electricity service provider. 

TSAM was able to avoid further load 

shedding as it was able to demonstrate a 14% 

electricity saving for this period, and because it 

is supplied with power directly from the national 

electricity service provider. However there were 

four unit plants which could continue to be 

affected by load shedding as they were supplied 

from the residential power grid. TSAM eliminated 

458 

443 

Stamping Plant energy usage (MWh) 

490 

464 

456 

422 

• 

• 

• 

485 485 

433 

412 

Aug 

2008 

Actual Target 

zones, and one person was allocated 

responsibility for each zone to ensure 

all equipment is switched off during 

non-production hours; 

Ordinary lights were replaced with 

energy efficient bulbs; 

Timers were installed in certain areas to 

control equipment automatically; and 

Compressors and related cooling 

towers and pumps are switched off over 

weekends. 

443 

398 

Sep 

2008 

507 

414 

Oct 

2008 

422 

399 

Nov 

2008 

Dec 

2008 

Jan 

2009 

Feb 

2009 

Mar 

2009 

the risk to its power supply by connecting the four 

units to the main plant in June 2008, thus avoiding 

any further effects of load shedding. 

A further 15% energy saving was achieved in 

2009, with TSAM enhancing its reputation with the 

national electricity service provider as a regional 

leader in energy reduction. 

The strategic importance of these efforts was 

highlighted when the national electricity service 

provider announced a 25% per year increase in 

electricity costs over the next three years. 

TSAM requested assistance from TMC and in 

November 2009 TMC sent two representatives from 

TMC Energy Service Company (ESCO) to conduct a 

survey on energy reduction opportunities at TSAM’s 

Prospecton Plant. They identified 24 energy reduction 

opportunities and recommended TSAM established 

its own dedicated Energy Reduction Department. 

In February 2010 two TSAM members attended 

training in Japan with TMC ESCO on all aspects of 

energy management, and in April TSAM established 

its own Energy Reduction Department. 

315 

323 

340 

242 293 299 

371 

358 

Electricity costs 


Figure 20 shows electricity costs in Rands. 

While 2008 was ahead of target, 2009 shows 

electricity costs exceeding target. 

Major electricity price increases set by the 

national electricity service provider over the 

next three years will see the price of electricity 

doubling. TSAM has established a special 

committee to reduce energy consumption in 

an effort to mitigate the impact of the price 

increases (see Energy Reduction Strategy). 

R (000’s) 

TSAM electricity costs (current and projected) 

120 000 

100 000 

80 000 

60 000 

40 000 

20 000 

Figure 20 

Electricity Cost (R’000) 

2007 2008 2009 2010 2011 2012 

Actual 40 261 44 252 48 964 62 834 85 703 111 003 

Target 41 352 49 145 45 167 

Table 14 

0 

40 352 

40 261 

Electricity service provider 

price increase = 25% per 

year for next 3 years 

49 145 

44 252 

48 964 

45 167 

62 834 

2007 2008 2009 2010 2011 

Actual Target 

Energy Reduction Department members. 

85 703 

111 003 

2012 

The Energy Reduction Department began 

work immediately, and as at September 2010 

has identified 37 energy reduction opportunities, 

of which eight have been implemented. One 

of these projects focused on compressors, 

the second highest energy user at TSAM. 

Compressors require a fixed amount of energy to 

generate compressed air, depending on capacity. 

The team reduced overall energy consumption by 

sequencing the usage of compressors to match 

variations in production. 


TMC’s commitment 

to hybrid technology 

Hybrid power is a central element in TMC’s 

development of more environmentally 

efficient vehicles, and TMC has dominated 

the hybrid market since the release of the 

first generation Prius, TMC’s flagship hybrid 

vehicle, in 1997, as well as subsequent hybrid 

models, such as the Toyota Auris Hybrid and 

Lexus GS 450h. 

Hybrid vehicles use two or more power 

sources to move, usually an internal combustion 

and an electric motor, meaning that they can be 

propelled by gasoline and/or electric power. The 

power from these two motors can be shared to 

drive the wheels. The electric motor can also 

act as a generator, charging the batteries. 

Typical gasoline or diesel-engined vehicles 

consume fuel when the vehicle is stopped, as 

is common in city driving. The Prius typically 

shuts down the gasoline engine and runs solely 

off the battery pack at low speeds and when 

stopped. A non-hybrid car also gets worse fuel 

consumption in city driving because its engine 

is continually used to accelerate the car to 

driving speed and then this energy is lost to 

friction brakes during stop-and-go driving. The 

Prius recaptures some of this energy by using 

regenerative braking to charge its battery pack 

while slowing down with its motor-generators in 

generator mode. 

The story of the Prius 

The first generation Prius development started 

in 1993. The core technology was a new 

powertrain that combines a gasoline engine 

with an electric motor, which had the potential 

of achieving roughly double the fuel efficiency 

of conventional gasoline engines. 

The second-generation Prius was 

launched in 2003 with improved fuel efficiency 

and driver performance. Total worldwide sales 

reached 1.27 million units by April 2009. 

The third-generation Prius was introduced 

in May 2009. The two key points in developing 

this vehicle were an affordable price and further 

fuel efficiency. This was achieved through 

improved engine efficiency and reducing the 

size and weight of parts, and reducing the drag 

coefficient. This Prius was a finalist in the South 

African Car of the Year 2010 competition. 


The third generation Toyota Prius. 

Today’s Prius emits just 94 g/km of CO2 – 

the lowest figure achieved by any current 

production car with an internal combustion 

engine – and has an official combined cycle 

fuel consumption figure of 4.1 litres/100km. 

In 2010, worldwide sales of the Prius are 

expected to pass two million since the original 

hybrid was launched in 1997. Based on this 

volume, TMC calculates the Prius has saved 

around 11 million tonnes of CO2 emissions 

compared to petrol models of similar size 

and power, an achievement supported by 

continued development of TMC’s full hybrid 

technology to achieve even cleaner and more 

fuel efficient performance. 

Supported by Prius’s global achievements, 

TMC aims to sell at least one million hybrid 

vehicles annually as early as possible in the 

2010s. 

Hybrid vehicles in South Africa 

Hybrid vehicles have been available in South 

Africa since January 2005, when the secondgeneration 

Prius was introduced. From late 

2008, the Lexus GS450h and RX450h were 

available, followed by the recently launched 

LS600h. Plans for the introduction of other 

hybrid models onto the South African market 

are under investigation. 

The market for hybrid vehicles in South 

Africa has been small so far, with 856 Prius and 

301 Lexus models sold (as at 31 March 2010). 

In South Africa there are no legislated incentive 

schemes for people to buy hybrid vehicles, 

The Hybrid Synergy Drive combines an internal 

combustion engine and an electric motor. 

and their popularity has yet to match overseas 

markets. 

However, TSAM has a programme 

to promote hybrid vehicles and increase 

public awareness. TSAM has a website 

(www.hybridsynergydrive.co.za) dedicated to 

providing information to the public regarding 

hybrid vehicles. TSAM also has media 

partnerships with South African publications 

that focus on sustainability and green living. 

TSAM sponsored Prius vehicles to the 

University of Pretoria’s Centre for Responsible 

Leadership and the University of Stellenbosch’s 

Centre for Renewable and Sustainable 

Energy Studies, as well as to a local television 

programme called Groen, which reports on 

environmental and sustainability issues. 

TSAM also partnered with Google in 2009 

for their Street View mapping programme, 

sponsoring 10 Prius vehicles for the project, 

which Google purchased once the project was 

completed. The project required extensive 

driving distances, some 64 000km, making 

the use of hybrid vehicles very important to 

reduce CO2 emissions.


Recycling initiatives 

Recycling and waste reduction initiatives 

introduced across TSAM sites are designed 

to reduce the volume of waste sent to landfill 

and to create a recycling culture among 

employees. The Triple-R credo – Reduce, Reuse, 

Recycle – is applied to everything from 

the production process to minimising office 

waste. TSAM encourages all employees to be 

part of a recycling based society. 

Prospecton waste reduction 

Annual waste reduction targets are set as part 

of the TSAM Fourth Environmental Action Plan. 

Over the past four years TSAM has managed 

to reduce waste to landfill by 15.5%. 

TSAM is investigating the following 

strategies to further reduce waste to landfill: 

• Promotion of waste reduction and segregation 

in offices, canteens and plants; 

• Improve paint de-watering method to reduce 

paint sludge volumes disposed to landfill; 

• Investigate alternative use of paint sludge 

as a resource; and 

• Focus on further reduction in packaging 

waste by re-using packaging and/or 

increasing the use of returnable packaging. 

The following pie charts illustrate the 

volumes of waste generated at TSAM in 

FY09 as well as the breakdown of waste 

into metal, recycled and landfill waste. 

Total waste generated in tons for FY09 

20 578 tons 

Figure 21 

89% 

5,06% 


5,94% 


Metal 

Landfill 

Recycled 


TMC recognises that all resources are finite and pursues a comprehensive strategy 

of lean resource utilisation in all aspects of development, production, use and 

disposal. TSAM is committed to using its resources effectively by minimising waste, 

reusing resources where possible and recovering recyclable waste. 

All waste cardboard is baled at Prospecton and recycled by a paper and packaging manufacturer. 

The desludging of the Waste Water Treatment 

Plant (WWTP) was delayed due to maintenance 

problems and the building of the Pokayoke pits. 

As a result, the WWTP was only desludged in 

April-May 2010. The additional sludge has been 

allocated over FY08/FY09/FY10 in order to 

prevent skewed figures. 

High unit production in FY08 resulted in 

waste figures being low per unit produced, 

and the economic downturn the following year 

resulted in high waste figures per unit produced. 

Recycled versus landfill waste for FY09 in 

tons (excluding metal waste) 


Figure 22 

Figure 23 

54% 

46% 


Landfill 

Recycled 

Major recycled waste in kg/u for FY09 

0.05 

0.95 

4.41 

2.81 

0.07 

1.63 

15.75 

Cardboard 

Plastic 

Paper 

Wood 

Cans 

Foil 

Solvents 

kg/u 

Figure 24 

35 

30 

25 

20 

15 

0 

TSAM waste to landfill (kg/u) 

31.78 

27.4 

28.99 

21.47 


26.84 

During the reporting period the Waste Tyre 

Regulations of 2008 were promulgated. In 

terms of these regulations TSAM had to 

register with the Department of Environmental 

Affairs as a tyre producer. This is because 

TSAM imports vehicles for distribution prefitted 

with tyres. For each of these vehicles 

TSAM must pay a green tax that will ensure that 

the tyre is disposed of in an environmentally 

sound manner at the end of its life. In addition 

TSAM registered with the South African Tyre 

Recycling Process Company in order to be 

part of their waste tyre management plan. 

Dealers will also abide by this legislation, 

which contains specific requirements for the 

disposal of used tyres. 

Toyota South Africa Motors Sustainability Report 2010 27 

25.6 

Actual Target 

24.7 

28.8 

New legal requirements for 

TSAM in terms of waste tyres


Sandton waste reduction 

TSAM continues to reduce waste to landfill 

volumes from the Sandton office. This is due 

to continued efforts to Reduce, Re-use and 

Recycle waste. 

kg 

Figure 25 

180 000 

160 000 

140 000 

120 000 

100 000 

80 000 

60 000 

40 000 

20 000 

Waste to landfill – Sandton (kg) 

0 

154 719 

FY06 

126 069 

106 578 

99 704 

FY07 FY08 FY09 

Sandton waste reduction 

initiatives 

Waste from Home 

TSAM’s Sandton office initiated an internal 

environmental campaign called Waste 

from Home. Employees were each given 

four different coloured bags to separate 

their waste from home into glass, paper 

and cardboard, plastic and metal. Three 

recycling stations were positioned at the 

Sandton office to encourage staff to bring 

their waste from home and recycle it. A 

total of 1.8 tons of waste was collected 

for recycling. 

Returnable packaging project 

The National Parts Distribution Centre 

(NPDC) in Sandton began investigating 

the feasibility of introducing returnable 

packaging in FY08. Successful pilot 

tests using the new plastic returnable 

containers were conducted in FY09. The 

durable plastic containers, which are 

returned to the NPDC and re-used, replace 

cardboard boxes, which are only used 

once. Roll out of the system to all Gauteng 

dedicated transport routes commenced 

in FY09, and will continue further in 

FY10. It is anticipated that this project 

will significantly reduce resource usage 

(i.e., the purchase of new packaging), 

as well as waste generation at the 

end-user (dealerships). 100% of cardboard 

packaging still used is recycled material. 


Hazardous waste includes crushed fluorescent 

tubes, potentially asbestos-containing parts, 

chemical product empties, and contaminated 

spill absorbent. Included in the Sandton office’s 

hazardous waste are 37kg and 72kg of medical 

waste for FY08 and FY09 respectively. This 

medical waste was sent to a local licensed 

incinerator. The balance of the hazardous waste 

was sent to a local hazardous waste landfill. No 

hazardous waste was shipped internationally. Oil 

and sludge from the oil separators in the Sandton 

workshops is sent to a recycling plant – a portion 

of the oil and sludge is disposed of to landfill. 


Promoting a recycling 

based society 

Nineteen waste segregation areas have 

been set up throughout the Prospecton Plant 

to improve recycling and decrease waste to 

landfill. Each plant has its own area where 

its waste is sorted and categorised. Nonrecyclable 

materials are compacted and 

sent to the landfill. Recyclable materials are 

bagged and labelled, and taken to a central 

bailing area where they are weighed and 

recorded. A report is generated for each 

plant at the end of each month, detailing how 

much waste was produced and how much 

The 19 waste segregation areas set up 

throughout the Prospecton Plant. 

Figure 26 

– Waste Segregation Areas 

N 

PPO 

Truck Plant AO Press 

Fuel Station 

S 

Vehicle Storage 

Vehicle Supply 

& 

Distribution 

TAC 2 

AO Press Plant 

Toyota Stamping 

Division Mobeni 

Vehicle 

Storage 

Body Plant 1 

Alfred Wessels 

Training Centre 

Tool & Die 

Manufacturing 

Hazardous waste disposed – Sandton 

Table 15 

FY08 FY09 

1 162kg 3 187kg 

Oil/sludge to recycling plant/landfill 

Table 16 

FY08 FY09 

1 760kg 1 320kg 

Recyclable waste is sorted at 19 waste segregation 

areas throughout the Prospecton Plant. 

was recycled. Individual plants are now able 

to set targets for waste disposal and improving 

recycling performance. 

Parking 

TAC 3 

Imported Parts 

Warehouse 

Paint Shop 3 

Service 

Centre 

TSS Parking 

Manufacturing 

Logistics 

Centre 

Assembly Hall 

Engine 

Plant 2 

Receiving 

Canopy 

Toyota Automotive 

Components TAC 1 

Vehicle 

Finalising 

Engine 

Plant 1 

Trim Shop

Use of Water Resources 

TSAM uses water supplied by the Municipality in its production 

processes. Treated effluent water is returned to the municipal 

sewerage system for routine treatment. Contaminated waste water 

is piped to TSAM’s Waste Water Treatment Plant where it is treated 

Water usage 

The FY09 target for water usage per unit 

produced was based on the actual usage 

in FY08. Production volumes decreased 

significantly in FY09, resulting in less 

efficient water usage. 

kilolitres/u 

8 

7 

6 

5 

4 

3 

2 

1 

0 

Figure 27 

6.41 

5.81 

Water usage (kilolitres/u) 

6.7 

4.88 


Actual Target 

5.79 

5.05 

6.19 

5.05 

Waste Water Treatment Plant 

The Waste Water Treatment Plant (WWTP) 

was built to treat effluent water to a quality 

suitable for discharge into the municipal 

sewerage system, in order to comply with 

legal specifications set by eThekwini Water 

and Sanitation. The plant has a treatment 

capacity of 120 kilolitres/hour. 

Effluent water is transferred from 

the production operations to two holding 

dams, each with a capacity of 1 000m3 . 

The effluent water goes through various 

chemical processes, where the water is 

treated and contaminant particles are 

flocculated out of the system. Treated 

water is sent to sewerage whilst the sludge 

settles out. The sludge is then de-watered, 

pressed and sent to landfill by a certified 


The vehicle manufacturing process, and in particular the paint process, utilises 

significant volumes of water. TSAM strives to reduce water usage as far as possible, 

treats all effluent waste water prior to releasing it to the municipal sewerage treatment 

system, and has taken strong measures to prevent spills of contaminated water into 

the stormwater canal. 

Waste water discharge 

Waste water discharged per unit produced 

increased in FY09 due to lowered production 

volumes, resulting in less efficient use of 

water. 

kilolitres/u 

3.5 

3 

2.5 

2 

1.5 

1 

0.5 

0 

Main Waste Water Treatment Plant 

waste water discharged (kilolitres/u) 

3.21 

2.87 

waste management company. 

Operational checks are conducted daily 

and then returned to the municipal sewerage system. TSAM monitors 

the quality of all used water before it is discharged to the municipal 

sewerage system to ensure that it complies with municipal 

standards. 



2.31 

Diagram of the Waste Water Treatment Plant showing the two 1 000m 3 dams. 

3.11 

Sandton total water usage 

In FY09, after noting ongoing increases in 

water consumption, an underground water 

pipe leak was detected at Sandton. After 

the leak was repaired, a significant improvement 

in water consumption was achieved. 

kilolitres 

Total water usage – Sandton (kilolitres) 

80 000 

70 000 

60 000 

50 000 

40 000 

30 000 

20 000 

10 000 

0 

69 314 

27 383 

FY08 FY09 

whilst all legal specifications are analysed on 

a monthly basis by an external laboratory. 




TSAM continues efforts to reduce VOC 

emissions. Key in TSAM’s VOC reduction 

strategy was the commissioning of a waterbased 

paint plant in FY06, which replaced the 

solvent-based paint plant. Switching to waterbased 

paint has reduced VOC emissions 

from 85.66g/m2 in early FY06 to 34.44g/m2 in 

FY09 (VOCs are measured in g/m2 of vehicle 

surface area painted). 

TSAM has shown a steady improvement 

in VOC reduction, but was unable to achieve 

the original scheduled targets. This is linked 

to the challenges experienced from the 

commissioning of new paint technology and 

the quality requirements set. 

g/m 2 

100 

90 

80 

70 

60 

50 

40 

30 

20 

10 

0 

Figure 30 

95.05 

Body paint VOC (g/m 2 ) 

Switch to waterbased 

paint plant 

in early FY06 

43.23 

40 

41.87 

FY04 FY06 FY07 FY08 FY09 

VOC emission reduction 

projects 

TSAM has implemented a number of effective 

VOC emission reduction projects. 

1. TSAM reduces VOC emissions through a 

Regenerative Thermal Oxidiser at the paint 

plant. VOC emissions from the paint plant 

oven are oxidised through heat to form CO2 and water, and released harmlessly. 

2. In FY08 the clearcoat flushing thinner was 

replaced with a more aggressive thinner, 

and flowrates were reduced and regulated 

thereby reducing the flushing frequency 

and decreasing solvent consumption. 

3. The Maintenance Kaizen Workshop, 

established in FY08, greatly improved 

maintenance work. Previously, line 

maintenance had to be done in the 

35 

Actual Target 

36.53 34.44 


30 

25 

Paint, thinners and other solvents used during the painting process emit volatile 

organic compounds (VOCs). These are chemical compounds that pollute the air, 

create smog and can negatively affect the environment and human health. TSAM 

uses a number of products that emit VOCs, including pre-treatment coatings, sealers, 

primers, top coats and solvents. Initiatives have been implemented to reduce VOCs. 

spray booth. This had a number of risks, 

including paint and solvent wastage into 

the sludge pool beneath the spray booth. 

The establishment of the workshop, 

where components from the spray booth 

were boxed and moved to, provided an 

VOC Conference at Toyota Kirloskar Motors 

efficient and more stable environment to 

repair, strip, clean, inspect and test spray 

equipment, with almost no risk. Paint and 

solvents are also recovered for recycling, 

resulting in a reduction in both VOCs and 

waste to landfill. 

TSAM delegates attended the first Asia Pacific Conference on VOCs at Toyota Kirloskar 

Motors, Bangalore, India in September 2008. 

Lessons learnt: 

• Key performance indicators for vehicle body and bumper painting processes. 

• VOC kaizen examples for paint and solvent reduction.

Further reductions in paint volumes have been 

achieved through the following activities: 

• Test spraying paint volumes were 

• 

reduced by 60%; 

Robot spray painting makes use of paint 

cartridges which have been reduced by 

50% for low-volume colours; and 

• In January 2010, a single primer paint 

system was introduced by changing to a 

global material with a reduced viscosity. 

The overall VOC savings include reduced 

solvent flushing during shutdown periods, 

less paint required to top up systems and 

vats, and less primer paint wastage. 

Substances of Concern 

Four hundred and seventy-two substances 

are totally banned from use in any TSAM 

products or operations. Included in this are 

lead, cadmium, mercury and hexavalent 

chromium, which are substances banned by 

the European Union (EU) End of Life Vehicle 

Directive (2000/53/EC). These substances 

can have significantly negative health and 

environmental consequences. 

TSAM has processes in place to ensure 

that banned substances are not used. 

Suppliers of products and chemicals must 

sign a declaration that all products supplied 

to TSAM are free from the listed banned 

substances. 

In 2008, Service Parts in Sandton 

identified obsolete parts potentially containing 

asbestos and safely disposed of them. 


Solvent recovery system 

The solvent recovery team. 

TSAM uses systems to collect and 

disseminate data on environmental releases 

and transfers of toxic chemicals from 

industrial facilities. These systems are known 

as Pollutant Release and Transfer Registers 

(PRTR). TSAM continues to monitor the 

use of toluene and xylene, which are PRTR 

chemicals found in some sealers, paints and 

solvents. 

Toluene is a volatile organic compound, 

and xylene is an aromatic hydrocarbon, 

both of which have significant hazardous 

properties. 

TSAM reduced the use of toluene and 

xylene through: 

• Less sealer and solvent paint used due 

to a decline in production; 


A solvent recovery system was commissioned in FY09 to collect solvents from flushing and 

manual cleaning operations in the Paint Plant spray booths. This minimises the solvent 

content of the waste water generated in the spray booths and allows for the collection of 

solvents from both manual and robot spray painting stations. The collected solvents are 

stored in drums and sent to be recycled externally. TSAM’s next goal is to recycle the 

collected solvents in-house for re-use. 

There are approximately 100 000 chemical substances being manufactured and sold 

throughout the world. Some of these impact negatively on the environment and 

human health, and these are called substances of concern. All chemical products or 

parts used in production at TSAM are screened for banned substances and eliminated 

if any are found. 

• 

• 

• 

litres 

Painting no longer takes place at the 

Exhaust Plant; 

Introduction of water-based bumper 

painting; and 

Changing the type of flushing solvent 

used in Paint Plant. 

Combined toluene and xylene use (litres) 

450 000 

400 000 

350 000 

300 000 

250 000 

200 000 

150 000 

100 000 

50 000 

Figure 31 

0 

424 865 

380 578 

185 075 





Strengthening environmental 

management 

TSAM established an Environment 

Committee in 2008, in line with TMC’s 

global environmental management strategy 

(see Figures 32 and 33). The South Africa 

Environment Committee (SAEC) members 

include the President and CEO, Dr Johan 

van Zyl, and senior managers responsible for 

TSAM operations and functions. 

This committee, which meets twice a year 

and reports directly to the Toyota Environment 

Committee, takes ultimate responsibility for 

TSAM’s environmental performance and 

ensures compliance with TMC’s Consolidated 

Environmental Management Strategy. 

Four working groups, including 

Production, Production Support, Service 

Parts and Dealers, and the Marketing/CSI/ 

Communications group, support the SAEC. 

The SAEC’s responsibilities include: 

• Ensuring that resources are made 

• 

available for environmental initiatives 

and activities; 

Ensuring that TSAM meets the objectives 

of the TSAM Fourth Environmental Action 

Plan, and reviews performance against 

targets; 

• Overseeing the development of the TSAM 

Fifth Environmental Action Plan that 

supports the Fifth Toyota Environmental 

Action Plan; and 

• Ensuring that TSAM becomes the 

regional leader in terms of environmental 

management and mitigation of 

environmental impacts, and that it 

compares favourably with similar TMC 

affiliates around the world. 


Environmental performance is a key management priority at TSAM. The thrust of 

TSAM’s strategy is to strengthen the management structures to ensure leadership 

and accountability, to be proactive by establishing detailed environmental action 

plans, and to respond to environmental issues and challenges utilising innovative 

technologies. This approach lays the foundation for building a future in which TSAM’s 

activities work in harmony with the environment. 

Participants of the second South Africa Environment Committee meeting. 

Figure 32 

Production 

Environmental 

Working Group 

Figure 33 

Promotion structure for global environmental management 

European Environment 

Committee (2002-) 

South Africa Environment 


SOUTH AFRICA ENVIRONMENT COMMITTEE STRUCTURE 

SHE Division 

Resource Working 

Group (Energy/Water) 

VOC 

Working Group 

Waste Reduction 

Working Group 

EMS Working 

Group 

China Environment 


Asia Pacific Environment 


SOUTH AFRICA ENVIRONMENT COMMITTEE 

Production Support 

Environmental 

Working Group 

Purchasing 

Working Group 

Production Parts Logistics 

Working Group 

Vehicle Logistics 

Working Group 

Toyota Environment 


Service Parts and 

Dealer Environmental 

Working Group 

North America Environment 


Service Parts 

Working Group 

Dealer 

Working Group 

South America Environment 


Marketing/Corporate Social 

Investment/Communications 

Environment 

Communications/ 

CSI Working Group 

Sandton EMS

Environmental management of business partners 

Dealers 

TSAM has a Dealer Environmental Risk Audit 

Programme (DERAP) in place to assess the 

environmental risks of dealers. The audit 

provides a platform for the introduction of a 

dealer environmental management system. 

The audits assess dealers in terms of five 

fundamental requirements (see Table 17). 

Any waste or pollution generated by a 

dealer can be measured against these five 

fundamentals, assisting dealers to improve 

the handling, treatment, storage and final 

disposal of all waste. 

Each dealership is audited four times 

a year – twice through scheduled internal 

photographic self-audits (where dealers 

provide documentation and photographic 

evidence of their environmental management), 

and twice through unannounced audits by 

an independent auditing company. TSAM 

provides dealers with guidelines to assist 

with their compliance. 

The auditing process is very strict – if a 

dealer is weak on one fundamental, they fail 

their entire compliance audit. TSAM keeps 

records of dealer compliance and requests 

action plans indicating when the nonconformances 

will be rectified. 

The reduced dealer compliance in FY09, 

reflected in Figure 34, was a result of the 

introduction of a stricter, independent and 

unannounced auditing process during the 

year. 

No. of dealers 

250 

200 

150 

100 

50 

0 

Figure 34 

Compliance to DERAP (TSAM audit results) 

211 209 206 

156 165 


Actual Target 

147 


Dealer treatment of hazardous waste – A contractor has developed and patented an oil fi lter crusher for maximum 

recovery and recycling of old oil. It is also possible to recycle the crushed steel oil fi lter (pictured) itself, which is melted 

and reused. 

Dealer Environmental Risk Audit Programme 

Fundamental requirements Explanation 

Assigned environmental Each dealer must have a management representative and a coordi- 

staff 

nator trained as Environmental Officers. Their role is to monitor and 

manage the dealer’s significant environmental aspects. 

Waste treatment 

Key staff members at dealerships have to sign this declaration, 

declarations 

committing to reducing and reusing waste, and proper disposal. 

Treatment of hazardous Hazardous waste generated at dealers includes waste oil and oil filters, 

waste 

coolant and batteries. This waste needs to be stored safely and either sold 

to reputable recyclers or disposed of at approved disposal sites/facilities. 

Documentation confirming the safe disposal of waste generated must be 

available for audit purposes and legal compliance. 

Proper drainage water Water used to wash workshop floors and vehicles must flow via an oil-water 

treatment 

separator before being released to the sewerage system. Dealer operations 

and facilities must ensure that storm water is not contaminated. 

Proper 

HFCs and CFCs are emissions that damage the ozone layer, and 

hydrochlorofluorocarbon are found in air-conditioning gas. Dealers must recover and properly 

(HFC)/chlorofluorocarbon 

(CFC) recovery 

recycle this gas, eliminating the need to dispose of it. 

Table 17 

Suppliers 

TSAM issues the Green Purchasing Guidelines 

to all suppliers on an annual basis. This 

ensures that all suppliers are aware of TSAM’s 

requirements i.e., ‘complying with the applicable 

laws, regulations and social norms, and 

consideration for the environment’. 

TSAM expects suppliers to: 

• Be ISO 14001 compliant; 

• Sign declarations confirming that their 

products are free of substances of 

concern; and 

• Provide Material Safety Data Sheets for 

all chemicals supplied to TSAM. 

ISO 14001:2004 – supplier certifi cation status 

% of suppliers certifi ed 

100 

90 

80 

70 

60 

50 

40 

30 

20 

10 

0 

Figure 35 

73% 

FY08 FY09 

Supplier certifi cation 

ISO 14001:2004 is an environmental 

management standard which specifies a set 

of environmental management requirements 

for environmental management systems. This 

assists TSAM and its suppliers to improve their 

environmental performance. TSAM aims to have 

100% supplier certification, and achieved 87% 

certification in FY09, up from 73% in FY08. 


87%


Risk reduction activities 

Pokayoke Pit Project 

Pokayoke is a Japanese term, which loosely 

translated means a ‘foolproof back-up’. The 

Pokayoke Pit Project was initiated in 2008 

to reduce the risk of accidental spillages of 

contaminated waste water from TSAM’s 

manufacturing facility into the stormwater 

drainage system, which feeds into the canals 

surrounding the Prospecton Plant and then 

into the nearby Isipingo River. 

The project was initiated following a 

number of incidents in FY06 and FY07 which 

resulted in effluent spills into the storm water 

system. 

The aim of the project was to provide a 

back-up ‘safety net’ system that would contain 

accidental spillages from high risk areas of the 

plant. The Pokayoke Pit containment system 

involves the construction of underground 

waste water storage pits that are linked to 

cut-off trenches constructed around high risk 

areas. These trenches, coupled with bunds, 

are strategically positioned to capture and 

direct any effluent spills into the Pokayoke 

Pits before they reach the stormwater 

drainage system. The spilled waste water is 

pumped from the Pokayoke Pits back into the 

effluent system and then to the Waste Water 

Treatment Plant, where it is treated before 

being released into the municipal sewerage 

system. 

The project scope included the main 

Waste Water Treatment Plant, Press Plant, 

Resin Plant and Paint Plant. 

The Waste Water Treatment Plant 

had two aspects; secondary containment 

and emergency storage. Secondary 

containment involved the construction 

of cut-off trenches around the perimeter 

of the plant and linked to Pokayoke Pits. 

Emergency storage required a change in 

operational procedures and the using of one 

receiving dam only for normal operations 

while the second dam remains as a backup 

for emergency conditions. A high level 

link between the two dams that can handle 

maximum inflow volumes of 91m3 /hr was 

constructed for such emergencies. 

The Press Plant had an epoxy-coated 

bund constructed around the existing effluent 

pit, the existing effluent pump was upgraded, 


Resin Plant Pokayoke Pit. The trench, coupled with bunds, captures and directs any effluent spills into a waste 

water storage pit before they can reach the stormwater drainage system. 

an additional back-up pump installed and a 

dedicated effluent line from the Press Plant 

to the Waste Water Treatment Plant was 

constructed. 

The Resin Plant improvements included 

the construction of a 19m3 Pokayoke Pit linked 

to the existing effluent pit, the construction 

of an epoxy-coated bund around both pits, 

upgrade of the existing effluent pump and 

the installation of a back-up effluent pump. 

High-level alarms in the pits are linked to 

the Press and Resin Plant offices, as well as 

plant surveillance. 

The Paint Plant had four aspects to 

the project. Chemical offloading areas saw 

the construction of cut-off trenches, bunds 

Pipe Bridge Project 

TSAM identified a risk regarding pipes 

carrying bulk fuel. The pipes ran under the 

road, onto the roof and into the plant. There 

was no easy access to the roof to inspect 

the pipes, and any leaks would not be 

contained. 

TSAM implemented the following 

corrective actions: 

• Two pipe bridges were installed, each 

with a foot bridge to allow for inspections 

of the pipelines along the bridge and on 

the roof; 

• Underground pipes were replaced 

with above ground pipes placed in 

and sumps linked to effluent pit areas. 

All entrances and exits were re-assessed 

with some being bricked-up to improve 

containment. At all other doors, sealed bunds 

constructed to withstand impacts of vehicular 

traffic were installed. 

The bunding at the ED/Phosphate and 

Degrease process areas was raised and sealed 

with chemical-resistant epoxy coating. 

At the sludge pool area bunds and cut-off 

trenches were constructed. New centrifugal 

pumps were installed and linked directly to 

the effluent pit along the east wall. 

Construction work started in August 2009 

and the project was completed in March 

2010. 

Above ground pipes have been placed in 

containment trays. 

containment trays within the pipe 

bridge, with drainage into the bulk tank 

bunded areas, so any leaking product 

can be contained; and 

• Bulk fuel pipelines were colour-coded 

for ease of identification.

Greening activities 

National Arbor Week 

National Arbor Week is celebrated every year during September, 

and serves to promote awareness of the need to plant and maintain 

indigenous trees throughout South Africa, especially for the many 

disadvantaged communities living in barren areas. 

TSAM planted trees, including the tree of the year Haleria lucida, 

on 4 September 2009 to celebrate National Arbor Week. Delegates 

representing senior management, employees and unions attended 

the event. TSAM handed out more than 1 000 small indigenous tree 

seedlings to employees from the Prospecton plant to plant at their 

homes, and to three schools around Durban. 

Plant Greening Project 

TSAM planted 200 trees in specific areas around the Prospecton 

Plant as part of a greening campaign that will benefit the whole 

neighbourhood. 

200 indigenous trees were planted around the Prospecton Plant. TSAM planted indigenous trees to celebrate National Arbor Week. 

Raising environmental awareness 

The TSAM Safety, Health �� 

� 

and Environment (SHE) 

� 

�� 

� 

� � � �� 

The theme of this issue of ECO Awareness is Significant Environmental Activities / Processes. 

Department regularly releases 

All our production processes have 

the potential to have one or more of 

the following impacts on the 

environment: 

Eco Awareness newsletters 

o Noise 

o Waste water 

o Landfill waste 

o Ground and surface water 

pollution 

o Air pollution 

as part of a drive to inform and 

TSAM has through its ISO 14001 

Environmental Management System 

(EMS) conducted a risk assessment 

of all possible environmental impacts 

in all areas under normal operating 

educate TSAM employees and 

conditions, abnormal conditions (e.g. 

breakdowns / shutdowns) and 

emergency situations (e.g. spillages / 

floods) to identify those impacts 

which have a significant effect on the 

environment. 

contractors about environmental 

There are a number of significant environmental activities / process areas on site. They are identified through 

‘significant process signage’ and the equipment in the significant areas is identified by ‘significant equipment 

signage.’ 

The following is a list of activities / processes generally considered to be 

matters. The newsletters also 

environmentally significant: 

o All activities / processes which pose a contamination risk to storm water and 

waste water systems 

o Chemical storage and offloading areas 

seek to inform employees and 

o Underground and aboveground bulk fuel storage tanks 

o Chemical process tanks 

o Paint spray booths and sludge pools 

o Waste water sumps and pits 

o Waste water treatment plant 

o Hazardous waste areas. 

contractors about significant 

Significant environmental activities / process areas are controlled through work 

instructions, training of employees and contractors working in these areas and 

through inspection checks. These controls are continuously being improved 

upon to reduce the environmental impacts and the risk of environmental 

incidents. 

environmental activities and 

Please report any leaks, spillages or overflows observed in these areas to the 

Environmental Champion responsible for your department or to the SHE Department. 

processes and how TSAM seeks 

to mitigate environmental impacts 

through them. 

�� 

�� 

�� 

�� 

�� 

Toyota Zone, the TSAM corporate magazine with a circulation 

of 35 000 copies, releases a ‘green edition’ once a year. The whole 

edition focuses on sustainability and environmental issues, and is 

printed on environmentally friendly paper. TSAM aims for at least 

one environmentally focused article to be featured in each edition 

of the magazine. 

Appendix 

Status of ISO 14001 certification 

The TSAM production 

facility was certified 

compliant to the ISO 14001 

EMS standard in 2002 and 

has retained its certificate 

ever since. Sandton 

achieved certification for 

the first time in 2004. 

Over the years, both 

the TSAM production 

facility and Sandton have 

maintained certification. 

Within the reporting period 

the TSAM production 

facility was recertified in 

2008 and Sandton was 

recertified in 2009. 



SOCIAL ASPECTS 

Customer satisfaction 

TSAM uses the Synovate Competitive 

Customer Satisfaction Index (CCSI) to 

gauge whether customer requirements are 

being met. Synovate revised this survey in 

January 2009, and it is now called the 

Competitive Customer Experience (CCE). 

Toyota dominated this survey in FY09. 

Toyota excelled in the Synovate Quality 

Awards 2009, achieving gold awards for 

customer satisfaction when purchasing 

and servicing passenger vehicles and light 

commercial vehicles. Toyota also performed 

well in the vehicle segment rankings, with the 

Yaris T1, Yaris Sedan, Corolla, Prado and Hilux 

all being ranked highest in their respective 

segments. 

Another customer satisfaction rating system, 

the JD Power and Associates 2008 South African 

Customer Satisfaction Index (CSI) Study ranked 

Lexus as the top vehicle in terms of new-vehiclebuyer 

satisfaction. Lexus also performed well in 

the four ranking sections, namely: vehicle quality 

and reliability; vehicle appeal; cost of ownership, 

which includes fuel consumption, performance 

and cost of service/repair; and dealership service 

satisfaction. The Toyota Hilux received an award 

in the One-Ton Pick-up segment. 

There were no incidents of non-compliance 

with regulations and voluntary codes during 

the reporting period concerning marketing 

communications, including advertising, 

promotion and sponsorship. A formal customer 

complaints procedure is in place that operates 

via a centralised customer contact centre. 


TSAM exists because of people, and people are at the core 

of everything the company does and achieves. The Founding 

Principles are all about the contribution that the business can 

Relations with Customers 


make to economic and social development, to ‘enhance the quality of 

life everywhere’. This section covers TSAM’s activities as they relate to 

customers, employees, suppliers/partners, communities and stakeholders. 

Delivering fi rst-class customer service is crucial to TSAM’s ongoing success in the South 

African automotive industry, and is a key requirement for sustainability. 

2006 2007 2008 

GOLD GOLD GOLD 

GOLD GOLD SILVER 






Figure 36 

Figure 37 

2006 2007 2008 


SILVER GOLD GOLD 



Figure 38 

Customer satisfaction when purchasing a Passenger Vehicle – 2009 

BMW 93.0 

Mercedes-Benz 92.7 

Nissan 92.6 

Toyota 92.2 

Audi 92.0 

Volvo 92.0 

Volkswagen 91.9 

2009 

GOLD 

GOLD 

GOLD 

GOLD 

GOLD 

GOLD 

GOLD 

Source: Synovate Quality Awards 2009. These results are based on research conducted from January 2008 - December 2008. 

Some brands are not included in this study due to non-participation or small sample size. 

Customer satisfaction when purchasing a Light Commercial Vehicle – 2009 

2006 2007 2008 



GOLD SILVER GOLD 

GOLD SILVER SILVER 

Figure 39 

2006 2007 2008 

SILVER SILVER GOLD 



SILVER GOLD SILVER 


GOLD SILVER BRONZE 

SILVER SILVER BRONZE 

Customer satisfaction when servicing a Passenger Vehicle – 2009 

Nissan 

Toyota 

Mitsubishi 

Isuzu 

90.3 

90.5 

91.4 

91.7 

2009 

GOLD 

GOLD 

GOLD 

GOLD 



Customer satisfaction when servicing a Light Commercial Vehicle – 2009 


Nissan 

Mitsubishi 

Isuzu 

Nissan 

Mitsubishi 


Audi 

Chevrolet 

BMW 

Mazda 

85.5 

84.6 

83.8 

82.3 

81.1 

80.9 

80.7 

82.2 

2009 

84.2 GOLD 

83.8 GOLD 

83.8 GOLD 

GOLD 



2009 

GOLD 

GOLD 

GOLD 

SILVER 

SILVER 

SILVER 

SILVER 


Some brands are not included in this study due to non-participation or small sample size.

CCE – Overall Index Passenger Vehicles 2010 

Jan - Jun 2009 

Chev 


MB 

Nissan 

CCE – Overall Index Light Commercial Vehicles 2010 

July - Dec 2009 


Opel 

Isuzu 

Ford 

83.5 

87.1 

86.8 

89.8 

70 75 80 85 90 95 

% 

87.6 

60 65 70 75 80 85 90 

89.7 

89.3 

88.8 

Figure 40 Source: Synovate Competitive Customer experience 2010. 


Chev 

VW 

MB 


As from mid-2009, manufacturers were divided into gold, silver and 

bronze bands. 


Nissan 

MB 

Isuzu 

% 

CCE – Overall Index Passenger Vehicles 2010 

Jul - Dec 2009 

60 65 70 75 

% 

80 85 90 

87.3 

86.8 

86.3 

85.8 

65 70 75 80 85 90 

% 

89.1 

88.8 

88.2 

88.2 

CCE – Overall Index Light Commercial Vehicles 2010 

Jan - June 2009 



As from mid-2009, manufacturers were divided into gold, silver and 

bronze bands. 

Integrated safety management 

Corporate Social Responsibility is the basis of 

all TSAM’s business activities, and Toyota’s 

products are global leaders in safety measures. 

TSAM addresses safety through an integrated 

approach that focuses on the vehicles 

themselves, the driver’s understanding of 

the vehicle, driver, passenger and pedestrian 

behaviour, and environmental conditions. 

TSAM’s ultimate aim is for a mobile society 

with zero traffic accidents. 

As part of this global initiative, TSAM 


Improving quality awareness 

Quality Month 

TSAM introduced Quality Month in September 

2009. This was an initiative to increase 

quality awareness among all employees in 

preparation for a volume increase in October 

2009. TSAM’s objectives included: 

• Reinforcing a commitment to quality and 

teamwork; 

• Encouraging two-way communication 

• 

in a positive and motivating manner in 

support of production activities; 

Encouraging employees to strive towards 

being the best plant in terms of quality 

performance; and 

• Rewarding and recognising outstanding 

effort. 

Management communicated the quality 

performance of the company, and each shop, 

to employees weekly. TSAM also conducted 

a number of campaigns to encourage a 

sense of achievement and pride in Toyota’s 

product. These included creating slogans, 

running competitions and other awareness 

initiatives. 

Quality Circles 

TSAM’s Quality Circles (QC) strategy is aligned 

to TMC’s, with a global target of having 100% 

of all production team leaders and members 

participating in at least one QC activity every year 

by 2015. These activities focus on environment, 

health and safety improvements, workplace 

improvements, process improvements and 

has introduced Toyota Advanced Driving 

(TAD), which gives customers access to the 

latest technologies and courses available to 

improve their driving skills. As part of TSAM’s 

moral and business responsibility to promote 

safe driving, other courses are also offered to 

customers, namely Introductory and Advanced 

4x4, Onroad/Offroad, Defensive and Tactical 

Driving, Dynamic Handling/High Performance 

and Hijack Prevention training. While the TAD 

Head Office is in Gauteng, courses are carried 


During Quality Month, employees created slogans 

about quality commitment. Prizes were awarded for 

the best slogans. 

quality improvements. 

The QC process helps teams to select a 

problem to tackle, how to get to the root cause 

of a problem and gain a true understanding 

of it. The circle members then implement the 

countermeasure and check the outcome to 

ensure that the problem has been eliminated. 

The aims of QC activities are: 

1. To improve all members’ capacity and 

involvement to enable them to experience 

self-fulfilment; 

2. To encourage respect for others that leads 

to the creation of proactive workplaces 

that are worth working in; and 

3. To improve workplace performance and 

thereby contribute to the company’s 

development. 

The top teams from all the divisions get an 

opportunity to present their activity to TSAM’s 

top management. The team with the best activity 

is then selected to represent TSAM at TMC QC 

conventions in Japan or Europe. 

out nationwide and TAD is involved with 

training in six different African countries. 



Relations with Employees 

Sharing the Toyota Way 

The Toyota Way, supported as it is by the twin 

pillars of ‘Respect for People’ and ‘Continuous 

Improvement’, provides a framework for the 

values that govern the way Toyota people go 

about their business. The Guiding Principles 

also allude to the fostering of a corporate 

culture that ‘enhances individual creativity 

and teamwork’, ‘mutual trust’ and ‘respect 

between labour and management’. 

This ethos of mutual respect is seen as 

crucial to the continuing success of TSAM, and 

is reinforced by competitive remuneration and 

employee benefits, recognition and reward 

for effort, open channels of communication 

and structures promoting good management/ 

labour relations. 

Health and safety of employees and 

contractors is of paramount importance, with 

programmes in place to ensure a healthy, 

motivated and productive workforce. 

In the South African context, TSAM has 

an obligation to promote broad based black 

economic empowerment (BBBEE) in the 

interests of nation-building. Thus there is a 

special focus on Employment Equity (EE) in 

the workplace, which is a key component of 

BBBEE. 

Total employment 

The economic recession and resultant drop in 

production over the reporting period resulted 

in a 12% reduction in total employment from 

9 089 in FY08 to 7 934 in FY09. 

This was achieved by not renewing the 

contracts of temporary employees, and 

a number of salaried staff took voluntary 

separation packages. There were no 

retrenchments. 

The majority of TSAM employees 

are based at the manufacturing plant at 

Prospecton, and the balance at the marketing 

offices in Sandton. 


Success in a competitive business such as automobile manufacturing cannot be achieved without 

a motivated, committed and unified workforce that is focused on achieving common objectives. 

TMC set the tone with the Guiding Principles and the Toyota Way, and TSAM carries these values 

through into its daily operations, which is borne out by the company’s ongoing success. 

Total workforce by employment type, 

employment contract and region 

Payroll area FY08 FY09 

JHB: Salaries 668 645 

JHB: Hourly 322 351 

DBN: Salaries 1 908 1 746 

DBN: Hourly 6 113 5 129 

Contractors1 78 63 

Grand Total 9 089 7 934 

1 Refers to contractors paid through a third party (eg. agency) 

or invoice 

Table 18 

Employee turnover 

Staff turnover in FY08 was high at 21%, 

but dropped to 12% in FY09. The highest 

turnover rate occurred in the male 26-30 year 

age group. This is lower than the employee 

turnover rate experienced by other Original 

Equipment Manufacturers (OEMs). 

However the high turnover rate among 

technical experts, specialist and designated 

artisans in particular, remains an area of 

concern. This must be seen in the context of 

an increasing skills shortage being experienced 

in South Africa generally, especially in terms of 

technical expertise (artisans and engineers). 

Total number and rate of employee turnover by 

age group and gender for FY08 

400 

350 

300 

250 

200 

150 

100 

50 

0 

36 

Figure 44 

308 

70 

352 

44 

267 

25 

123 

21 

18-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 

99 

Age group 

7 

Female Male 

89 

9 

75 

5 

70 

6 

86 

Benefits and remuneration 

The Motor Industry Bargaining Council sets 

the local entry-level minimum wage for each 

region in South Africa. In FY08 the TSAM 

minimum wage for Skill level 1 was R29.33 

per hour, which is 56% more than the local 

entry-level minimum wage. In FY09, this 

increased to R31.53 per hour, also 56% more 

than the local equivalent. 

Ratio of TSAM entry-level wage to local 

minimum wage 

56% higher than 

minimum wage 

Table 19 

FY08 FY09 

Comparison of TSAM entry-level wage to local 

minimum wage at significant locations of 

operation 

TSAM minimum wage for 

skill level 1 

Local* minimum wage for 

comparable skill level 

56% higher than 

minimum wage 

FY08 FY09 

R29.33 R31.53 

R16.43 R17.66 

*There may be regional differences for ‘local minimum wage’; 

this report uses ‘Highveld Region’ data. 

Table 20 

Total number and rate of employee turnover by 

age group and gender for FY09 

400 

350 

300 

250 

200 

150 

100 

50 

0 

16 

Figure 45 

65 

33 

168 

29 

105 

20 

67 

7 

18-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 

81 

Age group 

9 

Female Male 

96 

10 

89 

11 

74 

4 

86

Full-time employees enjoy a 13 th cheque 

bonus, Masibambane agreement bonus (paid 

on achievement of a certain production or sales 

related activity), provident fund and medical aid. 

TSAM has introduced a defined contribution 

scheme for all new employees that join the 

company. This scheme pays a contribution to 

an individual’s account every month, which is 

then invested, the returns of which are credited 

to the individual’s account. Existing employees 

can choose to switch to this scheme, or remain 

on the old defined benefit pension scheme, 

which pays out a fixed amount to the retiree 

every month according to the numbers of years 

worked and salary at retirement. 

Recruitment 

Formal recruitment processes are in place for internal 

appointments, external appointments and temporary 

staff. These procedures have timeframes and 

turnaround times, all of which are linked to defined 

tasks, communication routes and requirements. 

Performance management 

TSAM has rolled out a performance management 

process over the last three years. The 

process started in FY08 with salaried employees 

in Bands 10-11 and upward receiving performance 

and career development reviews. 

Reviews were introduced to Bands 8-9 and upward 

in FY09, hence the percentage of employees 

receiving reviews doubled between FY08 

and FY09. Reviews will be extended to Bands 

5-7 in FY10. The goal is for 100% of salaried 

employees to receive performance and career 

development reviews in FY10 and beyond. 

Percentage of salaried employees receiving regular 

performance and career development reviews 

FY08 FY09 

34.5% 70.8% 

Table 21 

Overtime 

Benefits Permanent 

employee 

(salaried) 

Stipulated work hours per week and average hours worked overtime in production 

Overtime hours worked 

The majority of TSAM employees are based at the manufacturing plant at Prospecton, Durban. 

Permanent 

employee 

(hourly) 

Temporary 

employee 

(hourly) 


Temporary 

employee 

(salaried) 

Retirement fund ✓ ✓ ✓ x 

Medical aid ✓ ✓ ✓ x 

Bonus – 13 th cheque ✓ ✓ ✓ x 

Leave ✓ ✓ ✓ ✓ 

Hampers – year-end x ✓ ✓ x 

Canteen – subsidy ✓ ✓ ✓ ✓ 

Staff car purchase ✓ ✓ ✓ ✓ 

Study assistance scheme ✓ ✓ x x 

Lease vehicle ✓ ✓ x x 

High school assistance ✓ ✓ x x 

Tertiary bursary ✓ ✓ x x 

Group personal accident ✓ ✓ ✓ ✓ 

U.I.F. ✓ ✓ ✓ ✓ 

Long service award ✓ ✓ x x 

Incentive bonus ✓ ✓ ✓ x 

TSAM has a formal overtime policy for salaried and hourly staff. TSAM has a stipulated 40-hour work week, with an average of six hours per 

person per week spent on production overtime. Reduced production in FY09 resulted in a reduction in overtime hours worked. 

FY08 FY09 

Item No. of hours Employees No. of hours Employees 

Total salary overtime hours worked 385 053.90 2 864 204 838.04 2 625 

Total hourly overtime hours worked 1 567 223.97 7 715 1 047 304.56 6 016 

Total overtime hours worked 1 952 277.87 10 579 1 252 142.60 8 641 

Average weekly overtime hours worked 37 543.81 11.27 24 079.67 14.35 

Table 23 

Table 22 

Percentage of employees not managed on an 

hourly basis with overtime compensation schemes 

FY08 FY09 

Total employees 10 871 9 039 

Total S5-10 2 864 2 625 

% Employees non-hourly 

with overtime schemes 

26.35% 29.04% 

Table 24 The variance in total employee numbers quoted in 

Tables 23 and 24, and Table 18 on page 38 is due to the 

fluctuation in employee numbers over the reporting period. 



Human rights 

TSAM’s commitment to upholding human 

rights and respecting the law of the land is 

enshrined in the Guiding Principles. 

The company does not tolerate 

discrimination of any kind, does not use or 

tolerate any form of forced or child labour, 

provides fair working conditions, maintains 

a safe and healthy working environment, 

enhances communication and dialogue 

with employees, and builds relations based 

on mutual trust and responsibility. 

TSAM encourages open communication 

in order to resolve workplace 

issues between team members or between 

workers and management. Where 

employee issues cannot be resolved by 

line management, these can be taken 

through the various dispute resolution 

mechanisms to be addressed. 

Empowerment and Employment Equity 

Following the advent of democracy in 

South Africa in 1994, there has been broad 

agreement between business, government 

and civil society over the need to promote 

broad based black economic empowerment 

(BBBEE) in the interests of nation-building. 

A key component of this strategy is the 

issue of employment equity (EE) which 

requires business to work towards achieving 

equity in the workplace in order to correct past 

racial and gender imbalances. The EE target 

is to achieve a workforce that is representative 

of the racial and gender demographics of the 

broader society. 

TSAM’s EE plan was first drawn up in 

1998. The ultimate objective of this plan is 

to achieve full representivity, and progress is 

carefully monitored. 

As can be seen from Table 28, upper 

management positions are mainly held by 

white males. Like other heavy industries 

in South Africa, TSAM struggles to attract 

female staff in all positions. However the 

proportion of female to male staff improved 

slightly from 15.5% in FY08 to 16.5% in FY09 

(see Table 27). 

The racial profile of middle, senior and 


Mechanisms in place to deal with employee 

grievances and complaints include: 

• Confidential line management procedures; 

• The Whistle Blowing Policy; and 

• The Employee Assistance Programme, 

which includes a counselling facility. 

There were no incidents of human rights 

abuses or unfair working practices recorded 

during the reporting period. 

Human rights and fair working practices 

FY08 FY09 

Incidents of discrimination 0 0 

Operations identified in which the 

right to exercise freedom of association 

and collective bargaining 

may be at significant risk 

0 0 

Incidents of forced or child labour 0 0 

Incidents of violations involving 

rights of indigenous people 

Table 25 

0 0 

top management is also skewed, largely a 

result of South Africa’s history. Once again 

a shortage of technical skills in South Africa 

remains a challenge in efforts to attract 

and retain skilled staff from the previously 

disadvantaged groups. 

TSAM adjusted the EE plan in 2009, 

setting stiffer targets for the years 2010-2012 

regarding racial representivity, and this is 

being implemented in a phased approach. 

There are a number of programmes in 

place at TSAM which contribute to achieving 

EE targets. These include a Graduate 

Trainee Programme which seeks to identify 

and recruit bright young graduates with high 

potential. The Performance Management 

Process is an internal programme that 

provides additional coaching, mentoring 

and career planning for employees with high 

potential. The Management and Executive 

Development Programmes fulfil a similar 

function. 

Employment equity is a business strategy 

that strives to ensure that South Africans 

from all cultural backgrounds are able to both 

participate in, and benefit from, the activities 

of the business in a fair manner. 

In FY08 and FY09 TSAM trained 2% and 

6% of employees respectively on human 

rights issues, namely employment equity 

and sexual harassment. 

Training on human rights issues 

Preferential procurement 

FY08 FY09 

Total hours 2 040 1 984 

Employees trained 255 496 

Headcount 9 765 8 070 

Percentage of employees 

trained 

Table 26 

2% 6% 

Another key component of the BBBEE 

strategy is to promote emerging small, 

medium and micro enterprises and black 

empowered businesses. TSAM has a 

preferential procurement policy in place that 

encourages the participation of historically 

disadvantaged South Africans in economically 

beneficial activities. This is in line with BBBEE 

guidelines set by the motor manufacturing 

industry. 

TSAM’s approach is to balance the 

promotion of BBBEE without compromising 

quality, safety and cost. Thus irrespective of 

BBBEE status, all suppliers must conform 

to TSAM’s occupational health, safety, and 

environmental management standards. 

TSAM provides all relevant information 

relating to EE and BBBEE to government, as 

required of the industry.

Assembly hall door production. 

Percentage of female and male staff at TSAM by employment category 

Employee category FY08 FY09 

Female Male Female Male 

Top management 0.0% 100.0% 1.5% 98.5% 

Senior management 10.1% 89.9% 13.0% 87.0% 

Middle management 17.0% 83.0% 18.2% 81.8% 

Junior management 26.0% 74.0% 27.6% 72.4% 

Semi-skilled 3.4% 96.6% 3.0% 97.0% 

Unskilled 13.2% 86.8% 14.1% 85.9% 

Temporary 15.9% 84.1% 100% 0.0% 

Total 15.5% 84.5% 16.5% 83.5% 

*These figures do not include foreign nationals working at TSAM during the reporting period. 

Table 27 

Racial representivity at TSAM by employment category 

Employee category FY08 FY09 

African Coloured Asian White African Coloured Asian White 

Top management 1 0 2 14 3 0 7 33 

Senior management 18 3 40 117 13 2 42 91 

Middle management 107 35 219 329 113 41 234 279 

Junior management 505 121 550 345 492 102 500 318 

Semi-skilled 87 23 64 65 79 22 59 35 

Unskilled 4 683 344 576 88 4 426 295 564 95 

Temporary 1 143 44 107 107 1 0 0 0 

Total 6 544 570 1 558 1 065 5 127 462 1 406 851 

* These figures do not include foreign nationals working at TSAM during the reporting period. 

Table 28 


Salary ratio between males and 

females 

TSAM has been working to close the gap 

in the salary ratio between males and 

females. In a number of categories women 

still earn less than their male counterparts 

(see Table 29). Skill Level 00 shows the 

biggest discrepancy, with males earning 

15% more than females in FY08, and 18% 

more in FY09. 

However, this difference is due 

to permanent employees joining the 

apprenticeship programme at a higher 

agreed pay rate than external applicants. 

The internal employees were all male, 

hence the discrepancy. 

Salary ratios remain an issue of concern 

and TSAM will continue to investigate the 

cause of discrepancies, which may simply 

be a function of service time. 

Ratio of basic salary of men to women by 

employee category 

Employee category Gender FY08 FY09 

S12-13: Senior 

Female 0.95 0.94 

Managers 

Male 1.00 1.00 

S10-11: Managers Female 1.04 1.15 

Male 1.00 1.00 

S8-9: Assistant 

Female 0.94 0.92 

Managers 

Male 1.00 1.00 

S5-7: Admin/ 

Female 0.95 1.08 

Supervisors 

Male 1.00 1.00 

Skill Level 07 Male * * 

Skill Level 06 Female 0.94 0.96 

Male 1.00 1.00 


Male 1.00 1.00 


Male 1.00 1.00 


Male 1.00 1.00 


Male 1.00 1.00 

Skill Level 01 Male * * 


Male 1.00 1.00 

Learnerships: LW 00 Female 1.00 1.00 

Male 1.00 1.00 

Experiential Trainee 

Programme: P2 

Female 1.00 1.00 

Male 1.00 1.00 

Experiential Trainee 

Programme: P1 

Female 1.00 * 

*No females 

Male 1.00 

Employee categories S5-13 are salaried. The other 

categories are classified as hourly labour. 

Table 29 



TSAM’s Graduate Trainees. The Graduate Trainee Programme is a two-year programme that grooms talented young people for technical and managerial responsibility in a 

number of fields, such as engineering, purchasing and logistics. 

Training 

‘Continuous Improvement’ is one of the key 

elements of the Toyota Way. In order to 

achieve this, TSAM places a strong emphasis 

on encouraging ‘lifelong learning’ through 

education and training which provides 

opportunities for employees to improve their 

qualifications, learn new skills, upgrade 

and align their skills with new demands 

and new technologies, and to improve their 

effectiveness. It also provides opportunities 

for employees to realise their full potential, 

which adds value by reducing staff turnover 

and retaining skills and expertise within the 

organisation. 

A wide range of training programmes, 

learnerships and bursaries are offered. 

Life Skills Programmes include Self- 

Mastery and Stress Management. Leadership 

programmes include Managing Employee 

Effectiveness, Supervisory Skills, and 

Leadership for Management and Shop Floor 

employees. 

Skills development training focuses on the 

Engineering Trainee Scheme, Learnership 

(Mechatronics), the Apprentice Programme, 

and Toyota-Specific Skills (Toyota Way, Green 

Areas, SHE, Quality Circles). 

TSAM encourages people to further their 


No. of people enrolled in TSAM training programmes 

Average hours of training per year per employee 

by employee category 

FY08 FY09 

Semi-skilled 20 hours 19 hours 

Skilled 11 hours 12 hours 

Professional 10 hours 12 hours 

Senior management 11 hours 12 hours 

Top management 14 hours 13 hours 

FY08 FY09 

Automotive Manufacturing Industry Certificate Module C1 to C8 (NQF 2) 44 268 

Team Leader Training (NQF 4) – Toyota Way, Toyota Production Systems, Standardised 

Work, Understanding our Business, Supervisory Skills, Safety, Health, Environment, 

Quality Circles 

30 56 

Group Leader Training (NQF 5) – Toyota Way, Toyota Production Systems, Performance 

Management, Practical Problem Solving, Green Areas/Visual Management, Safety 

Health, Environment, Best Management Skills (200) 

11 20 

Leadership Development (NQF 7) – System Thinking, Cross Cultural Management, 

Toyota Way, Globalisation, Self Mastery, Change Management, Learning Organisation 

29 25 

Shopfloor Training – Phase one – HR Assessment, Phase Two – Company Education, 

Phase Three – Fundamental Skills, Phase Four – Knowledge, Phase Five – 

Observation Training, Phase Six – Change Implementation, Phase Seven – Roles and 

Responsibilities Training 

768 675 

Apprentice Training 60 61 

Learnerships 300 400 

Graduate Trainees 37 64 

Albert Wessels Trust – Students 175 172 

High School Assistance Programme – Learners 949 727 

Toyota Teach (High School) – Educators 16 16 

Employee-dependant bursaries – Children of TSAM employees 

Table 30 

25 25 

Table 31 

studies in fields relevant to their jobs through 

a study assistance scheme that is available 

to all employees. Tertiary Bursaries are 

managed through the Albert Wessels Trust 

Bursary Fund. 

Through its in-house training facility, 

the Toyota Academy of Learning for Africa, 

TSAM contributes to the skills development 

of employees by focusing on training for 

skills improvement. These include techno-

logical change within the manufacturing 

environment, change in legislation, basic skill 

deficiencies and job redesign. 

Where relevant, training programmes 

are aligned with the National Qualification 

Framework, which enables participants to 

build on previous courses completed to 

improve their formal education qualifications. 

TSAM runs a seven-month Learnership 

Programme in partnership with the 

Mechanical, Engineering and related 

Sector Education and Training Authority 

(MERSETA), a government initiative. The 

purpose of the learnership is to provide a 

feeder scheme into TSAM, helping to combat 

low levels of education in team members 

and to help with the issue of an aging 

workforce. 

Learnership students are exposed to 

theoretical and practical elements of learning 

within the programme. Since the inception of 

the programme in 2005, 60% of learnership 

students have been placed within TSAM. 

Labour relations 

TSAM participates actively in internal as 

well as external labour structures, through 

the National Bargaining Forum and 

through Nedlac. 

The Human Resources Department 

is responsible for managing relationships 

with unions, and this enables TSAM to 

deal with internal issues effectively. TSAM 

engages the following two unions: 

Learners receive practical training in the electrical workshop. 

UASA MANAGEMENT NUMSA 

Salaried Staff policy 

related consultations – 

Quarterly meetings 

Figure 46 

GSSF 

Group Salaried Staff 

Consultation Forum 

HR/UASA 

Monthly Meeting 

• National Union of Metalworkers of South 

Africa (NUMSA) – TSAM conducts 

fortnightly, monthly and quarterly 

meetings with NUMSA. The majority 

of TSAM employees managed on an 

hourly rate must be NUMSA members. 

TSAM discusses terms and conditions 

of employment with NUMSA, and 

consensus is reached on issues prior to 

implementation; and 

• United Association of South Africa 

CNC 

Central Negotiating 

Committee 

MIRC 

Manufacturing Industrial 

Relations Committee 

Divisional Management/ 

Shop Steward Meeting 

Departmental 

Management/Shop 

Steward Meeting 

Hourly policy related negotiation and 

consultations – other relevant matters 

Quarterly meetings 

All operational issues affecting 

Durban Manufacturing and 

unresolved shopfloor issues – 

Monthly meetings 

All operational issues affecting the 

specific Division – Monthly Meetings 

All operational issues affecting 

the specific Department – 

Fortnightly Meetings 


(UASA) – TSAM conducts monthly and 

quarterly meeting with UASA. At least 

30% of staff in Bands 5/6/7 to Band 

10/11 must be UASA members. UASA 

does not have bargaining rights, but 

TSAM discusses issues with them in 

order to achieve consensus. 

There were no incidents in which the right 

to exercise freedom of association and 

collective bargaining was at significant risk 

during the period covered by this report. 

78% and 77% of employees were covered 

by collective bargaining agreements in FY08 

and FY09 respectively. 

TSAM provides a minimum notice period 

of three months to employees regarding 

technological changes to operations. This is 

included in the collective agreements. 




Recognising excellence 

TSAM celebrates Secretaries’ Day 

TSAM celebrated the annual National 

Secretaries’ Day on 1 September 2009. 

Fifty secretaries, together with their 

managers, attended functions in Durban 

and Johannesburg. Each secretary was 

presented with a wristwatch to thank 

them for their hard work and dedication. 

Secretaries are multi-skilled and are a vital 

link in the business chain. 

The event gave the managers the 

opportunity to meet and get to know other 

departmental secretaries. The main aim of 

the event was to acknowledge the value of 

the role played by secretaries, and to motivate 

them and encourage teamwork. 

Lead the Way Awards 

TSAM introduced the quarterly and annual 

Lead the Way Awards in 2008 to publicly 

acknowledge and express appreciation for 

exceptional work done by TSAM marketing 

employees. Employee recognition is 

important because it: 

• Lets employees know that their work is 

valued and appreciated; 

• Gives employees a sense of ownership 

and belonging in their place of work; 

• Improves morale; 

• Enhances loyalty; 

• Helps build a supportive work 

environment; 

• Increases employee motivation; and 

• Improves employee retention. 

Employees are recognised in the following 

categories: Kaizen, Customer Service, 

Leadership and Best Team. 

Direct line managers nominate 

employees, and a selection committee 

consisting of all General Managers reviews 

the nominations. Quarterly prizes are 

awarded to deserving employees, and an 

overall winner is chosen each year. 


Secretaries were acknowledged for the valuable role they play at TSAM. 

Ekiden Road Race 

TMC has hosted the Ekiden Road Race in 

Japan annually since 1947. The race aims 

to encourage teamwork among TMC 

employees. Each year TMC invites 

international affiliates to participate by 

sending a team of relay athletes to compete. 

TSAM has held an annual local qualifying 

The Ekiden Road Race aims to encourage teamwork. 

Ekiden Road Race since 2007, where top 

runners stand a chance to be selected to 

represent TSAM at the TMC race. The 

race is also a family event, and TSAM 

employees are encouraged to bring their 

families along to participate in fun events 

catering to people of all ages.

Occupational safety and 

health 

Toyota’s basic philosophy for safety 

and health 

• Safe work 

• Reliable work 

• Skilled work 

• Safe work is the door to all work. 

• Let us pass through this door. 

Eiji Toyoda 

In line with Toyota’s basic safety philosophy, 

a global priority of the company is to ‘build 

a culture/climate that enables each team 

member to think and practice safety and 

health’. 

Based on this corporate priority, the TSAM 

Hoshin (aim) is to ‘build a safe workplace and 

safety culture to achieve the zero injury target 

every day’. 

With these priorities, TSAM is striving 

to achieve a safer workplace and a safety 

culture whereby injuries are reduced, and 

safety rules are established, understood and 

respected by all employees. 

Injuries 

With the increased focus on safety, a clear 

decrease in injuries over the reporting period 

is evident. The total number of injuries has 

decreased by 46% from FY08 to FY09. At 

the start of FY09, exceptionally challenging 

frequency rate targets were established. 

Although the minor injury frequency rate was 

not achieved in FY09, there has been a steady 

improvement over the past four years. A lost 

work day frequency rate of 0.53 was achieved 

as a result of only seven lost work day cases 

during the financial year. 

A minor injury is an injury in which an 

employee is treated and is able to commence 

work immediately. A lost work day case is an 

injury in which an employee is booked off for 

one full shift or more. 

Lockout management is just one of the procedures to ensure safety in the production process. 

Injury rate calculations 

Minor injury 

frequency rate 

Lost work day case 

frequency rate 

Table 32 

50 

45 

40 

35 

30 

25 

20 

15 

10 

5 

0 

Figure 47 

47.41 

37.79 

Minor injury frequency rate 

35.01 

30.15 

No. of minor injuries/ 

million man hours 

worked 

No. of lost work 

injuries/million man 

hours worked 

30.15 

28.73 


Actual Target 

21.55 

16.5 

4.5 

4 

3.5 

3 

2.5 

2 

1.5 

1 

0.5 

0 

Figure 48 

Figure 49 

800 

700 

600 

500 

400 

300 

200 

100 

0 

Fatalities 

Number of injury cases 

721 

Lost work cases 


Lost work day case frequency rate 

3.81 

2.05 

2.02 

1.79 



Minor Injuries 


642 

1.53 

1.14 

Actual Target 

533 

0.7 

0.53 

290


Fatalities 

There were no fatalities at TSAM 

operations in FY08 and FY09. However 

during this period measures were 

introduced to further reduce risks 

following the two fatalities that occurred 

in prior years. 

In order to prevent similar incidents, 

countermeasures were introduced in 

both cases. Racking standards have 

been introduced to ensure that items 

are stored safely. In addition, floor 

demarcations, walkways and racking 

demarcations were introduced to further 

reduce the risk. Regarding the use of 

hydraulic lifters, contractor work permits 

have been amended to include specific 

performance expectations. A pre-use 

checklist must now be completed by 

contractors before using a hydraulic lifter 

on TSAM property. 

TSAM’s three pillar approach 

to achieving zero injury target 

In order to further improve safety, TSAM 

requires a move from a dependant safety 

culture (whereby safety is dependant on 

management/supervisory instructions or 

initiatives) to a more independent safety 

culture, whereby members value their own 

safety and start to take personal initiatives. 

The three pillars of this approach are: 

• Felt Leadership – Sustained commitment 

by all management by work and action to 

achieve target of zero injuries. 

• Safe Workplace – Create an inherent 

safe workplace where injury or disease is 

not possible. 

• Team Member Understanding and 

Participation – Achieved through 

employee participation, understanding 

and awareness. 

Felt Leadership 

Safety gates were installed plant-wide to 

demonstrate the company’s commitment 

to safety. The philosophy behind the safety 

gates is based on Toyota’s Basic Safety and 

Health Philosophy ‘Safe work is the door to all 

work’. As employees enter through the safety 

gate they are reminded to work safely. The 

Felt Leadership 

Figure 50 


AIM: 

Build a safe 

workplace and safety 

culture to achieve zero 

injury target every day 

OHSMS 

Risk Reduction 

LEGAL COMPLIANCE 

SAFETY FIRST PRINCIPLE 

Think & Practice 

Safety & Health 

safety of employees when they leave work 

is also important. Employees are therefore 

encouraged to travel home safely and share 

their Safety First commitment with their family 

members. 

TSAM also established regular health 

and safety Obheya meetings where senior 

plant management is required to provide 

regular feedback on individual plant action 

plans, health and safety performance and 

updates on the status of outstanding issues. 

These meetings provide an excellent forum 

where ideas and initiatives can be shared. 

Engaging with members on the shopfloor 

and shopfloor observations are important Felt 

Leadership activities. Each plant undertakes 

scheduled weekly management safety patrols 

and workplace safety observations which are 

supported from Group Leaders up to the 

General Manager. 

Safe Workplace activities 

TSAM conducted a drive to reduce 

STOP6 risks in FY08. STOP6 risks are the 

six risks most likely to cause serious injury, 

such as contact with vehicle and falling 

from height. TSAM identified and addressed 

11 272 STOP6 hazards, and new risk reduction 

activities were established where plants 

focused on previous injuries and the prevention 

of incidents where similar activities take place. 

Whereas previously the focus was on 

lost work day cases and serious near hits, 

TSAM now focuses on all injuries, which are 

thoroughly investigated to identify root causes 

and effective countermeasures. 

Information about incidents from within 

TSAM and from Toyota plants around the 

world is shared in order to share learnings 

and reduce risks. This Yokoten activity is 

TSAM installed 28 safety gates at each plant. 

an effective proactive approach to prevent 

similar incidents from occurring. 

Team Member Understanding and 

Participation activities 

Training 

Each plant’s safety activities are overseen 

by a Safety Champion. These Champions 

drive various initiatives such as incident 

investigations, member safety training, and 

plant awareness campaigns. To assist the 

Champions with shopfloor observations and 

activities, as well as the enforcement of safety 

rules, 53 support members were identified. 

To ensure their full understanding, the Safety 

Champions and support members received 

formal training on root cause analysis and 

the rules relating to hazardous activities/ 

machinery and control measures. Being the 

first line of management, Group Leaders 

need to understand and enforce safety rules. 

In order to do so they need to have a good 

understanding of what safety entails, and they 

therefore received training on the following: 

basic safety definitions, legal responsibilities, 

Toyota safety procedures, root cause 

analysis, importance of good housekeeping, 

hazard identification and risk assessment, 

and the rules relating to hazardous activities/ 

machinery and control measures. 

TSAM will continue to expand its safety 

training activities. 

There are many contractors on site so an 

additional training initiative was launched to 

update and completely revise the Contractor 

Induction Manual. All current contractors 

and relevant TSAM staff (Toyota contacts, 

Purchasing, Security, Maintenance, Safety 

Champions) were retrained, and all new

No. Trained 

Figure 51 

Training status of safety support members 

350 

300 

250 

200 

150 

100 

50 

0 

18 

18 

69 

40 

189 

181 

129 

114 

Mar Jun Jul Aug Sep Oct 

FY09 

Actual Target 

contractors undergo training before the 

commencement of work. 

In FY09, 146 contractors and 104 TSAM 

staff underwent Contractor Induction Manual 

training. 

Safety culture awareness 

In FY09, TSAM developed four communication 

campaigns to create safety awareness 

among all employees. The campaigns 

involved posters and communication to the 

members followed by compliance monitoring 

and reporting up to top management. 

234 

330 

228 259 

Health and Safety Structure 

348 

283 

Nov 

The structure of the TSAM Health and 

Safety organisation ensures direction 

and clear understanding of health and 

safety challenges by top management and 

participation from the top to the shop floor. 

The health and safety interests of 

all employees are covered by the Plant 

Health and Safety Committees. Elected 

health and safety representatives meet 

monthly with management, supported by 

specialised departments. This ensures 

that the health and safety concerns of 

employees are addressed and quick action 

can be taken. These meetings are also 

used to share information on incidents, 

safety rules, new policy and compliance 

matters. These meetings also include a 

safety patrol or Genchi Genbutsu activity 

to an area of concern. The Plant Health 

and Safety Committees have proven to be 

very effective in dealing with safety matters 

at plant level. 

Senior and top management at Durban 

operations meet monthly to review health and 

safety performance, discuss local and global 

incidents, and report on progress regarding 

Contact with vehicle incidents 

Barriers and walkways were installed to prevent contact with vehicle incidents. 


Areas where forklifts or tow motors are operated pose a high risk of contact with vehicles 

(24 lost work day case/minor injury incidents in 2008). TSAM undertook two activities in the 

reporting period. 

TSAM reduced the number of forklifts from 132 in FY07 to 100 in FY09. Workplace 

improvements were also implemented. These included the installation of barriers and 

walkways to separate employees and vehicles, and to provide safe areas for pedestrians. 

These activities assisted in reducing the number of ‘contact with vehicle’ incidents from 

24 in FY08 to just eight in FY09, a drop of 66%. 

safety culture improvement. This Executive 

Health and Safety Meeting is also used to 

determine policy, procedures and standards. This 

meeting is attended by the CEO and President of 

TSAM. For the Sandton operations, the activity 

is the same, the only difference being that the 

Figure 52 

HEALTH AND SAFETY STRUCTURE 

Durban Executive 

Health & Safety 

Committee 

Monthly 

CEO/President 

Board Meeting 

Quarterly 

Secretariat 

SHE Dept 

Plant Health & Safety Structures 

meeting occurs on a quarterly basis. 

The Safety, Health and Environment 

Department acts as the secretariat of the 

Executive Health and Safety Meetings and 

compiles a safety report which is presented 

at the quarterly Board meeting. 

Sandton: 

Marketing Health & 

Safety Committee 

Quarterly 



Occupational health and wellbeing 

TSAM has a comprehensive wellness 

programme which promotes good health 

and vitality among employees, eight on-site 

clinics providing primary health care services, 

and an Employee Assistance Programme. 

Comprehensive counselling and treatment 

for HIV/AIDS and tuberculosis (TB) sufferers 

is a focus. 

Compensatable diseases 

The diseases of most concern at TSAM are 

noise-induced hearing loss and occupational 

asthma. The wearing of personal protective 

equipment (PPE) is mandatory for all 

employees working in the Prospecton plant. 

The ventilation systems in the various plants 

have been improved to counter the risk of 

occupational asthma. 

Primary health care 

Eight clinics, located in Johannesburg (1) and 

Prospecton (7), provide primary health care 

services to employees, including treatment 

for chronic conditions such as hypertension, 

tuberculosis, diabetes and epilepsy. The 

health service provider is Primecure, a 

division of Netcare. 

Wellness programme 

TSAM has developed a manual for employees 

diagnosed with chronic health conditions 

such as hypertension, high cholesterol, 

diabetes, asthma or epilepsy. These manuals 

provide information on how employees can 

manage their condition and stay healthy. 

More than 540 manuals were distributed to 

employees during the reporting period, with 

each individual completing a pledge towards 

improving his/her health. 

520 

510 

500 

490 

480 

470 

460 

450 

440 

430 

420 

Figure 53 

No. of employees on wellness programme 

456 

FY08 FY09 

No. on programme 


510 

TSAM assists employees to manage chronic health conditions, such as hypertension, high cholesterol and diabetes. 

Employee Assistance Programme 

An Employee Assistance Programme (EAP) is 

in place to help troubled employees and their 

immediate family members or dependants 

to overcome personal and work-related 

problems. These problems include family 

relationships, emotional difficulties, substance 

abuse, stress, trauma and bereavement. 

Employees can access EAP through: 

• Self-referral: When an employee takes 

responsibility for their problem and seeks 

assistance. 

• Informal referral: When a family member, 

colleague or Group Leader suggests that 

the employee seeks assistance. 

• Formal referral: When an employee’s 

Group Leader, Manager or the Chairman 

of a disciplinary inquiry formally refers an

employee to EAP for a performance or 

behaviour related problem. 

There has been an increase in the number 

of employees who remained with TSAM 

following EAP intervention. 

Apart from the obvious benefits of 

contributing to a healthy, happy and 

productive workforce, another benefit of EAP 

is that employees are more likely to remain 

with TSAM following EAP intervention. 

1 000 

900 

800 

700 

600 

500 

400 

300 

200 

100 

0 

Figure 54 

Employees still in service after EAP intervention 

180 

160 

140 

120 

100 

80 

60 

40 

20 

0 

Figure 55 

1 265 

1 260 

1 255 

1 250 

1 245 

1 240 

1 235 

1 230 

125 165 

125 

78 

EAP utilisation 

165 

135 

FY08 FY09 

Formal referrals Still in service 

VCT utilisation 

1 241 

181 174 

Formal referral Informal referral Self-referral 

FY08 FY09 

HIV/AIDS, tuberculosis and 

substance abuse 

The impact of HIV/AIDS on employees, 

their families and the community is of critical 

concern to TSAM. In recent years extensive 

voluntary HIV testing and counselling services 

FY08 FY09 

No. of tests 

800 

1 263 

906 

have been offered to employees. Voluntary 

counselling and testing (VCT) continues to 

be well utilised by employees. 

TSAM has successfully maintained the 

public/private partnership with government 

in the provision of anti-retroviral (ARV) 

medication to HIV positive, uninsured 

employees. There has been a steady uptake 

of enrolment in the ARV programme, and there 

has been an increase in the number of HIV 

positive employees who have successfully 

returned to work from medical disability. 

There is also an effective TB management 

programme in place. Treatment has been 

introduced on site using the Direct Observed 

Treatment Shortcourse programme, where 

medical staff observe people taking their 

medication for TB. One key action is to 

educate employees about the linkage 

between HIV and TB, so that TB patients 

are encouraged to be tested for HIV. In the 

reporting period there has been a drop in 

reported TB cases and an increase in the 

number of TB diagnosed employees who 

have agreed to an HIV test. 

Figure 57 

TB diagnosed employees utilising VCT 

With the cooperation of unions, random gate 

tests continue at TSAM, and if workers are 

found to be under the influence of drugs or 

alcohol, TSAM renders a supportive service 

No. of cases Still in service 


Eight clinics provide primary health care to employees. 

to get these staff members onto relevant 

dependency programmes. Over the reporting 

period there was an increase in the number of 

employees who, after having been assisted, 

still remain with the company. 

TSAM conducted 105 961 gate tests for 

alcohol in FY08 and 107 349 in FY09. The 

incidence of positive gate tests has declined 

over the reporting period and there has been 

an increase in the number of employees 

referred to EAP following a positive alcohol 

test. 

Incidences of substance abuse Positive gate tests for alcohol and EAP referral 

Figure 56 Figure 58 Figure 59 

120 

100 

80 

60 

40 

20 

0 

120 

100 

80 

60 

40 

20 

0 

113 

99 

94 

63 

80 

No. of cases VCT uptake % uptake 

86 

FY08 FY09 

99 

71% 

FY08 FY09 

91 

87% 

120 

100 

80 

60 

40 

20 

0 

102 

57 

No. tested positive % referred to EAP 

FY08 FY09 


52% 

70%


Relations with Business Partners 

TSAM’s key business partners include 

suppliers, who provide components and 

materials used in the vehicle manufacturing 

and assembling process, and motor vehicle 

dealers selling Toyota vehicles into the market 

and interfacing directly with customers. 

They fufill key roles in the supply chain, 

and are required to comply with TSAM’s 

safety, health and environmental standards 

as a minimum requirement. 

TSAM undertakes risk-based supplier 

audits that include safety, health and 

environmental criteria. Suppliers are required 

to supply certificates proving that they comply 

with ISO 14001 standards, and approved 

laboratory certificates verifying the non-use 

of SOCs (please refer to page 33 for details 

regarding supplier compliance). 

Dealers have a standard environmental 

manual, and are assessed for compliance 

against Toyota’s stringent environmental 

management system (please refer to page 33 

of this report for results and details on dealer 

compliance for the reporting period). 

All dealers are required to re-examine 

their sites, and to budget for environmental 

expenditure on upgrades to meet water and 

waste management expectations. Dealers 

are also now required to report more fully 

on environmental issues, which feed into the 

global reporting system for Toyota. 

According to ECO III standards, each 

dealer must have at least one environmental 

project that is budgeted for and communicated 

to the public. For example, dealers from the 

Barloworld group focus on water issues, 

and the Imperial Strijdompark dealership 

offers clients a tree to plant for each service 

completed. 


TSAM recognises that stable partnerships create trust and lead to mutual growth 

and benefits. Relations with business partners are premised on encouraging them to 

adopt TSAM’s international standards on safety, environmental management, respect 

for people, and delivering top quality goods and services. 

Barloworld Toyota Centurion. All dealers are assessed for compliance against Toyota’s stringent environmental 

management system. 

ECO Status 

TSAM established the ECO status 

programme in 2005 in order to standardise 

and improve dealer environmental 

management. ECO I is aligned to 

the TMC Dealer Environmental Risk 

Audit Programme, and is the minimum 

environmental management requirement 

for dealers. ECO I status includes the need 

for: 

• Basic responsibilities assigned for 

environmental management at dealers; 

• Appoint person in charge of environmental 

matters; 

• Environmental policy and declare 

compliance to legislation; 

• Management of hazardous waste; 

• Management of waste water; and 

• Basic HFC/CFC recovery. 

ECO II and ECO III status requirements 

are very strict, and seek to assist dealers to 

improve their environmental management to 

the point that they can achieve ISO 14001 

certification. Some of the minimum 

requirements for ECO III include: 

• The availability of specialised kits for 

battery acid spillage; 

• Specifications for bunded areas for 

waste oil; 

• Specifications for waste separation, 

disposal and recycling; 

• Detailed environmental emergency 

plans in place; 

• A full environmental objectives and 

targets programme is in place; and 

• Only indigenous plants are used on 

site.

Global Society/Local Communities 

Corporate social activities 

TSAM’s Corporate Social Investment 

activities focus on communities located within 

a 50km radius of the Prospecton Plant in 

KwaZulu-Natal (KZN) and the Sandton office 

in Gauteng, mainly within the communities 

where the majority of the company’s 

employees reside. 

Below is a summary of projects implemented 

during the reporting period: 

Education based projects 

Rural Schools Maths, Science, Literacy 

and Technology Project 

The project focuses on developing the maths, 

science, technology and literacy skills of 

educators and learners at rural schools. In 

FY09, Ilovu Primary School was the selected 

beneficiary. TSAM made funds available for: 

• Purchasing teaching aids; 

• Purchasing library books; and 

• Organising science demonstrations. Dr 

Govender from the University of KwaZulu- 

Natal is in the process of establishing a 

science club at this school that will also 

involve other primary schools in the 

area. 

Interactive dictionaries were also donated 

to the school. These dictionaries include 

educational computer games that improve 

English literacy. Thanks to this project Ilovu 

Primary School is better equipped to teach its 

learners. 

Toyota Teach Primary Schools 

Toyota Teach aims to create a model for future 

education, working to improve teaching and 

learning by uplifting the skills of educators. 

The programme has impacted more than 40 

schools in the Durban area and benefits more 

than 1 000 teachers and 45 000 pupils. 

Once a year, the Toyota South Africa 

Foundation trustees and members visit a 

Toyota Teach School and an extra donation 



TSAM engages with key stakeholders, including local communities, in a wide range of 

activities. The aim is to contribute to the development of thriving and vibrant societies. 

Areas of focus include education, empowerment and the environment. 

TSAM supports rural schools by developing the skills of educators and providing reading material to learners. 

Stakeholder engagement 

Key stakeholders include groups, 

organisations and/or partners who have 

an influence on or who are impacted by 

TSAM’s activities and operations. The 

objective of engaging with stakeholders is 

to develop and maintain good, harmonious 

relationships and mutual understanding, and 

to contribute to the development of vibrant 

societies. It is not just an exercise in risk and 

reputation management. TSAM engages 

with the following stakeholder groups: 

• Employees and employee 

representatives; 

• Other original equipment 

manufacturers; 

• Local communities, including community 

based organisations, community 

representatives and leaders; 

• National Business Initiative; 

• Centre for Development & Enterprise; 

• KZN Donor Forum; 

• South Durban Basin Area Management 

Office; 

• National Union of Metalworkers of 

South Africa; 

• Management Committee of the Toyota 

Teach Primary Schools Project; 

• Local education institutions such 

• 

as schools, Further Education and 

Training high schools and colleges, 

training providers, and universities; 

Civil society, including non-profit 

organisations; 

• School governing bodies; 

• KZN Provincial Government 

departments, including the 

Department of Environment, Economic 

Development, and Trade and Industry; 

• Other local businesses through the 

Durban Chamber of Commerce and 

Industry; 

• Toyota Motor Corporation; 

• Toyota South Africa Foundation; 

• Service providers; and 

• The media. 



is made to assist in improving the school 

further. The Albert Wessels Trust pays half of 

the donation and TSAM the other half. The 

school then submits a business plan on the 

usage of the funds. 

The number of schools enrolled in the 

programme continues to grow, and exam 

results from these schools have been 

excellent, making them schools of choice in 

their communities. 

Rally to Read 

TSAM and partners READ Educational Trust, 

McCarthy Motor Holdings and the Financial 

Mail initiated the Rally to Read project 11 

years ago. Companies are invited to purchase 

boxes filled with books selected by READ to 

be donated to rural schools. These boxes are 

delivered to schools in all provinces annually 

in May, using Toyota 4x4 vehicles. 

Over the years the number of companies 

participating in this project has increased 

tremendously, leading to an increased number 

of rural schools and learners receiving reading 

material and teacher development. 

FET capacity building workshops 

Seven FET institutions based in communities 

surrounding the Prospecton Plant were invited 

to attend a capacity building workshop at 

TSAM. The workshop had three objectives: 

• To support local technical education 

institutions with relevant information, 

skills requirements and technological 

advancements; 

• To better understand key challenges 

at school/college level relating to the 

provision of quality technical education; 

and 

• To expose technical trainers to a 

manufacturing environment. 

A follow-up meeting was held with the same 

institutions to discuss their needs, which will 

be addressed going forward. 

Youth and skills development 

Toyota Technical Education Programme 

The Toyota Technical Education Programme 

(T-TEP) is a successful apprentice training 

programme aimed at providing technically 

minded school leavers with a career path 

within the Toyota dealer network. More 


Marelda van Staden was the first female scholar to win the annual T-TEP Skills Competition at the Toyota 

Academy. Pictured with her are, from left to right: Mr T O’Donoghue, Mr E Koyama and Mr T Molapo. 

than R2-million a year is allocated to the 

programme, which was introduced in 1990. 

T-TEP has four main objectives: 

• Recruit promising learners into the Toyota 

dealer network on an annual basis; 

• Assist selected technical institutions with 

hi-tech support and training back-up; 

• Assist young trainees that have just joined 

Toyota dealers with high quality training; 

and 

• Provide an attractive and lucrative career 

path for young people, while promoting 

loyalty to the dealer network and TSAM. 

TSAM now has 14 schools engaged in the 

programme. In FY08, TSAM opened Phoenix 

Technical School in Durban. This is the first 

dual school, running Technical and Body and 

Paint training. 

TSAM runs annual T-TEP teacher 

seminars, where educators meet to discuss 

how to better align the T-TEP syllabus with 

the school syllabus. 

A T-TEP skills competition is run annually 

at the Toyota Academy. Participants use the 

skills they’ve learnt and compete against each 

other, with the winners taking home trophies, 

certificates and prizes. In FY09 history was 

made, as the winner was a female student, 

Marelda van Staden. 

Agri SA/Toyota SA Young Farmer 

of the Year 

The Young Farmer of the Year awards, now in 

its seventh year, is jointly sponsored by TSAM 

and Agri SA. Through the competition TSAM 

and Agri SA acknowledge the important role 

played by the country’s farmers and wish to 

motivate young farmers aged between 18 

and 35 to excel in their profession. 

Finalists in the awards are evaluated on a 

number of strict criteria, including their farming 

skills and their financial and business acumen. 

Apart from being recognised as the best 

young farmer in South Africa, the winner also 

receives a brand new Toyota Hilux 2.5 D-4D 

Raised Body SRX bakkie, valued at more than 

R230 000. 

Environmental activities 

River clean-up 

In FY08, TSAM identified a heavily polluted 

section of the Isipingo River near the 

Prospecton Plant with the help of the Isipingo 

Island Institute. To improve the state of 

the river, the Prospecton CSI Department 

coordinated a clean-up project involving 

schools in the local community, and funded 

the project, supplying t-shirts, caps, cleaning 

equipment, transport and refreshments for

TSAM worked with the local community to clean up the Isipingo River. 

the participants. Some two tons of recyclable 

plastic, 21 tons of non-recyclable material, 30 

tons of rubble and 15 tons of alien vegetation 

was removed. TSAM has kept this section of 

river clean for two years. 

National Arbor Week 

Representatives from the Prospecton Plant 

planted trees at KwaGumbi Primary School 

as part of the company’s National Arbor 

Week activities, which focused on improving 

the environment and greening local schools. 

Learners from the school were encouraged 

to look after the trees and water them when 

necessary. 

Representatives from the Sandton 

office and Food & Trees for Africa, together 

with a large group of Japanese volunteers, 

distributed 600 trees to the community of 

Alexandra Extension 7 as part of their National 

Arbor Week activities. This community 

comprises low cost houses inhabited by low 

to no salaried people who formerly lived in the 

shacks and squatter camps of Alexandra. To 

date, more than 1 500 families have relocated 

to this area. 

Food & Trees for Africa 

In FY07, TSAM gave a Toyota Prius to Food 

& Trees for Africa (FTFA) for use in their dayto-day 

activities. This sponsorship continued 

in FY08, and in return FTFA provided Toyota 

with 500 trees for the company’s greening 

initiatives. 

Peace Parks Foundation 

TSAM donated two Land Cruisers to the 

Peace Parks Foundation. The foundation 

used them to assist the Zambian Government 

in undertaking two large field surveys to 

contribute to the broader understanding 


600 trees were distributed to community members in 

Alexandra. 



Toyota enjoys ‘green’ image 

In FY08, Bateleur Khanya Research 

Solutions conducted research to 

explore the public’s understanding of 

environmental issues, and to determine 

which companies they perceive as being 

the most environmentally friendly. 

Two hundred face-to-face interviews 

were conducted with potential new car 

buyers across age, gender, income and 

race demographics. The results favoured 

Toyota above all South African companies. 

27% of respondents saw Toyota as an 

environmentally friendly company and 23% 

saw Toyota as a leader in environmental 

projects – 6% and 7% higher respectively 

than the companies in second place. 

Respondents cited Toyota’s efforts to 

reduce pollution and the company’s 

commitment to producing hybrid and fuelefficient 

vehicles as the reason for its status 

as an environmentally friendly company. 

Toyota also dominated the automotive 

sector, with 69% of respondents seeing 

Toyota as the most environmentally friendly 

automotive company and 72% seeing Toyota 

as the leader in environmental projects in the 

automotive industry. 



of the Kavango-Zambezi Transfrontier 

Conservation Area, as well as to develop a 

fire management plan and future climate 

change mitigation initiatives. These surveys 

are vital to the area’s future. 

TSAM partners with 50/50 

TSAM partnered with SABC 2 television show 

50/50 by sponsoring a Land Cruiser 70 station 

wagon for production purposes. 50/50 has 

been on the air for 24 years and is dedicated 

to conservation. TSAM also sponsored the 

show with a Hilux 3.0 D-4D double cab 4x2 

as a prize for a viewer’s competition. The 

addition of the Land Cruiser 70 station wagon 

into the production fleet is a confirmation of 

TSAM’s dedication to conservation. 


Joint local action prevents 

flooding in Prospecton 

Following devastating floods at TSAM’s 

manufacturing operations in Prospecton during 

March and June 2008, the company partnered 

with other business operations in the area, the 

local council and other stakeholders to establish 

the Isipingo Catchment Management Forum 

(CMF). 

The CMF is an offshoot of the Isipingo/ 

Mbokodweni Catchment Management Forum, 

a statutory body run by the Department of Water 

Affairs, in which TSAM also participates. The 

CMF consists of various businesses in the area, 

South Durban Basin, eThekwini Metro, Roads and 

Stormwater maintenance, KZN Ezemvelo Wildlife 

(who looks after the estuary) and Metro Pollution 

control. The CMF’s main objective is to identify and 

monitor any possible restrictions on the natural 

water flow of rivers and canals in the area since 

obstructions in the canals and at the mouth of the 

Isipingo River increased the flood damage. 

The problem is that Prospecton is a very 

low lying and flat area that floods easily. Major 


TSAM sponsored a Land Cruiser for the television show 50/50, which promotes conservation. 

In June 2008, the Prospecton Plant recorded around 350mm of rain, while areas further south recorded up to 

700mm. 

issues identified to receive urgent and ongoing 

action are: 

• The canals become overgrown with reeds 

and water hyacinth, preventing adequate 

drainage during a flood event. 

• The sandbar at the mouth of the Isipingo 

River needs to be kept at a height that 

would allow the river to breach naturally in 

the event of a flood. 

The cooperative approach of the CMF is making a 

difference, and the canals are being successfully 

kept clean of plant overgrowth. If there is a 

forecast of heavy rains, a CMF member checks 

the sandbar at the river mouth and requests the 

Department of Roads and Stormwater to lower 

the level if necessary.

Production and economic performance 

were impacted by the worldwide 

economic recession, which began in 

FY08 and extended through FY09. In response 

to the severe business climate, TSAM and local 

dealers worked hard to deliver as many vehicles 

as possible to customers, as well as making 

continuous, concerted cost-reduction efforts. 

Due to the economic downturn there was an 

embargo on capital expenditure and therefore 

capital expenditure was lower in FY09. 


Vehicle production dropped from 184 087 in FY08 to 105 079 in FY09. 

Table 33 

FY08 FY09 

R’000 R’000 

Revenue 41 222 468 28 574 954 

Total assets 16 143 570 13 694 419 

Capital expenditure 620 740 188 534 

Market share (%) 26.4% 25.2% 

Vehicle production and sales 

During the reporting period, vehicle production 

dropped from 184 087 units to 105 079 units, 

and vehicle sales dropped from 241 929 units 

No. of vehicles produced 

200 000 

180 000 

160 000 

140 000 

120 000 

100 000 

80 000 

60 000 

40 000 

20 000 

0 

148 160 

Vehicle production 

151 842 

184 087 

105 079 


ECONOMIC ASPECTS 

to 141 391 units. This was a consequence of 

the global economic recession. 

300 000 

250 000 

200 000 

150 000 

100 000 


No. of vehicles sold 

50 000 

0 

208 860 

Vehicle sales 

220 065 

241 929 

141 391 



Independent Assurance Statement 

To the Board and stakeholders of Toyota South Africa Motors: 

SustainabilityServices.co.za (SS) was commissioned by Toyota South Africa Motors (hereafter, ‘TSAM’) to provide independent third party 

assurance over the company’s Sustainability Report 2010 (hereafter, ‘the Report’), covering the period 01 April 2008 to 31 March 2009 (FY08) 

and 01 April 2009 to 31 March 2010 (FY09). The assurance team comprised primarily of Michael H. Rea, our principal Sustainability Assurance 

Practitioner, with experience in environmental and social performance measurement. Over the past 11 years, Michael has undertaken over 35 

assurance engagements in various countries, including Sudan, Kenya, the DRC, Nigeria, Cameroon, Swaziland, Zimbabwe, Namibia, South 

Africa, Peru and Canada: working either as part of a team (while in the employ of PwC and KPMG), as an independent sustainability assurance 

provider, or as the Partner and Lead Assurance Practitioner within SS. 

Independence 

Although the assurance process has offered interim guidance pertaining to the perceived strengths and weaknesses of this Report, SS has not 

participated in the preparation of any part of this Report and has not undertaken any commissions for TSAM in the reporting period concerning 

sustainability management or reporting. SS’s responsibility in performing its assurance activities is to the management of TSAM alone and in 

accordance with the terms of reference agreed with them. 

Assurance objectives 

The objectives of the assurance process were to provide stakeholders of TSAM with a low level independent assurance opinion on whether 

the Report meets standard reporting principles, as well as to assess the degree to which the Report is consistent with the Global Reporting 

Initiative (GRI) G3 guidelines, with the objective of establishing whether or not the Report has met the GRI’s G3 Application Level B reporting 

requirements. 

Scope of work performed 

The process used in arriving at this assurance statement is based on best practices in sustainability reporting assurance. Our approach to 

assurance included the following: 

• Reviews of drafts of the Report for significant data and/or assertion anomalies, and to assess whether sufficient ‘neutrality’ (i.e., success and 

challenges) could be identified. 

• Interviews with individuals responsible for writing the Report in order to assess TSAM’s measurement and reporting procedures, and to 

assess the process used to define the content of the Report by looking at materiality of issues included in the Report. 

• An assessment of whether or not the requisite number of GRI G3 performance indicators have been covered in the Report to meet Application 

Level B requirements. 

Findings 

Specific mention should be made of the fact that TSAM is not motivated by the same domestic pressures to report as listed companies in South 

Africa, but rather choose to report as a function of Toyota’s global commitment to sustainability reporting. Thus, some aspects of this report 

are not consistent with standard disclosures in the South African context, particularly for JSE-listed companies, and some content may not be 

deemed comparable to other companies of similar size, stature or manufacturing nature. 

In general, the Report adequately reflects the company’s sustainability management and reporting policies, procedures and systems, and 

represents a measured improvement over the content contained within the most recent previous report (2008). However, it was found that: 

• Although additional performance data (i.e., numerical/quantifiable data) would be required to enhance the overall quality of TSAM’s 

sustainability reports, including enhanced self-assessments of the trends and anomalies presented within the data, this Report appears to 

reflect an accurate accounting of TSAM’s sustainability performance for the reporting period. 

• Although significant improvement has been identified over the previous report, particularly with respect to environmental performance, room 

for improvement continues to exist, particularly with respect to Governance and Social Aspects information. 

• In some cases, key indicators are deemed inconsistent with expectations and/or international best practice, particularly the definition applied 

to Lost Time Injuries (i.e., not counting Restricted Work Cases), and the way in which carbon efficiency is normalized to units of production 

(i.e., cars manufactured), rather than person hours worked. 

Based on our review of the Report, as well as the processes employed to collect and collate information reported herein, it is our assertion that 

this Report adequately meets the GRI G3’s requirements for Application Level B (responses to all required indicators, including the Disclosures 

56 Toyota South Africa Motors Sustainability Report 2010

on Management Approach, as well as no fewer than 20 Core indicators, with at least one from each of Economic, Environment, Human Rights, 

Labour, Society and Product Responsibility. However, it was found that: 

• The reporting of performance against some GRI G3 indicators continues to require either data quality improvements, or further detail in 

disclosure. However, in some cases where gaps might be identified within the Report, particularly with respect to the Disclosures on 

Management Approach indicators, additional indicator-specific performance information has been made available in TSAM’s comprehensive 

GRI G3 Indicator Table, which can be requested from sustainability@toyota.co.za. 

Recommendations 

While we are satisfied that this Report is a fair demonstration of TSAM’s ability to collect, collate and report on its sustainability performance, the 

following recommendations have been identified: 

• TSAM should ensure that key stakeholders, not just the parent company, are actively engaged to assess whether or not this Report, and all 

future Reports, adequately reflect their reporting requirements and/or expectations. 

• TSAM should ensure that subsequent Reports provide more comprehensive comparable sustainability performance data, including multi- 

year trends for the company’s most material sustainability issues. This should include not only self-analysis of the trends and anomalies 

identified within the data, but also projections and/or commitments of future performance. 

• TSAM should ensure that additional consideration is afforded to significantly improving the quality and quantity of relevant content within the 

Governance and Social Aspects sections. 

• Having addressed the requirements of GRI G3 Application Level B, it is our recommendation that TSAM make a concerted effort to meet the 

requirements of the GRI’s G3 Application Level A. 

• TSAM should continue to improve its reporting according to international best practice, including the principles of Inclusiveness, Materiality, 

and Responsiveness, as guided by AA 1000AS (2008), with any future assurance being conducted in accordance with AccountAbility’s 

AA1000AS Type I (Moderate) requirements. 

Conclusions 

Based on the interviews conducted and the information reviewed, SustainabilityServices.co.za is satisfied that this report provides a reasonable 

and balanced account of the sustainability performance of TSAM during the period under review. The data presented is based on policies 

and procedures that are, in many cases, aligned to Toyota’s global approach, and therefore may not currently meet local expectations, but we 

are satisfied that the reported performance data reasonably represents the company’s ability to measure, manage and report on the current 

environmental, safety and social performance of TSAM. Moreover, and although the quality or quantity of data of many GRI G3 indicators can 

yet be improved, this Report appears to meet the GRI G3’s requirements for Application Level B (B+ with this assurance engagement). 

SustainabilityServices.co.za 

Johannesburg (Parkhurst), South Africa 

1 December 2010 


Global Reporting Initiative Index 

GRI indicator GRI description Comments Page number 

Executive Message 

1.1 Statement from the CEO 2 

Vision and Structures 

2.1 Name of organisation 8 

2.2 Primary brands, products and/or services 8 

2.3 Operational structure of organisation 8 

2.4 Location of organisation’s headquarters 8 

2.5 Number of countries where the organisation operates 8 

2.6 Nature of ownership and legal form 8 

2.7 Markets served 8 

2.8 Scale of the reporting organisation 8 

2.10 Awards 7 

Corporate Philosophy 

Report Parameters 

9 

3.1 Reporting period IFC 

3.4 Contact point for the report IFC 

3.5 Process for defining report content IFC 

3.6 Boundary of the report IFC 

3.9 Data measurement techniques Described in the report 

where relevant 

3.11 Significant changes from previous reporting periods No significant changes 

3.12 Table of standard disclosures 58 

3.13 External assurance 56 

Corporate Governance 

4.1 Governance structure 11-12 

4.3 Independent and/or non-executive Board members 11-12 

4.4 Mechanisms to provide recommendations or direction to the Board 11-12 

4.5 Compensation and performance 11-12 

4.6 Avoidance of conflicts of interest 11-12 

4.7 Board selection process 11-12 

4.8 Mission and values statement, codes of conduct, principles 9-10 

4.9 Management of performance 11-12 

4.10 Performance evaluation 11-12 

4.12 Externally developed economic, environmental and social charters 9, 10, 13, 21 


EN29 Impacts from transport 23-24 


EN3 Direct energy consumption by primary energy source 23 

EN4 Indirect energy consumption by primary source 23 

EN5 Energy saved due to conservation and efficiency improvements 25 

EN6 Initiatives to provide energy efficient or renewable energy based products and services 22, 26 

EN7 Initiatives to reduce indirect energy consumption and reductions achieved. 25 

EN16 Total direct and indirect greenhouse gas emissions by weight. 23-24 

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. 23-24 


EN8 Total water withdrawal by source 29 

EN10 Percentage and total volume of water recycled and reused Nil 

EN1 Materials used by weight or volume 27 

EN21 Total water discharge by quality and destination 29 

EN22 Total weight of waste by type and disposal method 27-28 

Substances 

of Concern 

Lead, hexavalent chromium, mercury and cadmium, and all other banned substances 31 


EN19 Emissions of ozone-depleting substances by weight 30-31 

EN20 NO, SO, and other significant air emissions (incl. VOCs) by type and weight 30-31 

58 Toyota South Africa Motors Sustainability Report 2010

GRI indicator GRI description Comments Page number 


EN23 Total number and volume of significant spills 20 

EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation 22-35 

A4 Numbers of vehicles sold, broken down by type, fuels, power train technologies, and region 22 

A6 Average fuel economy by type of vehicle broken down by region, as applicable 23 

A7 


Average carbon dioxide emissions by type of vehicle broken down by region, as applicable 23 

4.14 List of stakeholder groups engaged by the organisation 51 

4.15 Basis for identification and selection of stakeholders with whom to engage 51 

Relations with Customers 

PR2 Non-compliance with regulations on health and safety impacts of products and services 4-5 

PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction 36-37 

PR6 Programmes for adherence to laws, standards, and voluntary codes related to marketing 

communications 

36 

PR7 Number of incidents of non-compliance with regulations and voluntary codes concerning 

marketing communications 

36 

Relations with Employees 

EC5 Range of ratios of standard entry-level wage compared to local minimum wage at significant locations 

of operation 

38 

EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of 

operation 

40 

LA1 Total workforce by employment type, employment contract, and region 38 

LA2 Total number and rate of employee turnover by age group, gender, and region 38 

LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major 

operations 

38-39 

LA4 Percentage of employees covered by collective bargaining agreements 43 

LA5 Minimum notice period(s) regarding operational changes, including whether it is specified in collective 

agreements 

43 

LA6 Workforce represented in formal health and safety committees 47 

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work related 

fatalities by region 

45-46 

LA8 Programs in place to assist workforce members, their families, or community members regarding 

serious diseases 

48-49 

LA9 Health and safety topics covered in formal agreements with trade unions 49 

LA10 Average hours of training per year per employee by employee category 42 

LA11 Career and skill development programmes 42-43 

LA12 Percentage of employees receiving regular performance and career development reviews 39 

LA13 Composition of governance bodies and breakdown of employees per category according to gender, age 

group, minority group membership, and other indicators of diversity 

40-41 

LA14 Ratio of basic salary of men to women by employee category 41 

HR3 Employee training on human rights 40 

HR4 Total number of incidents of discrimination and actions taken 40 

HR5 Risk of freedom of association and collective bargaining 40 

HR6 Risk of child labour 40 

HR7 Risk of forced or compulsory labour 40 

HR9 Total number of incidents of violations involving rights of indigenous people and actions taken 40 

A1 Specify stipulated work hours per week and average hours worked overtime in production 39 

A2 Percentage of employees not managed on an hourly basis with overtime compensation schemes 39 

Global Society/Local Communities 

SO1 Managing impact on communities 51-54 


EC1 Direct economic value generated and distributed 55 

EC3 Coverage of the organisation’s defined benefit plan obligations 39 

EC8 Development and impact of infrastructure investments and services provided primarily for public benefit 51-54 

For a comprehensive GRI G3 self-assessment table, email sustainability@toyota.co.za 


Glossary of terms and acronyms 

3R Reduce, re-use, recycle 

ABS Anti-lock braking system 

AIDS Acquired immune deficiency syndrome 

ARV Anti retro-viral 

BBBEE Broad based black economic empowerment 

o C Degrees centigrade 

CCE Competitive customer experience 

CEO Chief executive officer 

CFC Chlorofluorocarbon 

CMF Catchment Management Forum 

CO2 Carbon dioxide 

CSI Corporate social investment 

CSR Corporate social responsibility 

DERAP Dealer Environmental Risk Audit Programme 

EAP Employee Assistance Programme 

EC Environmental committee 

ELV End of life vehicle 

EMS Environmental management system 

EPI Environmental performance indicator 

ESCO Energy Service Company 

EU European Union 

FET Further Education and Training 

FTFA Food & Trees for Africa 

FY Financial year 

FY08 Financial year 1 April 2008 to 31 March 2009 

FY09 Financial year 1 April 2009 to 31 March 2010 

g Grams 

Genchi Genbutsu Japanese term meaning going to the source to 

find the facts 

GHG Greenhouse gases 

GM General manager 

GRI Global Reporting Initiative 

HFC Hydrochlorofluorocarbon 

HIV Human immuno-deficiency virus 

HR Human resources 

HV Hybrid vehicles 

IMV Light commercial vehicle (eg. Hilux) 

Kaizen Continuous improvement 


Kg Kilogrammes 

Kl Kilolitres 

Km Kilometres 

KPI Key performance indicator 

KWh Kilowatt hours 

LPG Liquefied petroleum gas 

Monozukuri Japanese term loosely meaning production 

MWh Megawatt hours 

NPDC National Parts Distribution Centre 

NQF National Qualification Framework 

NUMSA National Union of Metalworkers of South Africa 

Obheya Facility for visual display of progress 

OEM Original Equipment Manufacturer 

PDCA Plan, do, check, act 

Pokayoke Japanese term meaning foolproof back-up 

PPE Personal protective equipment 

PRTR Pollutant Release and Transfer Registers 

QC Quality circle 

ROI Return on investment 

RSA Republic of South Africa 

SA South Africa 

SHE Safety, health and environment 

SM Senior manager 

SOC Substances of concern 

TB Tuberculosis 

TMC Toyota Motor Corporation 

TSA Toyota South Africa 

TSAM Toyota South Africa Motors 

T-TEP Toyota Technical Education Programme 

U Per unit 

UASA United Association of South Africa 

US United States of America 

VAS Vehicle assessment system 

VCT Voluntary counselling and testing 

VOC Volatile organic compound 

WWTP Waste Water Treatment Plant 

Yokoten Japanese term meaning to roll-out ‘kaizen’ 

improvement

TSAM’s Durban operations in Prospecton 

Stamping Division 

Vehicle Distribution 

and Logistics 

Die Division 

Test Track 

Distribution Centre 

Car Park 

Truck Plant 

Blanking Line 

Press 

Purchasing 

& Engineering 

Weld Plant 

Communication 

Centre 

Admin 

Paint Plant 

Chassis Plant 

Assembly Plant 

Imported 

Parts 

Centre 

Suspension Plant 

Local Parts 

Warehouse 

Enquiries 

Vehicle 

Final 

Service Parts 

Plant 

Resin 

sustainability@toyota.co.za 

www.toyota.co.za 

Car Park 

TSAM Fleet 

Cataler 

Sandton Marketing Offi ce 

PO Box 481, Bergvlei, 2012, Gauteng, South Africa 

Tel: +27 11 809 9111 / Fax: +27 11 809 2940 

Exhaust 

Plant 

Prospecton Plant 

PO Box 26070, Isipingo Beach, 4115, KwaZulu-Natal, South Africa 

Tel: +27 31 910 2911 / Fax: +27 31 912 1475 

Toyota Motor Corporation 

www.toyota.co.jp/en

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