Environmental Pragmatism: The Key to “Moving Forward” Bob Wade Corporate Manager Environmental, Hazmat & Safety
Dec 21, 2015
Environmental Pragmatism:The Key to “Moving Forward” Bob Wade
Corporate ManagerEnvironmental, Hazmat &
Safety
1. Continuing regulatory, political and public pressures to reduce emissions and carbon footprint
2. Toyota’s environmental program – going beyond compliance
3. How to “Move Forward” and achieve results in today’s reality
Presentation Overview
Public Opinion Context
Continuing public concern and pressure to address global climate change . . .
despite lack of major progress at Copenhagen.
Regulatory Context
• Continued focus at the Federal and state levels on addressing emissions and GHG reductions
• EPA decision to grant California waiver for GHG emission standards for motor vehicles . . . soon 2016 and beyond
• Possible Federal climate change legislation• CARB diesel emission reduction programs, spanning:
– On-road vehicles (trucks, buses, etc.)– Off-road vehicles and equipment (locomotives,
tractors, cargo handling equipment, etc.)– Marine vessels (harbor craft, ocean vessels, shore
power)– Stationary engines & portable equipment
Toyota’s Global 5 Year Environmental Action
Plan
TMS Environmental Action Plan
North American Environmental Report
Global Environmental Report
TMS Environmental
Policy
Toyota’s Global Earth Charter
Toyota Environmental Program
TMS Environmental Action Plan
Environmental Action Plan
1. Energy & Climate Change
2. Recycling & Reduce Resources
3. Substances of Concern
4. Air Quality
5. Environmental Management
6. Cooperation with Society
• Set goals & targets
• Report annual results
2009 NA Report Results
• Exceeded CAFE
• 25% less energy use - TMS
• 90% recycling rate at TLS
• Logistics GHG reduction
Today’s Challenge
How do we achieve further environmental gains in today’s
regulatory and economic climate- and –
at the same time, avoid undue burden and cost impacts on shipping?
Answer
“Environmental Pragmatism”
“Short-Term Small”
• Identify small investments and process changes that have short-term ROI and achieve environmental goals
• String them together to maximize return
Example #1 – Fuel Efficiency Initiative
Toyota Transport TQPE TEMA
• Post MPG• 18 trailers w/skirts• Governed Speed
• Driver Incentive (Post MPG)• Governed Speed• 2 trailers w/skirts• 2 trailers w/Nose cone
• MPG target for fuel surcharge calculation (6.3 mpg 6.53 in FY10)
$274,658 $ 188,764 $2.3M
A cross-affiliate team from service parts, completed vehicle logistics and manufacturing parts logistics developed some 19 separate initiatives to reduce fuel costs
Annualized Savings = $2.76M + GHG & Emissions Reductions
Toyota Transport - Governed Speed
Speed reduction of 5mph 68mph to 63 mph
Unit cost: $15 – labor
Launch date: July 08
MPG gain: 2.97%
ROI: < 1 week
Savings/Yr.: $1,258/truck
44 trucks: $55,352/yr.
Service Parts - Driver Incentive
Driver Incentive Program .5mpg Increase
Unit cost: $7,000 max
Launch date: April 09
MPG gain: .575mpg Q2
ROI: 2 weeks
Savings/Yr.: $138K/yr.
Example #2 – Service Parts Truck Efficiency Kaizen
• Through route kaizen & increased cube efficiency, TMS reduced miles traveled to deliver service parts and accessories by 2.5M miles over the previous year.
“Long-Term Large”
• Patient investment – facilities, equipment and process changes
• Longer-term plans and expectations• No instant ROI – but perhaps greater
long-term return
Energy Use – U.S. Sales & Distribution
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
FY01 FY05 FY06 FY07 FY08 FY09
BTU/ Square Foot
25%
Energy Savings
“Long-Term Large” BenefitsNAPCC Rooftop Solar
• 2.3 megawatt solar roof array – second largest in North America
• No upfront capital costs• Generates 58% of NAPCC
electricity requirements• Prevents 2.4 million
pounds of CO2 annually• Annual utility cost
savings of $360K annually
Application to Port Operations
• Led by the Ports of LA and Long Beach – greater emphasis on environment
• Some requirements – like cold-ironing, stack sock, vessel retrofits – are very costly and sometimes impractical
• There may well be better, more practical and more cost-effective solutions!!