INCLUSIVE GRO TH - Toyota India

For further information and feedback on this report please contactEnvironment department

Plant Administration Division

TOYOTA KIRLOSKAR MOTOR PVT. LTD.Plot No. 1, Bidadi Industrial Area, Bidadi, Ramanagara District

Pin 562 109, Karnataka, IndiaTelephone : +91 80 66294890 / 66292098

Fax : +91 80 27287078 / 77E-mail : [email protected]

www.toyotabharat.com

To read the report onlinehttp://www.toyotabharat.com/environment/sustain-report/2016/ D

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TOYOTA KIRLOSKAR MOTOR PVT. LTD.

SUSTAINABILITY REPORT 2016

ABOUT THE REPORTToyota Kirloskar Motor Private Limited is pleased to present the seventh Sustainability Report for the FY 2016. The report represents TKM and its key stakeholders’ performance and information pertaining to their operations in India.

This report is in accordance with the Global Reporting Initiative’s G4 Sustainability Reporting Guidelines. It aims to cover the Economic, Social and Environmental performances of the company, which serves as the framework of this report. It is prepared after conducting the materiality assessment to identify the areas of utmost importance and prioritizing them according to their potential impact on the company, as well as its key stakeholders. This report provides clarity about the company’s growth, performance and its role as a responsible corporate in the fields of environment, safety, customer satisfaction, quality products and community development in the reporting year.

Through this report, we give an insight into TKM’s initiatives towards sustainable business practices in Economic, Social and Environmental aspects and invite all our stakeholders to join us to bring in a better, brighter tomorrow.

We welcome your valuable suggestions and feedback on this report at:

[email protected]

ABOUT THECONCEPTWhile traversing the sustainable growth journey, it is essential that inclusivity is embraced comprehensively across all operations and systems. TKM has always been committed to the principle of inclusion by showing participation of all stakeholders in its growth, co-creation of shared value for all its stakeholders and initiatives taken towards neighboring communities.

Our growth and success in delivering best products to valuable customers, is a joint effort from all our stakeholders. We strongly believe in inclusive growth of our stakeholders and their well-being to foster the sustainability values to achieve success.

Thus, the Sustainability Report of year 2016 upholds the principle of Nurturing Inclusive Growth.

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About the Report and Concept

Message from Managing Director

Message from Vice Chairman


Message from Editor's desk

Corporate Sustainability Philosophy

Company Profile

Awards

Our Environment

Our Stakeholders: Partners in Growth

• Our Customers

• Our Dealers

• Our Suppliers

• Our Employees

• Our Community Initiatives

Marketing and Brand promotion

Economic Performance

Glossary

GRI Index

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Message from Managing Director



Message from Editor's desk

Corporate Sustainability Philosophy

Company Profile

Awards

Our Environment

Our Stakeholders: Partners in Growth

• Our Customers

• Our Dealers

• Our Suppliers

• Our Employees

• Our Community Initiatives

Marketing and Brand promotion


Glossary

GRI Index

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Businesses today do not have the luxury of choosing between growth and sustainability. A sustainable business must believe that it has to live on nature’s income rather than on its capital. We believe in involving stakeholders at every level to achieve sustainable growth with a focus on protecting and nurturing our triple bottom line – People, Planet and Profits.

This year, we have seen a cumulative growth in our domestic and export markets despite the year being a challenging one for the auto industry with numerous regulatory change points. The trajectory of growth, over the years, can be attributed to the combined efforts of all of our stakeholders.

By following the Toyota way, we aim to make ‘Ever better cars’ which are ‘Ever better in technology‘ and ‘Ever better for environment‘ leading to the customer delight which in turn lends ample support to our sustainability efforts. We constantly strive to minimize our environmental impact, reducing our carbon and water footprint and focus on resource efficiency. The ‘Make in India’ Campaign aids our vision of delivering quality and revolutionary products thereby meeting the present as well as the future needs of our customers.

At COP 21 held last year, global participants reached an agreement to unite for the sake of mitigating climate change. We have recognized the necessity for working with futuristic targets to ensure a sustainable environment for coming

generations. Thereby, we have announced 6 challenges that Toyota would meet by 2050 such as ‘New Vehicle – CO Zero 2

Challenge’ among others. It will require a consolidated effort of all stakeholders with a belief that “it can be achieved”.

People are our primary stakeholders, their commitment and passion drives our success. In alignment with the Skill India Campaign, we are investing in extensive skills training, and developing our workforce for future. We look forward to developing technologies for tomorrow by involving our Indian engineers at a global level.

We believe that over the years our association in India has grown significantly. However we still have a long way to go; many more milestones to cross taking small baby steps on the path towards, sustainable growth. Through this report, we would like to share our efforts and lessons learnt in our journey towards mitigation of environmental, economic and social impacts due to our operations and thereby endeavor to ‘Nurture Inclusive Growth’.

AKITO TACHIBANAManaging Director

MESSAGE FROM

MANAGING DIRECTOR

TKM - SUSTAINABILITY REPORT 201604

Technological innovations in the field of commutation are rapidly creating new opportunities for people and organizations across nations. At the same time it is posing few daunting challenges such as climate change, depletion of natural resources etc which are global as well as local due to the impact. The role of business therefore - especially manufacturing organizations- is to become a part of the solution to the economic, environmental and social challenges. At Toyota Kirloskar Motor, we do realize our responsibility to adopt mitigation measures and have thereby developed strategies for integrating sustainability into every sphere of our operations.

The automobile sector in India has been showing positive and encouraging trends over the long term. The passenger car market is expected to grow up to US$ 300 billion by 2025-26. The biggest challenge in India is ensuring cost effectiveness, competitiveness and being nimble footed so as to adapt to dynamic regulatory changes related to various aspects such as safety and environment. Our youth are quickly shifting to a society where social media has become an integral part of their lives for them to stay connected and be conscious on using and endorsing products that impact the society and environment at large.

Tapping the engine technology market has always been a part of our strategy to keep us ahead of the competition.

Aligning with this way of thinking, our Global Vision 2050 aims to establish a futuristic society in harmony with nature. We invest in product innovation, cleaner, greener technology and modernization thereby producing fuel efficient cars and bringing alternate fuel technology vehicles to India. Owing to the encouraging response received in favor of the hybrid cars such as Camry and Prius, we now look forward to launching many more models in the hybrid segment.

We continue to work with our stakeholders to address their every concern and incorporate sustainability in every aspect of our business. Towards this endeavor we develop lower emission vehicles and establish new infrastructures required to deliver a sustainable transport system.

In our journey of sustainability, we take steps year on year to reach our goal of 'Sustainable Manufacturing' and we constantly strive to better our performance working with all our stakeholders. We firmly believe that our activities should nurture inclusive growth to achieve the shared goal of a brighter and more prosperous future for all.

VIKRAM KIRLOSKARVice Chairman

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EDITOR’S DESK

RAJU B KETKALE Sr. Vice President - Manufacturing

TKM - SUSTAINABILITY REPORT 2016 TKM - SUSTAINABILITY REPORT 2016

India has emerged as an important automotive market offering huge growth opportunity. India may emerge as one of the biggest markets for passenger cars. The industry has seen a healthy growth in the last few decades. The Indian auto sector has the potential to contribute more than 12% of the country’s GDP. As an automaker, we understand the huge responsibility we have towards our customers and community.

To drive growth in the automotive industry, it is very critical to provide a stable and supportive regulatory framework. The automotive industry is highly capital intensive and dependent on a long supply chain which requires long term planning to introduce any change in product or services.

Of late, the industry has been adversely affected by a few decisions by local governments and regulatory bodies to combat environment issues pertaining to some regions. When the sale of diesel vehicles above 2000cc were banned in the NCR, Toyota was one of the two automakers affected significantly. Unfortunately, it took a good amount of time for the courts to realise that the concept of linking high emission levels and engine capacity of vehicles was incorrect.

We have always worked in harmony with nature both in the products that we make and in our operations. Every successive generation of vehicles we make are increasingly more fuel efficient and emission efficient, our hybrid vehicles are a testament to the commitment of the eco spirit we possess. The government recently decided to

leapfrog from BS IV to BS VI emission norms by April 2020 skipping the BS V norms altogether. We are well positioned to provide products compatible with the new fuel norms.

Further, in our operations the water we use in our production facilities is rain water harvested or recycled.

We have continued our efforts towards ensuring ‘Swachh Bharat’ by constructing and maintaining 500 plus sanitation facilities. Our initiatives such as “Green Me” and “Project ABCD” have gone a long way in building awareness among school children and community on environment and hygiene. We have targeted 40 villages to become open defecation free in Karnataka. We will continue working with our stakeholders to initiate appropriate activities for the benefit of the community and environment.

As we move forward, many more growth opportunities are certain to emerge and it is up to each of us to accept these challenges and convert them into opportunities and work together to develop a thriving eco-system. I hereby call upon our stakeholders to join hands in this collaborative effort to work together toward our dream of ‘Indianization’.

SHEKAR VISWANATHANVice Chairman and Whole-Time Director

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It is with immense pleasure that I present to you our Sustainability Report for FY2016. Last year, we have tried to integrate stakeholders as central to our functioning, and this year we move a step further to inculcate a sense of ownership among all the stakeholders.

While traversing the sustainability journey, it is essential that inclusivity is embraced across all operations and systems. With the theme, 'Nurturing Inclusive Growth' our report this year showcases TKM's commitment to the consensus approach, by showcasing participation of all stakeholders in TKM's growth, co-creation of shared value for all its stakeholders and initiatives taken to ensure environmental, social and economic sustainability.

At our manufacturing plant, we believe in working harmoniously with the community and supply chain with an objective to create an ecosystem of mutual respect and collaboration. We have expedited on avenues for partnering with Prime Minister’s call for ‘Make in India’, ‘Swachh Bharat’ and ‘Skill India’ by involving our team members. Our team members are our assets, we work relentlessly to create an environment to foster development of a mind-set that is conscious towards quality, safety, environment and society. I would like to thank our entire stakeholders for the inclusive efforts that have enabled us to manufacture quality products that have been appreciated by our customers.

All aspects related to human capital are covered in the

report including training, career development, grievance redressal, health and safety among others. The report also covers environment and community related initiatives in a detailed manner, highlighting the impact created.

I hope you find this report a welcome companion to understand TKM’s dedication to sustainability and our growth in performance. It will be interesting to hear your response to this edition of the Sustainability Report.

Please send us your valuable feedback at [email protected]

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The roots of the tree are the shared values that have steered Toyota from the beginning and underlain our monozukuri. They are values expressed in the Toyota precepts, in the Toyota Guiding principles and in the Toyota Way, which are the basis of our business. 'Fruit' that Toyota provides for customers is creating "always better cars" and “enriching lives of communities”. Through the efforts, we aim to become an admired and trusted company in the various regions where we conduct business. The trunk of the tree, underlying support for Toyota's creating products that earn smiles from our customers, is the stable base of business. Toyota's business activities are based on the concept; ensure sustainable growth by fostering the virtuous circle.

• Always better cars

• Enriching lives of communities

• Stable base of business

The Toyota Earth Charter is based on the Guiding Principles at Toyota which embodies Global Toyota's comprehensive approach to environmental issues.

The Toyota Earth Charter, to date has been adopted by all Toyota affiliates worldwide.

BASIC POLICY

• Contribute towards 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

• Pursuit of environmental technologies: Pursue all possible environmental technologies, developing and establishing new technologies to enable the environment and economy to coexist harmoniously

• Vo l u n ta r y a c t i o n s : Deve lop a vo luntary improvement plan, based on thorough preventive measures and compliance with laws that address environmental issues on the global, national and regional scales, and promote continuous implementation

• Working in cooperation with society: Build close and cooperative relationships with a wide spectrum of individuals and organizations involved in e n v i r o n m e n t a l p r e s e r v a t i o n i n c l u d i n g governments, local municipalities, related companies and industries

ACTION GUIDELINES

• Always be concerned about the environment: Take on the challenge of achieving zero emissions at all stages, i.e., production, utilization and disposal

• Develop and provide products with top-level environmental performance

• Pursue production activities that do not generate waste

• Implement through preventive measure

• Promote businesses that contribute towards environmental improvement

• Business partners are partners in creating a better environment: Cooperate with associated companies

EARTHCHARTER

AS A MEMBER OF SOCIETY

• Actively participate in social activities

• Participate in the creation of a recycling-based society

• Support government environmental policies

• Contribute also to non-profit activities

• Towards better understanding: Actively disclose informat ion and promote env ironmental awareness

ORGANIZATION IN CHARGE

Promotion by the Toyota Environment Committee which consists of top management (chaired by the president).

TKM - SUSTAINABILITY REPORT 2016 TKM - SUSTAINABILITY REPORT 2016 09

VISIONARYMANAGEMENT

GUIDINGPRINCIPLE

Honour the language and spirit of the law of every nation and undertake open and fair corporate activities to be a good citizen of the world

Respect the culture and customs of every nation and contribute to economic and social development through corporate activities in the community

Dedicate ourselves to provide clean and safe products and to enhance the quality of life everywhere through all our activities

Create and develop advanced technologies and provide outstanding products and services that fulfil the needs of customers worldwide

Foster a corporate culture that enhances individual creativity and teamwork, while honouring mutual trust and respect between labour and management

Pursue growth in harmony with the global c o m m u n i t y t h r o u g h i n n o v a t i v e management

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 Guiding Principles at Toyota reflect the kind of company that Toyota seeks to be in light of the unique management philosophy, values, and methods. Toyota, together with its consolidated subsidiaries, hopes to contribute to sustainable development through its corporate activities based on understanding and

sharing of the Guiding Principles at Toyota.

The Guiding Principles at Toyota define the mission of Toyota and value that the company

delivers to the stakeholder.

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The Toyota Way is an ideal, standard and a guiding beacon for employees of Toyota across the globe. It expresses the beliefs and values shared by all of us. The Toyota Way is based on the Guiding Principles at Toyota, which defines the mission of Toyota as a corporation and the values the company delivers to customers, shareholders, associates, business partners and the global community. It defines how people of Toyota perform and behave in order to deliver these values. It


TOYOTA WAY

The Toyota Earth Charter, the company’s action plan for the global environment and the Toyota Global Environmental Action Plan, which embodies the Toyota Earth Charter, facilitates all the global environmental initiatives. Beginning 2016, Toyota promotes its activities based on the Sixth Toyota Environmental Action Plan that shows the corporate vision and the direction of Toyota.

TKM’s environment performance is detailed out in the five year Environment Action Plan, through which annual environment plan is formulated, percolating to activities and programs that are implemented at the plant level.


PLANT 1 PLANT 2

Established

Location

Products

Installed Production capacity

October 1997 (Start of production: December 1999)

Start of production: December 2010

Bidadi Industrial area, Bangalore

Corolla Altis, Etios, Etios Liva, Etios Cross, Camry & Camry Hybrid

Up to 2,10,000 units


Innova Crysta, Fortuner


COMPANY PROFILE

Toyota Kirloskar Motor Pvt. Ltd (TKM) is one of the leading Auto manufacturers of India established in the year 1997, as a joint venture between Toyota Motor Corporation, Japan and the Kirloskar Group, India. Toyota Motor Corporation holds eighty nine percent of the equity while Kirloskar Group, India, holds eleven percent. The Toyota Kirloskar Motor manufacturing plants are located in Bidadi Industrial area, on the outskirts of Bangalore city. The two plants are spread across 432 acres and have a manufacturing capacity of 3,10,000 vehicles per annum.

Key Products and Market Segmentation

TKM manufactures Innova Crysta, Corolla Altis, Fortuner, Etios, Etios Liva, Etios Cross, Camry and Camry Hybrid. Land Cruiser, Prado, Prius are imported as Completely Built Units (CBUs).

TKM also exports Etios to South Africa, Mauritius, Bhutan, Nepal & Brunei, Innova Crysta to Bhutan and Fortuner to Nepal.

ABOUT TOYOTA KIRLOSKAR MOTOR

ENVIRONMENTALACTION PLAN

FY2006-FY2010 Fourth PlanFY2011-FY2015 Fifth PlanFY2016-FY2020 Sixth Plan

Guiding Principles at ToyotaFormulated in 1992, revised in 1997

Toyota Earth Charter(Environmental basic policies)

Formulated in 1992, revised in 2000

Toyota GlobalVision

Toyota Environmental Action Plan(Five Year Plan)

Various environmentalmeasures and

guidelines

Environment committees

Annual Policies, Plans

DailyOperations

Universalguiding

principles andpolicies

Mid/long-termmovement and

direction

functions as the automatic nervous system for Toyota organizations.

The Toyota Way is supported by two main pillars. They are ‘Continuous Improvement’ and ‘Respect for People’. We are never satisfied with where we are and always strive to improve our business by putting forth our best ideas and efforts. We respect people and believe the success of our business is created by individual efforts and good team work.

Team WorkDevelop and motivate your TMs to maximise individualand team performance

RespectRespect each other by understanding and fulfilling responsibilities

RESPECTFOR PEOPLE

CONTINUOUSIMPROVEMENT

ChallengeLong term vision and

Face challenges with courage

Genchi GenbutsuGo and study to get first hand

information for knowing root cause

KaizenContinuous improvement

for cost reduction to achieve profits

CORPORATE SUSTAINABILITY PHILOSOPHY COMPANY PROFILE

The Toyota Way is an ideal, standard and a guiding beacon for employees of Toyota across the globe. It expresses the beliefs and values shared by all of us. The Toyota Way is based on the Guiding Principles at Toyota, which defines the mission of Toyota as a corporation and the values the company delivers to customers, shareholders, associates, business partners and the global community. It defines how people of Toyota perform and behave in order to deliver these values. It


TOYOTA WAY

The Toyota Earth Charter, the company’s action plan for the global environment and the Toyota Global Environmental Action Plan, which embodies the Toyota Earth Charter, facilitates all the global environmental initiatives. Beginning 2016, Toyota promotes its activities based on the Sixth Toyota Environmental Action Plan that shows the corporate vision and the direction of Toyota.

TKM’s environment performance is detailed out in the five year Environment Action Plan, through which annual environment plan is formulated, percolating to activities and programs that are implemented at the plant level.


PLANT 1 PLANT 2

Established

Location

Products

Installed Production capacity

October 1997 (Start of production: December 1999)

Start of production: December 2010


Corolla Altis, Etios, Etios Liva, Etios Cross, Camry & Camry Hybrid



Innova Crysta, Fortuner


COMPANY PROFILE

Toyota Kirloskar Motor Pvt. Ltd (TKM) is one of the leading Auto manufacturers of India established in the year 1997, as a joint venture between Toyota Motor Corporation, Japan and the Kirloskar Group, India. Toyota Motor Corporation holds eighty nine percent of the equity while Kirloskar Group, India, holds eleven percent. The Toyota Kirloskar Motor manufacturing plants are located in Bidadi Industrial area, on the outskirts of Bangalore city. The two plants are spread across 432 acres and have a manufacturing capacity of 3,10,000 vehicles per annum.

Key Products and Market Segmentation

TKM manufactures Innova Crysta, Corolla Altis, Fortuner, Etios, Etios Liva, Etios Cross, Camry and Camry Hybrid. Land Cruiser, Prado, Prius are imported as Completely Built Units (CBUs).

TKM also exports Etios to South Africa, Mauritius, Bhutan, Nepal & Brunei, Innova Crysta to Bhutan and Fortuner to Nepal.

ABOUT TOYOTA KIRLOSKAR MOTOR

ENVIRONMENTALACTION PLAN

FY2006-FY2010 Fourth PlanFY2011-FY2015 Fifth PlanFY2016-FY2020 Sixth Plan

Guiding Principles at ToyotaFormulated in 1992, revised in 1997

Toyota Earth Charter(Environmental basic policies)

Formulated in 1992, revised in 2000

Toyota GlobalVision

Toyota Environmental Action Plan(Five Year Plan)

Various environmentalmeasures and

guidelines

Environment committees

Annual Policies, Plans

DailyOperations

Universalguiding

principles andpolicies

Mid/long-termmovement and

direction

functions as the automatic nervous system for Toyota organizations.

The Toyota Way is supported by two main pillars. They are ‘Continuous Improvement’ and ‘Respect for People’. We are never satisfied with where we are and always strive to improve our business by putting forth our best ideas and efforts. We respect people and believe the success of our business is created by individual efforts and good team work.

Team WorkDevelop and motivate your TMs to maximise individualand team performance

RespectRespect each other by understanding and fulfilling responsibilities

RESPECTFOR PEOPLE

CONTINUOUSIMPROVEMENT

ChallengeLong term vision and

Face challenges with courage

Genchi GenbutsuGo and study to get first hand

information for knowing root cause

KaizenContinuous improvement

for cost reduction to achieve profits

CORPORATE SUSTAINABILITY PHILOSOPHY COMPANY PROFILE

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• August MOU Signing

• Establishment of TKM

1998

June • Foundation stone

laying ceremony of Plant 11997

1999

December• Start of Qualis production

2000

March

• Grand opening ceremony of TKM

• Launch of Toyota Qualis

2001

April• ISO 14001 Certification

2002

2003

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2005

2007

2008

2009

2010

2011

2012

2013

2014

October• Launch of

Camry in India

February• Corolla Production and

launch

• May Establishment ofGurukul Training Centre

• November Launch of LC Prado

February

• Innova production and launch in India

August• TTTI Inauguration

• April TKM launches Greenathon in association with NDTV

• July Plant 2 foundation stone laying

• September Corolla Altis Launch

• June LC 200 launch and Afforestation Activity

• August Fortuner launch

• December LC Prado (Diesel) launch

• January World Premiere of Etios concept and Prius Launch

• July Corolla Altis Diesel Launch

• December Commencement of Production in Plant 2

• June Etios Liva launch

• September Etios and Liva (Diesel) launch

August • Camry production and

its launch in India • Etios series export

• March Etios and Liva MMC I

• October Innova BMC II

• September Camry Hybrid

• April Etios Cross launch• May Corolla FMC• October Etios / Liva MMC• July Etios LE launch• September Innova LE launch• Inauguration of Rainwater Harvesting Unit• Inauguration of Biogas Unit

START

KEY MILESTONES OF TOYOTA

2015• July Kick off of Ecozone project• August Launch of Etios Exclusive• October Launch of Land Cruiser 200• November Launch of Green-Me • February ‘16 Launch of Innova Crysta at Auto Expo

The Innova has been the best selling model in the MPV segment for the past eleven years in succession and Fortuner has been the best selling model in the SUV segment in India since 2009. Toyota’s new small car, the Etios was first launched in December 2010. Toyota’s luxury car Camry and Camry Hybrid is also assembled at Plant 2.

TKM also imports and sells the Land Cruiser, Prado and Prius models as CBUs [Completely Built Units] throughout its dealer network in India.


PRODUCT LINE UP

IMPORT EXPORT MANUFACTURE

PRIUSThe Planet’s Favourite Hybrid

PLATINUM ETIOSThe Most Dependable Sedan.

CAMRY HYBRIDA New Kind of Luxury, Ahead of its Time.

INNOVA CRYSTALuxury meets Power

PRADOAll-Terrain Luxury

FORTUNERTrue SUV True Style

ETIOS LIVADesigned Stylish. Built Safe.

COROLA ALTISThe New Benchmark

LAND CRUISER 200The Pride of the World

COMPANY PROFILE

ETIOS CROSSBorn with Attitude

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COMPANY PROFILE


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Toyota Kirloskar Motor promotes a culture of high ethical standards, integrity, transparency and accountability in all the business transactions and in compliance with all laws and regulations. The company has established internal control mechanisms to ensure the conformance to the norms of corporate governance and believes in a system driven performance with the highest priority given to these systems.

TKM recognizes that good governance is a sine qua non for sustainability. The value statement, code of ethics and internal control mechanisms define our value system and reflects our culture and commitment to the values of corporate governance.

CORPORATEGOVERNANCE

GOVERNANCESTRUCTURE

GOVERNANCECULTURE

Value Statement

GOVERNANCEPROCESS

CORPORATE GOVERNANCE

Vision & Mission

Code of Ethics, Anti Bribery & Gift Policy

EnterpriseRisk Management

Internal &Forensic Audit

SOX Audit

Audit Committee Ethics Committee

HONESTYI will be honest to my profession in

spirit, word and action

HUMILITYI am proud about myselfand I will treat everyone

with same respect that I expect

HARMONYI will work with team

spirit and will not live at the cost of others

COURAGEI will work for continuous improvement

to lead from the front amidst all adversities

ACCOUNTABILITYI will take ownership

for all my actions

We have initiated bold steps to enhance the corporate governance environment. The task of the corporate governance division is to establish good governance in the company and educate all its stakeholders through various initiatives.

a. Audit Committee: The audit committee at TKM is responsible for overseeing TKMs financial reporting process and disclosure of the financial statements to ensure the correctness of the financial statements.

b. Ethics Committee: The ethics and integrity committee have defined a 'Code of Conduct' which the employees are to abide by. The details of which are further elaborated in the next section.

I. VALUE STATEMENT

TKM has released the value statement for the company after due deliberations and with the understanding of all its Stakeholders. These core values are to be cherished and imbibed by its members at all times in their personal and professional life. Our value statement was released by the senior management involving all functional heads. An oath is taken by all team members to inculcate these values.

VISION

• Delight our customers through innovative products, by utilizing advanced technologies and services

• Ensure growth to become a major player in the Indian auto industry and contribute to the Indian economy by involving all stakeholders

• Become the most admired and respected company in India by following the Toyota Way

• Be a core company in global Toyota operations

MISSION

• Practice ethics and transparency in all our business operations

• Touch the hearts of our customers by providing products and services of superior quality at a competitive price

• Cultivate a lean and flexible business model throughout the value chain by continuous improvement


HQ ADDRESS:TOYOTA KIRLOSKAR MOTOR PVT. LTDPlot No.1, Bidadi Industrial Area, Bidadi,Ramanagara District.Pin: 562109. Karnataka, India.Tel: +91-80-66292098 / 66292382Fax: +91-80-27287076 / 77Email: [email protected]

CORPORATE OFFICE:TOYOTA KIRLOSKAR MOTOR PVT. LTD.10th Floor, Canberra TowerNo. 24 , UB City, Vittal Mallya RoadBangalore - 560001, India.

01. Head Office [HO], Bidadi, Ramanagara

02. Regional Office [RO], South, Bangalore

03. Regional Office [RO] - IS Office, Bangalore

04. Regional Parts Depot and Training Centre [West], Pune

05. Regional Office [RO], Mumbai

06. Regional Parts Depot and Training Centre [North], Manesar

07. Regional Office [RO], North, Gurgaon

08. Regional Office [RO], East, Kolkatta

09. Regional Parts Centre, Neemrana

REGIONALLOCATION

ANNUAL POLICY 2015-16• Achieve leadership position in industry by becoming

No.1, in SSI, CSI, IQS and other brand related parameters to enhance customer delight

• To grow our business in harmony with the goals of the government, community and shareholders

• Pursuit of perfection in all our operations through strong KPI management and profit square enhancement keeping ROI in mind

• Strong sense of ownership at all levels to enhance q u a l i t y , p ro d u c t i v i t y a n d p ro f i t a b i l i t y for organizational sustainability

• Human resource development across our business operation including suppliers and dealers for competitiveness enhancement

• Be a learning organization achieving high standards in problem solving through Toyota Best Practices (TBP) way and proactive to predictive approach

• To be a good corporate citizen by achieving 100% compliance in Safety, Regulation, Environment and all other operational areas

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COMPANY PROFILE COMPANY PROFILE

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CORPORATEGOVERNANCE

GOVERNANCESTRUCTURE

GOVERNANCECULTURE

Value Statement

GOVERNANCEPROCESS


Vision & Mission




SOX Audit











for all my actions




I. VALUE STATEMENT


VISION





MISSION
















REGIONALLOCATION









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CORPORATEGOVERNANCE

GOVERNANCESTRUCTURE

GOVERNANCECULTURE

Value Statement

GOVERNANCEPROCESS


Vision & Mission




SOX Audit











for all my actions




I. VALUE STATEMENT


VISION





MISSION
















REGIONALLOCATION









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CORPORATEGOVERNANCE

GOVERNANCESTRUCTURE

GOVERNANCECULTURE

Value Statement

GOVERNANCEPROCESS


Vision & Mission




SOX Audit











for all my actions




I. VALUE STATEMENT


VISION





MISSION
















REGIONALLOCATION









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RECORD KEEPING

The legal, secretarial and financial records shall be maintained in a proper, truthful and accurate manner. These include but are not limited to minutes of Board Meeting, Shareholder Meeting, Accounting Records like vouchers, journals, ledgers, cost records, budget approvals, Financial Statements and Management Information Reports. This rule is also applicable to records generated in all other areas like Information systems, Production, Human Resources, QC etc.

PRESS BRIEFINGS

TMs are not authorized to make any statement to the press unless authorized to do so. In case any TM receives queries/surprise calls from press, one should be careful enough to transfer the calls to authorized officials in the Company.

III. ANTI-BRIBERY GUIDELINES

The following acts of omission shall be treated as 'Misconducts' by the company and is therefore subjected to further disciplinary action

1. Offer, authorize or give a bribe to a Government Official, or create the impression that a bribe has been offered, authorized or given

2. Engaging in business directly or indirectly with a Government Official on Company behalf

3. Not reporting to the Company any suspected violations by its employees or others doing business with a Government Official on Company behalf

4. Accept directly or indirectly any bribe, favours, gifts or anything of a financial advantage from any person while transacting on Company behalf

5. Such other potential bribery activities and risks

6. The direct or indirect provision of cash or anything of value to a Government Official to obtain an unfair business advantage or to obtain or retain business or in connection with any statutory / regulatory approval process

7. Authorizing or providing travel benefits, gifts, entertainment, sexual favours or political contributions for the benefit of a Government Official or any other person without the required due diligence assessment and TKM internal business and legal approvals.

8. Making or facilitating payments without obtaining the required TKM internal business and legal approvals

9. Making any incomplete, false or inaccurate entries on TKM's books and records

10. Receiving favours from suppliers, dealers or any other person to favour them etc

IV. GIFT POLICY

Employee shall adhere to company's Gift Policy while accepting any gift from or through any person who has any dealings with the company. To reduce the ambiguity among

the team members on acceptance of Gifts and Entertainment, company has made the guidelines in the above policy.

1. Employees can accept only Customary Gifts, which is in the nature of corporate gifts, common to all, no expectations in return, small in value like diaries, calendars, pens, books, flowers, sweets but not any branded items or high value goods

2. Special Gifts which is in the nature of special items, specific to individual, high value, branded market items, gifts which carry any expectation of return benefit are prohibited. Gifts from group companies are permitted

3. Employees are not to accept any forms of Cash Gifts

4. Employees need to have permission from the Head of the Department before participation in the dinner hosted by dealers or suppliers. Frequent meets, lavish dinners will be treated as unethical

5. Employees can accept supplier or dealer hosted tours, which is in the nature of site visit for quality check, progress review are permitted only with the permission of the HOD

6. The tours hosted by supplier or dealer which are in the nature of promotional trips, tour packages, confer-ences, holiday trips are prohibited

7. Employees are permitted to take part with prior permission from their HOD for any Industrial Associations, Professional Bodies, NGOs hosted visits, as a part of the delegation for study

8. It is permitted, in the case of any awards received for professional contributions, lectures or presentations which are purely recognition to an individual's professionalism

9. Using business contacts for personal monitory benefits are prohibited, if the employees are from division involved in decision making for sourcing or payment. Others can be used with the written approval of the HOD

10. Using the samples received as a part of sourcing and using the business contacts for personal benefits are prohibited. Such samples are to be surrendered to the Company

In October 2015, Corporate Governance Division (CGD) sent a e-mail to all division heads on Gift Policy in order to ensure effective implementation of the policy where in all the division heads are requested to submit the Gift Declaration in the prescribed format to CGD for them-selves and their team for the period 1st Nov 2014 to 30th Nov 2015. Nil Declaration was necessary even if no favours/ entertainment was received during that period. The Gift Declaration was also taken from Management comprising of VP and above up to MD.

• Lead Toyota's global operations in the emerging mass market

• Create a challenging workplace that promotes a sense of pride, ownership, mutual trust and teamwork

• Create an eco-friendly company in harmony with nature and society

Through these activities establish a superior brand image in India.

II. CODE OF ETHICS

Toyota Kirloskar Motor has a comprehensive Code of Ethics based on the Toyota guiding principles. The values along with the Code of Ethics go a long way in establishing the company as a good corporate citizen. The code clearly charts out the manner in which the employees of the company should interact with internal and external stakeholders such as suppliers, dealers, local community, local authority and regulatory bodies. The broad areas covered by the code are legal compliance, conflict of interests, mutual trust and teamwork.

FIVE MAIN PRINCIPLES OF CODE OF ETHICS

• Always be faithful to your duties; thereby contribute to the Company and to the overall good.

• Always be studious and creative, striving to stay ahead of the times.

• Always be practical and avoid frivolousness.

• Always strive to build a homelike atmosphere at work that is warm and friendly.

• Always have respect for spiritual matters, and remember to be grateful at all times.

BASIC CODE

1. Comply with Laws and Regulation

• Respect and obey the laws of the land and laws of the country you transact with and ignorance being no excuse

2. Be aware of local customs, traditions and social norms

• Respect the people, local customs, social norms and traditions of the society in which the company functions

3. Practice the "Values”

• TM should adhere to the value statement of the Company

SPECIFIC CODE

1. The Work Culture

• Every employee in TKM should perform his/her job following 'Toyota Way'

• Promote employee growth through good hands on training and development

2. Safe Products

• To deliver its customers, vehicles which provide a contented experience of driving with highest degree of reliability and safety

3. Comply with Working Regulations

• TM shall follow labour laws, employment laws, services rules and regulations, standing orders and other laws applicable to the company

• Respect a l l re l ig ion and castes wi thout discriminating any Team Member(TM) on account of his religious leanings

4. Environment Preservation

• TM should follow Environmental Policy of the company at all times and environment impact is considered at all stages of vehicle manufacturing by the company

5. Customer First

• Always satisfy the customers’ requirement

• Fair and accurate while dealing with customers and dealers

• Shall not indulge in any unfair trade practices

6. Technology and Engineering

• TM should know and use the most advanced technology to produce outstanding products and touch the hearts of customers

• TM shall conform to all Standards of Quality and shall dedicate to provide genuine and safe products and enhance the quality of life of customers

7. Protect Company's Assets

• All employees (including past employees) should not disclose any confidential or important information to third party without authorization

• TMs should safeguard company assets and use it for company benefit and are personally responsible for those assets which are entrusted to them

8. In relation with Suppliers, Dealers or Contractors

• Practice fair and transparent transaction with all stakeholders

• Avoid any Conflict of Interest (Business with other company, insider trading, etc) which affects the interest of the company

• Ensure Conformance to Law/Regulations while purchase of goods/services

9. In relation with Government

• Maintain cordial relations with Government and Local Authorities and Public servants

CODE OFETHICS

SPECIFIC CODEBASIC CODE

THE SUMMARY OF GIFT DECLARATION IS DETAILED BELOW:

DECLARATION BY TOTALGIFTS

RECEIVEDGIFTS NOT RECEIVED

No of Divisions

No of VP & above

46

18

15

09

31

09



RECORD KEEPING


PRESS BRIEFINGS














IV. GIFT POLICY


















II. CODE OF ETHICS








BASIC CODE







SPECIFIC CODE

1. The Work Culture



2. Safe Products







5. Customer First
















CODE OFETHICS





No of Divisions

No of VP & above

46

18

15

09

31

09



RECORD KEEPING


PRESS BRIEFINGS














IV. GIFT POLICY


















II. CODE OF ETHICS








BASIC CODE







SPECIFIC CODE

1. The Work Culture



2. Safe Products







5. Customer First
















CODE OFETHICS





No of Divisions

No of VP & above

46

18

15

09

31

09



RECORD KEEPING


PRESS BRIEFINGS














IV. GIFT POLICY


















II. CODE OF ETHICS








BASIC CODE







SPECIFIC CODE

1. The Work Culture



2. Safe Products







5. Customer First
















CODE OFETHICS





No of Divisions

No of VP & above

46

18

15

09

31

09



V. WHISTLE BLOWER POLICY (WBP)

As a company which encourages and respects professionalism, honesty, integrity and ethical behavior, TKM has a well-established “Whistle Blower Policy” in place to ensure protection of its workforce, dealers and vendors and ensure company values are always followed. This gives the stakeholders an opportunity to report fearlessly on any unethical behavior noticed by them. The scope of coverage is vast, channels provided for reporting are many and an Independent Authority has been appointed to receive and investigate the issues with the advice of Ethics Committee. This Committee consists of senior management, with one of the big four audit and investigating agency appointed as Independent Authority.

WHO RECEIVES AND REVIEW THE REPORT?

1) Independent Authority (IA) will receive the complaint

2) IA to prepare the flash report & submit to Vice Chairman and MD of TKM

3) MD (Chairman of Ethics Committee) will give direction to Corporate Governance (CG) to conduct preliminary study based on the outcome, MD will decide whether to proceed with investigation or drop the case

4) If yes to proceed, CG will conduct the investigation & submit the report to Ethics Committee

5) Ethics Committee will review the report & decide on next course of action

VI. INTERNAL CONTROL MECHANISM

TKM practices a risk-based, focused internal audit system. The company uses the services of an external audit firm so that the independence of the auditor is maintained. Critical audit observations along with process owner explanation are reported to the Audit Committee on a half yearly basis, enabling the management to take corrective actions.

TKM also conducts SOX-404 audit based on COSO 2013 internal control framework as part of Toyota Motor Corporation's global audit requirement.

The Companies Act, 2013, was enacted on August 30, 2013 which provides for a major overhaul in the corporate

EMPLOYEE DEALER VENDOR

TOLL FREE HOTLINE1800 3000 00 19

DEDICATED EMAIL [email protected]

DEDICATED POST BOXToyota Kirloskar Motor (Ombudsman)

PO BOX 19 Ramanagar 562 159

DEDICATED SMS76 76 00 00 19

ONLINE COMPLAINTSwww.toyota-kirloskar-corporategovernance.com

WHISTLE BLOWER DROP BOXESPlaced at different TKM locations (Bidadi-3, UB City-1,

IS Office-1, Delhi-1 and Manesar-1)

governance norms for al l the companies. The requirements under the Companies Act, 2013, and the rules notified thereunder would be applicable for every company or a class of companies as may be provided therein.

In the light of the above, there are noted change points when compared to Companies Act 1956. The Companies Act 2013 has stated added responsibilities on board to report on details of:

• Design of internal controls

• Operating effectiveness of internal controls

(Applicable from the year 2014-15)

Statutory Auditors are also required to report without solely relying on management / Board report about:

• Established internal control framework

• Adequate internal financial controls

• Operating effectiveness of internal financial controls


VII. ENTERPRISE RISK MANAGEMENT

In the past, Toyota's business operation has been affected by various risks. The 2009 US quality issues which led to major product recalls, 2011 great East Japan earthquake and 2011 Thailand flood resulted in disruption of Asia as well as Global production operation.

Based on these experiences, considering the importance and necessity to predict and manage business risks, TMC established the Global Risk Management Committee appointing Regional Chief Risk Officers with reporting frequency of twice a year i.e., October and March.

As a regional business leader, TMAP-EM has established Risk Management Policy for affiliate companies in Asian region.

Effective implementation of elements of this Policy is to formulate comprehensive risk profiles and counter

measures to achieve organization's objectives. The Board and Audit Committee have been vested with specific responsibilities in assessing the robustness of risk management policy, process and systems.

TKM's task now involves preparing for possible recurrence of past events and foresees other critical risks that cause serious impact to business targets. By doing so, TKM needs to enhance the capabilities of "Prediction, Prevention and Treatment" to counter each risk while adhering to "Safety as our first priority".

Based on the policy and guidelines by TMAP-EM and to ensure compliance with Companies Act 2013, TKM has taken initiative in identification and mitigation of risks by implementing appropriate countermeasures.

TKM has also come out with ERM policy comprising of important contents such as Introduction, Scope, Purpose, Charter, Objectives of the Policy, Brief on how to become a Risk Intelligent Company, Risk Management Process, Documentation, Approval and related documents.

This policy, along with all relevant stakeholders' contribution, will keep the high standard and quality of risk management activities.

BOARD OF DIRECTORS

The highest level of governance is the Board of Directors. The Board of Directors delegate powers to executives by way of resolution and granting Power of Attorney in specific cases. Executive directors are authorized through terms and conditions of the service agreement executed between the Company and them as approved by the Board of Directors. The Board of Directors and Shareholders decide the remuneration of Executive Directors. While the remuneration of the Directors is approved by the Shareholders using special resolutions.

Remuneration for consultants are decided in consultation with global HR [TMC] as per set policy. As of 2016-2017, TKM has no monetary or non-monetary fines for non-compliance with laws.

NAME OF THE COMPANY DIRECTOR (MEMBER OF BOARD OF DIRECTORS)

DESIGNATION AND FUNCTIONAL RESPONSIBILITY

CATEGORY (EXECUTIVE/NON EXECUTIVE)

Mr. Hiroyuki Fukui

Mr. Vikram Kirloskar

Mr. Akito Tachibana

Mr. Shekar Viswanathan

Mr. Yoshihiro Horinouchi

Mr. T S Jaishankar

Mr. N Raja

Mr. Kan Asaine

Mr. Yoshiaki Numata

Mr. Atul C Kirloskar

Mr. Tatsuro Takami

Mr. Hiroyoshi Ninoyu

Chairman

Vice Chairman

Managing Director

Whole-Time Director and Vice Chairman

Deputy Managing Director


Director & SVP

Director- Accounting, Legal & IS

Director & SVP

Director

Director

Director

Non-Executive

Non-Executive

Executive

Executive

Executive

Executive

Executive

Executive

Executive

Non-Executive

Non-Executive

Non-Executive

BOARD STRUCTURE OF TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED

WHO CANREPORT

UNDER THISPOLICY?

• Breach of Service Policy and Employees conduct (SPEC) and Code of Ethics

• Abuse of Authority/Position

• Harm to public health and safety

• Manipulation of Financial or other records

• Criminal offence

• Information Security breach

• Deliberate violation of law or regulation

• Unfair business practices

• Fraud

• Bribery

SCOPEOF WBP

ETHICALRELATED

FINANCERELATED












































BOARD OF DIRECTORS






Mr. Hiroyuki Fukui


Mr. Akito Tachibana



Mr. T S Jaishankar

Mr. N Raja

Mr. Kan Asaine

Mr. Yoshiaki Numata


Mr. Tatsuro Takami


Chairman

Vice Chairman

Managing Director




Director & SVP


Director & SVP

Director

Director

Director

Non-Executive

Non-Executive

Executive

Executive

Executive

Executive

Executive

Executive

Executive

Non-Executive

Non-Executive

Non-Executive


WHO CANREPORT

UNDER THISPOLICY?









• Fraud

• Bribery

SCOPEOF WBP

ETHICALRELATED

FINANCERELATED












































BOARD OF DIRECTORS






Mr. Hiroyuki Fukui


Mr. Akito Tachibana



Mr. T S Jaishankar

Mr. N Raja

Mr. Kan Asaine

Mr. Yoshiaki Numata


Mr. Tatsuro Takami


Chairman

Vice Chairman

Managing Director




Director & SVP


Director & SVP

Director

Director

Director

Non-Executive

Non-Executive

Executive

Executive

Executive

Executive

Executive

Executive

Executive

Non-Executive

Non-Executive

Non-Executive


WHO CANREPORT

UNDER THISPOLICY?









• Fraud

• Bribery

SCOPEOF WBP

ETHICALRELATED

FINANCERELATED












































BOARD OF DIRECTORS






Mr. Hiroyuki Fukui


Mr. Akito Tachibana



Mr. T S Jaishankar

Mr. N Raja

Mr. Kan Asaine

Mr. Yoshiaki Numata


Mr. Tatsuro Takami


Chairman

Vice Chairman

Managing Director




Director & SVP


Director & SVP

Director

Director

Director

Non-Executive

Non-Executive

Executive

Executive

Executive

Executive

Executive

Executive

Executive

Non-Executive

Non-Executive

Non-Executive


WHO CANREPORT

UNDER THISPOLICY?









• Fraud

• Bribery

SCOPEOF WBP

ETHICALRELATED

FINANCERELATED



LEGALCOMPLIANCEAs a good corporate citizen, we, at TKM, believe adherence to law is a top priority issue. Compliance of all statutory requirements are of utmost priority of the organization. In this regard as a measure of monitoring the compliance levels across all the divisions, a Legal Compliance Management Tool has been implemented. This Tool helps in sending alerts to the responsible person for compliance activities. It also provides for status report of the compliance management to the senior management and Directors on real time basis.

Tools implemented to confirm compliance are mentioned below:

• To comply with each and every law is the essence of TKM’s operations

• Towards our approach to go beyond the legal requirements, the legal compliance management system at TKM has been de-central ized, making it more exhaustive and comprehensive

• In this system, every applicable functional division is empowered to establish and ensure legal compliance at their levels. The divisions are further responsible to confirm the compliance to the central Legal and Secretarial division for Compliance management at the highest level

• Every Division/Department and every Team Member is entrusted with the responsibility to ensure 100% Legal Compliance

• TKM Legal Manual acts as a guide to understand the laws applicable to each division

• Compliance policies are considered integral to company objectives

Toyota Kirloskar Motor [TKM] aims to achieve 100% compliance to all applicable Legal requirements.

We do not restrict ourselves to just fulfil the compliance, but we intend to go beyond it by aiming at the intent behind the legal requirement.

• A good compliance culture is shown by the promotion of positive attitude towards legal compliance activity at all levels within an organization

LEGAL COMPLIANCE MANAGEMENT SYSTEM HIERARCHY

PUBLIC POLICY

LEGAL AND SECRETARIAL

DIVISION

FUNCTIONALDIVISION 1



BOARD OF DIRECTORS

(BoD)


TKM ORGANIZATION

Audit CommitteeIt is responsible for

reviewing half yearly and annual financial statements,

internal control systems, internal audit scope and discuss with Internal and Statutory Auditors about their observations and

report

CSR CommitteeIt recommends CSR

policy of the Company and monitors progress of the implementation

of the policy

Share CommitteeTo issue share certificates to the shareholders after

allotment of shares by the Board and to register the transfers of shares as per

Board authorization

MANUFAC-TURING

COMMERCIALMARKETING

AND SALES

CUSTOMER SERVICE

TECHNICAL

Product Design &

Development

Purchase

Supplier SupportCentre

ProductionControl

Imports & Exports

Plant Administration

Quality Control

P1 & P2 BodyManufacturing

P1 & P2 PaintManufacturing

P1 & P2 VehicleAssembly

Plant Engineering

Production Engineering

& Service

InformationSystem

HumanResources

PersonnelSupport

Toyota Technical

Training Institute

Accounting

BusinessStrategic

Legal andSecretarial

Planning &Strategy

Product &MTP

StrategicMarketing

Pricing

Demand &Supply

DealerPlanning

Sales

Region 1Sales

Region 2Sales

BR VirtualCBU

InstitutionalSales

EmergingMarket

QDR

SalesKaizen

Conversionand Accessories

CustomerRelations

PR and Agency

Marketing& CSG-HRD

CS Planning

CustomerService

ServiceParts

TKM ExcellenceCentre

CORPORATEGOVERNANCE

EA-CSR

QUALITY ASSURANCE

MANAGING DIRECTOR

CII National Council Member

CII India Japan Business Leader Forum Member

CII - Global Innovation & Technology Alliance

CII Southern Region Council

CII Karnataka - Member

CII Karnataka - Convenor, CSR Panel

FICCI National Executive Committee Member

FICCI Steering Committee Member

Society of Indian Automobile Manufacturers (SIAM)

Japan Chamber of Commerce & Industry in India, Delhi

Japan Chamber of Commerce & Industry, Bangalore

Japan Chamber of Commerce & Industry, Chennai

TKM

TKM

TKM

TKM

TKM

TKM

TKM

TKM

TKM

TKM

TKM

TKM



Mr. Vikram Kirloskar - Chairman

Mr. Vikram Kirloskar - Deputy Chairman

Mr. T S Jaishankar

Mr. T S Jaishankar



Mr. Vikram Kirloskar & Mr. Akito Tachibana - Ex. Committee Member

Mr. Akito Tachibana

Mr. Akito Tachibana

Mr. Akito Tachibana

MEMBERSHIP DETAILS OF VARIOUS ASSOCIATION FOR FY 2015-16


LEGALCOMPLIANCEAs a good corporate citizen, we, at TKM, believe adherence to law is a top priority issue. Compliance of all statutory requirements are of utmost priority of the organization. In this regard as a measure of monitoring the compliance levels across all the divisions, a Legal Compliance Management Tool has been implemented. This Tool helps in sending alerts to the responsible person for compliance activities. It also provides for status report of the compliance management to the senior management and Directors on real time basis.

Tools implemented to confirm compliance are mentioned below:

• To comply with each and every law is the essence of TKM’s operations

• Towards our approach to go beyond the legal requirements, the legal compliance management system at TKM has been de-central ized, making it more exhaustive and comprehensive

• In this system, every applicable functional division is empowered to establish and ensure legal compliance at their levels. The divisions are further responsible to confirm the compliance to the central Legal and Secretarial division for Compliance management at the highest level

• Every Division/Department and every Team Member is entrusted with the responsibility to ensure 100% Legal Compliance

• TKM Legal Manual acts as a guide to understand the laws applicable to each division

• Compliance policies are considered integral to company objectives

Toyota Kirloskar Motor [TKM] aims to achieve 100% compliance to all applicable Legal requirements.

We do not restrict ourselves to just fulfil the compliance, but we intend to go beyond it by aiming at the intent behind the legal requirement.

• A good compliance culture is shown by the promotion of positive attitude towards legal compliance activity at all levels within an organization

LEGAL COMPLIANCE MANAGEMENT SYSTEM HIERARCHY

PUBLIC POLICY

LEGAL AND SECRETARIAL

DIVISION




BOARD OF DIRECTORS

(BoD)


TKM ORGANIZATION

Audit CommitteeIt is responsible for

reviewing half yearly and annual financial statements,

internal control systems, internal audit scope and discuss with Internal and Statutory Auditors about their observations and

report

CSR CommitteeIt recommends CSR

policy of the Company and monitors progress of the implementation

of the policy

Share CommitteeTo issue share certificates to the shareholders after

allotment of shares by the Board and to register the transfers of shares as per

Board authorization

MANUFAC-TURING

COMMERCIALMARKETING

AND SALES

CUSTOMER SERVICE

TECHNICAL

Product Design &

Development

Purchase

Supplier SupportCentre

ProductionControl

Imports & Exports

Plant Administration

Quality Control

P1 & P2 BodyManufacturing

P1 & P2 PaintManufacturing

P1 & P2 VehicleAssembly

Plant Engineering

Production Engineering

& Service

InformationSystem

HumanResources

PersonnelSupport

Toyota Technical

Training Institute

Accounting

BusinessStrategic

Legal andSecretarial

Planning &Strategy

Product &MTP

StrategicMarketing

Pricing

Demand &Supply

DealerPlanning

Sales

Region 1Sales

Region 2Sales

BR VirtualCBU

InstitutionalSales

EmergingMarket

QDR

SalesKaizen

Conversionand Accessories

CustomerRelations

PR and Agency

Marketing& CSG-HRD

CS Planning

CustomerService

ServiceParts

TKM ExcellenceCentre

CORPORATEGOVERNANCE

EA-CSR

QUALITY ASSURANCE

MANAGING DIRECTOR

CII National Council Member

CII India Japan Business Leader Forum Member

CII - Global Innovation & Technology Alliance

CII Southern Region Council

CII Karnataka - Member

CII Karnataka - Convenor, CSR Panel

FICCI National Executive Committee Member

FICCI Steering Committee Member

Society of Indian Automobile Manufacturers (SIAM)

Japan Chamber of Commerce & Industry in India, Delhi

Japan Chamber of Commerce & Industry, Bangalore

Japan Chamber of Commerce & Industry, Chennai

TKM

TKM

TKM

TKM

TKM

TKM

TKM

TKM

TKM

TKM

TKM

TKM



Mr. Vikram Kirloskar - Chairman

Mr. Vikram Kirloskar - Deputy Chairman

Mr. T S Jaishankar

Mr. T S Jaishankar



Mr. Vikram Kirloskar & Mr. Akito Tachibana - Ex. Committee Member

Mr. Akito Tachibana

Mr. Akito Tachibana

Mr. Akito Tachibana

MEMBERSHIP DETAILS OF VARIOUS ASSOCIATION FOR FY 2015-16


StakeholderEngagement and Materiality


Engagement with stakeholders are extremely crucial to understand their perception on aspects that are of priority to them. We have regular engagements with all our stakeholders throughout the year, which gives us an insight into the issues which are significant to our stakeholders and relevant our business operations.

For materiality assessment, the process of engagement is initiated by determining the risks and opportunities posed by stakeholders to the organization. This is followed by deriving a business approach based on the outcome of the risks and opportunities. We have engaged with a third party agency, KPMG for the stakeholder engagement and development of the materiality matrix.

I. STAKEHOLDER ENGAGEMENT PROCESS

The stakeholder engagement process included both internal and external stakeholder engagement.

The internal stakeholder engagement was carried out by conducting comprehensive workshops and discussions with functional heads representing various business divisions of TKM. The selected stakeholder groups identified during the internal engagement were involved in external stakeholder engagement. Through the discussion with all the functional heads, we could come out with a list of top stakeholders who could influence or get influenced by our organization.

III. MATERIALITY ASSESSMENT & MATERIALITY MATRIX

The internal materiality evaluation of the aspects was carried out as defined under the GRI G4 framework, involving the key stakeholders. The matrix was then developed in accordance with the received responses from the prioritized stakeholders, further reviewed and validated by the senior management.

KEY STAKEHOLDERS

ENGAGEMENT BENEFITS TO

METHOD MODE FREQUENCY BUSINESS STAKEHOLDERS

VOC [Voice of customer]; Customer meets; Customer Satisfaction Surveys; Customer Feedback cell; Dealer Visits

Round Table Meeting; Periodic direct communicationopportunity with Sr. Mgmt. (Skip level meetings); Performance Review; Kaizens; Level-up group HR meetings; Employee Engagement Survey – 'Morale Survey'; Rewards and Recognition; The annual Talent Hunt event; Union Meetings

Dealer meets; Dealer visits; Special training programmes; Dealercouncils; Kaizen programme; Dealer Environment Risk Assessment Programme (DERAP)

Meetings with local community; Need assessment; Public hearing

Supplier Meets, BCM; Kaizen Festival; Quality Circle Competitions; ASM; Promotion and Awards

Regular Meetings andCommunication

Regular meetings; Meetings in industry forums

Customers

Employees

Dealers

Local Community and Society

Suppliers

TMC

Government and Regulatory Authorities

Formal andInformal

Formal andInformal

Formal

Formal

Formal

Formal

Formal

Need based, Daily interaction through dealer network

Daily/ Weekly/Monthly/ Quarterly/BienniallyandAnnually

Daily, Monthly, Quarterly and Annually

Need based

Monthly and Annually

Need based/ Periodic

Need based/Periodic

Product relatedrisk mitigation

Healthy relationswith employeesand Union

Better quality andimproving delivery performancecapacity building

Healthy relationswith local community

Better quality anddelivery performance

Streamlining of product and process improvement

Timely clearances; Successful operations and business continuity

Customersatisfaction

Better workingenvironment and job satisfaction

Profitability andcustomer satisfaction

Employability,livelihood

Profitability

Efficient process andbusinessmanagement

Compliance withregulations

The interaction with the stakeholders helped us to identify the material issues which were significant in their context. About 150 material issues were identified and based on KPMG tool, 24 nos. were found to be of top priority to TKM, under the scope of our business operations, stakeholders and triple bottom line.

2322

MATERIALITY ISSUES

1. Brand Strategy

2. Compliance

3. Natural Calamities & Climate Change

4. Environmental Performance

5. Water Availability

6. Availability of Grid Electricity

7. Road Safety

8. Customer Satisfaction

9. Profitable Economic Growth

10. Operation Efficiency & Scalability

11. Cost Management

12. Alternate Fuel Technology

13. Product Performance & Innovation Strategy

14. New Product Launches & Line-Up

15. Competitive Product Offering

16. End of Life Management of Product

17. Occupational Health & Safety

18. Dealer Relationships

19. Delivery Lead Time

20. Community Development

21. External Stakeholder Communication

22. Market Presence

23. Corruption

24. Anti Competitive Behavior

II. MODE OF ENGAGEMENT

The external stakeholder engagement process was carried out utilizing various modes of interaction which could be convenient for the stakeholder. One to one interactions were scheduled and questionnaires were shared for the feedback to identify the material aspects by the external stakeholders.

STAKEHOLDER GROUPMODE OF

INTERACTION

TKM Own Employee

Contract Employees

TKM Employee Union

Contractors

Suppliers

One to One interaction and feedback throughquestionnaire*

One to One interaction



1. Additional Labor Commissioner

2. Dep. Director - Factories & Boilers

3. Dep. Environment Officer - KSPCB

4. Dep. of Traffic Police

Feedback throughquestionnaire






Local Community

Local NGOs

Regulatory Authority

BIA

Customers

INF

LU

EN

CE

D B

Y T

HE

OR

GA

NIZ

AT

ION

INFLUENCES THE ORGANIZATION

LO

WM

ED

HIG

H

MED HIGH

EMPLOYEE FAMILIES

CONTRACTORS

SUB-CONTRACTOREMPLOYEES

POTENTIAL NEWEMPLOYEES

DEALERS

COMMUNITY

TMC

OWNEMPLOYEES

CUSTOMERS/CUSTOMER GROUP

EMPLOYEEUNION

VENDOR &SUPPLIERS

NEIGHBORINGINDUSTRIES

ACADEMIC &RESEARCH INSTITUTES

REGULATORS

CITIZEN FORUM

MEDIA

POLITICIAN /POLICY MAKERS

EXTERNAL STAKE HOLDER ENGAGEMENT

INTERNAL STAKE HOLDER ENGAGEMENT











KEY STAKEHOLDERS










Customers

Employees

Dealers


Suppliers

TMC


Formal andInformal

Formal andInformal

Formal

Formal

Formal

Formal

Formal




Need based



Need based/Periodic












Profitability




2322

MATERIALITY ISSUES

1. Brand Strategy

2. Compliance





7. Road Safety




11. Cost Management











22. Market Presence

23. Corruption





INTERACTION

TKM Own Employee

Contract Employees

TKM Employee Union

Contractors

Suppliers















Local Community

Local NGOs


BIA

Customers

INF

LU

EN

CE

D B

Y T

HE

OR

GA

NIZ

AT

ION


LO

WM

ED

HIG

H

MED HIGH

EMPLOYEE FAMILIES

CONTRACTORS



DEALERS

COMMUNITY

TMC

OWNEMPLOYEES


EMPLOYEEUNION

VENDOR &SUPPLIERS



REGULATORS

CITIZEN FORUM

MEDIA














KEY STAKEHOLDERS










Customers

Employees

Dealers


Suppliers

TMC


Formal andInformal

Formal andInformal

Formal

Formal

Formal

Formal

Formal




Need based



Need based/Periodic












Profitability




2322

MATERIALITY ISSUES

1. Brand Strategy

2. Compliance





7. Road Safety




11. Cost Management











22. Market Presence

23. Corruption





INTERACTION

TKM Own Employee

Contract Employees

TKM Employee Union

Contractors

Suppliers















Local Community

Local NGOs


BIA

Customers

INF

LU

EN

CE

D B

Y T

HE

OR

GA

NIZ

AT

ION


LO

WM

ED

HIG

H

MED HIGH

EMPLOYEE FAMILIES

CONTRACTORS



DEALERS

COMMUNITY

TMC

OWNEMPLOYEES


EMPLOYEEUNION

VENDOR &SUPPLIERS



REGULATORS

CITIZEN FORUM

MEDIA














KEY STAKEHOLDERS










Customers

Employees

Dealers


Suppliers

TMC


Formal andInformal

Formal andInformal

Formal

Formal

Formal

Formal

Formal




Need based



Need based/Periodic












Profitability




2322

MATERIALITY ISSUES

1. Brand Strategy

2. Compliance





7. Road Safety




11. Cost Management











22. Market Presence

23. Corruption





INTERACTION

TKM Own Employee

Contract Employees

TKM Employee Union

Contractors

Suppliers















Local Community

Local NGOs


BIA

Customers

INF

LU

EN

CE

D B

Y T

HE

OR

GA

NIZ

AT

ION


LO

WM

ED

HIG

H

MED HIGH

EMPLOYEE FAMILIES

CONTRACTORS



DEALERS

COMMUNITY

TMC

OWNEMPLOYEES


EMPLOYEEUNION

VENDOR &SUPPLIERS



REGULATORS

CITIZEN FORUM

MEDIA





KEY PERFORMANCE PARAMETER

Suppliers (core) compliant with ISO14001

Dealerships compliant with ISO14001

3.74

2.88

4.3

5.12

39.4

15.62

0.08

0.39

0.05

0.34

100%

96%

Awards and Recognitions

ENVIRONMENTAL PERFORMANCE

KEY PERFORMANCE INDICATOR 2013-14 2014-15 2015-16

CO Emission (tCO /veh)2 2

Plant 1

Plant 2

Scope 1

Scope 2

Scope 1

Scope 2

3.49

2.31

4.24

5.97

35.74

13.86

0.067

0.332

0.072

0.349

100%

100%

3.25

2.20

3.2

4.27

34.05

12.54

0.063

0.386

0.065

0.388

100%

100%

Number of employees

Turnover rate for employees

* Community Investments (Through Community Spirit and Community Sponsorships) in Million INR

8480

2.40%


SOCIAL PERFORMANCE

8347

2.14%

64.65

8761

1.95

48.88

ECONOMIC PERFORMANCE


Units Manufactured (Nos.)

Units Imported as CBU (Completely Built Unit) (Nos).

Net Profit after Tax (Million INR)

1,54,627

78

(-) 629

1,59,347

136

5294.7

1,45,708

153

5045.68


Hazardous Waste Generation (kg/veh)

Total Water Usage3(m /veh)

VOC Emission 2(gm/m )

Plant 1

Plant 2

Plant 1

Plant 2

Plant 1

Plant 2

2524

INDIAN SKILLS 2016

Ministry of Skill Development &

Entrepreneurship

1st and 2nd positions under Mechatronic Skills

Qualified to World Skills 2017

Theme of AwardINDIAN SKILLS 2016

GOLDEN PEACOCK AWARD, 2015

Excellence in Corporate Social Responsibility

(GPACSR)

INDIAN MANUFACTURER OF THE YEAR AWARDFrost & Sullivan, 2015

WARRANTY REDUCTION ACHIEVEMENT AWARD, 2015

Toyota Asia Pacific affiliates

(Vehicle Manufacturers) with Asia Production

Quality award

JD POWER AWARD 2015

JD POWER ASIA PACIFIC India's Most Dependable

Entry Midsize CAR Segment - Etios

ASIA PACIFIC NO.1 IN ENVIRONMENT

MANAGEMENT, 2015Toyota Motor Corporation

'Environment Management'

Team AMENA Regional Meeting

“Award Ceremony”31st May 2016, Thailand

CII-ITC COMMENDATIONFOR SIGNIFICANT ACHIEVEMENT IN

ENVIRONMENT MANAGEMENT, 2015

CII-ITC Centre for Excellence for Sustainable

Development Theme of Award:

Sustainable Business

CII-ITC COMMENDATION FOR SIGNIFICANT ACHIEVEMENT IN

CORPORATE SOCIAL RESPONSIBILITY, 2015

CII-ITC Centre for Excellencefor Sustainable Development

Theme of Award Sustainable Business

FULL SIZE SEDANOF THE YEAR

11th NDTV Car & Bike Awards, 2016

For Toyota Camry Hybrid Ideal combination of

Luxury sedan with hybrid technology

Theme of AwardFULL SIZE SEDAN

OF THE YEAR


GOLDEN PEACOCK

AWARD, 2015Excellence in

Occupational Health & Safety(GPOHSA)

KEY PERFORMANCE PARAMETER

Suppliers (core) compliant with ISO14001

Dealerships compliant with ISO14001

3.74

2.88

4.3

5.12

39.4

15.62

0.08

0.39

0.05

0.34

100%

96%


ENVIRONMENTAL PERFORMANCE


CO Emission (tCO /veh)2 2

Plant 1

Plant 2

Scope 1

Scope 2

Scope 1

Scope 2

3.49

2.31

4.24

5.97

35.74

13.86

0.067

0.332

0.072

0.349

100%

100%

3.25

2.20

3.2

4.27

34.05

12.54

0.063

0.386

0.065

0.388

100%

100%

Number of employees

Turnover rate for employees

* Community Investments (Through Community Spirit and Community Sponsorships) in Million INR

8480

2.40%


SOCIAL PERFORMANCE

8347

2.14%

64.65

8761

1.95

48.88



Units Manufactured (Nos.)

Units Imported as CBU (Completely Built Unit) (Nos).

Net Profit after Tax (Million INR)

1,54,627

78

(-) 629

1,59,347

136

5294.7

1,45,708

153

5045.68


Hazardous Waste Generation (kg/veh)

Total Water Usage3(m /veh)

VOC Emission 2(gm/m )

Plant 1

Plant 2

Plant 1

Plant 2

Plant 1

Plant 2

2524

INDIAN SKILLS 2016


Entrepreneurship






(GPACSR)





Quality award

JD POWER AWARD 2015




MANAGEMENT, 2015Toyota Motor Corporation

'Environment Management'

















OF THE YEAR


GOLDEN PEACOCK





INDIAN SKILLS 2016


Entrepreneurship






(GPACSR)





Quality award

JD POWER AWARD 2015




MANAGEMENT, 2015

Team AMENA Regional MeetingTeam AMENA Regional Meeting

“Award Ceremony”“Award Ceremony”31st May 2016, Thailand31st May 2016, Thailand

















OF THE YEAR

COMPANY PROFILE

GOLDEN PEACOCK



BIRD’S EYE VIEW OF TKM

A BIRD'S EYE VIEW OF TOYOTA KIRLOSKAR MOTOR PVT. LTD, BIDADI MANUFACTURING FACILITY

TKM is situated in the Bidadi Industrial Area, which has been earmarked by the Government as an industrial area development project. No natural biodiversity habitats are affected by the location of the manufacturing facility.

Toyota Technical Training Institute (TTTI)

Biogas Unit

National Manpower Excellence Centre

National Parts Centre

Completely Built Unit yard (CBU)

Test Track

Gurukul

Plant 1

Onsite supplier park

Camry Unit

Herbal Garden

Plant 2

Sludge Drying Yard

Rainwater Harvesting Pond

01.

02.

03.

04.

05.

06.

07.

08.

09.

10.

11.

12.

13.

14.

2726






Biogas Unit




Test Track

Gurukul

Plant 1


Camry Unit

Herbal Garden

Plant 2

Sludge Drying Yard


01.

02.

03.

04.

05.

06.

07.

08.

09.

10.

11.

12.

13.

14.

2726






Biogas Unit




Test Track

Gurukul

Plant 1


Camry Unit

Herbal Garden

Plant 2

Sludge Drying Yard


01.

02.

03.

04.

05.

06.

07.

08.

09.

10.

11.

12.

13.

14.

2726






Biogas Unit




Test Track

Gurukul

Plant 1


Camry Unit

Herbal Garden

Plant 2

Sludge Drying Yard


01.

02.

03.

04.

05.

06.

07.

08.

09.

10.

11.

12.

13.

14.

2726


OurEnvironmentToyota Kirloskar Motor strives to protect the environment by improving performances in its manufacturing operations, products and supply chain. We identify the risks and challenges at every step of our operations and employ Kaizen to reduce footprint.

Our pledge towards environmental sustainability is guided by our policies, long term action plans & periodic reviews by our top management. We also actively design strategies that ensure operational efficiency with the lowest energy requirements.

ENVIRONMENT POLICY

As a good corporate citizen, we are committed to the protection of the environment, pollution prevention and conservation of natural resources. We strive to minimize impact on the environment through, continuous monitoring and improvement of processes.

To support this commitment, our policy helps to:

Proactively promote environmental awareness and knowledge among team members through constant education and job specific training

Ensure compliance with legal as well as other requirements to which our company subscribes

Establish and review environmental objectives and targets annually, to ensure better environmental performance through proactive and ongoing improvement activities

Establish programs that conserve energy, natural resources, flora and fauna; building a green environment within and in our surroundings as a part of the policy

We recognize the importance of continual improvement in environment performance, while ensuring economic growth and maintaining a competitive advantage. We are committed to this philosophy and strive to share this commitment with all our stakeholders.

TOYOTA MANUFACTURING ENVIRONMENTAL POLICY

Toyota has established a comprehensive Manufacturing Environment Policy to guide Environment Management System (EMS) at all its subsidiaries including TKM. It is designed to make Toyota an eco-friendly company and forms the backbone of our commitment towards reducing the impact on the environment.

GOING BEYOND COMPLIANCE

We believe in adherence to the law as a top priority issue. Since the inception of operations, we have never faced penalties for non–compliance with applicable regulations. We have established our own benchmark that is 20% more stringent than the applicable regulatory standards, and this demonstrates strong commitment towards compliance. In view of this, the organization has established both online and offline control methods to proactively ensure 100% compliance.

We have established our own benchmark that is 20% more stringent than the applicable regulatory standards. We ensure it through a comprehensive tool designed to identify & escalate potential risks in advance.

Legal Compliance Management Tool (LCMT) is an online tool, which acts as a real time monitoring system and ensures compliance at all levels, across all divisions. The tool helps in sending alerts to the responsible person for complying with the activities and also provides the real time compliance status report to the Senior Management and Directors

Comprehensive Legal Compliance System is an offline system consisting of all applicable legal requirements which have been identified and converted into actionable procedures. It is a multilayered monitoring system which covers all processes from shop level to corporate level to ensure legal compliance. It is reviewed monthly by Environment Management Representative [EMR] in presence of the environment window persons and the division heads

Periodic monitoring of new regulations at TKM, is done by engaging with the experts who update and advise us about any change in regulation on a monthly basis. Upon understanding the change and applicability of the regulation, an action plan is derived and communicated to relevant stakeholders

HORINOUCHI YOSHIHIRODMD - Manufacturing

Zero Non-Compliance and Complaints

Concerned with waterand air pollution, noise,

odor and vibration.

Focus on soil and underground

water pollution

Environmental Risk Minimization

Reduction in CO , 2

waste, water and VOC

Environmental Performance Improvement

Key pillars of Toyota Manufacturing Environment Policy


OUR ENVIRONMENT OUR ENVIRONMENT

2928

OurENVIRONMENTIndia, over the years has positioned itself as a potential global economic power. The ever growing demand of automobiles in India, is a testimony to it’s enormous consumer base and export potential, which as enabled Indian automobile industries to significantly contribute to the country’s GDP.

We at Toyota, have always strived to make better cars and delight our valued customers with ‘Jidoka’ – Automation with Human touch. In response to the growing global environmental concerns leading to stringent government mandates on the use of cleaner fuels and eco-friendly vehicles, Toyota, since two decades, has worked relentlessly and pioneered the development of Hybrid systems and mass production of full hybrid vehicles as its fundamental obligation towards Environmental protection.

As a responsible manufacturing industry, we at TKM have adopted a holistic approach towards Environmental Sustainability by improving our performance in every step of production, operations, purchase, logistics, sales and commutation by embedding the principles of harmony with nature. As an EMS - ISO 14001 Certified company, we always strive to ensure zero non-compliance and no complaints with the legal and other statutory environmental compliances and have set benchmark of 20% more stringent than the regulatory standards.

Moving forward, we will continue to develop automated technologies that further reduce our carbon footprint.



ENVIRONMENT POLICY



















odor and vibration.


water pollution


Reduction in CO , 2






2928







ENVIRONMENT POLICY



















odor and vibration.


water pollution


Reduction in CO , 2






2928







ENVIRONMENT POLICY



















odor and vibration.


water pollution


Reduction in CO , 2






2928





An Environmental Grievance Mechanism has been set up to address the key challenges and issues arising during manufacturing, logistics and operations. We have not received any grievances about environmental concerns in this reporting year.

FIVE YEAR ENVIRONMENT ACTION PLAN

Global directions for Environment Action Plan are defined by TMC which comprises of specific actionable plans. The key components of this action plan include three priority themes:

Contribution to a Low-carbon Society,

Contribution to a Recycling-based Society and

CORPORATE ENVIRONMENT COMMITTEE

The Environment Committee monitors the environmental performance of the company and comprises of representatives from all functions across the organization. The committee is led from the front by the Managing Director as its Chairman, and Deputy Managing Director and Senior Vice President-Manufacturing, supported by all the division heads and window persons.

There is a quarterly meeting of the group heads with the top management for discussions about the achievements, challenges faced and strategic directions for the partners. A centralized environment team works on translating the directions of the top management into an action plan.

A centralized control centre has been established by the

Environmental protection and contribution to harmony with nature and society.

Our environment performance is detailed out in the Five year Environment Action Plan, through which the annual environment plan is formulated and implemented at the plant level.

Environment team to help enhance the performance of the committee.

The EMR periodically reviews the progress and plays role of vital link between the top management and deployment terms.

Clearly defined minutes of meeting with expected action plans are prepared and circulated among all group heads. The progress of implementation is tracked by the central environment team.

OVERVIEW OF THE 5TH ENVIRONMENTAL ACTION PLAN (FY2012-FY2016)

The Five year Environment Action Plan defined the actionable items and goals for the five year period starting from FY2012. The two key strategies employed while we prepared the plan were considering:

• Environmental risks and business opportunities in corporate operations

• Futuristic Environmental initiatives & impending regulations o ver the next decade.

Embracing the three priority themes, we aim to contribute to the sustainable development of society and the world through ‘monozukuri’ which means manufacturing in harmony with nature & society. This Five year plan, however, has been extended for another 2 years, in view of the revised Global Environment Action Plan preparation by headquarters, scheduled from 2016-17.

ENVIRONMENTMANAGEMENTPromote consolidated

Environmental Management

ESTABLISHLOW CARBON SOCIETYCO emission reduction 2

in Supply Chain

ESTABLISH RECYCLING BASEDSOCIETYConservation of Natural and Shared Resources

ESTABLISH SOCIETY

IN HARMONYWITH NATURE

Promotion of Afforestation

and Biodiversity Conservation

Thinking Way

Following is the brief description of the initiatives undertaken to enhance and achieve the environment performance as per TKM’s Five year Environment Action Plan.

I. ESTABLISHING A LOW CARBON SOCIETY

Globally Toyota has always considered climate change as a threat to environment sustainability & repositioned its environment strategies in the entire product life cycle starting from-design, development, manufacturing, logistics and sales.

In order to achieve reduction in plant energy consumption, we enable our employees to identify, justify, and implement energy saving Kaizen. This has inculcated a culture of innovativeness among our team members as a part of Toyota work-culture.

Significant effort has also gone into utilization of advances in the technology and adoption to the plant energy management to bring about a radical shift in energy usage.


TMC FIVE YEARACTION PLAN

TKM FIVE YEARPLAN

TKM ANNUALENVIRONMENT MANAGEMENT

PLAN

EACH DEPARTMENT

ACTION PLAN

Variable Frequency Drive

(VFD)Installation

Centralized Timer

Control (CTC)Installation

At Production areas (oven, etc)

YOSEDOME(Convert Fixed to

Flexible Load)

KAIZEN

CO REDUCTION 2

Activities to Reduce CO Emission In Supply Chain2

We understand that there is immense scope to conserve energy in our operations. Hence, we constantly endeavor to reduce our carbon footprint from our operations that will help us in achieving energy and emissions optimization. Following are some key initiatives towards reduction of CO 2

emissions from our operations.

Conversion of Fixed Load To Variable Load

Our energy reduction practices have been focused primarily on conversion of fixed load to variable load. By automating the system or by introducing variable frequency drives, the equipment runs only when production happens & further the equipment would draw power only based on the demand.

2013 - 14 2014 - 15 2015 - 16

Scope 1

Scope 2

Scope 1

Scope 2

GHG Emissions (t/veh)

Plant 1

Plant 2

0.07

0.41

0.06

0.35

0.07

0.41

0.07

0.4

0.0625

0.3867

0.0652

0.388


3130

Zero Non Compliance /Complaints

Risk Minimization

Toyota EMS Audit

Environment PerformanceImprovement

Sustainable Plant

CO Emission reduction 2

in logistic process

Packaging Waste Management

Promotion atLogistic partners

DERAP Compliance

CO emission 2

reduction

Achieve 100% ISO14001

certification

Promotion atDealers

Internal Environment

communication

External Environment

communication

Eco CSR

Release of Sustainability

Report

Continue to promote ISO14001 at suppliers

Maintain 100% elimination of VOC's

CO management 2

at suppliers

Promotion at suppliers

MANUFACTURING PURCHASE LOGISTICS SALES COMMUNICATION

CHAIRMANMANAGING DIRECTOR

ADVISORVICE CHAIRMAN DEPUTY MANAGING DIRECTOR

SENIOR VICE PRESIDENT

SUB COMMITTEE

ENVIRONMENT MANAGEMENT

REPRESENTATIVE(EMR), & S&E DEPARTMENT

SCOPE OF WORK























in Supply Chain


ESTABLISH SOCIETY




Thinking Way








TKM FIVE YEARPLAN


PLAN

EACH DEPARTMENT

ACTION PLAN


(VFD)Installation

Centralized Timer




Flexible Load)

KAIZEN

CO REDUCTION 2






2013 - 14 2014 - 15 2015 - 16

Scope 1

Scope 2

Scope 1

Scope 2


Plant 1

Plant 2

0.07

0.41

0.06

0.35

0.07

0.41

0.07

0.4

0.0625

0.3867

0.0652

0.388


3130


Risk Minimization

Toyota EMS Audit


Sustainable Plant


in logistic process



DERAP Compliance

CO emission 2

reduction


certification

Promotion atDealers


communication


communication

Eco CSR


Report



CO management 2

at suppliers






SUB COMMITTEE



SCOPE OF WORK























in Supply Chain


ESTABLISH SOCIETY




Thinking Way








TKM FIVE YEARPLAN


PLAN

EACH DEPARTMENT

ACTION PLAN


(VFD)Installation

Centralized Timer




Flexible Load)

KAIZEN

CO REDUCTION 2






2013 - 14 2014 - 15 2015 - 16

Scope 1

Scope 2

Scope 1

Scope 2


Plant 1

Plant 2

0.07

0.41

0.06

0.35

0.07

0.41

0.07

0.4

0.0625

0.3867

0.0652

0.388


3130


Risk Minimization

Toyota EMS Audit


Sustainable Plant


in logistic process



DERAP Compliance

CO emission 2

reduction


certification

Promotion atDealers


communication


communication

Eco CSR


Report



CO management 2

at suppliers






SUB COMMITTEE



SCOPE OF WORK























in Supply Chain


ESTABLISH SOCIETY




Thinking Way








TKM FIVE YEARPLAN


PLAN

EACH DEPARTMENT

ACTION PLAN


(VFD)Installation

Centralized Timer




Flexible Load)

KAIZEN

CO REDUCTION 2






2013 - 14 2014 - 15 2015 - 16

Scope 1

Scope 2

Scope 1

Scope 2


Plant 1

Plant 2

0.07

0.41

0.06

0.35

0.07

0.41

0.07

0.4

0.0625

0.3867

0.0652

0.388


3130


Risk Minimization

Toyota EMS Audit


Sustainable Plant


in logistic process



DERAP Compliance

CO emission 2

reduction


certification

Promotion atDealers


communication


communication

Eco CSR


Report



CO management 2

at suppliers






SUB COMMITTEE



SCOPE OF WORK

Annually, environment performance targets are established based on the Five year Environment Action plan. The responsibilities for achieving the targets are assigned to relevant departments. Progress is monitored periodically by environment director.

Redefine Logistic Standards to Enhance Efficiency

To achieve a low carbon society, it becomes imperative to improve efficiency at all stages of the supply chain. We thereby ensure optimization of our logistics operations at all stages to reduce CO emissions.2

Toyota genuine parts and accessories are supplied to outlets across India. Logistics operations are carried out by dedicated fleet of trucks. That operate over 24,960,000 km annually and emit approximately 9,800 tons of CO . 2

Involving our logistic partners we could redefine our standards which has led to reduction of a significant impact on environment like:

• Usage of vehicles not more than 7 years of age.

• Replacement of the older vehicles with new ones complying with stricter emission norms such as the Bharat Stage IV.

• Fuel efficiency improvement with load optimization and fill rate improvement in trucks.

• Restructuring of routes to improve truck fill rate and reduce running km.

• Usage of rail mode of dispatch to North eastern region.

FY2015-16 saw a reduction of 272 tCO e from FY 2014-15 as 2

a result of the activities.

Double Impact: Mitigating Business Risk & Reduction of Carbon Footprint

Import and export operation are of key importance to TKM, in order to obtain the right raw materials at the right time for manufacturing of our quality products.

Chennai port, which is at a distance of 420 KM from our manufacturing plant, was being utilized to carry out our import and export vessel operations. Chennai port caters to the bulk of export & import requirements in the country leading to tremendous congestions & time delays amounting to additional 18 hours to the otherwise 57 hour lead time.

This often led to non-availability of minimum stock, creating risk of line stop at TKM and increase in the CO 2

emissions from the logistics.

A detailed impact study was conducted and the impacts on the customers, cost and time were identified. The study showed that almost 70% of problems were port specific, calling for an alternate strategy to cater to present & future demands.

A comparative study of three ports; was conducted. However, Katupalli port at the outskirts of Chennai at a distance of 25 Kms from the Chennai port was identified as the alternate port after detailed assessment.

With the introduction of of Katupalli port, the lead time has reduced by 39 hours.

As a result of the impact and feasibility study, we have successfully established Katupalli port as our alternate port and it contributes to 100% exports and 80% of our imports At present, the lead time benefit is being monitored through GPS data for further reduction in the lead time.

Business Risk Mitigation by Relocation of Supply Base

The LPG supply for TKM is from Mangalore City, at a distance of 387 KM via Shiradi Ghat from our plant. The continuous supply of LPG is necessary for the plant to operate without any interruptions.

As the monsoon season approaches, Mangalore city receives heavy rainfall. Frequent landslides and road accidents interrupt in the LPG supply. This necessitates us to maintain minimum stock level of LPG, as it would trigger Line Stop or production loss, if not anticipated and planned for.

A Communication channel was initiated and established for communicating and escalating the interruption issues as well as the impact of these interruptions on production and profitability of the industry, to our Gas suppliers.

ELECTRICITY(kWh/veh)

LPG(KG/veh)

13-14 14-15 15-16

TARGET

501

ACTUAL

475

TARGET

357

ACTUAL

392

TARGET

381

ACTUAL

333

13-14 14-15 15-16

TARGET

24

ACTUAL

25

TARGET

24

ACTUAL

23

TARGET

22

ACTUAL

22


Energy security is crippling the country. We understand that as a responsible corporate, we must reduce our dependency on the grid power. We look forward to enhancing our investment on renewable energy & infrastructure.

Our future plans include initiation of about 3MW of Solar Energy as a step towards self-sustainable energy system. Initiation of many energy reduction activities like heat pump installation, FRP fan for cooling towers, maximize renewable power trading an average of 15% in the upcoming year. The option for utilizing into RLNG is also being expedited.

PL

AN

T 1


LPG(KG/veh)

13-14 14-15 15-16

TARGET

367

ACTUAL

367

TARGET

356

ACTUAL

397

TARGET

392

ACTUAL

336

13-14 14-15 15-16

TARGET

19

ACTUAL

19

TARGET

24

ACTUAL

26

TARGET

26

ACTUAL

23

PL

AN

T 2

We aim to explore the options of despatching some “Truck on Train” (CO reduction by distance 2

optimization and elimination of multiple handling of parts) and deploy CNG trucks at Delhi and Mumbai, for the possibility of further reduction in CO emissions in 2

the coming years.

726

599

327

13-14 14-15 15-16

CO emissions through optimization of logistics in tCO e/yr2 2

As an outcome of our efforts, an extra stock of gas is made available at Nelamangala station (45 KM from TKM)by our suppliers, in case of any eventuality.

Reduction in Painting Booth Energy Consumption

We conduct activities to save energy and reduce the volume of GHG emissions in production activities. One of the most common activities we noticed is the idling of the equipment during the no body production time, thus, resulting in high energy wastage and GHG emissions.

To overcome this problem, painting booths were individually split, and standardized for the startup time. The doors were provided at the pre heat to avoid heat loss. The booth is switched on with body synchro instead of the single control. This has led to GHG emission reduction of 32.53 Kg/vehicle making 2331450 Kg annually.

Technology - An Enabler to Mitigate Climate Change

Whi le the procurement o f raw mater ia ls and transportation of accessories and products to their destinations is vital, reducing the distance to the destination not only aids in saving time but also reducing the CO emissions.2

We have optimized the distance of travel through identified alternate routes for our logistic operations, thereby lowering the fuel consumption.The distance to Gulbarga was reduced by 55 KM through an alternative route via Dharwad instead of Belgaum and the distance to Goa was reduced by 85 KM via Bellary instead of Bijapur.

The challenges faced included the dependency on infrastructure for development of new routes, and consistency in fleet availability. However, our team explored the new road linkages through Google mapping for alternate routes and was in continuous discussion with the sales department to bridge up the gaps between the demand and supply. This helped us achieve the distance CO reduction of 0.40 Kg/vehicle.2

Initiatives to Promote Clean Air

While carbon emissions form the largest part of emissions from manufacturing, oxides of nitrogen, sulphur and particulate matter are also considered relevant to

environmental pollution. To keep environmental pollution levels under control, the ambient air quality is checked on a monthly basis.

We do not use any ozone depleting substance for manufacturing of vehicles. The Chiller unit at paint process is filled with R134a gas which is free from CFCs and all AC's fitted into newly manufactured cars are CFC free.

Reduce VOC Emissions in Production Activities

We have always attempted to reduce the VOC emissions from the painting processes. Our key initiatiives include, establishment of Color batching system for reducing pre-spray and flushing VOCs, distance reduction and paint flow optimization to enhance the transfer efficiency.

Thinking WayKAIZEN

Color BatchingElimination of pre-

spray & flushing

Eliminate Paint waste &

improve Transfer Efficiency

Distance Reduction

Transfer Efficiency improvement

Evaluate & Eliminate MUDA

for excess & unwanted

strokes

Water Based Painting

The automotive painting involves organic based thinner solvents commonly known to contain harmful Volatile Organic Compounds [VOC]. We aim to reduce and eliminate the harmful VOC emissions and endeavor to promote newer non-VOC processes. As a start, at Plant 2 we have introduced water-borne painting in the Paint Shop, cutting down our VOC emissions by more than 50%. As a result of attaining success with the introduction of water based painting technology in the manufacturing facility, similar technology has been implemented at our servicing facilities of dealerships across the country.


3332

Emissions2(µg/m )

DATA COVERAGE 2013 - 14 2014 - 15 2015 - 16

NO X

SO X

100%

100%

21

11

20.6

10

16.25

5

NO SO EmissionsX X

2013 - 14 2014 - 15 2015 - 16

449.12 447.41 382.0

VOC Emissions (MT)



























LPG(KG/veh)

13-14 14-15 15-16

TARGET

501

ACTUAL

475

TARGET

357

ACTUAL

392

TARGET

381

ACTUAL

333

13-14 14-15 15-16

TARGET

24

ACTUAL

25

TARGET

24

ACTUAL

23

TARGET

22

ACTUAL

22




PL

AN

T 1


LPG(KG/veh)

13-14 14-15 15-16

TARGET

367

ACTUAL

367

TARGET

356

ACTUAL

397

TARGET

392

ACTUAL

336

13-14 14-15 15-16

TARGET

19

ACTUAL

19

TARGET

24

ACTUAL

26

TARGET

26

ACTUAL

23

PL

AN

T 2



the coming years.

726

599

327

13-14 14-15 15-16
















Thinking WayKAIZEN


spray & flushing



Distance Reduction




strokes




3332

Emissions2(µg/m )

DATA COVERAGE 2013 - 14 2014 - 15 2015 - 16

NO X

SO X

100%

100%

21

11

20.6

10

16.25

5

NO SO EmissionsX X

2013 - 14 2014 - 15 2015 - 16

449.12 447.41 382.0

VOC Emissions (MT)



























LPG(KG/veh)

13-14 14-15 15-16

TARGET

501

ACTUAL

475

TARGET

357

ACTUAL

392

TARGET

381

ACTUAL

333

13-14 14-15 15-16

TARGET

24

ACTUAL

25

TARGET

24

ACTUAL

23

TARGET

22

ACTUAL

22




PL

AN

T 1


LPG(KG/veh)

13-14 14-15 15-16

TARGET

367

ACTUAL

367

TARGET

356

ACTUAL

397

TARGET

392

ACTUAL

336

13-14 14-15 15-16

TARGET

19

ACTUAL

19

TARGET

24

ACTUAL

26

TARGET

26

ACTUAL

23

PL

AN

T 2



the coming years.

726

599

327

13-14 14-15 15-16
















Thinking WayKAIZEN


spray & flushing



Distance Reduction




strokes




3332

Emissions2(µg/m )

DATA COVERAGE 2013 - 14 2014 - 15 2015 - 16

NO X

SO X

100%

100%

21

11

20.6

10

16.25

5

NO SO EmissionsX X

2013 - 14 2014 - 15 2015 - 16

449.12 447.41 382.0

VOC Emissions (MT)



























LPG(KG/veh)

13-14 14-15 15-16

TARGET

501

ACTUAL

475

TARGET

357

ACTUAL

392

TARGET

381

ACTUAL

333

13-14 14-15 15-16

TARGET

24

ACTUAL

25

TARGET

24

ACTUAL

23

TARGET

22

ACTUAL

22




PL

AN

T 1


LPG(KG/veh)

13-14 14-15 15-16

TARGET

367

ACTUAL

367

TARGET

356

ACTUAL

397

TARGET

392

ACTUAL

336

13-14 14-15 15-16

TARGET

19

ACTUAL

19

TARGET

24

ACTUAL

26

TARGET

26

ACTUAL

23

PL

AN

T 2



the coming years.

726

599

327

13-14 14-15 15-16
















Thinking WayKAIZEN


spray & flushing



Distance Reduction




strokes




3332

Emissions2(µg/m )

DATA COVERAGE 2013 - 14 2014 - 15 2015 - 16

NO X

SO X

100%

100%

21

11

20.6

10

16.25

5

NO SO EmissionsX X

2013 - 14 2014 - 15 2015 - 16

449.12 447.41 382.0

VOC Emissions (MT)

II. ESTABLISHING A RECYCLING BASED SOCIETY

Earth's resources are limited while population is on the rise. With the current trends of consumption, the earth's resources are tending towards depletion. It becomes imperative for judicious consumption and utilization of these available resources to ensure our future generations are sustained. In alignment with this notion, we have adopted the 3 R strategies (Reduce, Reuse and Recycle) for the appropriate disposal of waste.

Water Consumption Reduction

In recent years, the increased exploitation of water has become a serious issue. India is threatened with a difficult and tumultuous water future. Given these challenges, we are committed to conserve and manage this precious natural resource.

Our plant receives its supply of water from the Karnataka Industrial Area Development Board (KIADB) for both domestic and industrial purposes. We have been promoting activities to recycle the treated effluent in various operations thereby reducing the fresh water consumption in line with the philosophy of 'Zero discharge'.

Efforts to Reduce Water Consumption

Optimization of water consumption involving the team members for 'YOSEDOME'- lean manufacturing concept has been taken up. In this concept, the following three Kaizens have eventually contributed to overall reduction in the water consumption.

Through the visionary 'one drop saving' concept, we could reduce VOC emissions by more than 40% in the last 10 years at Plant 1. We stand No.1 among the AP affiliates in the area of VOC emission reduction.

In the year 2014, fifteen affiliates of Toyota visited TKM, Bidadi to learn and benchmark the best practices of VOC emission reduction.

Zero Freshwater Footprint at Manufacturing

The industrial wastewater is subjected to chemical treatment followed by activated sludge treatment. It then passes through membrane Bio Reactors and Reverse Osmosis. Domestic wastewater is mixed with chemically treated industrial wastewater prior to activated sludge for further treatment. We have a well established in-house laboratory with qualified analysts for regular monitoring of quality and to ensure optimum performance of the treatment plant.

We recycle the permeate back to the process thereby achieving 0% dependence on freshwater for manufacturing.

Faced with a challenge of balancing the cost of water recycling and legal requirement of water for utilization of treated water for on-land irrigation, we have set recyclability ratio to 60%. This means our wastewater treatment plants treat & recycle 60% of the wastewater back into the manufacturing process and 40% of the wastewater is safely disposed on land for irrigation.

Rainwater Harvesting

In order to further achieve self-reliance over freshwater intake, we have initiated harvesting and reuse of rainwater. The total surface run-off and roof top water is collected in harvesting tanks and further processed for reuse in the production. The effort has positively impacted our endeavor to reduce water requirement.

Our ultimate aim is to reduce the consumption of water provided by the government and use rainwater as our primary source at our second manufacturing plant.

To promote the reuse and optimal use of water, the height of the inlet channels of the rainwater harvesting pond has been increased, thus upgrading its storage capacity from 25,000 cubic meters to 35,000 cubic meters.

Reduce Waste Generation and Efficient use of Resources

The wastes generated at an automobile assembly plant like that of TKM, range from recyclable to non-recyclable wastes. These, in-turn, may be either non-hazardous waste or hazardous waste. We strive to go beyond the statutory legal compliances to reduce wastes (both hazardous and non-hazardous). All the waste generated inside the plant is sent to authorized vendors situated within Karnataka. However, we at TKM ensure utmost care to achieve 'Zero hazardous Waste' to landfill as per the Toyota Earth Charter.

Sludge Drying Yard

To take sustainable waste management a notch higher, we have built a Solar Sludge Drying facility to handle hazardous waste sludge at our Bidadi plant; we could reduce the moisture in sludge by 60% thereby reducing the volume of sludge.

SLUDGE DRYING YARD AT TKM


Thinking Way

Utilize MBR & RO for Wastewater

Recycling

Zero fresh - water for

Production

Rain-water Harvesting

Pond

Freshwater Utilization

Only for Domestic Use

KAIZEN

Our attention has shifted well beyond hazardous waste, looking for environment friendly alternatives to landfilling for other waste categories. Co-processing, an environmentally superior waste treatment option recognized by international bodies and proven by life cycle assessment studies, is now our preferred option for all non-recyclable waste.

Co-processing ranks higher in the waste processing hierarchy as it reduces the burden on TSDF (Treatment, Storage, and Disposal Facility). It maximizes the recovery of energy while ensuring safe disposal of waste, immobilize toxic and heavy material and produces overall environmental benefits by reducing releases to air, water and land. Despite the high cost of operation, we have embraced the co-processing technology to foster its environmental consciousness.

Vermi composting

Our ambitious venture towards achieving Zero Waste to Landfill, initiated several alternative options for waste minimization to utilize biodegradable waste (Non-Hazardous) in an eco-friendly manner.

Bio-sludge is an outcome of sewage treatment process. After conducting an extensive study involving various composting techniques, the Plant Engineering team arrived at an option of vermicomposting technique, which would convert the waste generation quantity [to be sent for landfilling] into manure.

VERMICOMPOSTING AT TKM

As a part of our sustenance plan, the vermi-manure thus produced, is utilized for our gardening purposes and is also supplied to the Bidadi Industrial Association for sapling plantation.

Adoption of Vermicomposting technique reduced the land filling cost and curtailed the CO emissions up to 2

18t/annum.

Efficient use of Resources

Steel

Steel constitutes up to 23 percent of the weight of the final finished product and is an essential raw material for the passenger car automobile industry. It is also a major contributor of CO emissions throughout its lifecycle. 2

Hence, we are continuously working on 'Steel Yield Improvement' under 3-tier concepts to increase the steel yield by using steel effectively without letting it be wasted, in order to cut down the carbon footprint.

During this reporting year, the Steel yield ratio of Plant 1 manufacturing Innova was 73.75%. Though there was a minor increase in the yield ratio, we are expecting a dip in this ratio owing to the introduction of the New Model of Innova Crysta, which is expected to reset the steel utilization patterns due to the new pattern of the shell-body. However, we shall continue with our efforts to stay on top of the Steel yield improvements and lead the Asia pacific affiliated in its exemplary performance.

72.89

73.14

73.75

13-14 14-15 15-16

Steel Yieid Ratio (%)

Optimization and Standardization of Packaging Material Specification and Usage

Packaging is one of the key components in ensuring the quality of the end product to customer and is also responsible for the brand image of the company.

Packaging material is immensely crucial to maximize the value derived from natural resources. We encourage creative solutions to reduce the weight of the logistics and thereby reduce CO emissions in inbound containers. This 2

is done by packing redesign and regrouping. The activity led to the formation of a dedicated task force for monitoring through Genchi Genbutsu.

The redesign in module efficiency as resulted in space 3reduction of 11.0 m /20veh & container reduction of 3 nos /

month, thereby, steel reduction of 5.6 tons/month. We achieved CO reduction of 0.26 kg / veh.2

We plan to ensure sustainability by standardizing best practices and Kaizens across committees, apply Yokoten and review the less efficient modules.

Standardization of Packaging Material

With efficiency and environmental pressures being a key concern, our suppliers are also interested in improving the packaging component. In most instances, the vehicle parts and production line equipment are of high value and are fragile. There are a number of damage risks that can occur during storage and handling. But unpacking these parts generates quite a bit of waste and ultimately has an impact on the environment. We have adopted the “Reduce, Reuse and Recycle” concept to reduce waste and standardize packaging, as it forms an integral part in the manufacture line.


3534




















Sludge Drying Yard




Thinking Way


Recycling


Production


Pond



KAIZEN



Vermi composting






18t/annum.


Steel




72.89

73.14

73.75

13-14 14-15 15-16












3534




















Sludge Drying Yard




Thinking Way


Recycling


Production


Pond



KAIZEN



Vermi composting






18t/annum.


Steel




72.89

73.14

73.75

13-14 14-15 15-16












3534




















Sludge Drying Yard




Thinking Way


Recycling


Production


Pond



KAIZEN



Vermi composting






18t/annum.


Steel




72.89

73.14

73.75

13-14 14-15 15-16












3534

To optimize packaging material, the following Kaizens have been incorporated;

Innovative design changes in packaging.

Minimizing the usage of paper in our operation (Go Paperless Campaign)

Supply of Parts using Returnable boxes to all dealers in Tier 1 Cities

Modif icat ion of exist ing packaging material specification in line with Indian condition

Our service parts division has identified a unique solution to ensure efficiency in packaging. Cardboard-one time use boxes are replaced with returnable corrugated boxes.

Five Year Environment Action Plan Status (FY2009-15)

10%

33.7%

22.5%

46.5%

TARGET5.4%

TARGET32.6%

TARGET20.2%

TARGET44.3%

CO2 Water VOC Waste

Going Paperless at Logistics

Documentation plays a vital role in transactions from the supplier to our logistics partner at TKM. It involves lot of documents and labeling which are mostly mandatory. Hence, a Kaizen was initiated to identify the mandatory documents, eliminate the extra copies and reduce the label size.

During the FY 2015, we documented only the mandatory documents such as invoice copies from the suppliers, thus eliminating the documentation of extra invoice copies. The paper size of skid label was reduced from A4 to A5 and Kanban

Label from 4/A4 to 6/A5 size papers. This helped to reduce 1750 sheets/day thereby saving 2.4 Ton of paper annually.

In the FY 16-17, we are planning to eliminate the documentation of invoice copies and skid labels by incorporating the OTS – Order Tracking System and using only Kanban label. We are aiming to achieve paper reduction of 3000 nos./day which would result in saving 4.1 tonnes of paper annually.

III. ESTABLISH SOCIETY IN HARMONY WITH NATURE

Society resides on the strong foundation of natural environment, cultivated and inherited by our ancestors; it is our duty to pass on the same to our future generations. As Biodiversity and Ecological balance go hand in hand, it is our primary responsibility to conserve our nature for a sustainable future. The following activities are initiated by us, to establish society in Harmony with Nature.

Afforestation Activity

TKM initiated afforestation drive in the year 2009, as a part of sustainable projects. Our afforestation initiative is based on concept of Dr.Miyawaki Method, where the restoration and reconstruction of forests is based on potential natural

vegetation which helps in growing the forest at the rate of 1 m/year by planting native species of the area to create biodiversity and food chain.

Area of 144 acres (1/3rd of our total land area) is reserved for development of greenbelt. We have developed theme based forests in the premises by creating an ecosystem of native, rare and endangered species, timber yielding plants, medicinal and aromatic plants and edible fruit yielding plants.

Till date, more than 2, 52, 000 saplings are planted inside the greenbelt area. We are aiming at creating ex-situ conservation of various native species which are listed in IUCN's list.

Biodiversity at Toyota

Biodiversity has an intrinsic value to itself. It protects the diverse form of species to benefit from each other and maintains the ecological balance which sustains human livelihood and life on earth.

TKM is located in Bidadi Industrial area, which is identified by the Karnataka Industrial Area Development Board [KIADB], which is a competent authority to allocate areas for industrial purposes. As there are no ecological sensitive areas surrounding the earmarked area, no habitat changes are attributed to our operations.

With an objective of understanding species composition & its distribution inside the campus and in the neighborhood (5km radius), Biodiversity experts were engaged for the study. Survey was conducted during all 4 climatological season in the region and both flora and fauna were recorded. Experts arrived at a conclusion that there was not much difference between species diversity within and the neighboring community.

The study results are set as baseline for our afforestation initiates, this will act as a tool to understand the impact of all our future projects designed to contribute to towards conservation.

Flora And Fauna at TKM

During the survey, 133 species of plants (apart from species introduced as part of green belt development), were found inside our premises and these belonged to 105 genera and 36 families. Out of 133 species there are 69 species were found to have medicinal properties.173 species were found in the buffer area and they belonged to 136 genera and 51 families.

The survey also recorded 44 bird species, 38 species of butterflies, 9 species of reptiles and 6 species of mammals inside our premises.

Concept gardens established inside TKM

• Conservation of endangered plants

• Creation of Shrigandha Marg (Sandalwood trees lane)

• Fruit garden

• Medicinal garden/herbal garden

• Timber wood plantation

IV. ENVIRONMENT MANAGEMENT

Global EMS (Environment Management System)

Right from the day of inception, Toyota has put considerable efforts to reduce the negative impact of its operations on the environment. Consistent observation of the concerns on global environment and understanding the local prevailing conditions of all affiliates along with specific action requirements, lead to the formation of the Toyota Global EMS (Environmental Management System). An effective Global EMS is possible with the establishment of IS014001. Two years of implementation period is provided after establishment, to achieve compliance to the system requirements and get certified with Global EMS.

Establishment of Global EMS at TKM has been a journey of learning with an objective of enhancing the robustness of EMS. We began with a self-evaluation in the year 2010 to

SLUDGE DRYING YARD

RAINWATER HARVESTING POND

NURTURING NATURE AT TKMBIO-GASIFIER UNIT


3736








10%

33.7%

22.5%

46.5%

TARGET5.4%

TARGET32.6%

TARGET20.2%

TARGET44.3%

CO2 Water VOC Waste
























• Fruit garden







SLUDGE DRYING YARD




3736








10%

33.7%

22.5%

46.5%

TARGET5.4%

TARGET32.6%

TARGET20.2%

TARGET44.3%

CO2 Water VOC Waste
























• Fruit garden







SLUDGE DRYING YARD




3736








10%

33.7%

22.5%

46.5%

TARGET5.4%

TARGET32.6%

TARGET20.2%

TARGET44.3%

CO2 Water VOC Waste
























• Fruit garden







SLUDGE DRYING YARD




3736

identify the gaps in the system. A study showed an achievement of 84% conformance with the Global EMS. Continuous improvisations and enhancement showed 100% conformance for the first time during FY2012-13 audit. This year, we have been awarded with the title of 'Zero Non-Conformance'.

This year Plant 2 has confirmed for the requirements under Global EMS and emerged to be fully complying with the requirements with zero case of Major Non-conformance.

ISO14001 Certification

TKM subscribed to ISO14001 [Environmental Management Systems) in the year 2000 and has been certified by AJA (Anglo-Japanese American) Registrars, Thailand since 2001. TKM believes that ISO 14001 serves as a tool to improve environmental performance and comply with legal requirements.

In recent years, TKM has expanded its operations and has set up regional facilities in Pune, Manesar and Neemrana. The scope of certification is not just limited to the manufacturing facility but also extended to all Regional facilities and has been recertified in the year 2012.

A committee is created to drive the EMS which comprises of EMR (Environment Management Representative), Coordinator, Core Members and a Certified audit team having clear roles and responsibilities.

During the FY2015-16 numerous improvements were

initiated, and these relatively strengthened the environmental

management systems and set out a clear path for 'Zero Non-

Conformance' during the Surveillance audit in June 2016. The

initiatives included inducing Toyota Global requirements into

ISO 14001 and enhancing the skill level of internal audit team

through an external training program.

GREEN - ME Inspiring Children for a Greener Tomorrow

TKM is relentlessly creating environmental awareness to individuals and community about the fragility of environment and our role in environment protection, which is of paramount importance.

Background

We have always initiated environmental activities and worked towards sustainable environment. Even though the Environmental initiatives were implemented on various occasions throughout the year, the need for continuous efforts to make Environment sustainable was felt. In line with this need, Green Me campaign was conceptualized to spread the TKM eco-spirit to community.

About Green-Me

The future of world lies with our children. They have all the rights to inherit the bounty of nature. Promotion of environmental awareness through education and active participation of children and community is imperative in the context of sustainable development.

With this idea, TKM conceptualized Curriculum plugged-in Environmental Education campaign “Green-Me” in the year 2015 to foster development of responsible environment attitude and commitment amongst students, teachers, parents & community. Centre for Environment Education [CEE] has been roped in as a strategic partner. Green-Me is composed of 5 thematic areas, which have been carefully selected to draw student attention towards both global & local environmental issues. Hands-on activities, case studies, action plan based projects, discussions and team activities have been designed under each theme to enable the student to appreciate the importance of environment conservation at a very tender age.

The Green- Me campaign gave a platform for all our TMs who truly care for mother earth and have a strong mind to create a difference not just in schools but also community on a whole.

School teachers and our enthusiastic volunteers worked together for 4 months in their respective schools reaching out to students and the neighboring communities to promote environmental awareness and made a difference in the communities, going an extra mile forward by successfully implementing their action plans.

The Green-Me program was successfully conducted in 20 schools and the school children were trained on Environment concepts. Baseline surveys were conducted and based on these surveys, we took small step towards sustainable environment by establishing action plans and successfully planned projects and community campaigns to create awareness on waste reduction and resource conservat ion. This considerably increased the environmental awareness amongst the children and they are committed to spread awareness not only to their families but also to the neighborhood communities.

Currently we are involved in understanding the impact of campaign and enhancing the work for coming academic year. We are looking forward to take this journey from schools to neighboring villages.



Green-Me Themes

ENVIRONMENT THEME BASED ACTIVITIES

CLEANING AND GREENING OF SCHOOL SURROUNDINGS

20 SCHOOLS

15 COMMUNITY CAMPAIGNS

946 SCHOOL CHILDREN

60 BASELINE SURVEYS

38 ACTION PLANS

19 PROJECTS

OUTCOMES OF GREEN ME

WATER BIODIVERSITY WASTE

COMMUNITY INTERVENTIONS

CLIMATE CHANGE
















Background


About Green-Me









Green-Me Themes



20 SCHOOLS


946 SCHOOL CHILDREN

60 BASELINE SURVEYS

38 ACTION PLANS

19 PROJECTS




CLIMATE CHANGE
















Background


About Green-Me









Green-Me Themes



20 SCHOOLS


946 SCHOOL CHILDREN

60 BASELINE SURVEYS

38 ACTION PLANS

19 PROJECTS




CLIMATE CHANGE
















Background


About Green-Me









Green-Me Themes



20 SCHOOLS


946 SCHOOL CHILDREN

60 BASELINE SURVEYS

38 ACTION PLANS

19 PROJECTS




CLIMATE CHANGE

ECO ZONE

We realized that 'Green Me Program' needs to strengthened further to engage, involve and capture the imagination of all the students. A change in the educational setting would definitely motivate the children with new energy & fill them with vigor to learn and discover. Learning in an outdoor setting seemed like an option that could fill the void.

Through outdoor based environmental education, students will be capable of finding their voice through peer-to-peer interaction. The challenge is to create a curricular based learning center which provides learning on local & global environmental issues while fostering an attitude change in the minds of children.

Ecozone will also serve as knowledge sharing platform for our stakeholders.

Ecozone is an outdoor Environment learning centre which is carefully designed incorporating issues like:

Curriculum linked education concepts

Global & local facts related to pollution & degradation of environment.

Approach towards solutions through technologies, concepts, designs etc

Promote 'Attitude Change' by enabling students to think on “What I must do?”

Practical exercises.

We believe, “the most significant intellectual achievement is not so much in problem solving, but in question posing.”

The project area is spread over 25 acres inside the 432 acre campus of Toyota Kirloskar Motor's manufacturing plant.

THE ECO ZONE CONCEPT

Since its foundation, in 1937, Toyota has been consistently committed to the idea of contributing to society by manufacturing automobiles, and leading innovation through technology and creativity.

This spirit of challenge that stands up to change has been handed down to us today through the company's DNA. Looking forward, we would like to continuously contribute to the society through our business activities and to carry on being a company that our customers choose, that brings a smile to every customer.

To move toward a net positive impact rather than just trying to reduce negative factors to zero, Toyota has set itself six challenges. All these challenges, whether in climate change or resource and water recycling, are beset with difficulties; however we are committed to continue towards the year 2050 with steady initiatives in order to realize sustainable development together with society.

At COP 21 held last year, global participants reached an agreement to unite for the sake of mitigating climate change. We have recognized the necessity for working with futuristic targets to ensure a sustainable environment for coming generations. Thereby, we have announced 6 challenges that Toyota would meet by 2050 such as 'New Vehicle – CO Zero Challenge' among 2

the others. It will require a consolidated effort of all stakeholders with a belief that “it can be achieved”.

• Mileage Improvement of engine driven vehicle

• Promote development of next-generation vehicles with low CO emissions 2

HV, PHV, PCV, Electric vehicles

• Promote environmental friendly designs by choosing appropriate and less materials to be used to vehicles

• Adopt more recycling and biological materials for vehicle production

• Improvement of manufacturing technology

• Switching to different forms of energy such as renewable energy and hydrogen energy

• Comprehensive reduction of amount of water used

• Comprehensive water purification and returning it to earth

• Planting trees

• Environmental conservation activities in surrounding areas

• Environmental education

TKM SIXTH FIVE YEAR ACTION PLAN

We are committed to protecting and improving the environment, so we need to be sure that all aspects of our business understand what is required of them and that we work together with our stakeholders to achieve our environmental goals. Our head office at Japan has always been ahead of the curve in terms of reducing environment impact from our operations & driving positive & greener future.

Utilizing the Sixth Action Plan guideline & the challenge 2050, we have deliberated with our stakeholders. Upon series of numerous discussions we could establish a landing position for our organization in India by 2020 from an environmental standpoint. By 2020, following are some of the key tasks lined up by TKM:

Manufacturing & Logistics Sub Committee:

1. Strengthening EMS though GEMS, LCM & ISO 14001:2015

2. Reduce environment KPI (CO , VOC, Waste & 2

Water) by 6%

3. Invest in renewable energy & cleaner technologies to reduce carbon footprint

4. Minimise CO emission & packing material in 2

logistics by 5%

Service & Sales Subcommittee:

1. Promote the model dealer concept & develop self reliance among dealerships

2. DERAP confirmation & completion by 95%

3. Promotion of Eco Driving among Customers

4. Establish facility for recycling of vehicles & hybrid vehicle batteries

Purchasing Sub Committee:





Communication Sub Committee:

1. Develop 'Green Wave Project' guidelines & implement with stakeholders

2. Initiate community project under 'Today for Tomorrow' involving reputed NGO

3. Promote 'Education for Sustainable Development' through Green Me & Ecozone Project

4. Establish communication framework to reachout to all stakeholders

GOING AN EXTRA MILE TOWARDS ENVIRONMENT RESPONSIBILITY

T K M h a s a l w a y s s t r i v e d t o w a r d s Environment conservation throughout its journey so far. We have gone an extra mile to undertake th i rd party independent verification on our company's environmental performance data. For this, we engaged DNV GL to carry out the data verification using its verification protocol and performed work based on DNV GL's VeinSustain™. Environmental performance data covering the reporting period 2015-16 was verified, based on the principles of Completeness, Reliability and Accuracy.

DNV could assure our data, information and representation of performance data provided and some improvement points were identified, which were attributed to the transcription errors. At present, we are working to minimize the transcription errors and improve our overall performance.

CERTIFIEDBY



end-

An outdoor Environment Learning Center

ECO ZONE

We realized that 'Green Me Program' needs to strengthened further to engage, involve and capture the imagination of all the students. A change in the educational setting would definitely motivate the children with new energy & fill them with vigor to learn and discover. Learning in an outdoor setting seemed like an option that could fill the void.

Through outdoor based environmental education, students will be capable of finding their voice through peer-to-peer interaction. The challenge is to create a curricular based learning center which provides learning on local & global environmental issues while fostering an attitude change in the minds of children.

Ecozone will also serve as knowledge sharing platform for our stakeholders.

Ecozone is an outdoor Environment learning centre which is carefully designed incorporating issues like:

Curriculum linked education concepts

Global & local facts related to pollution & degradation of environment.

Approach towards solutions through technologies, concepts, designs etc

Promote 'Attitude Change' by enabling students to think on “What I must do?”

Practical exercises.

We believe, “the most significant intellectual achievement is not so much in problem solving, but in question posing.”

The project area is spread over 25 acres inside the 432 acre campus of Toyota Kirloskar Motor's manufacturing plant.

THE ECO ZONE CONCEPT

Since its foundation, in 1937, Toyota has been consistently committed to the idea of contributing to society by manufacturing automobiles, and leading innovation through technology and creativity.

This spirit of challenge that stands up to change has been handed down to us today through the company's DNA. Looking forward, we would like to continuously contribute to the society through our business activities and to carry on being a company that our customers choose, that brings a smile to every customer.

To move toward a net positive impact rather than just trying to reduce negative factors to zero, Toyota has set itself six challenges. All these challenges, whether in climate change or resource and water recycling, are beset with difficulties; however we are committed to continue towards the year 2050 with steady initiatives in order to realize sustainable development together with society.

At COP 21 held last year, global participants reached an agreement to unite for the sake of mitigating climate change. We have recognized the necessity for working with futuristic targets to ensure a sustainable environment for coming generations. Thereby, we have announced 6 challenges that Toyota would meet by 2050 such as 'New Vehicle – CO Zero Challenge' among 2

the others. It will require a consolidated effort of all stakeholders with a belief that “it can be achieved”.










• Planting trees









Water) by 6%



logistics by 5%

Service & Sales Subcommittee:
















T K M h a s a l w a y s s t r i v e d t o w a r d s Environment conservation throughout its journey so far. We have gone an extra mile to undertake th i rd party independent verification on our company's environmental performance data. For this, we engaged DNV GL to carry out the data verification using its verification protocol and performed work based on DNV GL's VeinSustain™. Environmental performance data covering the reporting period 2015-16 was verified, based on the principles of Completeness, Reliability and Accuracy.


CERTIFIEDBY



end-

An outdoor Environment Learning Center










• Planting trees









Water) by 6%



logistics by 5%

Service & Sales Sub Committee:











TKM has always strived towards Environment conservation throughout its journey so far. We have gone an extra mile to undertake third party independent verification on our company's environmental performance data. For this, we engaged DNV GL to carry out the data verification using its verification protocol and performed work based on DNV GL's VeinSustain™. Environmental performance data covering the reporting period 2015-16 was verified, based on the principles of Completeness, Reliability and Accuracy.


CERTIFIEDBY

OUR ENVIRONMENT


end-


1. Promotion of ISO 14001 certification among all

suppliers

2. Chemical substance confirmation through IMDS

(International Material Data System) for all suppliers

3. Supplier legal compliance management through TKM

legal audit & sustenance

4. Carbon footprint reduction through resource

conservation

5. Promotion of biodiversity and afforestation at

suppliers

ENVIRONMENTMONTHBACKGROUND

Since its inception in 1974, World Environment Day [WED], which is marked annually on 5th of June, by the United Nations [UN], has developed into the biggest and globally most celebrated day for raising Environmental awareness and taking positive actions. It is a global platform to showcase the environmental issues and enables everyone to realize their role and responsibility to take care of mother earth. At TKM, June month is celebrated as Environment Month, although the environmental activities take place throughout the year.

We come up with a theme for the Environment Month celebration every year, in line with the global theme and the TMC guidelines.

Global Theme 2016

World Environment Day (WED) Celebration

WED was celebrated at Ambedkar Bhavan, Ramanagara by school students along with KSPCB. Walkathon, eco – exhibition and environment conservation through cultural program were conducted by school students to spread awareness amongst the community.

TKM Theme 2016

WEEK-1 WEEK-2 WEEK-3 WEEK-4WATER

CONSERVATIONWASTE

MANAGEMENTECO-DRIVE

CO REDUCTION2

CLIMATE CHANGE& BIODIVERSITY

TOYOTA ENVIRONMENT CHALLENGE 2050:“LETS DO IT FOR THE FUTURE!”

ECO- MIND ACTIVITIES

The Eco-mind activities aim to create awareness through strengthening the training system by involving TMs in Environmental activities.

Daily KYT to Team Members

The Daily KYT [Kiken Yochi Training] is conducted to propagate the eco message to all the employees on global environment issues and its impact.

ECO-KYTs from TMs

2014 2015 2016

5760(Nos)

5800(Nos)

5890(Nos)

The promotional activities for the internal stakeholders included promotion through posters and danglers, intranet portal – I Share and Eco KYT and oath by all employees.

We utilize all opportunities, to create awareness amongst our stakeholders regarding the Environment. During the Dealer Counsel Sub Committee [DCS], which was conducted by CSG department of TKM, topics on Environment protection, Carbon footprint, legal compliance and water conservation were discussed and the members committed for proactive participation in Water conservation.

The 'Global Environmental Mission 2050' was also discussed in the Dealer Business Meet [DBM].

In addition, the CSG department evaluates and uploads the feasible ideas for the dealers to implement.

ECO PHOTOGRAPHY

This competition motivated TMs to identify the environmental issues and promote awareness on Biodiversity conservation. It aimed at providing a platform to our people to showcase beauty of nature and their environmental concerns. The photographs also act as messages to spread environmental awareness. Theme – “Lets save Biodiversity for the future”

We have established a web portal called 'New Connect' for the Dealers to share the Eco-initiatives. Kaizen library is created to enable the upload and download of Eco-ideas shared by other dealers.

Green- Owledge , the ECO Seminar

Eco-seminar is conducted every year for our employees to develop eco-mind and to create awareness through the approach of 'Involve & Educate'. The topic for discussion included 'How to lead an Eco-friendly Lifestyle'- Learn from the experts. The discussion was helpful in understanding herbal home remedies, use of medical herbs to cure the ailments, organic farming at home – 'Oota from your thota', methods and types of organic farming and healthy way of living by using organic products.

About 200 participants attended the seminar. It evoked a lot of enthusiasm and environmental awareness amongst the participants.

ECO SHORT FILM

The Eco short film contest was started to have a visual conversation with the TMs by motivating employees to make eco-documentary which would highlight the current environmental sensitive issues, our role in mitigating the concerns and ideas for eco-friendly living. It served as a platform to utilize new technological trends and enhance innovativeness through motion pictures.

Be Proactive, Collaborative & Inclusive to, Establish a Sustainable company in Harmony with Nature and Community

SUSTAINABLE COMPANY IN HARMONY WITH NATURE & COMMUNITY

PROACTIVETKM Eco Drive

COLLABORATIVETKM Eco Drive

INCLUSIVECommunity

Environment Awareness to Dealers

ECO AWARENESS TO TMs

Save Environment, Save Trees, Save Future

Man at Construction World at Destruction

Grow Green for better Tomorrow

“Dear human stop holding mother Natures wing,She’s the one upholding your Biodiversity ring"



Go Wild for Life! Save Biodiversity

DR. V VENKATESH, PROFESSOR & SCIENTIST, GKVK

DR RAJENDRA HEGDESCIENTIST, BRICS

“Give Home, Not Cage”

Nature Sustains Life everywhere... Even in Waste...!!! Take every opportunity to Conserve it...!!!




Global Theme 2016



TKM Theme 2016


CONSERVATIONWASTE

MANAGEMENTECO-DRIVE

CO REDUCTION2







ECO-KYTs from TMs

2014 2015 2016

5760(Nos)

5800(Nos)

5890(Nos)





ECO PHOTOGRAPHY






ECO SHORT FILM






INCLUSIVECommunity

















Global Theme 2016



TKM Theme 2016


CONSERVATIONWASTE

MANAGEMENTECO-DRIVE

CO REDUCTION2







ECO-KYTs from TMs

2014 2015 2016

5760(Nos)

5800(Nos)

5890(Nos)





ECO PHOTOGRAPHY






ECO SHORT FILM






INCLUSIVECommunity

















Global Theme 2016



TKM Theme 2016


CONSERVATIONWASTE

MANAGEMENTECO-DRIVE

CO REDUCTION2







ECO-KYTs from TMs

2014 2015 2016

5760(Nos)

5800(Nos)

5890(Nos)





ECO PHOTOGRAPHY






ECO SHORT FILM






INCLUSIVECommunity














ECO KAIZEN ACTIVITIES

Eco kaizen activities are promoted to identify the improvement areas in different divisions by the TMs. The Eco kaizen activities are enhanced through focused activities on reducing resources, carbon footprint, energy consumption & hazardous waste, implementation of Swachh shop activity (zero part fall) and innovative technical kaizen. This reporting year we received more than 800 kaizen suggestions from our employees in both Plant-1 and Plant-2 and almost 80% of the kaizens are implemented.

ECO SHOWCASE ACTIVITIES

Eco showcase provides platform for the TMs to involve the local community for proactive participation in social activities thereby contributing to the environment and as well as the community.

CORPORATE ECO FAMILY

Environment month was an opportunity for TMs to educate and involve their family to communicate TKM's eco-spirit to the society. Our TMs involved in campaigns for promoting environmental awareness on resource conservation, tree plantation (afforestation) drives and clean up drives.

ECO CSR ACTIVITIES BY TMs

Volunteer team members promoted various Eco CSR activities in the local community. More than 200 TMs took part and major activities driven were Plantation at Schools & Villages, Swatchh Bharat campaign, Switch-off at signals campaign, Say No to Plastic, Cyclothon, Eco-competitions to school children and Promotion of waterless car wash. The objective of this activity is to sensitize the minds of our TMs towards social responsibility and ownership

KAIZEN: ELIMINATION OF HAZARDOUS CHEMICALS BY INCORPORATION OF ECO FRIENDLY ORGANIC CHEMICALS

Theme: Minimize “Hazardous Chemical waste”; Minimize health risk & Environment risk

As a step towards creating greener and safer workplace, our TMs identified that the inorganic chemicals used in the paint shop could be eliminated and replaced by Eco-friendly organic solutions, as the inorganic solutions are known to be hazardous by virtue of their constituents and may cause detrimental effects on the employees handling them.

Based on the detailed analysis, a priority list was established and the inorganic solutions used for cleaning at the paint shop were targeted for change-over. This promoted the Expert team at TKM to work with a specialized chemical developer for a unique, effective organic solution. The team worked together and understood the process of paint stain removal and an eco friendly organic solution was developed which was successful in removing the stains. The residues formed after the cleaning were also organic in nature, thereby, eliminating the risk of causing impacts on the environment as well the employees handling them.

ECO DAIRIES

GREENING THE SURROUNDINGS

As an Eco-conscious citizen, Mr.Raghavendra A.S. from Weld shop, Plant-1 took an initiative towards plantation drives in the year 2010 with an aim of creating awareness about environmental conservation to the neighboring communities. He is constantly involved in conducting plantation drives to expand plantation area and also has taken huge responsibility of their maintenance on yearly basis. He has not only motivated his family and friends but also promoted awareness to the neighboring communities regarding the importance of afforestation, environment and biodiversity conservation.

This initiative is a true example of Eco consciousness and commitment towards environment conservation. TKM recognized Mr. Raghavendra and his family for creating difference in the society, which is well appreciated and supported by the neighboring communities.

AWARENESS ON WASTE MANAGEMENT TO COMMUNITY

Sol id waste management is one of the major environmental problems faced by our Country today. This is majorly due to the inadequate facilities for collection, recycling and treatment of the waste and its uncontrolled disposal in dumps. In order to overcome this challenge, Mr. Shivakumar from Assembly repair shop of Plant-2, TKM, took up the responsibility of creating awareness amongst people about waste segregation and disposal of the solid waste in the designated bins. He has installed separate bins for dry and wet wastes in his surrounding area and motivated people to segregate the waste and not to dispose the waste in dumps, thereby keeping the surroundings clean.

As every Indian, Mr.Shivakumar has a vision of Clean India and has put efforts in promoting the Clean India campaign. This initiative was recognized by TKM and appreciated by the neighboring community

SHIVA KUMARTM No. 00737P2 - Assy Repair

• Awareness on segregation of solid waste

• Provision of separate bins for wet & dry waste

• Clean India CampaignRAGHAVENDRA A STM No. 02000P1 - Weld

• Plantation drive since 2010

• Awareness on afforestation

• Plantation maintenance on yearly basis

Special appreciation by Mr. Horinouchi (DMD-TKM)Innovative Environment Solution Awarded by DMD

KAIZEN : ALTERNATIVE ECO-FRIENDLY TECHNIQUE FOR WASTE MINIMIZATION

As a part of TKM’s ambitious venture towards achieving Zero Waste to Landfill, our PED facility team initiated a kaizen to minimize the biodegradable waste, bio-sludge coming out of the sewage treatment plant by adopting the eco friendly technique of vermicomposting.

This technique converts the biodegradable waste (Non-Hazardous) into manure and has helped us reduce the costs of landfilling and curbed the CO emissions upto 2

18t/annum. the vermicompost is used in our premises for the gardening purposes and is also supplied to the Bidadi Industrial Association for sapling plantation.

Our PED –facility Engineering team has achieved No.1 Gold Award among 57 Eco Kaizens from Asia pacific affiliates for TKMs Bio-sludge Kaizen. Further, the same is submitted for TMC Global Environment Kaizen Awarding Evaluation.

Vermicomposting Kaizen wins – Asia Pacific Environment Kaizen Awarding for the year 2015-16 [APEKA]



OUR PED –FACILITY ENGINEERING TEAM

CONTRIBUTIONS FROM GREEN-ME VOLUNTEERS

Mr. Thimappa & Mr. Santhosh at Uragahalli school aimed at addressing challenge faced in neighborhood. A project was designed to address water crisis (water is concerned resource in the region). As a team they identified damaged water pipelines connected to individual houses. Volunteers along with School cabinet and with the support of Panchayat and community they ensured repair of entire water supply lines. This has resulted to ensuring zero fresh water wastage and also helped in providing water supply to additional houses.

Mr. Nagesh, Mr. Manu, Mr. Sharath, Mr. Pradeep, realized that boundary of GHPS at Bidadi is shared with neighborhood; causing difficulty in m a i n t a i n i n g c a m p u s c l e a n . Volunteers designed innovative awareness campaign and trained student groups. They could organize shows in and around the campus to spread awareness on environment and they were successful in ensuring Clean & Green school campus.

Mr. Prakash Guddanavar at GHPS, Ganakal took a challenge to ensure Zero Waste from the school. With the support of teachers and students waste management plan was f o r m u l a t e d . T h e t e a m w a s s u c c e s s f u l i n e s t a b l i s h i n g composting unit, water reuse system and kitchen garden. Science models created by students groups under his guidance were very special.

PLANTATION DRIVE CLEAN INDIA CAMPAIGN

RECOGNITION OF BEST PERFORMING SCHOOLS & TKM VOLUNTEERS













ECO DAIRIES










































ECO DAIRIES










































ECO DAIRIES






























Emerging markets like India are transforming the business environment throughout the globe. A positive rise has been observed in the country in the area of per capita GDP which is an obvious hint at higher vehicle ownership.

Today, even though progressive globalization has created a positive impact on the global economy, many countries are challenged with job security and a hampered domestic industrial growth. As an counteract to the challenges faced, the doctrine of 'Economic Protectionism' is taking shape with an intent to protect the native businesses and jobs from global competition. In India, though globalization is nurturing our domestic growth, our Government through “Make in India” initiative has garnered considerable attention on the manufacturing sector. In line with this initiative, TKM has focused on empowering resources and nurturing the local talent with sustainable lifestyle.

If the goal agreed in Paris is to be achieved, it will require a steep transformation in global energy systems, transport and industrial processes over the coming decades. Businesses will face risks as well as opportunities during this transition since we must deliver the bulk of the necessary emissions reductions.

We take foremost interest on how our business needs to continuously evolve to enhance our stakeholders' value by aligning to the changing global economy. We have orchestrated this by developing & manufacturing products like Camry Hybrid, which is India's first full hybrid vehicle. As India is having ten out of world's twenty most polluted cities as per WHO, the increase in sales of Hybrid vehicles will contribute towards reducing the pollution levels.

We thank our stakeholders who have partnered with us in leading innovation through technology and contribute to the development of a sustainable society.

OurStakeholdersPARTNERS IN GROWTH

As a responsible company, we recognise the importance of effective communication as integral to maintaining a strong relationship with our stakeholders. We strive to take our stakeholders' opinions before all decisions, thereby ensure inclusivity.

Being an automobile manufacturing company, our primary stakeholders include Customers, Dealers, Suppliers, Employees and Community. This chapter will outline the initiatives undertaken by each stakeholder to ensure supply chain sustainability.

OUR StakeholdersPARTNERS IN GROWTH

• Customers • Dealers • Suppliers • Employees • Community

OurCustomersCustomers are our greatest assets and our relationship with them represents one of the focal points of every activity undertaken by TKM. This holds true for all our activities- from initial market research to product development, process of manufacturing to the after-sales experience. It is essential to the long term viability of Toyota Group that we engage with our current and potential customers to ensure that their expectations are met or exceeded. In fact, in a stakeholder consultation, customer satisfaction and vehicle quality were identified as two key material aspects for the brand.

RESPONSIBILITY TOWARDS CUSTOMERS

Our main motive is to develop 'Trust' among customers and for this purpose; our customer service team is fully dedicated to ensure Customer Satisfaction. In this regard, we have initiated several Customer Satisfaction Surveys at different stages. To benchmark ourselves with the industry, we subscribe to an industry level customer survey whose results are analysed along with customer expectations and shared with dealers, regional offices and key departments for usage in their day to day activities.

This year, a 'Customer Delight' Initiative was launched in alignment with our 'Customer Centric' approach. The initiative aims at communicating effectively with customers, thereby valuing customer time and ensuring quality of work, thus adding a human touch to the process of customer service. Such a system is known to improve operations and enhance the work environment. Providing personalised service, car repair services beyond boundaries and a 'Delight Bell' at the showrooms, we have been able to ensure higher Customer Satisfaction. Moving further, we strive to strengthen yokoten and sustenance in the operations.

PRODUCT AND SERVICE INFORMATION

All vehicle and service related information is made easily

available on our webpage. The webpage has been designed with an intention of easy scrolling facility.

No significant fines have been levied on the company for non-compliance with regard to laws and regulations concerning product and service labelling in 2015-16.

DEALER-CUSTOMER ASSISTANCE

We at TKM noticed shortfalls on numerous fronts regarding the service complaints. Hence we have initiated a single point of contact for any Query, Appointment or Feedback across sales. This initiative has helped us in monitoring our KPI with call quality adherence to ensure better customer delight and increase in revenue generation through sales enquiry.

CUSTOMER SAFETY

Safety is top priority at Toyota and we ensure all our vehicles adhere to the highest safety standards. Through Toyota's kaizen philosophy along with our principle of Reduce, Reuse and Recycle, the products undergo many cycles of improvement until the desired standard is achieved.

We conduct regular assessments for health and safety, ensuring highest level of safety. No incidents of non-compliance with regulations and voluntary codes concerning these aspects have been reported.

TOYOTA PARTS CONNECT

This year we have launched a portal for easy communication between the dealer and customer. This portal makes available genuine parts and accessories with a click of a button. The initiative was piloted in August, 2015 and has received a commendable response from its one million loyal customers.

Toyota's objective to launch this initiative was to leverage and reinforce commitment towards being the leader in Customer Satisfaction and Safety.

T S JAISHANKARDMD - Technical & Purchase

OUR STAKEHOLDERS-CUSTOMERS






















CUSTOMER SAFETY






T S JAISHANKARDMD - Commercial























CUSTOMER SAFETY






T S JAISHANKARDMD - Commercial



REFLECT ACTIVITY

As our reflect activity, the De-Centralized Customer First Exhibition was conducted in order to build ownership in Team Members; at the production shop, non-production shop and Regional offices of TKM. The participation was 27% higher than the previous FY and the TM's quality understanding level was recorded as 98%.

REFORM ACTIVITY

This activity was aimed at giving a better understanding to each division regarding their 'Customer Expectation', customize SOPs and reflect in daily operations through 'Genchi Genbutsu'. As a result of this activity, team members set target to implement their targets for next year Hoshin.

This activity achieved 100% accomplishment, as all the stakeholders participated and put their best efforts to accomplish all the activities conducted by TKM. Our dealer & supplier partners and our team members were awarded for the best quality performance and best customer centric divisions.

ASIA PACIFIC PRODUCTION QUALITY AWARD 2015-16

Toyota Asia Pacific affiliates (Vehicle Manufacturers) with Asia Production Quality award on achieving the target in Warranty Reduction. During the FY2015-16, TKM has achieved the targets in warranty reduction and received 'Warranty Reduction Achievement Award'.

PRODUCT ENHANCEMENT (INITIAL QUALITY STUDY AND VEHICLE DEPENDABILITY STUDY)

Customer Satisfaction is of utmost priority to TKM. To ensure best quality products to our customers, we assess the product experience over two varying study periods, namely the Initial Quality Study (IQS) period and Vehicle Dependability Study (VDS) period.

In IQS, overall vehicle quality experience, comprising of the vehicle's fit, finish and performance, were evaluated within the initial 6 months. The VDS estimates customer experience in durability and reliability of the vehicle over a period of 36 months.

The timely and continuous improvement of the product is imperative to achieve the product enhancement and meet the market demands. The Quality rules, management and audit contributed to the betterment of customer satisfaction process. A periodic and systematic method of sharing the field failure information contributed to quality mind enhancement of in-house, supplier and dealer members.

The IQS showed that as a brand, Toyota was ranked No.2 and the Innova stood No.1 in the segment for the 11 consecutive years. A periodic management review is conducted for achieving all models for attaining the No.1 position as a brand in all segments.

QualityAssuranceHigh levels of quality are essential to achieve business objectives. It is hence, desirable to establish, manage and monitor Quality Control and Quality Assurance Systems, to provide superior products and services that fully satisfy customer needs and expectations. For us, Quality is a source of competitive advantage, ensures process efficiencies to maintain the hallmark of the company. We also follow high safety standards in manufacturing. Since these standards change as technology progresses, implementing quality management systems in the automotive sector can pose quite a challenge.

In this regard, we have a Quality Assurance Division (QAD) that is involved in understanding customer requests and company procedures, thereby bridging the demand-supply gap in the product.

CORPORATE QUALITY MONTH (CQM) 2016

In the month of February every year, we organize Corporate Quality Month (CQM) as a reminder of the quality issues faced in the previous year. This year, CQM was inaugurated on 1st of February 2016, by Mr. Naomi Ishii along with honourable guests from Dealer and Supplier partners.

The theme for this year was 'Customer First, Quality Must for Everlasting Trust' and to achieve these, Remind, Reflect and Reform activities were conducted.

REMIND ACTIVITY

To remind ourselves of the previous Quality issues, different activities were carried out, such as the Commitment Card, Toyota Restart Day Pledge and Customer Delight stories. We achieved 100% participation in this event.

MANAGEMENT REFLECTION

OUR STAKEHOLDERS-CUSTOMERS OUR STAKEHOLDERS-CUSTOMERS


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“This is a good opportunity to change the mind set of people & focus on value addition in all activities.

Experts in our own area? Let us revise it & rethink.

Be professional in your own SOP.”

Akito Tachibana

“We need to understand silent / internal expectation of Customers

We have to feel Inside of Customer (IOC)”

Horinouchi Yoshihiro“Focus on sustainability by identifying the weakness through Genchi Genbutsu

Go to Gemba

• Check actual condition

• Identify weak point

• Level up for sustainability”

T S Jaishankar

“Customer expectation is big challenge; every customer complaint is an opportunity to grow.

We need to satisfy our customers continuously by changing our attitude in our job area.”

Shekar Viswanathan

“Continue improving Plant Quality & Supplier Quality.

We have more responsibility to understand facts coming directly from the Customer.”

INAUGURATION OF CORPORATE QUALITY MONTH REMIND, REFLECT ACTIVITY AND EXHIBITION ON CUSTOMER FIRST APPROACH TKM MANAGEMENT AND EMPLOYEE INVOLVEMENT IN QUALITY MONTH CELEBRATION

REFLECT ACTIVITY


REFORM ACTIVITY















REMIND ACTIVITY





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REFLECT ACTIVITY


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REMIND ACTIVITY





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REFLECT ACTIVITY


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REMIND ACTIVITY





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T S Jaishankar



Shekar Viswanathan




OUR DEALERSOur Dealers are our allies in establishing a strong business footprint in the market. We always strive to foster relationships that are in alignment with the sustainability mandates, with our business partners. Our dealerships play a vital role in our sustained business as they help us in retaining customers for a lifetime by making efforts to exceed the customer expectations.

We, at Toyota believe in Quality services and products. Our customer service philosophy believes in qualities of care, accuracy and trust between the customer service personnel and our customers. This forms the basis of Q Service, which stands for not only Quality but Quick- Qualified- Quality Service along with Human Touch.

The 8th National T-TEP Seminar was conducted on 3rd of February, 2016 at Manpower Excellence Center in North Manesar. The objective of the seminar was to strengthen and standardize the T-TEP operations across India, and to enhance the skills and knowledge of T-TEP instructors to ensure quality training at the institutes.

To promote the Kaizen culture among the institutes, the Kaizen activities were displayed at the seminar. There were discussions on key challenges amongst the dealer guests and institutes. The T-TEP Instructor Skill Contest [TISC] comprised General-TEP instructor, Body T-TEP instructor, Paint and Service Advisor instructor contests and the winners were awarded. The TISC feedback is given to all the T-TEP institutes to enhance skill development plans for further improvement. Kaizen and safety forums will be initiated to enhance the safety and Kaizen mindset across all the institutes.

At the Seminar, the T-TEP Web portal was launched. It is designed to capture the T-TEP training process as well as monitor its progress, while acting as a tool to enhance the communication.

Sniper Program

Sniper is a special training program, which was launched in the year 2012, with an objective to providing knowledge on Customer Satisfaction Index (CSI) to the dealers. This reporting year, the sniper program was focused on enhancing the dealer frontline knowledge on the JDP syndicate result. This also focuses on how to inline the individual activities with the Company's objective of being No.1 in CSI along with the significance of human touch in services.

The program includes CSI study to identify Standard Operating Procedures (SOPs) and attributes related to service advisors. It provides a 360 degree analysis of customer satisfaction and helps in understanding the market expectation. The training program is conducted to make the front line officials in line with the company's expectation and contribute towards the CSI as per their JDP customer needs.

Front Office CGT Training

To enhance Customer Handling skills and strengthen the pre-diagnosis & probing skills, , in 2015 TKM conducted a two day training workshop for our dealer manpower in all the regions. Various group discussions and role plays were conducted as part of the workshop. The workshop highlighted on communication, probing and customer handling skills along with imparting awareness on business etiquettes and a five step trouble shooting procedure.

Responsivenessto all Customer’s Needs

Only the Best hands workon Customer’s Vehicle

uick ualifiedIn-built Quality forPride of Ownership

uality

HUMANTOUCH

CUSTOMER SERVICE APPROACH

Our customer service approach believes that happy and satisfied employees are necessary to perform high level business operations, which actually ensures Customer Satisfaction. High Customer Satisfaction along with development of people and kaizen culture helps in retaining customers for a lifetime sustained business.

OUR STAKEHOLDERS-DEALERS OUR STAKEHOLDERS-DEALERS

Customer Service Group Vision 2020

Customer Customer Retention for sustained business To be No.1 in Customer Satisfaction

Dealer M a n p o w e r c a p a b i l i t y E n h a n c e m e n t Enhanced Business Performance

TKM Contribute to Company Profitability.


T-TEP provides support to Industrial Training Institutes to develop highly skilled young talented technicians for the automotive service industry and enhance their employability. This training module was launched in 2006 and involves over 46 industrial training institutes throughout the nation.

TRAINING AND DEVELOPMENT

Toyota Technical Education Program [T-TEP]

T-TEP [Toyota Technical Education Program] has the objective of developing best Human Resources for the automotive service industry through training and development. Under this joint initiative taken by Toyota Motor Corporation, Toyota Kirloskar Motor and Toyota Dealers, support is provided to Industrial Training institutes.

Dealer HR Manager & Territory Manager Workshop

The workshop was conducted for the Dealer HR managers and Territory managers from sales and service departments of all our dealers, spread across the Country. This workshop mainly aimed at sharing the HR concepts mentioned in the HRM guidelines and also the best HR practices, for its effective implementation at the dealership.

The workshop primarily focussed on the role of HR in manpower planning and recruitment, employee induction, performance management system, career and succession planning, learning and development and employee engagement.

A review mechanism for the training was conducted and long term sustenance plan for enhancement of training from basic to advanced HR guidelines and further to leader HR guidelines is planned for the upcoming years.

Dealer Centralized Training Centre (DCTC)

The dealer training activity is conducted to enhance the self-reliance of our dealerships, to monitor and train their human resources independently. As our dealership network is expanding rapidly, it is necessary to bring a centralized training culture amongst group dealers for developing more efficient and skilled manpower. This gives an assurance of quality service to customers and assures them of qualified manpower for repair operations.

Skill Championship Contest

The Skill championship is conducted to maximize the dealer employee motivation to perform better. First, the in-dealer contest is conducted, followed by Regional contest-DCTC, which is divided into DCTC Zonal Contest and Non-DCTC TKM Zonal contest and further as National Championship. The top three performers get an opportunity to travel to Japan and are recognised in the Champions Assembly held at Japan and rewarded with cash price. It serves as a platform for all the best performers throughout Toyota affiliates to interact and promote motivation towards quality and deliverability. In 2015, the contest was conducted for body technician, paint technician, service advisor and customer relations departments.

DCTCZonal

ContestWinner

Non-DCTCTKM Zonal

Contest Winner

In-DealerContestWinner

NationalChampionship

CSCR Conference

CSCR is a National, Customer Regional Service & Customer Relations conference, which was conducted in Nov - Dec 2015 to share TKM's overall CS & CR strategy and TKM dealer support in 2016. The theme of the conference was 'Towards Delight'.

The Conference also consisted of a “Discovery Session” for 2 hours at each location, which served as a platform to highlight our new initiatives and Dealers Best Practices in the area of customer satisfaction & business enhancement.

CSCR CONFERENCE AT TKM, BIDADI

OUR DEALERSOur Dealers are our allies in establishing a strong business footprint in the market. We always strive to foster relationships that are in alignment with the sustainability mandates, with our business partners. Our dealerships play a vital role in our sustained business as they help us in retaining customers for a lifetime by making efforts to exceed the customer expectations.

We, at Toyota believe in Quality services and products. Our customer service philosophy believes in qualities of care, accuracy and trust between the customer service personnel and our customers. This forms the basis of Q Service, which stands for not only Quality but Quick- Qualified- Quality Service along with Human Touch.

The 8th National T-TEP Seminar was conducted on 3rd of February, 2016 at Manpower Excellence Center in North Manesar. The objective of the seminar was to strengthen and standardize the T-TEP operations across India, and to enhance the skills and knowledge of T-TEP instructors to ensure quality training at the institutes.

To promote the Kaizen culture among the institutes, the Kaizen activities were displayed at the seminar. There were discussions on key challenges amongst the dealer guests and institutes. The T-TEP Instructor Skill Contest [TISC] comprised General-TEP instructor, Body T-TEP instructor, Paint and Service Advisor instructor contests and the winners were awarded. The TISC feedback is given to all the T-TEP institutes to enhance skill development plans for further improvement. Kaizen and safety forums will be initiated to enhance the safety and Kaizen mindset across all the institutes.

At the Seminar, the T-TEP Web portal was launched. It is designed to capture the T-TEP training process as well as monitor its progress, while acting as a tool to enhance the communication.

Sniper Program

Sniper is a special training program, which was launched in the year 2012, with an objective to providing knowledge on Customer Satisfaction Index (CSI) to the dealers. This reporting year, the sniper program was focused on enhancing the dealer frontline knowledge on the JDP syndicate result. This also focuses on how to inline the individual activities with the Company's objective of being No.1 in CSI along with the significance of human touch in services.

The program includes CSI study to identify Standard Operating Procedures (SOPs) and attributes related to service advisors. It provides a 360 degree analysis of customer satisfaction and helps in understanding the market expectation. The training program is conducted to make the front line officials in line with the company's expectation and contribute towards the CSI as per their JDP customer needs.

Front Office CGT Training

To enhance Customer Handling skills and strengthen the pre-diagnosis & probing skills, , in 2015 TKM conducted a two day training workshop for our dealer manpower in all the regions. Various group discussions and role plays were conducted as part of the workshop. The workshop highlighted on communication, probing and customer handling skills along with imparting awareness on business etiquettes and a five step trouble shooting procedure.

Responsivenessto all Customer’s Needs

Only the Best hands workon Customer’s Vehicle

uick ualifiedIn-built Quality forPride of Ownership

uality

HUMANTOUCH

CUSTOMER SERVICE APPROACH

Our customer service approach believes that happy and satisfied employees are necessary to perform high level business operations, which actually ensures Customer Satisfaction. High Customer Satisfaction along with development of people and kaizen culture helps in retaining customers for a lifetime sustained business.


Customer Service Group Vision 2020

Customer Customer Retention for sustained business To be No.1 in Customer Satisfaction

Dealer M a n p o w e r c a p a b i l i t y E n h a n c e m e n t Enhanced Business Performance

TKM Contribute to Company Profitability.


T-TEP provides support to Industrial Training Institutes to develop highly skilled young talented technicians for the automotive service industry and enhance their employability. This training module was launched in 2006 and involves over 46 industrial training institutes throughout the nation.

TRAINING AND DEVELOPMENT

Toyota Technical Education Program [T-TEP]

T-TEP [Toyota Technical Education Program] has the objective of developing best Human Resources for the automotive service industry through training and development. Under this joint initiative taken by Toyota Motor Corporation, Toyota Kirloskar Motor and Toyota Dealers, support is provided to Industrial Training institutes.

Dealer HR Manager & Territory Manager Workshop

The workshop was conducted for the Dealer HR managers and Territory managers from sales and service departments of all our dealers, spread across the Country. This workshop mainly aimed at sharing the HR concepts mentioned in the HRM guidelines and also the best HR practices, for its effective implementation at the dealership.

The workshop primarily focussed on the role of HR in manpower planning and recruitment, employee induction, performance management system, career and succession planning, learning and development and employee engagement.

A review mechanism for the training was conducted and long term sustenance plan for enhancement of training from basic to advanced HR guidelines and further to leader HR guidelines is planned for the upcoming years.

Dealer Centralized Training Centre (DCTC)

The dealer training activity is conducted to enhance the self-reliance of our dealerships, to monitor and train their human resources independently. As our dealership network is expanding rapidly, it is necessary to bring a centralized training culture amongst group dealers for developing more efficient and skilled manpower. This gives an assurance of quality service to customers and assures them of qualified manpower for repair operations.

Skill Championship Contest

The Skill championship is conducted to maximize the dealer employee motivation to perform better. First, the in-dealer contest is conducted, followed by Regional contest-DCTC, which is divided into DCTC Zonal Contest and Non-DCTC TKM Zonal contest and further as National Championship. The top three performers get an opportunity to travel to Japan and are recognised in the Champions Assembly held at Japan and rewarded with cash price. It serves as a platform for all the best performers throughout Toyota affiliates to interact and promote motivation towards quality and deliverability. In 2015, the contest was conducted for body technician, paint technician, service advisor and customer relations departments.

DCTCZonal

ContestWinner

Non-DCTCTKM Zonal

Contest Winner

In-DealerContestWinner

NationalChampionship

CSCR Conference

CSCR is a National, Customer Regional Service & Customer Relations conference, which was conducted in Nov - Dec 2015 to share TKM's overall CS & CR strategy and TKM dealer support in 2016. The theme of the conference was 'Towards Delight'.

The Conference also consisted of a “Discovery Session” for 2 hours at each location, which served as a platform to highlight our new initiatives and Dealers Best Practices in the area of customer satisfaction & business enhancement.

CSCR CONFERENCE AT TKM, BIDADI


Global Customer Service Marketing [GCSM] Conference

In 2015, for the very first time, TKM, Bidadi was chosen to host GCSM. This opportunity was provided as TKM Bidadi performed beyond the SOPs . TMC Conducts G loba l Customer Serv ice Market ing Conference every year at various distributor locations, with an objective to share TMC direction with other distributors and to promote best practice sharing.

Like every time, the objective of the conference was to share the best practices amongst all the Toyota affiliates. In the 3 day conference, TKM showcased its best practices in areas of Customer & Employee Delight which was followed by visit to TKM, Bidadi plant to understand the overall operations.

Day-1: Bengaluru : Presentations by TMC,TMAP & TKM and DSK Toyota Group Discussion & Best Practice Sharing

Day-2: DSK Toyota Gemba Observation:a. Employee Delightb. Customer Delightc. Kaizen Culture

Day-3: TKM, Bidadi : Visualization of complete flow from Policy Setting to Kaizen initiatives; Reflection & PDCA of Strategies

Indian Delight Committee [IDC]

Introduced in the year 2014, India Delight Committee [IDC] focuses to transform the dealer from “High Performing Dealer” to “Delight”level, sustain, and become a benchmark for next set of Dealers.

The sustenance and Customer Delight is achieved by,

• Touching Customer's heart by exceeding expectations

• Emotional connect in SOP delivery

• Personalized approach.

We have successfully established 6 IDCs across our dealerships nationwide. The dealerships are exposed to understanding 'Delight' and delight initiatives, Gemba check, establishment and implementation of Delight themes which include effective communication; value Customer time and ensuring work quality. The review on sustenance of the committees is conducted and the future action plans are discussed.

JOURNEY FROM INDIA DELIGHT COMMITTEE [IDC] TO BE 'BEST IN TOWN' [BIT]

“Delight”is possible

ONLY throughHappy

Employees

HUMAN TOUCH

COMMUNICATEEFFECTIVELY

VALUECUSTOMER

TIME

ENSURE WORKQUALITY

E R U T L TU EC C HN NEZ OI LA OK G Y Y T HIC IGA HP LA YC ME OCI TV IVR AE TS ED DE PC EN OA PH LN EE

Offering through high velocity of Kaizen

• Identify Toyota Position

• Work to make it better than Competition

Best offering for Each customer in Each Town

• Right Place

• Right Time

• Right Atmosphere

PHILOSOPHY“To be the best Dealer

in the Town for your Customer”Mr. Akio Toyoda,

President and CEO, TMC

FACILITY

• Customer Convenience

• Technology Usage

PROCESS & PEOPLE

• Customer Engagement

• Collaboration & Synergy

Intrinsic Motivation

We believe that Employees are the driving force behind our success. In order to achieve new strides, Employee satisfaction and motivation is necessary to become a benchmark in Customer Delight by sustaining their performance.

Key Reflections Of IDC

Achievements

The setting up of IDCs helped us achieve dealer employee motivation and development, which resulted in huge momentum in 'Customer Delight'. The employees came up with many innovative ideas on Customer Satisfaction [CS], which led to the creation of CS Kaizen library.

Areas For Improvement

The evaluation of the IDC showed scope of improvement in the structured development plan and also highlighted the need for strengthening the review mechanism of dealer progress and sustenance of IDC.

Best In Town [BIT] Concept

After gaining huge momentum in 'Customer Delight' through IDC, Toyota is making its way to be 'Best in Town'.We believe that in order to be 'Best in Town', service driven activity is not enough, and one has to achieve best sales, which is possible through Customer Retention in this highly competitive globalized business.

The BIT concept was developed with an objective of creating champion dealers in every town with Customer Centric Mindset. According to Mr. Akio Toyoda, President and CEO, TMC, the philosophy behind the BIT concept is “To be the best Dealer in the Town for your Customer” and this is possible only through “Creating Customer for Life” by engaging at every touch points with strong Sales-Service collaboration. The three point approach adopted to be best in town is given below,

• Customer – Get Toyota fans through Toyota Products and Service

• Dealer- stable profit Foundation with Value chain and Efficiency

• TKM – Develop sales and after sales, operation management

Event Details

In January, 2016 the transition from IDC to BIT was started at Bengaluru with the current and new dealers in the market. The Top management of TMC & TMAP attended the event along with Sales, Services and top CR management of TKM and our dealers. Talking about the BIT journey,Mr. Balaji Narayan, GM-sales said that there is a need to create a 'Differentiator' in market to capture Customer focus and this can be done by offering the best to each customer with high velocity kaizen. The sales-service

activities should be aligned in one sphere to exceed the Customer expectations (Hansa-Renkei).

Speaking on the occasion, Mr. Ankur Shah from Infinium Toyota said that customer driven approach and team work–Kaizen culture has to be adapted for sustainable business from the Employee satisfaction [ES] and Customer satisfaction [CS] oriented activities. This needs to be driven by IDC and moving with strong ES and CS, strong outlets performance review system with Ohbeya tool should be established.

Mr. Raghuram from Annamalais Toyota, speaking on multi-outlet management shared his views on Structured Employee Growth plan and organic growth policy in the organisation and said that the strong tools such as Ohbeya and Hoshin Kanri setup is essential for the effective monitoring and continuous improvement of the organisation.

Way Forward

Mr. Hitoshi Iwanaga, SVP-CSG said that amalgamation of IDC and BIT approach is necessary to infuse new outlook towards 'Customer Delight' and dealers have to be sensitive and predictive towards the customer demands. All our dealers can learn through strong yokoten from our successful Japanese dealerships.

The dealers visited 1. Corolla Tokushima, 2. Corolla Shin Osaka and 3. Shiga Daihatsu.

Benchmarking was done to visit the Top Performing Japan Dealers between 23rd- 25th of February, 2016 by 11 BIT dealers to identify best practices adopted by the dealers and to develop and implement at their respective locations.

According to the reflections, TKM is aiming towards integration of India Delight Committee and Best in Town concept. We plan to do this by working towards the stabilization of uplift operations at all IDC dealers (Outlets) and adoption of Best in Town concept in Bangalore, through the establishment of pilot of new initiatives and setting up the Delight Index.

CS Strategy

GSCM CONFERENCE AT TKM, BIDADI

BEST IN TOWN EVENT


















ONLY throughHappy

Employees

HUMAN TOUCH


VALUECUSTOMER

TIME

ENSURE WORKQUALITY






• Right Place

• Right Time





FACILITY



PROCESS & PEOPLE






Achievements










Event Details





Way Forward





CS Strategy


BEST IN TOWN EVENT


















ONLY throughHappy

Employees

HUMAN TOUCH


VALUECUSTOMER

TIME

ENSURE WORKQUALITY






• Right Place

• Right Time





FACILITY



PROCESS & PEOPLE






Achievements










Event Details





Way Forward





CS Strategy


BEST IN TOWN EVENT


















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HUMAN TOUCH


VALUECUSTOMER

TIME

ENSURE WORKQUALITY






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FACILITY



PROCESS & PEOPLE






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Way Forward





CS Strategy


BEST IN TOWN EVENT



Dealer Improvement System Through Holistic Approach [DISHA]

In order to achieve the complete transformation of TKM into a sustainable organisation, we introduced many programs with support from TMC, to improve and sustain dealer service operations in India. Many programs at the dealership resulted in overlapping of standards and the staff could not focus on the operations enhancement. Hence, DISHA a comprehensive evaluation program was developed on a centralized dealer system.

It aimed at sustaining high level dealer operations. All the dealers and TKM employees have access to the module and both use this tool to check the operational levels - 4 evaluations are carried out in a year. The Dealers & TKM conduct evaluation and update results in the centralized DISHA evaluation system. The Territory manager can access DISHA reports and share the same with Dealers. TKM HO & TKM RO accesses the central database for evaluation data & analysis.

DISHAEVALUATION

CYCLE

TKM Evaluation

• Results Confirmation

• Direction Setting

• Yearly Action Plan

Dealer Self Evaluation

• Progress Check

• Kaizen

• Action Plan

• Review

TKM Evaluation

• Progress Check

• Support Structure


• Progress Check

• Kaizen Action Plan Review

Test More Sell More

In line with Toyota's 'Customer First' principle, our focus lies on continuous Customer Engagement.'Test More, Sell more' activity was developed to ensure vehicle health safety, for our valued customers along with sales enhancement tools at our dealerships. We realized that the two major safety elements are Tyre safety and Battery health condition. Therefore, SOPs were established.

The vehicle safety is tested with the help of tyre depth gauge to detect the tyre wear and battery tester to check battery health. The service advisors are trained on sales talks and the ready reckoner aids them to provide the required information to the customer. The customers are convinced through proofs to ensure their vehicle health safety. The schemes and sales monitoring track help in knowing the lost sales and further, follow ups. This activity has been successful in enhancing the sales and thereby ensuring Customer Retention for sustained business.

Delight Customer Services – Right Product To The Right Customer

Quality Products and Services are integral to Toyota's goal of Customer delight. Customer requirements are influenced by their usage and lifestyle. Hence, we ensure a range of products and services to satisfy their requirements. In order to provide periodic maintenance, EM 60 service was established with service time ranging between 60 minutes for the package services and 90 minutes with additional services.

To ensure customer satisfaction, a survey was conducted to know customer expectations on the service time and high demand service jobs. According to the results 40% of the customers were satisfied with EM60 but a significant 26% customers wanted service time of 90 – 120 minutes covering the periodic maintenance and expected additional jobs. We enhanced the EM bay capability to cut down the cycle time of any job that was greater than 15 minutes and ensured coverage of 4 additional jobs in 120 minutes.

As a part of our Customer delight initiative, we are now offering 'Pick your Pack' services delivering periodic maintenance in 2 combinations with service time of 90 mins and 120 mins. These will be offered over a range of 6 service packages focusing on elements like brakes, wheel, electricals, tyre, detailing and fuel filter.

EVEN DURING ODDS - Crisis Management by Lanson and Harsha Toyota

Chennai floods cost loss of lives and damage to property, making it the worst floods in 100 years. The city and our dealership were impacted. We took immediate actions to intimate all customers along with Do's & Don'ts during the floods, and a dedicated helpline and task force was set up to support customers who experienced losses with respect to vehicles. An insurance and tow truck operators' field meeting was conducted to offer quick support and new yard was hired for vehicle parking.

CUSTOMER EXPECTATIONS

74%

6%

20%

INDIVIDUAL CUSTOMER : I want my vehicle immediately with quality work

TAXI CUSTOMER : Quickly deliver my vehicle at low cost (Livelihood is dependent)

CORPORATE CUSTOMER : Urgently deliver my vehicle (Incurring additional expenditure)

ALL CUSTOMER WANT FAST DELIVERY

1213790

TOTAL LOSS

REPAIRABLE

Total loss vehicle - Vehicle repair cost above IDV value (Non repairable)

The floods affected our dealers by causing total loss (repair costs above IDV) and repairable damage to our vehicles. We faced the challenge of retaining the Toyota customer in Toyota family as 790 vehicles were totally in loss and the rest 1213 vehicles were repairable. It became our prime focus to deliver the vehicles with quality work and come up to the customer expectations. Hence, we set a target to deliver 100% vehicles before the end of February, 2016 (60 days).

The pre-production stage involved mandatory and non mandatory parts and labour standardization which

was done rank wise and model wise and conducting insurance meet Toyota Protect (TP) and Non TP on regular basis.

The production stage involved standardization of process for flood affected vehicles and extended operations in two batches i.e.; 12 hours per day. More than a hundred technician support was provided by the co-dealer and the technicians were motivated by TKM throughout the work cycle.

Review mechanism by conducting vehicle by vehicle monitoring, and checking the daily progress, with a

special quality check sheet for flood affected vehicles was made, and this was followed by management reviews. For customer convenience, significant discounts were announced on some parts and throughout the crisis time.

As a result of the dedicated work force and set timelines to meet the customer expectations and build customer trust, TKM could achieve 95.4% of vehicles completion by the end of February, 2016. The 100% target was not possible due to supplementary failures and delay in customer approvals.

ENVIRONMENTAL MANAGEMENT SYSTEMS [EMS]

The Environmental Management System [EMS] has been enrooted in our system for a long time now. It identifies the areas for improvement and provides a systematic and comprehensive approach to manage the immediate and long-term impacts on the environment, helping us drive towards environmental protection. It also ensures that our industrial activities comply with all applicable National, State and Local requirements.

Key Parameter Indicators for EMS include ISO 14001, DERAP and CO reduction.2

Dealer Environment Risk Audit Program [DERAP]

The Dealer Environment Risk Audit Program [DERAP] introduced by TMC IN 2004, represents a minimum requirement of environmental risk management for service workshops at dealers. It mainly comprises of fundamental aspects, namely:

DE

RA

P

171

2014

180

2015

TA

RG

ET

- 1

77

(1

02

%)

Improvement Area

• Focus from Dealer Management on DERAP

• Territory Managers awareness on EMS

• Presence of Environment Promotion staff

• Declaration of abidance to law

• Proper storage and treatment of hazardous waste

• Proper treatment of wastewater

• Recovery of HFC gas [AC gas]

By carrying out self-audit based on these five aspects, each of the dealers confirm that they are in compliance with the local environment regulation. There is a confirmation that by minimizing Environmental risk, they are doing their best to be good corporate citizens.

90MINUTES

COMBO 1PERIODIC

MAINTENANCE+ 3 EXPRESS PACKS

120MINUTES

COMBO 2PERIODIC


PICK YOUR PACK*

BRAKES WHEEL ELECTRICALS TYRE DETAILING FUEL FILTER

A B C D E F

VEHICLE HEALTH SAFETY CHECK AT DEALERSHIP CUSTOMER ENGAGEMENT AND SERVICE ADVICE TYRE DEPTH GUAGE TEST






DISHAEVALUATION

CYCLE

TKM Evaluation





• Progress Check

• Kaizen

• Action Plan

• Review

TKM Evaluation

• Progress Check



• Progress Check


Test More Sell More










74%

6%

20%





1213790

TOTAL LOSS

REPAIRABLE














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171

2014

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56

The dealer is eligible for ISO certification after the completion of one year. A minimum target of 70% is set for the eligible dealers. Quarterly evaluations are carried out in order to identify the gaps and establish an appropriate approach to become a compliant enterprise.

CO Reduction 2

We take CO reduction as a primary initiative towards 2

environmental protection. We have already incorporated energy conservation techniques, modification in packaging material for resource conservation, optimization of logistics and afforestation drives, which aid in considerable reduction of CO emissions. However, to cut down the CO 2 2

emissions significantly, we are taking steps to implement dealer wise target setting for CO emission reduction.2

Legal Compliance

TMAP proposed to strengthen the legal compliance, focus on the Hazardous Waste Management (HWM) system and to conduct functionality check of the Wastewater Treatment Plant [WWTP] through evaluation by territory managers at the dealership. Therefore, action plans were made for strengthening the EMS points such as Hazardous Waste, CFE/CFO and WWTP in DISHA and awareness programs were conducted for the front line staff and TKM members. Audits are carried out by CSG along with S&E team to confirm the implementation of EMS standards at our dealerships.

ISO 14001 -Environmental Management System (EMS)

TKM subscribed to ISO 14001 Certification in 2000, since we believe in implementation of activities in line with EMS, in order to be a compliant industry. It improves environmental awareness amongst employees, helps to review the activities and their compliances and improve transparency in order to achieve environmental protection.

We have created awareness and recommended ISO-14001 certification to all our dealers. It not only helps minimizing environmental risks, but also gives an added advantage to the dealers by improving their public image, ensuring better employee-dealer interaction and reducing costs.

World Environment Month Celebrations At Dealerships

World Environment Month is observed every June of the calendar year. As a part of our environmental responsibility, we conduct various activities throughout TKM and our nationwide dealership network.

Implementation and 100% compliance of DERAP not only enhances the awareness among the dealerships on environment and conservation of natural resources, but also keeps sustenance of ISO14001 certification.

TMC sets a target for all distributors each year. However, TKM took up a challenging target of 95% against the 90% allocated by TMC.

The environmental activities are based on three concepts; Eco-mind, Eco-kaizen and Eco-showcase.As a part of the Eco-mind concept, EMS and legal training for dealerships was conducted. The eco-initiatives such as optimum resource utilization and conservation by 3R concept, CO 2

emission reduction and afforestation drives were conducted at the dealerships.

For our valued customers, about 800 free Pollution Under Control [PUC] checks were carried out along with Eco driving awareness tips and the non-compliant users were advised to be compliant.

Family Environment day was organised to share environmental responsibility and motivate our customers towards an eco-friendly lifestyle.

In addition, as a part of our community initiative, 'Swachh Bharat Abhiyan' involving local community and school children was organised and Eco awareness was conducted at public places through rallies. Saplings were handed over to the customers during Environment month.

Environment month award ceremony was conducted at TKM and the Best CO promotion dealers were awarded. 2

The 'Best External Stakeholder Promotion' award was given to S.H.E team– CSG department.

ENVIRONMENT DAY CELEBRATION AT SCHOOLS

FREE PUC CHECKS DISTRIBUTION OF SAPLINGS TO

CUSTOMERS

ECO INITIATIVES AT DEALERSHIPS

ISO

14

00

1

110

2014

120

2015T

AR

GE

T -

12

9(9

3%

)

• Visualization of ISO 14001 certification at all Dealers by TKM RO & HO

• Periodic monitoring & communication to dealers regarding certification status

CO

Re

po

rtin

g

2

0

2014

133

2015

TA

RG

ET

- 1

00

(13

3%

)

Authenticity of the data reported by Dealers

Gentan - I based Dealer wise target setting

ECO INITIATIVES BY MALIK TOYOTA

Swachh Bharath Abhiyan

In line with the vision of 'Clean India', Malik Toyota as a responsible citizen organized the Swachh Bharath Campaign in Beer Barban village near Hissar. This campaign mainly aimed at creating awareness about the importance of cleanliness for a healthy life. It promoted the use of toilets, proper disposal of garbage, drinking clean water and keeping our surroundings clean through presentations, videos and talks amongst the communities. An oath was taken at the event to keep the village clean and green. Liquid hand wash were distributed to promote hygiene for a healthy life.

Resource Conservation - Energy savings

We created awareness amongst our employees regarding energy conservation by placing energy saving reminder stickers on all the switch boards throughout our office, making our staff conscious of switching off the equipments when not in use. This resulted in lesser load on generator and lesser diesel consumption, helping in cutting down our carbon footprint considerably.

AWARENESS ON SANITATION AND HYGIENE TO COMMUNITY DISTRIBUTION OF LIQUID HANDWASH

WATER CONSERVATION INITIATIVE IN WESTERN MAHARASHTRA BY DSK KOLHAPUR

Water is a scarce resource of primary importance and the water crisis is getting serious every year in Western Maharashtra. Our dealers took steps towards conservation of water and the activities included awareness among all staff members about the importance of water and to reduce the water consumption in day to day activities. Reminder display boards showcasing water conservation are displayed in both English and local language. To observe and monitor the daily water consumption, a register is maintained by the washing supervisor. The water consumption for gardening purposes was made optimum.

The awareness activities and the reduced water consumption helped us save 77,000 litres of fresh water which is equivalent to 7 tankers of water. With these practices, DSK Kolhapur is looking forward to save 9,24,000 litres of fresh water annually. In the near future, we are planning to implement 100% Dry Wash, which would help us cut down further water demand.




56


CO Reduction 2




Legal Compliance


















CUSTOMERS


ISO

14

00

1

110

2014

120

2015

TA

RG

ET

- 1

29

(93

%)



CO

Re

po

rtin

g

2

0

2014

133

2015

TA

RG

ET

- 1

00

(13

3%

)















56


CO Reduction 2




Legal Compliance


















CUSTOMERS


ISO

14

00

1

110

2014

120

2015

TA

RG

ET

- 1

29

(93

%)



CO

Re

po

rtin

g

2

0

2014

133

2015

TA

RG

ET

- 1

00

(13

3%

)















56


CO Reduction 2




Legal Compliance


















CUSTOMERS


ISO

14

00

1

110

2014

120

2015

TA

RG

ET

- 1

29

(93

%)



CO

Re

po

rtin

g

2

0

2014

133

2015

TA

RG

ET

- 1

00

(13

3%

)












OURSUPPLIERSSustainability is a core principle and inherent in Toyota culture. Our vision, philosophy and guidelines are true reflections of our commitment towards a clean and green sustainable future. We truly believe that a company in itself cannot be sustainable, unless it takes along its supply chain. Companies are retooling their supply chains to make them responsive towards the ever changing dynamics of economic, social and environmental fronts. New technology, analytics and frameworks can make the supply chain transparent, enabling them to adapt to the changes. We understand, to enhance flexibility TKM needs to partner and collaborate more with the suppliers. With this thought, TKM continuously strives to work with its stakeholders, contributing towards the goal of sustainable development.

SUSTAINABLE SUPPLY CHAIN

A sustainable supply chain is a collaboration of disparate elements of the supply chain, working towards generating economic value, delivering social benefits and minimizing the impact of the environment. We believe sustainability should be imbibed throughout the supply chain, beginning with the concept followed by development and then continuing through all phases of production and finally, customer distribution. Spreading good business practices around the globe has enormous potential to contribute to more inclusive markets and advance sustainable development.

TKM expects business partners to ensure long term, stable and sustainable procurement of the best products, compliance with all applicable laws, regulations and adherence to social norms in consideration for the environment.TKM is continuously working towards improving product quality, reducing costs and rationalizing manufacturing, through measures that include promoting localization and improving logistics.

In line with TMC’s guiding principles and management philosophy, TKM has adopted its policies, values and code of conduct for the entire supply chain covering the suppliers, dealers, contractors and vendors.

THE BASIC POLICIES OF TOYOTA PURCHASING FOCUS PRIMARILY UPON:

• Fair competition based on an open-door policy

• Mutual benefit based on mutual trust

• Contributing to local economic vitality through localization and good corporate citizenship

To ensure that our suppliers are aware and on-board with the sustainability culture, we have taken up various initiatives dedicated to suppliers that focus on and address social and environmental objectives.

SUPPLIER CSR GUIDELINE

Considering the increase in global expectations for enhancement of CSR activities, especially in the area of human rights and labour issues in the supply chain, Toyota has specifically issued 'Supplier CSR guideline' with a focus towards:

Respect for our Employees and Monozukuri based on Genchi-Genbutsu

Safety, Quality, Delivery and Production, Cost, Technological capabilities

Legal Compliance, Human Rights / Labour, Local / Global Community

GENERAL PURCHASE AGREEMENT (GPA)

The complexity of the supply chain makes it challenging to effectively manage business and sustainability issues. To address this challenge, TKM has formalized its own detailed ‘General Purchase Agreement’ (GPA) which is a summarized version of all Toyota’s policies.

The basic principles of GPA are:

Focus on ‘Customer Satisfaction’ as a primary objective

Adopt Toyota Production System (TPS) and JIT

Long standing business relationship based on the spirit of mutual trust

Comply with safety and environmental standards

Contribute to the sustainable development of society

Promote faithful and sound business activities

GREEN PURCHASING GUIDELINES

To improve environmental performance throughout the value chain, TKM has developed the 'Green Purchasing Guideline'. The guideline clearly demonstrates the requirements and methodologies that the suppliers are expected to adhere to, as a part of Toyota's global commitment towards greening the supply chain.

The major focus points include:

ISO 14001certification

Elimination of SoC and banned chemicals

Environment legal compliance

Logistic CO reduction 2

Reduction of packaging material

We, at TKM, work continuously to ensure environmental compliance, thorough understanding and implementation of appropriate measures in the supply chain, based on the Green Purchasing Guideline.

TKM AND SUPPLIERS

We instill sustainable production practices in our suppliers by providing technical know-how to enhance productivity and support in areas where suppliers can inculcate the best sustainable practices. TKM maintains a salubrious association with its suppliers through two important modes-

Toyota Kirloskar Suppliers Association (TKSA)

Supplier Support Centre (SSC)

These institutions help TKM to connect with the suppliers on multiple areas, which lead to a collaborative association.

Environment Legal Confirmation At Suppliers

Toyota supports its suppliers for 100% legal compliance management as a part of extended responsibility. The suppliers were audited for legal compliance and EMS at workplace.

Process Flow For Legal Compliance Management At Suppliers

Environment Management Support For Manufacturing Plants

The Supplier Support Centre [SSC] team supports suppliers to establish sustainable supply chain through level up of Eco mind; Eco kaizen and Eco showcase activities.

This year, the Eco Mind activities included daily KYT and best practice sharing amongst the suppliers along with Human development and Eco quiz activities. For Eco Kaizen, we actively take part in energy and water conservation activities and CO reduction activities. We 2

ensure that the waste and chemical management is carried out efficiently along with eco specific activities for proper Environmental Management.

In line with Toyota's vision 2050, SSC is focusing on 100% legal compliance at suppliers for creating a risk free supply chain.


OUR STAKEHOLDERS-SUPPLIERS OUR STAKEHOLDERS-SUPPLIERS

LEGAL AUDIT TRAINING


LEGAL AUDIT-DOCUMENT CONFIRMATION

BUSINESS RISK MANAGEMENT

Safety Management System Support

In order to establish arisk free suppliers' base with the goal of "No Fatal & No Fire", the Supplier Support Centre [SSC] provides the focused Gemba support for safety management system improvement at suppliers in projects as well as manufacturing units.

SAFETY REVIEW

In FY 2015-16, the SSC has supported Safety Management System in 13 Toyota group companies situated in India from construction stage to pre-commissioning stage.

SUPPORT TO SUPPLIERS FOR IMPROVEMENT IN WEAK AREA

TKM LEGAL AUDIT AT GEMBA

LEGAL SELF- CONFIRMATION BY SUPPLIERS

SELF- CONFIRMATION CHECK SHEETSHARING WITH SUPPLIERS

TRAINING TO SUPPLIERS FOR LEGAL COMPLIANCE


































TKM AND SUPPLIERS





















SAFETY REVIEW








































TKM AND SUPPLIERS





















SAFETY REVIEW








































TKM AND SUPPLIERS





















SAFETY REVIEW










SSC’s Support For Construction Projects:

TMC/TMAP have driven activities with TKM as the leader in India for enhancing group companies safety level continuously, in particular for construction safety and height work safety.

SSC supported al l Toyota companies during construction/project stage through;

Human Development

During FY 14-15, certified master trainers referred to as 'Safety Anzen' leaders were developed at TMAP, Toyota Asia pacific headquarters. They internally developed 210 sub leader and 650 job leaders. In FY 2015-16, an additional, 181 sub leaders and 456 job leaders were developed for daily management and system implementation.

System Implementation and Periodic Review

Following are the stages of SSC support from construction till pre commissioning stage, to achieve Zero fatal accidents. The steps include improvement activities such as daily, weekly and monthly management, Job leader concept, and method statement for critical activity control, Kanban system, LOTO rules and emergency preparedness.

CLASS ROOM TRAINING ON HUMAN DEVELOPMENT

Activities Driven Under Pillar-1: Focused Gemba Support

In the FY 2015-16, SSC supported 40 suppliers to improve Gemba/shop floor condition in order to achieve manufacturing excellence through human development & continuous improvement at supplier base.

Quality System Support to Supplier:

During the FY 15-16,SSC supported five suppliers with the objective to:

Inculcate Toyota quality culture in supplier working group through human resources development. Enhance quality awareness amongst supplier members through class room training on ProQAC (Process by Process Quality Assurance Chart), standardized work and Gemba training on Toyota best practices

Establish basic quality systems

Enhance daily management through pre-operation check, critical parameter trend monitoring and standardized work enhancement through Element Instruction Sheet (EIS) for production, and Inspection Instruction Sheet (IIS) for quality inspection.

Customer Complaints / Month

Productivity System Improvement at Supplier

The SSC team has been supporting suppliers to achieve the middle management's capability towards building a strong shop floor management and establishment of smooth and lean production system. The Productivity team has supported 5 suppliers to build a strong shop floor management in FY 2015-16. The SSC team has supported the supplier for establishing the basic Toyota production system (TPS) with pull production system, through standardised work & theme based activity. This has helped to enhance the production capacity, inventory stock management and line capacity resulting in the overall optimization of manufacturing cost.

Cost System Implementation at Suppliers

Another objective of SSC team is to make company highly profitable and competitive through:

a. Optimizing manufacturing cost with effective shop cost management

b. Practice “reduce & reuse” principle to maximize utilisation of raw material from design stage to disposal stage.

This is done using a cost strategy of training and awareness, establishment of cost systems and conducting cost related meetings to ensure the suppliers are competitive. In FY 15-16, SSC Cost team has supported 7 suppliers to establish the strong cost management system by conducting activities on cost reduction, resource and asset management and man hour management by data grasping.

BeforeLevel

AchievedLevel

NextTarget

1

3

4

SustenanceAchieved

SustenanceAchieved +train others

Activities Driven Under Pillar-2: Supplier Project Expert (SPE)

The Supplier Project Expert (SPE) program is focussed on developing window persons at suppliers to implement Toyota way of manufacturing with good communication thus providing strength to suppliers to achieve and sustain delivery targets. Approach of SSC-HD for Human Development

The development program has been designed on Learn (at TKM), Perform (identify and implement kaizens) and Drive concept (develop systems at his own company and also to drive other suppliers). With the target of at least one person (SPE) from each supplier company, SSC is developing SPEs in the area of Safety, Quality, Production, Cost and Human development.

Safety Management Support For Manufacturing Plants

In FY 15-16, SSC has supported onsite suppliers (OSS) & other suppliers related to Safety management through:

• Training on Specialist development for safety management

• Daily & periodic management system through Obheya control

• Equipment risk assessment & risk reduction

• Fire risk elimination

• Sustenance of safety activity through Top management audits & direction

• Level up work place activity through Safety month celebration

SUSTAINABLE BUSINESS ACTIVITY

SUPPLIER SUPPORT CENTRE [SSC]

The Toyota vision is to achieve customer delight through enhancing the overall competitiveness of TKM suppliers towards global level for future sourcing. In order to ensure the sustainable business operation, SSC is continuously enhancing supplier's competitiveness through Gemba development.

The approach for development of suppliers is based on two pillar concept of; focused Gemba support & SPE (supplier project expert) development.

PRE COMMISSIONING / TRAIL

EQUIPMENT INSTALLATION

CONSTRUCTION

PRE CONSTRUCTION

GOOD RELATIONSHIP BETWEEN OPERATOR AND SUPERVISOR

SPE DEVELOPMENT Learn and Drive Toyota’s best practices and system in the areas of Safety, Quality, Production, Cost and Human Development

SUPPLIER JIRITSUKA(DEVELOP TO GLOBAL LEVEL)

FOCUSSEDGEMBA

SUPPORT

SPE (SUPPLIERPROJECT EXPERT)

SAFETY & ENVIRONMENT• Anzen leader development• Safety & Env. system implementation

QUALITY• Quality awareness building

PRODUCTION• Introduction of basic TPS system

COST• Basic cost management Establishment

HUMAN DEVELOPMENT• Strengthen shop floor supervisor

capability

GEMBA SUPPORT -PRODUCTIVITY

EFFICIENCY IMPROVEMENT AT SUPPLIER - 1

OV

ER

AL

L E

QU

IPM

EN

TE

FF

ICIE

NC

Y (

%)

Be

fore

Co

nd

itio

n

Co

nd

itio

n a

fte

rS

SC

Su

pp

ort

LearnPerformKaizen

DriveDevelop

own co.& Other

Suppliers

Approach of SSC-HD for Human Development

ZERO FATALACCIDENTS

TKM MANAGEMENT REVIEW FOR IMPROVEMENT ACTIVITIES

2%

Trend of Supplier Development through Gemba Suport

2013-14 2014-15 2015-16

NO

S.

OF

SU

PP

LIE

R

DE

VE

LO

PE

D

40

PLAN ACTUAL

46

PLAN ACTUAL

49

40 40

PLAN ACTUAL

49

Feb’15 Jun’15 Feb’16

1 0 0

Target Actual100% 100%

Before

Cost Management System Improvement from Level 1 to Level 3

Efficiency improvement at Supplier-1




SSC’s Support For Construction Projects:

TMC/TMAP have driven activities with TKM as the leader in India for enhancing group companies safety level continuously, in particular for construction safety and height work safety.

SSC supported al l Toyota companies during construction/project stage through;

Human Development

During FY 14-15, certified master trainers referred to as 'Safety Anzen' leaders were developed at TMAP, Toyota Asia pacific headquarters. They internally developed 210 sub leader and 650 job leaders. In FY 2015-16, an additional, 181 sub leaders and 456 job leaders were developed for daily management and system implementation.

System Implementation and Periodic Review

Following are the stages of SSC support from construction till pre commissioning stage, to achieve Zero fatal accidents. The steps include improvement activities such as daily, weekly and monthly management, Job leader concept, and method statement for critical activity control, Kanban system, LOTO rules and emergency preparedness.

CLASS ROOM TRAINING ON HUMAN DEVELOPMENT

Activities Driven Under Pillar-1: Focused Gemba Support

In the FY 2015-16, SSC supported 40 suppliers to improve Gemba/shop floor condition in order to achieve manufacturing excellence through human development & continuous improvement at supplier base.

Quality System Support to Supplier:

During the FY 15-16,SSC supported five suppliers with the objective to:

Inculcate Toyota quality culture in supplier working group through human resources development. Enhance quality awareness amongst supplier members through class room training on ProQAC (Process by Process Quality Assurance Chart), standardized work and Gemba training on Toyota best practices

Establish basic quality systems

Enhance daily management through pre-operation check, critical parameter trend monitoring and standardized work enhancement through Element Instruction Sheet (EIS) for production, and Inspection Instruction Sheet (IIS) for quality inspection.

Customer Complaints / Month

Productivity System Improvement at Supplier

The SSC team has been supporting suppliers to achieve the middle management's capability towards building a strong shop floor management and establishment of smooth and lean production system. The Productivity team has supported 5 suppliers to build a strong shop floor management in FY 2015-16. The SSC team has supported the supplier for establishing the basic Toyota production system (TPS) with pull production system, through standardised work & theme based activity. This has helped to enhance the production capacity, inventory stock management and line capacity resulting in the overall optimization of manufacturing cost.

Cost System Implementation at Suppliers

Another objective of SSC team is to make company highly profitable and competitive through:

a. Optimizing manufacturing cost with effective shop cost management

b. Practice “reduce & reuse” principle to maximize utilisation of raw material from design stage to disposal stage.

This is done using a cost strategy of training and awareness, establishment of cost systems and conducting cost related meetings to ensure the suppliers are competitive. In FY 15-16, SSC Cost team has supported 7 suppliers to establish the strong cost management system by conducting activities on cost reduction, resource and asset management and man hour management by data grasping.

BeforeLevel

AchievedLevel

NextTarget

1

3

4

SustenanceAchieved

SustenanceAchieved +train others

Activities Driven Under Pillar-2: Supplier Project Expert (SPE)

The Supplier Project Expert (SPE) program is focussed on developing window persons at suppliers to implement Toyota way of manufacturing with good communication thus providing strength to suppliers to achieve and sustain delivery targets. Approach of SSC-HD for Human Development

The development program has been designed on Learn (at TKM), Perform (identify and implement kaizens) and Drive concept (develop systems at his own company and also to drive other suppliers). With the target of at least one person (SPE) from each supplier company, SSC is developing SPEs in the area of Safety, Quality, Production, Cost and Human development.

Safety Management Support For Manufacturing Plants

In FY 15-16, SSC has supported onsite suppliers (OSS) & other suppliers related to Safety management through:

• Training on Specialist development for safety management

• Daily & periodic management system through Obheya control

• Equipment risk assessment & risk reduction

• Fire risk elimination

• Sustenance of safety activity through Top management audits & direction

• Level up work place activity through Safety month celebration

SUSTAINABLE BUSINESS ACTIVITY

SUPPLIER SUPPORT CENTRE [SSC]

The Toyota vision is to achieve customer delight through enhancing the overall competitiveness of TKM suppliers towards global level for future sourcing. In order to ensure the sustainable business operation, SSC is continuously enhancing supplier's competitiveness through Gemba development.

The approach for development of suppliers is based on two pillar concept of; focused Gemba support & SPE (supplier project expert) development.

PRE COMMISSIONING / TRAIL

EQUIPMENT INSTALLATION

CONSTRUCTION

PRE CONSTRUCTION

GOOD RELATIONSHIP BETWEEN OPERATOR AND SUPERVISOR

SPE DEVELOPMENT Learn and Drive Toyota’s best practices and system in the areas of Safety, Quality, Production, Cost and Human Development

SUPPLIER JIRITSUKA(DEVELOP TO GLOBAL LEVEL)

FOCUSSEDGEMBA

SUPPORT

SPE (SUPPLIERPROJECT EXPERT)

SAFETY & ENVIRONMENT• Anzen leader development• Safety & Env. system implementation

QUALITY• Quality awareness building

PRODUCTION• Introduction of basic TPS system

COST• Basic cost management Establishment

HUMAN DEVELOPMENT• Strengthen shop floor supervisor

capability

GEMBA SUPPORT -PRODUCTIVITY

EFFICIENCY IMPROVEMENT AT SUPPLIER - 1O

VE

RA

LL

EQ

UIP

ME

NT

EF

FIC

IEN

CY

(%

)

Be

fore

Co

nd

itio

n

Co

nd

itio

n a

fte

rS

SC

Su

pp

ort

LearnPerformKaizen

DriveDevelop

own co.& Other

Suppliers

Approach of SSC-HD for Human Development

ZERO FATALACCIDENTS

TKM MANAGEMENT REVIEW FOR IMPROVEMENT ACTIVITIES

2%

Trend of Supplier Development through Gemba Suport

2013-14 2014-15 2015-16

NO

S.

OF

SU

PP

LIE

R

DE

VE

LO

PE

D

40

PLAN ACTUAL

46

PLAN ACTUAL

49

40 40

PLAN ACTUAL

49

Feb’15 Jun’15 Feb’16

1 0 0

Target Actual100% 100%

Before

Cost Management System Improvement from Level 1 to Level 3

Efficiency improvement at Supplier-1



9th Batch SPE Certificate Distribution

Benefits Of Spe Development

Benefit to SPE:

• Overall transformation in the thinking way by incorporating Toyota Culture

• Improvement in daily management capability by enhanced problem solving skills

Benefits to company

• Human development of suppliers' middle management through Toyota knowledge transfer

• Reduction of manufacturing cost by identification and periodization of wastes.

Customized Classroom training

With the objective of supporting suppliers to develop strong shop floor leaders & spread Toyota culture among suppliers, SSC conducts Customized training (short term) in fields of Safety, Environment, Quality, Productivity, Cost and Human Development.

NO

OF

SP

E D

EV

EL

OP

ED

28

FY 11-12

36

59

84

116

FY 12-13

FY 13-14

FY 14-15

FY 15-16

TOYOTA KIRLOSKAR SUPPLIER ASSOCIATION [TKSA]

Established in the year 2003, with the motto of 'Progress through Sharing', TKSA aligns supplier activities with TKMs targets on Safety, Quality, Cost, Delivery and Project Preparation. The spirit of TKSA is to create a platform to make 'One Team One Goal'. Under the leadership of Association office bearers, we have led the team to greater heights and shown immense enthusiasm and spirit.

TKSA has always contributed towards enhancement of quality to achieve zero defects. Towards this, the following steps are taken by TKSA.

Quality Circle Competitions

Every year, the Quality Circle Competitions are organised at Regional level followed by National Level QCC.

This year Bengaluru, Delhi, Chennai and Pune regions actively participated in the event and the top 3 circles showed their best performance in the finals (NCC) and were awarded. This reporting year there was a 10% increase in participation.

Fellowship Meeting

The fellowship meet was attended by TMC and TKM Top management along with the TKSA Corporate Committee members. The objective of the meet was to discuss the challenging targets that elevate the Organisation and People Power. TMC - Chairman, addressed the members on 'Spirit of challenge' through Prius story, setting challenging targets, emphasising the importance of team work and problem solving techniques to face challenges.

Customized SSC Quality Training for SPE

62

FELLOWSHIP MEET

Knowledge Seminar Meet

TKSA conducted Knowledge seminar on Floor Management Developmental Systems [FMDS] to develop Competitive Shop floor management systems. The topics covered in the seminar include visualization of abnormality at shop floor, physical goods, standard work with KPI management and change point handling.

CSR Activities

This reporting year, as a part of our CSR, education scholarships were provided to girl students and educational kits were distributed to school children.

SUPPLIERS QUALITY AND PRODUCTION SYSTEM ENHANCEMENT

With the advancements in technology, we have a need to improve efficiency in productions. We faced challenges which limit our capabilities to achieve efficiency. These were about lack of clarity on the normal and abnormal condition of working, quality awareness amongst the production team, work standardization among operators and control and monitoring of KPIs.

Once these challenges were identified, Classroom sessions, role plays, Gemba observation and training activities focussed on development of human capital were conducted using Gemba support. This was along with planned improvement across the plant by

Annual Dealer Conference

TKSA participated in TKM activities to align with 'One Team, One Goal' mission and participated in the Quality month and dealer conference to enable suppliers to directly interact with dealer on customer feedbacks pertaining to the product.

The annual dealer conference revolved mainly around

Institutionalizing kaizen practices for waste, fabrication and others to improve the overall score of the plant. Enhancement was made in production system and built in quality was done by adoption of local language and establishing KPIs, improving existing KPIs and production analysis boards to showcase targets and actuals. Regular audits are conducted for the sustenance of the above mentioned 5 stage process to enhance quality and production systems.

The introduction of the above mentioned steps have brought about changes in the extrusion process from 2 shifts to 1 shift operation and helped in cutting process manpower reduction from 15 to 10 nos. and Roller Cutting Machines Reduction from 3 to 2 Nos.

EDUCATIONAL KITS DISTRIBUTION

KNOWLEDGE SEMINAR MEET ON FMDS

'Customer First' approach and Quality month theme for this reporting year was 'Customer First Quality must for Everlasting Trust'

Annual Supplier Convention

As every year, the purchase department at TKM conducted supplier convention to communicate the following:

i. TMC Global Expectation, TKM Vision and Purchase Policy for FY 2016 - including Target and expectation to our Supplier Partners.

ii. This year 's Theme for Suppl ier is 'Perfect Accomplishment towards a Sustainable future

iii. TKM Hoshin for Supplier this year is based on 3 pillars

a) Fundamental enhancement

b) Project accomplishment

c) Competitiveness

The best performing suppliers were recognised at the event.

RECOGNITION OF BEST PERFORMING SUPPLIERS

ANNUAL SUPPLIER CONVENTION

GOOD PRODUCT

+

GOOD KNOWLEDGE

GOOD SKILL

Year wise trend of SPE development by SSC





Benefit to SPE:



Benefits to company





NO

OF

SP

E D

EV

EL

OP

ED

28

FY 11-12

36

59

84

116

FY 12-13

FY 13-14

FY 14-15

FY 15-16







Fellowship Meeting



62

FELLOWSHIP MEET



CSR Activities




















c) Competitiveness




GOOD PRODUCT

+

GOOD KNOWLEDGE

GOOD SKILL






Benefit to SPE:



Benefits to company





NO

OF

SP

E D

EV

EL

OP

ED

28

FY 11-12

36

59

84

116

FY 12-13

FY 13-14

FY 14-15

FY 15-16







Fellowship Meeting



62

FELLOWSHIP MEET



CSR Activities




















c) Competitiveness




GOOD PRODUCT

+

GOOD KNOWLEDGE

GOOD SKILL






Benefit to SPE:



Benefits to company





NO

OF

SP

E D

EV

EL

OP

ED

28

FY 11-12

36

59

84

116

FY 12-13

FY 13-14

FY 14-15

FY 15-16







Fellowship Meeting



62

FELLOWSHIP MEET



CSR Activities




















c) Competitiveness




GOOD PRODUCT

+

GOOD KNOWLEDGE

GOOD SKILL


Our EmployeesOur constant evolution over the years has kept us well ahead of the rapidly changing environment but one factor that has stayed constant is the deep rooted source of strength and our innovation i.e. our workforce. We recognise the fact that for our organisation to be sustainable as a whole, embracing sustainability at an individual level is critical. Not surprisingly, all our values, vision and approach to sustainability is imbibed into each of our employees right from their induction training program.

HUMAN RESOURCE MANAGEMENT

TKM is an equal opportunity employer and has a fair policy for recruitment. We do not discriminate against employees based on age, gender, ethnicity or geography. Our recruitment is done purely on a merit and competency basis. The Japanese expatriates who work closely with us at TKM as, TMC plays a key role in product development and shaping our business practices. These expatriates assist our management understand TMC expectations and align activities to Global Toyota Way.

Our employees are provided with Retirement Benefits, Superannuation, Annual Appreciation, Relocation Loan, Medical Insurance, Maternity Benefits, Personal Accident Insurance, Death Relief Fund, Personal Loans, Shift Allowance, Leave Compensation, Promotion Policy and Global Exposure for the duration of stay within the organisation.

EMPLOYEE ENGAGEMENT

As a part of the employee satisfaction, we encourage our employees to be a part of various activities.

Ekiden

This is an annual long distance relay event, which takes place on the roads. The main objective of organising this event is to develop a friendly environment and create awareness on Healthy Living. This year, to emphasize on safety, insurance and medical safety, kit stalls were set up on either sides of the roads in case of injuries during the event.

Training andDevelopment

TOYOTA INSTITUTE INDIA (TII)

Creating a Learning Organization

About TII

Toyota is a “Company that makes ever-better cars”.

In order to transform ourselves from a “Normal C o m p a n y ” i n t o a n “Excellent Company”, we b e l i e v e t h a t H u m a n Resources Development is the only way, since everything is operated by people. Toyota Institute India (TII) was established with the aim of supporting the human development teams at stakeholder organizations by providing continuous learning content in the form of training programs, research, publications and best practices sharing.

TOYOTA INSTITUTE INDIA

Objectives Of TII

• By improving the abilities of each employee, improve performance of the entire organization from a mid-to-long-term perspective

• By developing human resources of the entire stakeholder value chain, achieve self-reliance (Jiritsuka) in terms of products, services and systems

• By developing problem solving abilities and competitiveness among stakeholders, enhance Toyota brand value and contribute towards sustainable profitability

Training Structure

Overall training structure is classified into

• Corporate trainings: managed by HR and broadly contain Global, Regional and Local need-based programs.

• Functional Trainings: managed by the respective divisions.

Remembrance Day

The 9th of January 2016 was observed as Remembrance Day at TKM. This was a day to reminisce and pay tributes to those who died due to road accidents in India. We organised a road safety awareness week for this. On this day, pledge cards were distributed to all our employees about the importance of road safety.

Family Plant Visit

We open our doors to the family members of our employees to have a first-hand experience of how the company works and facilities are provided to the employees. During the family plant visit, safety importance is emphasized and safety video is shown along with a request to ensure that their husbands follow safety rules.

People Connect

It is in TKM's culture to play music to indicate the start and ending of breaks as a means to create motivation among employees. The music however was observed to be monotonous over the years. The introduction to a more upbeat and lively tune brought in greater acceptance to the work music among the employees. Thus, our small initiative helped create a more conducive work environment.

As a part of our remuneration policy, we ensure equal pay for equal work. We adhere to minimum wages regulations formulated by the Government of India.

OUR STAKEHOLDERS-EMPLOYEES


FAMILY PLANT VISIT

EKIDEN EVENT AT TKM

Vision

“Create a learning organization by developing compet i t i ve human resources among a l l stakeholders and thereby contribute towards business sustainability”.





EMPLOYEE ENGAGEMENT


Ekiden





About TII




Objectives Of TII




Training Structure




Remembrance Day


Family Plant Visit


People Connect





FAMILY PLANT VISIT

EKIDEN EVENT AT TKM

Vision






EMPLOYEE ENGAGEMENT


Ekiden





About TII




Objectives Of TII




Training Structure




Remembrance Day


Family Plant Visit


People Connect





FAMILY PLANT VISIT

EKIDEN EVENT AT TKM

Vision






EMPLOYEE ENGAGEMENT


Ekiden





About TII




Objectives Of TII




Training Structure




Remembrance Day


Family Plant Visit


People Connect





FAMILY PLANT VISIT

EKIDEN EVENT AT TKM

Vision


Improvements During 2015-16

Global Content Structure

Global Contents training refers to the most fundamental and best business practices which have contributed to the success of Toyota. It is a common business language of all Toyota members to communicate effectively and practice the Toyota Way in daily work.

During 2015-16, Hoshin Kanri (HK) module was introduced. As a first step, trainers for HK have been developed by Toyota Institute, Japan and the training is being rolled-out to the relevant employee levels.

Training Need Analysis

Training Need Analysis (TNA) was initiated through a three-pillar research activity.

• Conduct Focused Group Discussions (FGDs) at all levels.

• Review HR systems.

• Benchmarking related to training programs.

Based on the findings of these studies, organization-wide learning needs were designed. As a result, Work Life Plan i.e., training roadmap for both plant and office members were revised.

New Programs

Training programs are broadly classified into three areas based on the category of employees viz. Management, Office Staff, and P lant Members.

Apart from the training programs applicable as per Work Life Plan, the following new programs were organized in line with changing business and people's needs:

I. MANAGEMENT NEW PROGRAMS [AS PER NEW WORK LIFE PLAN]

CORPORATETRAINING

FUNCTIONALTRAINING

Managed by HR

• Applied to all TMs by cascading-Top Down Approach

• Role-based training appropriate time of work life

Managed by Function

• Applied to all members in the function based on specific job competencies actions in that function

ON THE JOBDEVELOPMENT

LONG-TERM PROSPERITYAND GROWTH AS AN ORGANIZATION

JOB STANDARDS (JKK)

TOYOTA WAY

01

02

03

04

05

Simplified Competency Framework

Competency Based Event Interview Skills

Thought Leadership

Hoshin Kanri

Creating a Respectful Workplace

Managers and above

Manager and above

Managers and above

Managers and above

All staff

4-hours

2-days

2-hours

1-day

2-hours

SL.NO. PROGRAM APPLICABILITY DURATION KEY TOPICS

• Simplified Competency Framework• Art of Giving Feedback

• Identifying behavioural indicators• Corporate Etiquette

• Leadership Insights

• Hoshin Development Process• Hoshin Vs. Daily Job

• Gender Diversity

II. OFFICE STAFF NEW PROGRAMS [AS PER NEW WORK LIFE PLAN]


• Understand customer’s needs• Built-in-quality with ownership in daily jobs01

02

Ji Kotei-Kanketsu

Health and Happiness (Art of Living)

Officers, Senior Officers and Assistant Managers

All Office Staff

1 day

3-days• Sudarshana Kriya• Yoga

III. PLANT MEMBERS PROGRAMS [AS PER NEW WORK LIFE PLAN]


01

02

03

04

05

06


Sarala Yoga

Financial Management (Kilaadi Kaasu & Kaase Bossu)

Personal Safety & Personal Health

People Management

Counselling Skills

Shop Floor Team Members




Team Leaders and above

Group Leaders and above

2.5 days

5 days

2 hours

2 hours

1 day

2 days

• Understanding Self• S tress Management

• Physical Fitness• Yogasanas

• Financial Management• Develop Savings Mindset

• My Safety My Responsibility• Nutrition and Exercises

• People Management Skills

• Neuro Linguistic Programming

Skill Contest

With the objective of developing a skill culture, Skill Contest is observed every year. First, a competition is organized at the company level, wherein every single shop floor Team Members put their skills to test.

TKM was able to bag 4 gold medals at the Asia Pacific Skill Contest at Thailand and one gold medal during the Global Skill Contest held at Japan.

Programs are imparted with the objective of enhancing knowledge, skills and attitude from mid-to-long-term perspective to all employees and different categories. Equal learning opportunities are accorded for men and women. Role-based, skill-based trainings are imparted when any member moves from one level to another in the form of post-promotion programs. Training on policies and procedures concerning aspects of human rights are imparted during induction and post-promotion trainings.

Further, security personnel are trained on aspects of human rights relevant to their operations. During the year, an exclusive training program on firefighting was imparted through Fire Academy at Bangalore.

Training Effectiveness

Tools l ike report-outs , in terv iews, workplace measurements, observation etc. were developed to measure the effectiveness of the training programs.

Training Coverage

Training modules are developed for management, office, plant members including apprentice and contract members. Overview of training imparted is furnished:

OUR STAKEHOLDERS-EMPLOYEES OUR STAKEHOLDERS-EMPLOYEES


ONE TO ONE TRAINING PROGRAM

JKK TRAINING PROGRAM COMPETENCY BASED EVENT INTERVIEW SKILL TRAINING

YOGA TRAINING BY ART OF LIVING

ASIA PACIFIC SKILL CONTEST WINNERS











New Programs




CORPORATETRAINING

FUNCTIONALTRAINING

Managed by HR



Managed by Function




JOB STANDARDS (JKK)

TOYOTA WAY

01

02

03

04

05



Thought Leadership

Hoshin Kanri


Managers and above

Manager and above

Managers and above

Managers and above

All staff

4-hours

2-days

2-hours

1-day

2-hours










02

Ji Kotei-Kanketsu



All Office Staff

1 day




01

02

03

04

05

06


Sarala Yoga



People Management

Counselling Skills







2.5 days

5 days

2 hours

2 hours

1 day

2 days







Skill Contest







Training Coverage


















New Programs




CORPORATETRAINING

FUNCTIONALTRAINING

Managed by HR



Managed by Function




JOB STANDARDS (JKK)

TOYOTA WAY

01

02

03

04

05



Thought Leadership

Hoshin Kanri


Managers and above

Manager and above

Managers and above

Managers and above

All staff

4-hours

2-days

2-hours

1-day

2-hours










02

Ji Kotei-Kanketsu



All Office Staff

1 day




01

02

03

04

05

06


Sarala Yoga



People Management

Counselling Skills







2.5 days

5 days

2 hours

2 hours

1 day

2 days







Skill Contest







Training Coverage


















New Programs




CORPORATETRAINING

FUNCTIONALTRAINING

Managed by HR



Managed by Function




JOB STANDARDS (JKK)

TOYOTA WAY

01

02

03

04

05



Thought Leadership

Hoshin Kanri


Managers and above

Manager and above

Managers and above

Managers and above

All staff

4-hours

2-days

2-hours

1-day

2-hours










02

Ji Kotei-Kanketsu



All Office Staff

1 day




01

02

03

04

05

06


Sarala Yoga



People Management

Counselling Skills







2.5 days

5 days

2 hours

2 hours

1 day

2 days







Skill Contest







Training Coverage








STAKEHOLDER ENGAGEMENT

In addition to training its employees, Toyota Institute India, regularly imparts training to its stakeholders as well.

Supplier Training

Supplier production heads and HR heads are periodically trained on the Toyota Way in Human Resources Management. Further, supervisors from suppliers in Bangalore, Chennai, Delhi and Pune regions are trained at our training facility at TII. Training topics include Toyota Way, problem solving technique, PDCA, building consensus through A-3 reports, abnormality management etc.

Dealers Training

New programs have been initiated to share the best practices of TKM with dealer staff (e.g. CEOs, VPs). Further, Sales Consultants and Team Leaders from dealerships across India are trained on the principles of Toyota Production System. Further, Train-the-Trainer program is organized for dealers' staff who manage Toyota Driving School (TDS).

Corporates Training

Our best practices are shared with corporates as well. For example, Infosys-Toyota Knowledge Exchange program help mutually learning sessions between both the companies. Further, there are regular training programs organ ized a t TKM on lean manufactur ing for representatives of Confederation of Indian Industries (CII).

Community Training

Toyota Technical Training Institute (TTTI) was established in the year 2007 with the objective of training economically poor students from the rural hinterland of Karnataka. TTTI offers a three-year full-time residential course wherein focus is on developing the body, mind, knowledge and skills of students. State-of-the-art skill training is imparted to the students in Automobile Weld, Automobile Assembly, Automobile Paint and Mechatronics trades.

A unique blend of classroom learning coupled with shop floor exposure transform raw talent into industry-ready technicians. One of the students of TTTI participated in the World Skills Contest which was held at Brazil and won the “Medallion of Excellence”.

TRAINING IMPARTED TO EMPLOYEES

SL.NO. PROGRAM

01

02

03

Executives (Grade 7 & Above)

Non-Executives (Grade 8)

Others (Apprentice & Contract)

Total Trained

2011-12 2012-13 2013-14 2014-15 2015-16

1317

3936

2186

7439

1535

4095

2247

7877

1646

5368

1323

8337

3456

4448

2190

10094

1495

6005

2492

9992

“After the training at Toyota, we have seen improvement in our 4S, reduction in time and effort, improved productivity, better safety and improved team engagement”

Ms. Monica Alex,Manager of Learning and DevelopmentThe Himalaya Drug Company

Further, educational institutions also get training support, so they can help students develop their employability skills. For example, for Jnanavikas Institute of Technology, a detailed annual plan is laid down on how to develop their students. Learning interventions include visit to the plant, sessions on Lean Manufacturing, How to Face Interviews, Quality Mindset, Automobile Technology etc.

Healthand SafetyOn account of the nature of our business, Occupational Health and Safety (OHS) are critical for our organisation. We recognise the need for strong safety rules and communication within the organisation, that will percolate to form greater awareness of safety practices beyond the workspace.

To tackle the key concern of occupational safety, we have a Safety and Health Committee. Safety and Health Committee meetings are undertaken at various levels to discuss means to improve health and fitness of the employees and reduce absenteeism due to illness.

• Manufacturing Safety Committee Meeting (MSCM) is conducted every month. It is chaired by the occupier and manager of the industry and attended by the all top management, along with representatives of Employees union.

• Shop safety Committee Meeting (Shop Level) is conducted once every month and is attended by safety committee members (50% workers) along with shop heads.

Periodic training on safety procedures are conducted within the workplace of all our employees and workforce. Our OHS management System is a safety commitment between Toyota management and all stakeholders. The company comprehends safety practices such as KY ability assessment and gap assessment followed by one-on-one training.

We have incorporated safety at the planning stage of every activity and developed effective safety management tools to ensure zero safety deviation at work.

SAFETY FIRST

We at TKM believe that addressing the issue of ‘Safety First’ is a means to producing quality products. We have been continuously contributing towards improvements in the workspace environment and the progressive reduction of all objective and behavioural risks that could result in accidents, injuries and occupational diseases.

Our ‘Safety First’ campaign strives to achieve ‘Zero accident’ at its manufacturing facilities and offices. The company comprehends safety practices such as KY ability assessment and gap assessment followed by one-on-one training.

We have pre-empted the safety practices that would be needed for any new activity, and are proactively implementing them at relevant areas. There are some safety standards in place while dealing with vendors and purchase and installation of equipment. These

standardised rules have risen as a result of the risks and issues that have been discussed with the safety department over a period of time.

Total number of Accidents

Number of lost days due to Injury

Total Man - Hours worked

Total no of employees

FrequencyRate

Total no. of Accidents*1000000

Total Man-Hours worked

SeverityRate



7

179

20928622

7385

0.33

8.55

3

38

20196385

7380

0.15

1.88

=

=

PARTICULARS 2015-16 2014-15

KYTRAINING

MANAGE-MENT

MIND SENSE

ZEROACCIDENT

OU

TP

UT

IMP

RO

VE

KY ABILITY

MEMBER

OUR STAKEHOLDERS-EMPLOYEESOUR STAKEHOLDERS-EMPLOYEES


TTTI CONVOCATION CERMONY

ROAD SAFETY AWARENESS CAMPAIGN



Supplier Training


Dealers Training


Corporates Training


Community Training




SL.NO. PROGRAM

01

02

03




Total Trained

2011-12 2012-13 2013-14 2014-15 2015-16

1317

3936

2186

7439

1535

4095

2247

7877

1646

5368

1323

8337

3456

4448

2190

10094

1495

6005

2492

9992










SAFETY FIRST









FrequencyRate



SeverityRate



7

179

20928622

7385

0.33

8.55

3

38

20196385

7380

0.15

1.88

=

=


KYTRAINING

MANAGE-MENT

MIND SENSE

ZEROACCIDENT

OU

TP

UT

IMP

RO

VE

KY ABILITY

MEMBER







Supplier Training


Dealers Training


Corporates Training


Community Training




SL.NO. PROGRAM

01

02

03




Total Trained

2011-12 2012-13 2013-14 2014-15 2015-16

1317

3936

2186

7439

1535

4095

2247

7877

1646

5368

1323

8337

3456

4448

2190

10094

1495

6005

2492

9992










SAFETY FIRST









FrequencyRate



SeverityRate



7

179

20928622

7385

0.33

8.55

3

38

20196385

7380

0.15

1.88

=

=


KYTRAINING

MANAGE-MENT

MIND SENSE

ZEROACCIDENT

OU

TP

UT

IMP

RO

VE

KY ABILITY

MEMBER







Supplier Training


Dealers Training


Corporates Training


Community Training




SL.NO. PROGRAM

01

02

03




Total Trained

2011-12 2012-13 2013-14 2014-15 2015-16

1317

3936

2186

7439

1535

4095

2247

7877

1646

5368

1323

8337

3456

4448

2190

10094

1495

6005

2492

9992










SAFETY FIRST









FrequencyRate



SeverityRate



7

179

20928622

7385

0.33

8.55

3

38

20196385

7380

0.15

1.88

=

=


KYTRAINING

MANAGE-MENT

MIND SENSE

ZEROACCIDENT

OU

TP

UT

IMP

RO

VE

KY ABILITY

MEMBER





To reduce the number of incidents, we have a number of internal road safety initiatives for employees, TLI drivers, TM’s and others in place. Initiatives include driving simulation, safety campaigns during work hours and for long holidays, training on road safety issues and a myriad of others.

Typical Diseases and Injuries at TKM

Injuries: Every year we try to reduce the instances of injuries by re-enforcing safety practices for employees and drivers alike. Now we usually have only mechanical injuries and burns which are not critical.

Diseases: A pre and post-employment check-up is conducted to ensure that the workforce is not a carrier of any carcinogen. No occupational diseases have been detected within the plants.

WEIGHT MANAGEMENT WORKSHOPS

Over weight and obesity is one of the most neglected health problems as stated by World Health Organisation (WHO). India has third in the number of most obese people globally.

Obesity is given top priority, as it is a major contributor for cardiovascular disease, diabetes,and arthritis, which indirectly affect productivity and the company's bottom line.

As a proactive measure, Occupational health department conducts “Weight Management Program” throughout the year to minimize risk and improve the health of team members.TKM has conducted 35 workshops till day, covering 1143 team members.

The workshops comprise of presentations, activities and demonstrations focussed on healthy weight, nutrition and physical activity, thereby leading to a healthy lifestyle.

RESPIRATORY INFECTION CONTROL CAMPAIGN 2015

Influenza, a life threatening virus affecting the respiratory system is mainly communicated through droplets, close contact with the infected person and contact with contaminated objects.

Occupational Health department observed an increase in the number of respiratory diseases reported during winter, 2015. To mitigate the risk of respiratory infection and flu, we conducted a

Respiratory Infection Control Campaign 2015. The program was conducted for employees and contractors on a voluntary participation basis. The program was carried out in two steps:

a. Education and Awareness: Using posters, danglers, mailers and stickers on hand hygiene & cough etiquette.

b. Seasonal flu vaccination: Flu vaccine was a voluntary activity, the participation was 98 %, with 9330 employees and contractors across locations at TKM this year. The vaccine provides active protection against flu for one year.

HEALTH AND PRODUCTIVITY STUDY

As industrial health and safety standards improve, conventional occupational diseases are contained, although non communicable diseases are on the rise due to lifestyle factors.

Our Occupational Health Department along with Department of Epidemiology, Centre of Public Health, conducted a research on health and productivity with the available health data. The purpose of this research was to identify and evaluate the current health risks and predict future health issues and estimate the impact of health on productivity.

The study revealed obesity and elevated blood pressure as the topmost health risks which could lead to increase morbidity over time to the company. Infectious disease and injuries outside workplace are the leading health issues faced by the company. If these health risks are not addressed adequately and in a timely manner, the health related absenteeism would impact productivity to a greater extent.

Health and Wellness We, at TKM promote a holistic approach to health and wellness, not just by encouraging physical activity but also providing healthy and hygienic food as we believe our competitive work force should 'Eat Healthy, Live Right' to achieve personal as well as company growth. As good role models, we demonstrate positive health behaviors that assist in improving health of our employees.

WELLNESS CAMPAIGN

We've set up the wellness campaign in October, 2015 to provide Healthy and Hygienic food to all our employees by ensuring 'timely delivery' and 'achieving Zero accidents'. Obesity and overweight are common health risks faced by the world today. Reaching and staying at a healthy weight is a long-term challenge and we believe this can be achieved with the right diet and motivation. We have taken several initiatives such as awareness on healthy lifestyle through seminars, emails and posters, provision of balanced diet (wellness) menu with calorie information and health information display.

Our ultimate goal is to achieve a 'High level of Happiness' realized through growth of company and developing a competitive work force.

As a part of the wellness campaign, Pay and Eat counters were installed in October, 2015 to provide healthy breakfast and lunch options, available at a nominal price. These counters are set up to encourage employees to adopt a healthy lifestyle.

SAFETY IN COMMUTATION

We provide commutation services for both permanent and contract employees. With the increase in fatalities due to road accidents, we have focused on spreading safety awareness inside & outside the organization. Drivers, employees and the communities in the vicinity have been involved in activities aimed at building a safe service facility

for our employees and to achieve 'Zero Accidents'.

Driver recruitment process at TKM

Our roadmap to achieve Safe and Enjoyable Workplace is a four step process guided by our top management:

• Basic safety management

• Eliminate fatal accident - through Stop 6 + 2 Promotion

• Enhance the member KY ability

• Activity for Sustenance & level up

Evaluation ofDriver’s Licence

and previousexperience

Inspection oftechnical Skills

Practicalevaluation ontraffic rules

and regulations

Induction onroad safety, trafficnorms, defensive

driving, Etiquette &TKM standards on

Selection

MAN

• Induction Training & Etiquette

Road safety skill & skill evaluation

• Material

• Management Awareness on Global warming and ISO standards

MAN

• Road safety & regulations awareness by RTO officer

• Machine

• Management

• Stress Management by NGO

• Management Simulation on road safety thru Track Layout - Dhojo

MAN

• Total preventive maintenance training by Internal Technical expert

• Machine

• Material

• Management

• Fire flighting training by TKM security dept

MAN

• Awareness on Defensive driving by SML Management & Technical Expects

• Machine

• Working shop on vehicle parts & functioning Gurukul Training Department

• Method

• Management

• Awareness on Yoga & its importance.

ZERO ACCIDENT

SUSTENANCE & LEVEL UP

PROMOTESAFETY MIND

BASIC SAFETYLEVEL UP

BACK TO BASICS

PAY AND EAT COUNTERS

Providing healthy menu options in Breakfast & Lunch

• Herbal juice• Boiled vegetables• Fruit salads• In house prepared food



EATBETTER

HEALTHY FOOD BALANCED

DIET MENU

EXERCISE REGULAR

PHYSICAL ACTIVITIES

HEALTHYLIVING

THINK POSITIVE

AWARENESS

DAILY KYT DRIVING SIMULATION TRAINING SAFETY AWARENESS

To reduce the number of incidents, we have a number of internal road safety initiatives for employees, TLI drivers, TM’s and others in place. Initiatives include driving simulation, safety campaigns during work hours and for long holidays, training on road safety issues and a myriad of others.

Typical Diseases and Injuries at TKM

Injuries: Every year we try to reduce the instances of injuries by re-enforcing safety practices for employees and drivers alike. Now we usually have only mechanical injuries and burns which are not critical.

Diseases: A pre and post-employment check-up is conducted to ensure that the workforce is not a carrier of any carcinogen. No occupational diseases have been detected within the plants.

WEIGHT MANAGEMENT WORKSHOPS

Over weight and obesity is one of the most neglected health problems as stated by World Health Organisation (WHO). India has third in the number of most obese people globally.

Obesity is given top priority, as it is a major contributor for cardiovascular disease, diabetes,and arthritis, which indirectly affect productivity and the company's bottom line.

As a proactive measure, Occupational health department conducts “Weight Management Program” throughout the year to minimize risk and improve the health of team members.TKM has conducted 35 workshops till day, covering 1143 team members.

The workshops comprise of presentations, activities and demonstrations focussed on healthy weight, nutrition and physical activity, thereby leading to a healthy lifestyle.

RESPIRATORY INFECTION CONTROL CAMPAIGN 2015

Influenza, a life threatening virus affecting the respiratory system is mainly communicated through droplets, close contact with the infected person and contact with contaminated objects.

Occupational Health department observed an increase in the number of respiratory diseases reported during winter, 2015. To mitigate the risk of respiratory infection and flu, we conducted a

Respiratory Infection Control Campaign 2015. The program was conducted for employees and contractors on a voluntary participation basis. The program was carried out in two steps:

a. Education and Awareness: Using posters, danglers, mailers and stickers on hand hygiene & cough etiquette.

b. Seasonal flu vaccination: Flu vaccine was a voluntary activity, the participation was 98 %, with 9330 employees and contractors across locations at TKM this year. The vaccine provides active protection against flu for one year.

HEALTH AND PRODUCTIVITY STUDY

As industrial health and safety standards improve, conventional occupational diseases are contained, although non communicable diseases are on the rise due to lifestyle factors.

Our Occupational Health Department along with Department of Epidemiology, Centre of Public Health, conducted a research on health and productivity with the available health data. The purpose of this research was to identify and evaluate the current health risks and predict future health issues and estimate the impact of health on productivity.

The study revealed obesity and elevated blood pressure as the topmost health risks which could lead to increase morbidity over time to the company. Infectious disease and injuries outside workplace are the leading health issues faced by the company. If these health risks are not addressed adequately and in a timely manner, the health related absenteeism would impact productivity to a greater extent.

Health and Wellness We, at TKM promote a holistic approach to health and wellness, not just by encouraging physical activity but also providing healthy and hygienic food as we believe our competitive work force should 'Eat Healthy, Live Right' to achieve personal as well as company growth. As good role models, we demonstrate positive health behaviors that assist in improving health of our employees.

WELLNESS CAMPAIGN

We've set up the wellness campaign in October, 2015 to provide Healthy and Hygienic food to all our employees by ensuring 'timely delivery' and 'achieving Zero accidents'. Obesity and overweight are common health risks faced by the world today. Reaching and staying at a healthy weight is a long-term challenge and we believe this can be achieved with the right diet and motivation. We have taken several initiatives such as awareness on healthy lifestyle through seminars, emails and posters, provision of balanced diet (wellness) menu with calorie information and health information display.

Our ultimate goal is to achieve a 'High level of Happiness' realized through growth of company and developing a competitive work force.

As a part of the wellness campaign, Pay and Eat counters were installed in October, 2015 to provide healthy breakfast and lunch options, available at a nominal price. These counters are set up to encourage employees to adopt a healthy lifestyle.

SAFETY IN COMMUTATION

We provide commutation services for both permanent and contract employees. With the increase in fatalities due to road accidents, we have focused on spreading safety awareness inside & outside the organization. Drivers, employees and the communities in the vicinity have been involved in activities aimed at building a safe service facility

for our employees and to achieve 'Zero Accidents'.

Driver recruitment process at TKM

Our roadmap to achieve Safe and Enjoyable Workplace is a four step process guided by our top management:

• Basic safety management

• Eliminate fatal accident - through Stop 6 + 2 Promotion

• Enhance the member KY ability

• Activity for Sustenance & level up

Evaluation ofDriver’s Licence

and previousexperience

Inspection oftechnical Skills

Practicalevaluation ontraffic rules

and regulations

Induction onroad safety, trafficnorms, defensive

driving, Etiquette &TKM standards on

Selection

MAN

• Induction Training & Etiquette

Road safety skill & skill evaluation

• Material

• Management Awareness on Global warming and ISO standards

MAN

• Road safety & regulations awareness by RTO officer

• Machine

• Management

• Stress Management by NGO

• Management Simulation on road safety thru Track Layout - Dhojo

MAN

• Total preventive maintenance training by Internal Technical expert

• Machine

• Material

• Management

• Fire flighting training by TKM security dept

MAN

• Awareness on Defensive driving by SML Management & Technical Expects

• Machine

• Working shop on vehicle parts & functioning Gurukul Training Department

• Method

• Management

• Awareness on Yoga & its importance.

ZERO ACCIDENT

SUSTENANCE & LEVEL UP

PROMOTESAFETY MIND

BASIC SAFETYLEVEL UP

BACK TO BASICS

PAY AND EAT COUNTERS

Providing healthy menu options in Breakfast & Lunch

• Herbal juice• Boiled vegetables• Fruit salads• In house prepared food



EATBETTER

HEALTHY FOOD BALANCED

DIET MENU

EXERCISE REGULAR

PHYSICAL ACTIVITIES

HEALTHYLIVING

THINK POSITIVE

AWARENESS

DAILY KYT DRIVING SIMULATION TRAINING SAFETY AWARENESS

Our CommunityInitiatives

ECONOMIC

Developing a harmonious relationship with society by contributing towards various community development activities.

ENVIRONMENT

Undertaking measures to protect and safeguard the environment through effective eco initiatives.

BUSINESS

Complying with externally imposed social and environmental standards and conducting our business operations with honesty and integrity.

We have derived a sustainable philosophy for CSR, Plan-Do-Check-Act (PDCA) to ensure proper implementation and sustenance of the CSR activities in the community. This four stage cycle is initiated at the Plan stage with a Need Assessment and feasibility study of the community. This social assessment is conducted to identify the requirements of the community, evaluate impacts of the CSR interventions and provide a CSR action plan.

STEP TOWARDS SUSTAINABILITY

A need assessment is conducted once in every three years to ensure the community needs are in line with TKM's ideology of what is critical and of utmost need to the society.

PHILOSOPHY FOR

SUSTAINABLE CSR

PLAN DO

ACT CHECK

PLAN

CSR Activities depends on:

• Analyzing the needs

• Feasibility study

DO

N e e d - b a s e d i m p l e m e n t a t i o n o f prioritized activities

• In consensus with the local community

• Involving the stakeholders

• Sustaining the activity

CHECK

• Monitoring evaluation of the programme by using effective implementation tools

ACT

• Improvization of the existing and plan for the new activity

Post identification of a CSR action plan, we conduct stakeholder consultations with the local governments and community to arrive at a consensus on the activities for the upcoming years. On approval from the Board and the community, the activities are implemented, followed by regular monitoring and evaluations. Appropriate reflections are collected from the community for the activities implemented and these reflections are implemented to sustain the activities

This year, need assessment was conducted around Bidadi Industrial area covering 55 villages and 1655 respondents. Based on the identified needs, we developed activities under our focus areas for improvement of the quality of life for the communities in and around TKM's business units.

This year, need assessment was conducted around Bidadi Industrial Area covering 55 villages and 1655 respondents. The outcome of the survey indicated a critical need to improve overall healthcare conditions.

In alignment with this, we have identified the following focus areas:

CSR AT TKM: “WE GROW ALONG WITH SOCIETY”

In accordance to company's Corporate Social Responsibility Policy Rules, 2014, a Central CSR committee has been set up at the Board, to ensure effective and smooth functioning of the CSR activities. The CSR Committee is responsible for CSR policy review, approval of the CSR activities recommended and ensures the budget is appropriately allocated and spent in the financial year. This committee is chaired by the Managing Director. Our CSR policy entails holistic development by fulfilling the needs of the community at concurrent levels.

ADMIRED COMPANY

SUSTAINABLE DEVELOPMENT

LocalGoverning

Body

TransportDepartment

Impleme-nting

Partner

Employees

On SiteSuppliers

DealersToyotaGroup

Companies

TrafficPolice

Department

EnvironmentDepartment

HealthDepartment

LocalITI Institute

EducationDepartment

BidadiIndustrial

Area

SKILLDEVELOPMENT

ROADSAFETY

EDUCATION ENVIRONMENTHEALTH &HYGIENE

COMPOSITION OF THE CSR COMMITTEE

NAME DESIGNATION POSITION

Mr. Akito Tachibana


Mr. T S Jaishankar

Mr. N Raja

Managing Director

Vice Chairman

Deputy Managing Director – Commercial

Director & SVP – Marketing

Chairman

Member

Member

Member

OUR STAKEHOLDERS-COMMUNITY OUR STAKEHOLDERS-COMMUNITY


TKM's manufacturing plants are located amidst the local communities and we believe in a shared value approach. Corporate Social Responsibility (CSR) has always been at the forefront of our operating philosophy and has made significant progress over the years in the fields of Skill Development, Education, Road Safety, Environment, Health and Hygiene.

We began our CSR journey in 2001 and recognized the strong synergy required between business and society. We aspire to create value and impact for the communities through these CSR activities. Our CSR policy is aligned with Toyota's Global Vision for 2020 'Seeking Harmony between People, Society and the Global Environment, and S u sta i n a b le D eve lo p m e n t o f S o c i e t y t h ro u g h Manufacturing'. We undertake initiatives to contribute to harmonious and sustainable development of society and the earth, based on its Guiding Principles.

The Community being an integral stakeholder in our business, is guided by the CSR Committee and senior management. Regular meetings are conducted in rural areas to understand village and panchayat requirements. Need assessments are conducted in consultation with the local Government and local communities. On identifying the needs in the village, TKM seeks administrative support to ensure smooth functioning of the community engagement initiatives.

CSR POLICY

VISION

Be a socially committed corporate by building vibrant communities in harmony with nature. Aiming to become the most admired company in India. Meet customer expectation and be rewarded with a smile.

SOCIAL

Contribute to the development of the society by:

• Imparting technical education

• Raising road safety awareness

• Promoting art and culture

• Developing local communities through sustainable activities


ECONOMIC


ENVIRONMENT


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Mr. N Raja

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ECONOMIC CONTRIBUTIONS

Economic contributions represent the fulfilment of the basic needs of the community such as water, sanitation, health and hygiene, by creating valuable social assets.

Based on the need assessment survey, we have identified and carried out the following activities.

Ensuring Safe Drinking Water Facilities to the Neighboring Communities

Today, the paramount issue is water-its availability, quality and management. Water demand already exceeds supply in many parts of the world, and many more areas are expected to experience this imbalance in the near future.

Access to safe drinking-water is essential to health, a basic human right and a component of effective policy for health protection. In some regions, it has been shown that investments in water supply and sanitation can yield a net economic benefit, since the reductions in adverse health effects and health care costs outweigh the costs of undertaking the interventions. Studies have shown that interventions in improving access to safe water favour the poor in particular, either in rural or urban areas, and can be an effective part of poverty alleviation strategies.

Byramangala region, located near our Bidadi plant, is highly polluted by the discharge of sewage pollutants from Bangalore city into the Vrishabhavathi river which gets collected in Byramangala Reservoir. This has led to contamination of underground water affecting lives of many in the Byramangala region, resulting in high occurrence of skin diseases, arthritis, cholera, dysentery, diarrhea, etc. As a responsible corporate, Toyota addressed this raising health concern by implementing a large scale, sustainable, community-based water purification unit and actively organized health camps in villages as part of our CSR commitment towards healthy India.

This Sustainable project of TKM has been benchmarked by other industries in Bidadi and also has received the remarkable response from the surrounding communities. This project has led to the decreasing trend in the water borne disease prevailing in the communities.

This year, TKM has installed 4 units in Harohalli [2nos], Hejjala [1nos] , Bychowhalli [1no] catering to around 32,000 members in 32 villages. As on date TKM is successful in touching around 96,000 members in 111 villages.

Swachh Bharat Swachh Vidyalaya - School Sanitation Program

We believe basic hygiene is a pre-requisite to create a conducive learning environment. Decent sanitary conditions are yet to reach 2.6 billion people in India, of which a sizable 37% of the population are children below the age group of 18. Studies show that unhygienic schools record a higher rate of dropouts by girl children. While schools with water and proper toilet complexes tend to attract higher girl student retention rates, the availability of such schools still remain in a few pockets of the country.

Sustainable Sanitation Program – Project ABCD

Toyota Kirloskar Motor (TKM) in continuance of its active efforts towards ensuring 'Swacch Bharat' has conceptualized and implemented a unique CSR initiative - Project ABCD an abbreviation for 'A Behavioural Change Demonstration', aimed at curbing one of the grave concerns faced by our country – Open Defecation. This comprehensive project rolled out last year has reached out to 102 schools in 88 villages in Magadi, Kanakapura and Ramanagara.

We have targeted 40 villages to become open defecation free in Ramanagara District, Karnataka and have already been successful in making 14 villages open defecation free within a year.

Objectives

• To achieve 100% school sanitation and use of the sanitation units

• Increase awareness on importance of sanitation – Lavatory use, and wash

• Provide dignity and privacy for girl child

• Better learning and retention among school children

ABCD was promoted by educating children in school assembly and personal sessions. Video shows were conducted at schools and villages to encourage community participation. Regular checks were made by ABCD trainers and schools were rated based on their hygiene standards. Not only children, but parents and families were also educated on importance of sanitation hygiene.

In addition to that, we conducted initial assessment for the evaluation on the proper maintenance of the sanitation units, and found that almost 65% children are unaware of using the toilets cleanly, cleaning process, lack of proper hand wash practices. Therefore, we conducted key activities such as training of teachers, students, SDMC on

Toyota believes not only in creating sanitation facilities, but also ensures effective utilization of the facilities. Toyota is the first corporate in India to take up Operation & Maintenance, Behavior Change Communication (BCC) program on sanitation at schools.

The campaign proved very successful in increasing effective utilization of the current toilets, construction of new toilets in schools and communities, and maintaining clean and better hygiene practices.

Trend of Water Borne Diseases after Toyota Intervention

WASH (Water, Sanitation and Hygiene), demonstration of toilet cleaning process, awareness on hygiene through video shows and providing consumables to schools. Also, clogging of the facilities was identified due to the deposition of sanitary napkins. As a safe measure, we installed incinerator in high schools in Ramanagara district.

PHASE 2125 Units of toilets in Varanasi, Uttar Pradesh

PHASE 3125 Units of

toilets in Vaishali, Bihar

PHASE 1 & 4426 Units of toilets in 167 schools inRamanagara District, Karnataka

ABCD project has been appreciated by UNICEF and the Education Department, Government of Karnataka for its commendable contribution in raising awareness on sanitation and hygiene practices.

Our FocusIn line with Swachh Bharat - Swachh Vidyalaya

SWATCHH VIDYALAYA

IMPROVEDCAPACITIES

GENDER SEGREGATED

TOILETS

DRINKING WATER

BEHAVIOR CHANGE

HAND WASHING WITH SOAP

OPERATION AND

MAINTENANCE

TKM has constructed 676 units in 206 government schools, benefitting 37,559 children in the States of Uttar Pradesh, Bihar & Karnataka



5472

6259

5556

5180

4214

912

2010 2011 2012 2013 2014 2015

YEAR-WISE CUMULATIVE DATA (IN NOS.)

WATER PURIFICATION UNIT

SANITATION FACILITIES FOR SCHOOLS

VIDEO SHOWS SANITATION AND HYGIENE

INAUGURATION OF SANITATION FACILITIES

HAND WASH DEMONSTRATION IN CLASS ROOMS















Objectives












PHASE 3125 Units of





SWATCHH VIDYALAYA

IMPROVEDCAPACITIES

GENDER SEGREGATED

TOILETS

DRINKING WATER

BEHAVIOR CHANGE


OPERATION AND

MAINTENANCE




5472

6259

5556

5180

4214

912

2010 2011 2012 2013 2014 2015





















Objectives












PHASE 3125 Units of





SWATCHH VIDYALAYA

IMPROVEDCAPACITIES

GENDER SEGREGATED

TOILETS

DRINKING WATER

BEHAVIOR CHANGE


OPERATION AND

MAINTENANCE




5472

6259

5556

5180

4214

912

2010 2011 2012 2013 2014 2015





















Objectives












PHASE 3125 Units of





SWATCHH VIDYALAYA

IMPROVEDCAPACITIES

GENDER SEGREGATED

TOILETS

DRINKING WATER

BEHAVIOR CHANGE


OPERATION AND

MAINTENANCE




5472

6259

5556

5180

4214

912

2010 2011 2012 2013 2014 2015







ENVIRONMENT

TKM launched an initiative last year called 'Green Me'. 'Green Me' fosters development of eco-conscious attitude among students, teachers and community, focussing on themes such as water, waste, bio diversity, community intervention and climate change. Around 55 TKM employees participated voluntarily in this activity. Under this program, 20 schools were covered for a pilot study in Ramanagara Taluk, Karnataka.

Under the Eco drive campaign, around 500 employees, general public and school children actively participated in clean and green drive and planted around 200 saplings. The initiative was conducted to create eco consciousness among the community.

SCHOOLCHILDREN

Use the facility and create demand for toilet-Child to parent approach

Maintain the toilet in good condition

Takeover maintenance of the toilet

Understand the importance of sanitation

Motivate to construct household toilets

• 100% use of school sanitation facility

• 1380 household sanitation units constructed through Child to parent approach

• Created

awareness amongst 70,000 community on health & hygiene

• 14 villages have been declared 100% sanitation

Our Approach

SCHOOLTEACHERS

SDMCMEMBERS

LOCAL GPMEMBERS

COMMUNITY

FOCUS WHY? PROJECT IMPACT

BEHAVIORALCHANGE

PROGRAM INSCHOOLS

15 NOV 15 DEC 16 JAN 16 FEB 16 MAR

9

30

41

21

48

28

41

44

14

66

25

10

78

13

10

22 5 3 1 1

No Star

STAR GRADE

ACTION LEARNING - 100%

PRACTICAL APPLICATION

Mode of Teaching

Successful in achieving the CLEAN VILLAGE image in 102 school covering 88 villages through the awareness and motivation

SOCIAL CONTRIBUTIONS

Strengthening the Toyota Safety Education Program (TSEP)

Road safety is a major social concern in India. In response to the increasing number of fatal accidents in India every year, we initiated TSEP. In India , approximately 140,000 people die every year of road accidents, largely caused due to ignorance of safety norms and rules. Road safety awareness was hence conceptualized by us, as an effort to contribute to the society by minimizing the road accidents through awareness program. Over 70 per cent of the fatalities can be reduced in the next ten years through education and enforcement of safety rules and by creating awareness.

The findings from National Crime Record Bureau says that Children in the age group of 15-24 are the most vulnerable road users and also 70% of the accidents are due to the fault of the drivers. Hence, we focussed on school children and drivers to create and instil the right attitude on road safety.

In 2015, we revised our thinking way and conducted need assessment and impact evaluation of the module by engaging professional agency to assess the level of understanding. The results showed that the average understanding on road safety of 10-14 year age group is less than 50% for both Private and Government school children.

Based on the current level of awareness among children and points suggested for revision by our key stakeholders, we revised the module. The module concentrates on 100% application of the road safety knowledge, slow induction of the road safety know-how and age group specific intervention addressing from 10 to 14 Years. The approach is designed in such a way that children become the agent of change.

BOOKLET25%

ACTIVITIES25%

VIDEOS25%

INTERACTIVESESSION

25%

Currently, the module on road safety implemented in TKM has been tailor made considering the new age generation and focussing the age group wise information dissemination.

Training to Airport Taxi Drivers

As a part of creating awareness amongst drivers, an awareness cum health check up program was conducted to airport taxi drivers in two locations – Delhi and Bengaluru. It focused on providing basic defensive training and, health and eye check-up. Nearly 1360 drivers attended this program in Bangalore and 20% drivers were diagnosed with vision problem.. In Delhi, around 668 drivers were trained, 50% were diagnosed with vision problem. All the drivers with vision problem were provided free spectacles. Vedanta hospital, Essilor vision foundation and Institute of Road Traffic Education were associated with the Delhi campaign; whereas, National Road Safety Organization, SAAKRA and Shankara eye hospital were part of this awareness campaign in Bengaluru.

Celebration of Road Safety week was conducted in collaboration with Bengaluru city Traffic Police reaching out to around 20,000 school children and 10,000 public.

New Module - New Topics

Causes of road accidents

5%

Children are Sensitive road users

10%

10%

10%

5%

10%

10%

10%

5%

10%

10%Knowledge on traffic rules + Importance of these rules & signs to follow

Awareness of safety rules to be followed by cyclist, pedestrians + safety rules to follow wile riding two wheeler

How to use public transport or school bus + safety rules to follow while driving four wheeler

Minimum age to drive / ride the vehicle, documents to be kept while driving & other aspects

Knowledge of safety accessories & use of these feature - need of such features

Consequences of the violations of the traffic rules

Civic sense

Maintenance of the vehicle

Road etiquettes

First aid + how to respond during emergencies

5%

OUR STAKEHOLDERS-COMMUNITY


Based on the performance of the schools in sanitation and hygiene the schools are graded as below. The leap in three star graded schools from 9 nos. in Nov,2015 to 78 nos. in March 2016, shows the upward trend of awareness on sanitation and hygiene amongst school children.

RECOGNITION OF BEST PERFORMING SCHOOLS IN SANITATION AND HYGIENE

INAUGURATION OF ROAD SAFETY AWARENESS PROGRAM FREE EYE CHECK UP CAMPS

ENVIRONMENT



SCHOOLCHILDREN








• Created



Our Approach

SCHOOLTEACHERS

SDMCMEMBERS

LOCAL GPMEMBERS

COMMUNITY


BEHAVIORALCHANGE

PROGRAM INSCHOOLS


9

30

41

21

48

28

41

44

14

66

25

10

78

13

10

22 5 3 1 1

No Star

STAR GRADE



Mode of Teaching








BOOKLET25%

ACTIVITIES25%

VIDEOS25%

INTERACTIVESESSION

25%







5%


10%

10%

10%

5%

10%

10%

10%

5%

10%







Civic sense


Road etiquettes


5%






ENVIRONMENT



SCHOOLCHILDREN








• Created



Our Approach

SCHOOLTEACHERS

SDMCMEMBERS

LOCAL GPMEMBERS

COMMUNITY


BEHAVIORALCHANGE

PROGRAM INSCHOOLS


9

30

41

21

48

28

41

44

14

66

25

10

78

13

10

22 5 3 1 1

No Star

STAR GRADE



Mode of Teaching








BOOKLET25%

ACTIVITIES25%

VIDEOS25%

INTERACTIVESESSION

25%







5%


10%

10%

10%

5%

10%

10%

10%

5%

10%







Civic sense


Road etiquettes


5%






ENVIRONMENT



SCHOOLCHILDREN








• Created



Our Approach

SCHOOLTEACHERS

SDMCMEMBERS

LOCAL GPMEMBERS

COMMUNITY


BEHAVIORALCHANGE

PROGRAM INSCHOOLS


9

30

41

21

48

28

41

44

14

66

25

10

78

13

10

22 5 3 1 1

No Star

STAR GRADE



Mode of Teaching








BOOKLET25%

ACTIVITIES25%

VIDEOS25%

INTERACTIVESESSION

25%







5%


10%

10%

10%

5%

10%

10%

10%

5%

10%







Civic sense


Road etiquettes


5%






As a responsible corporate citizen, Toyota has always explored towards focusing on building ‘Ever Better Cars’ which will bring smile on face of customers by ‘exceeding their expectations’. This year, we have seen some unprecedented thrust from regulatory bodies on addressing concerns around environment in some regions. We at Toyota would always want to be a part of the solution & our efforts are focused in that direction. In line with this philosophy, our hybrid technologies have ensured that we stay ahead of the curve when it comes to ensuring cleaner environment and sustainability.

Year 2016, saw a string of successful vehicle launches beginning with Innova Crysta, Platinum Etios & the newly launched Fortuner. We have adopted a ‘digital thrust’ to reach out to our customers and build awareness on our product & its safety features. We have always believed that Indian customers want global quality products & we are proud that they choose us.

We are thankful to our customers for their continued patronage towards brand Toyota. We shall strive to achieve ‘customer delight’ with our QDR approach.

N RAJASr. Vice-President,

Director-Sales and Marketing

MARKETINGAND BRANDPROMOTION

As outlined in the material issues, brand management is an important aspect of the process to ensure sustainability in an organization. We have a robust marketing strategy which is updated on a regular basis. Our journey of becoming a brand that indicates ‘Quality Revolution’ has been a result of the successful brand promotion campaigns. Toyota has been driving the awareness of its product and service, fostering customer loyalty, increasing sales and boosting the overall company value and that has helped the company to retain an edge over its competitors.

DEALER BUSINESS MEET

TKM Strategic Marketing division organized a Dealer Business Meet [DBM] in 2016, with an objective to connect with all our 150 Dealer Principals and CEOs spread across the nation. TKM top management across all the functions participated in the meet. In line with the theme for this year 'Win on Wow', review was conducted on the first half yearly performance, and insights were given on the way forward for the following year's performance.

During the meet, The New Platinum Etios and New Liva were unveiled for the dealer preview. The Dealers selling highest no. of Etios presented their success stories to all

Marketing and Brand Promotion

MARKETING AND BRAND PROMOTION


other Dealers. We also had 13 Dealers sharing best practices through Obheya style presentation. Amongst these, 6 Dealers were awarded for their Kaizen efforts in Sales & Service area along with Best Dealers in celebrating National Road Safety week and World Environment month.

PRODUCT STORIES “THE MOST LOVED AND MOST DEPENDABLE”

The journey of the Etios began at the Delhi Auto Expo in the year 2010. Inspired by Toyota’s QDR (Quality, Durability and Reliability) philosophy and designed to best suit the needs of the Indian consumer, not surprisingly the sedan went on to become one of the most dependable car in the country.

DEALER PREVIEW OF NEW ETIOS LIVA AND PLATINUM ETIOS

TKM TOP MANAGEMENT AT DEALER BUSINESS MEET























































MARKETING AND BRAND PROMOTION MARKETING AND BRAND PROMOTION


2010World First. India First. My First

A NEW WORLD OF HIGHER QUALITY

2011My first achievement Q Class performance that keeps me ahead.


2012Liv tmrrw 2 days

QUALITY HATCH FOR YOUNGSTERS

INNOVA - JOURNEY OF INDIA’S NO 1

The journey of the Innova began in India in 2005 as it aimed to continue the legacy created by Qualis. The Innova took the success story forward when it was received well by the customers and the industry experts alike, creating a new segment in the Indian automobile industry.

The versatility and the utility of the car became its strengths even more when a celebrity brand ambassador was roped in for endorsements. In 2007, Innova celebrated 50,000 happy customers and set new benchmarks in terms of quality and customer delight. For the 5th anniversary of the Innova, the car has been positioned as a luxury vehicle.

In the following years, the brand launched several successful special editions to set new records and higher standards. In 2015, Innova successfully completed 10 years in India, winning the J.D. Power Award for 10 years in a row.

REVOLUTIONARY NEW INNOVA CRYSTA

2016 saw the launch of the most anticipated more luxurious and powerful avatar of the Innova - the Innova Crysta. It was unveiled at the Auto Expo 2016 and as was expected, became an instant hit. The official launch of the New Innova Crysta was in May across 9 cities through a press and customer meet.

EVOLUTION OF THE ETIOS

2014So spacious, you’ll always feel at home.

DISCOVER THE MANY COMFORTS OF THE TOYOTA LIVA

2015The new Liva, Stylish,

Dual-tone, Feature-Loaded.

STYLISH AND MORE

The All New Platinum Etios launched in 2016 is the Most Dependable Sedan.

It stands synonymous w i t h u t m o s t Dependability, Safety, Comfort and Quality, to appeal a big happy family.

THE SEDAN THAT ALWAYS PUTS YOUR FAMILY FIRST.

THE MOST DEPENDABLE SEDAN

LAUNCH OF INNOVA CRYSTA AT AUTO EXPO 2016LAUNCH OF INNOVA CRYSTA AT AUTO EXPO 2016

STYLED TO IMPRESS

The new Liva arrives with an attractive new exterior design plus a host of features, including a bold new front grille, a cool new Optitron display, and whole lot more.

2012Registrations Closed throttles Open

TOYOTA QUALITY MEETS YOUTHFUL ENERGY

2013The new Toyota Etios. The real sedan

THE REAL SEDAN

Etios embarked on its brand journey, positioned as the quality sedan and aptly titled the Q class. The campaign spoke volumes by utilizing a celebrity and personality who best characterized this virtue. By positioning the Etios as their 'first' sedan, the campaign emotionally targeted consumers and succeeded in the messaging.

The TRD Sportivo Limited Edition launched in 2012, appealed to a sporty, stylish younger audience. By this time, the Etios had already sold over an incredible 100,000 units. In 2013, the new Etios was positioned as the Real Sedan delivering an uncompromised, distinctive style and incredible space. The 2014 Etios MMC communication stemmed from Toyota's lineage, as both the Etios and the world's no.1 sedan, the Corolla, were built on the same assembly line.

Along with the hearts of Indian customers, Toyota Etios won the J.D Power VDS award consecutively as India’s Most Dependable Sedan in 2014 and 2015 and also the IQS award in 2015. In 2016, Etios series was also awarded 4 Star safety rating from Global NCAP .

2013Fame ki brand new pehchaan

QUALITY HATCH FOR YOUNGSTERS 2016Fame ki brand new pehchaan


2008 2009 2010 2012 2013 20142005

The new look Toyota Etios

FROM THE MAKERS OF THE WORLD NO1. SEDAN

2015

2016




















STYLISH AND MORE






STYLED TO IMPRESS





THE REAL SEDAN







2008 2009 2010 2012 2013 20142005



2015

2016




















STYLISH AND MORE






STYLED TO IMPRESS





THE REAL SEDAN







2008 2009 2010 2012 2013 20142005



2015

2016




















STYLISH AND MORE






STYLED TO IMPRESS





THE REAL SEDAN







2008 2009 2010 2012 2013 20142005



2015

2016

VIRTUAL REALITY HYBRID SIMULATOR EXPERIENCE FOR CUSTOMERS THE NEW PRIUS DEBUT AT AUTO EXPO 2016

UNVEILING OF TOYOTA CONNECT ARRAY OF STUNNING PERFORMANCES AT AUTO EXPO 2016

THE SUV ZONE THE LAUNCH ZONE THE SEDAN & HATCHBACK ZONE

HYBRID ZONE SAFETY CORNER BEST IN TOWN CORNER



MAKING A MARK AT THE AUTO EXPO 2016

The Auto Expo is India's premier auto event where the biggest names in the automobile industry come together once in two years to showcase their latest and the finest. This year, the gargantuan event was hosted In India Expo Mart, Greater Noida, India from 3rd to 9th February.

To sum is up. the Auto Expo 2016 was a roaring success for Toyota. The launches. events and displys were not just loved by the visitors. the press also showered praises on it in some of the country's leading newspapers and magazines.

TOYOTA CONNECT [T-CONNECT]

The Auto Expo 2016 saw the launch of cloud based telematics services “Toyota Connect – Connected services with Human Touch” for Toyota customers in India to experience global standard in premium and personalized connected services. Toyota car owners will be able to access Toyota Connect with a smart phone application.

T-connect is a fully integrated cloud based telematics service platform linked to Global Toyota Smart Center, supported by dedicated premium call center, integrated with Toyota's dealer network and service providers. With host services like 24x7 a Assisted Navigation with Live traffic information and GPS location based Road side Assistance, online maintenance appointment this service, live check of service progress, e-payment etc., Toyota aims to support customer's driving and lifestyle needs, making the experience of possessing a Toyota vehicle both safe and enjoyable.

Toyota considers role of telematics important for using this combination of technology and personalization provide its customers with a safe, secure and convenient mobility lifestyle.

THE TOYOTA BOOTH

Toyota had one of the largest and busiest booths designed elegantly and differently showcasing the unique 3D wave signature feature-which has been an intrinsic part of the Toyota exhibitions worldwide since the past few years. The stall was strategically divided into 3 zones and 3 comers - each representing different offerings & facets of the brand. Toyota's overall theme demonstrated Toyota Global 2020 vision - leading the mobility evolution through QDR, environment consciously with the highest safety standards and advanced technology which would organically contribute to new India's growth.

The Zones were dedicated to the new upcoming product launches, while the Corners demonstrated Toyota's steps towards the environment and the society at large through their advanced technology, safety measures and eco friendly initiatives. Under the wave, the Best in Town initiatives covering Toyota Driving School (TDS). Toyota Financial Services (TFS). Toyota Genuine Accessories (C&A). EM60 (services) and Toyota's Car service (UTrust) were displayed.

THE HYBRID ZONE

Ever since the first Prius hybrid took to the roads nearly 20 years ago, Toyota has been proud to be called Hybrid leader with 8 million customers globally. At the Auto Show 2016, Toyota displayed an exciting hybrid zone which saw the new Prius - the lead symbol of Toyota's entry in India with the hybrid technology, the Camry -Toyota luxury hybrid, the Miral - Toyota hybrid. The Virtual Reality hybrid simulator also gave the customers an exciting experience into the world of Hybrid technology

THE NEW PRIUS

On 4th February the new Prius made its debut in front of the nation's press at the Auto Expo 2016, Mr. Naomi Ishii, Managing Director, Toyota Kirloskar Motor took to the stage to explain the key features to the audience before the final unveiling by Mr. Naomi Ishii and Mr. Vikram Kirloskar.

The public days saw a lot more of footfalls as the Toyota booth became the center of attraction of the expo, thanks to a stellar display of automobiles and an array of stunning performances by some of the best names in the entertainment industry like the 'Taiko Drummers' and international Symphony'.














THE TOYOTA BOOTH



THE HYBRID ZONE


THE NEW PRIUS
















THE TOYOTA BOOTH



THE HYBRID ZONE


THE NEW PRIUS
















THE TOYOTA BOOTH



THE HYBRID ZONE


THE NEW PRIUS



TMC AND TKM TOP MANAGEMENT WITH HONORABLE PRIME MINISTER OF INDIA FAME INDIA ECO DRIVE



STEERING IT IN THE TOYOTA WAY..!

Toyota believes that environment-friendly vehicles can only truly have a positive impact if they are widely used. Toyota has endeavoured to encourage the mass-market adoption of hybrid vehicles since, 1997, with the establishment of Toyota Hybrid Systems, followed by the launch of Prius – the world's first mass-produced hybrid passenger vehicle in Japan. Since then, Toyota hybrid vehicles have received tremendous support from consumers around the world.

Toyota has positioned hybrid technologies that enable the use of different fuel combinations and environmental technologies for the development of Eco friendly vehicles.

CAMRY HYBRID – LUXURY AHEAD OF IT'S TIME

As Toyota's sincere effort to curb the carbon emission woes in India and across the globe, with the concept of “alternative motoring”, Toyota Kirloskar Motor, India started manufacturing Camry Gasoline - India's first ever locally manufactured Hybrid in 2012. With it's launch in the following year 2013, Toyota marked an important milestone in the history of the Indian Automotive Industry.

India, being globally the 9th Country to manufacture Toyota Hybrid, launched The All New Camry – Camry Hybrid and Camry Gasoline in 2015. Taking luxury to the next level the Camry Hybrid is designed to match the refined and ever evolving customers need for a luxury car. It is a self charging vehicle, full hybrid unlike an electric vehicle with Toyota's Hybrid Synergy Drive (HSD) powertrain, leading – edge 48% fuel efficiency and 25% lesser CO emissions 2

than conventional vehicle of similar engine size petrol variants.

OUR COMMITMENT TOWARDS 'MAKE IN INDIA’

As Toyota's commitment towards ‘Make in India’ campaign, Mr. Takeshi Uchiyamada, Chairman of the Board, Toyota Motor Corporation (TMC) met with Shri Narendra Modi, Honorable Prime Minister of India and discussed the growing Indo-Japanese bilateral ties through continued investments every year since Toyota began operations in the year 1997. The company's plans to popularize hybrid in India in terms of environment and energy saving were also discussed in the meeting.

The Hybrid Journey

TOYOTA AT INDIA AFRICA SUMMIT

In line with 'Make in India' campaign, Toyota extended it's support to the 3rd India African Summit (IAFS) held in October,2015 by providing 55 Camry Hybrid 'Green cars' for the transportation of the African Nation Delegation. This summit promoted India's vision towards pollution control and our environment-friendly technology, thereby, encouraging faster mass adoption of Hybrid and Electric vehicles in India.

STRENGTHENING THE HYBRID FOOT-HOLD

Being a pioneer in hybrid technology, Toyota has sold more than 8 million hybrid vehicles all over the globe. Our Camry Hybrid is accepted by our Indian customers and the testimony being, out of all the combined sales of Camry range, more than 90% sales are attributed to the Camry Hybrid only, thereby, motivating our automotive industry to innovate and bring out the best environmental friendly technologies in the Hybrid vehicles.

Toyota therefore plans to continue working to develop more fuel efficient vehicles along with ground breaking Hybrid technologies, economic feasibility and expansion of its product line up, including that of non-hybrid environment - friendly vehicles that are popular with customers across the diverse regions of the world.

TOYOTA AT FAME INDIA ECO DRIVE

Toyota Camrys' exclusive design and eco-friendly features made it the first hybrid to qualify for the incentive provided by GoI under Faster Adoption and Manufacturing of Electric cars (FAME) to receive a markdown of Rs. 70,000 in its price. Organized by the Ministry of Heavy Industries (MoHI) in New Delhi on 26th November 2015, the Eco Drive rally was initiated to promote public awareness on energy conservation and environmental benefits to encourage the use of full hybrid vehicles in India.

The rally served as a prelude to the United Nations Climate Change Conference, held at Paris in December,2015. More than 50 hybrid and electric vehicles from different automobile manufacturers participated in FAME India Eco Drive

Kan AsaineDirector- Accounting, Legal & IS

ECONOMICPERFORMANCEThe Indian automobile industry has become one of the biggest drivers of growth considering the contribution it is making to the country's GDP. Toyota would like to contribute towards a holistic development of the automobile industry by focusing on contribution towards skill development, introduction of futuristic technologies & creation of cleaner & safer environment for the community across the value chain. We continuously strive hard to ensure competitive returns for our stakeholders and ensure positive financial position in the market.

Our strategic investments are focused on social and environmental initiatives, which are in-line with the National level campaigns on education, skill development, environmental awareness, health and sanitation as part of the government policies pertaining to the CSR. We welcome the initiatives being taken up the government of India to create a positive business environment through various initiatives like GST & Make in India. We look forward to working with our stakeholders to enhance our sustainability performance and to 'nurture inclusive growth'.




CSR Project or activity identified

Sector in which the projects is

covered Promotion of

Education

Books and bags distribution in Bidadi Hobli

Upgradation of the existing facility

Capacity building of Government school teachers

New Toyota Safety Education Programme module development

Awareness to airport taxi drivers on Road Safety and celebration of Road Safety Week

Green Me Campaign & Environment Month celebration

Social need assement study

School Sanitation

Household Sanitation

Public sanitation

ABCD - A Behavioural Change Demonstartion

Safe drinking water purification units

Provide mobile health care Bidadi - Feasibility study

Civic amenities

Promotion of Education

Special education

Ensuring environment sustainability

Eradicating extreme hunger and poverty

Rural development projects

Projects or Progress

[1] Local area or other

Specify the state and district where

the projects or programs was

undertaken

Bidadi Hobli

Bangalore

Bangalore &

Delhi

Bidadi Hobli

Uttar Kannada

Ramanagara, Karnataka






Ramanagara,

Karnataka

Bangalore,

Karnataka

Karnataka



Karnataka & New Delhi






Amount outlay

[budget] projects or programs

wise

1.30

3.00

1.00

5.00

4.00

2.00

1.80

10.00

1.00

5.00

11.40

3.00

6.00

5.00

59.50

Amount spent on the projects or programs

Direct expenditure on

projects or programs

1.03

3.17

1.03

6.74

6.93

1.35

1.62

14.69

1.34

0.00

6.57

2.06

0.68

1.67

48.88

Cumulative expenditure

up to the reporting

period

1.03

3.17

1.03

6.74

6.93

1.35

1.62

1.34

0.00

6.57

2.06

0.68

1.67

14.69

Amount spent: direct or through

implementing egency

Direct

Direct

Regional In stitute English, South India, Jnanabharathi campus, Bangalore - 56

Social Empowerment and Economic Development Society, D-114, Phase - 1, Okhal, Industrial area, New Delhi - 110020

Nation Road Safety Organization, Shankara eye hospital Institute of Road Traffic Education, Aravali hills, Surajkund road, Sector - 43, Faridabad, Haryana - 121001

Centre of Environment Education, Southern region cell, Kamala mansion, 143, infantry road, Bangalore - 01

Society for Educational Welfare & Economic Development, Flat no -512, South city heights, South city, Gurgaon

Direct

Support for Network and Extension Help Agency, N038/A-1, 2nd Stage, Industrial Suburb, Vishweswara Nagar, Near Maharshi Public School, Mysore - 570008. Karnataka, India.

Procyon, No 26, 2nd Cross, Next to Coffee Board Layout, HQAF Post, Bangalore - 24


Grassroots Research and Advocacy Movement, CA-2 KIADB Industrial Housing Area, Hebbal Ring Road Mysore, Karnataka, India 570016.


SLNo

1

2

3

4

5

6

7

8

9

10

11

12

13

SIGNIFICANT INDIRECT ECONOMIC IMPACTS

We have successfully created employment opportunities for a large number of youth in the state of Karnataka.

However, the breakup of investments in each of the activities undertaken are presented in the table.

Contributions through CSR activities (INR. Million)

48.88

Economic Performance is the structured presentation of a company’s assets, liabilities and overall market strength. Taking regular stock of the general economic performance of a company is necessary to make sure that the business remains on the right track financially.

TKM is committed to safeguarding the environment for today as well as future generations and working continuously towards this objective. This is our sustainability vision. TKM takes pride in creating sustainable value for shareholders. We strive to enhance our market share by delivering quality and reliable products to our consumers and create value to our stakeholders, thereby beneficially and inclusively co-existing with them.

EconomicPerformance

2015-16 2013 - 14

Contribution to Provident Fund and other funds

Staff welfare Expenses

52.02

96.04

51.88

83.47

32.77

83.63

PARTICULARS (INR.CRORE) 2014 - 15

2015 -16 2013 - 14

Revenue (Through Core business segments)

Other Income (Through other sources)

Other Expenses

Personnel Expenses (Wages+ Benefits)

Interest Charges

Community Development/ CSR Investment

14999.9

205.95

13665.22

684.32

44.89

6.47

13215.77

171.75

12772.33

743.28

58.05

0.00


13808.68

221.80

12395.65

806.55

1.44

4.89

FINANCIAL IMPLICATIONS DUE TO CLIMATE CHANGE

Climate Change is no longer a far-fetched concept. At TKM, we recognize the fact that our business could have an impact on the environment. We acknowledge that this impact could be immense, and strive to be mindful of the resources we consume. We intend to minimize the risks on biodiversity, water consumption and waste generation, owing to the growing effects of climate change. Our motto is to reduce energy consumption and minimize dependency on fuels and limit CO emissions, thereby 2

doing our bit to reduce the effect of climate change. As a responsible manufacturing company, we undertake kaizens at every level of our supply chain, to ensure vehicle efficiency and conserve energy and water.

EMPLOYEE BENEFIT PLANS

a. Gratuity Fund

b. Superannuation Fund

c. Leave Encashment

d. Statutory Benefits like provident fund

e. VPF

f. EDLI Scheme (Over & above the Act)

g. PF SMS Facility of all Grade Employees

h. NPS

i. Personal Loan tip-up with back's (w/ low interest rate compared to market rate)



87

j. Company Loans

k. Maternity Benefit Policy (Over & above the Act)

l. Toyota My Car Scheme

m. Metro shopping tie-up

n. Mediclaim Insurance Policy & GPAI

o. Happiness (Only TM's) & Sadness Allowance (TM's & family)

p. QCC Gift & Allowance

q. Suggestion Allowance

r. Long Service Award






Education








School Sanitation


Public sanitation




Civic amenities


Special education








undertaken

Bidadi Hobli

Bangalore

Bangalore &

Delhi

Bidadi Hobli

Uttar Kannada







Ramanagara,

Karnataka

Bangalore,

Karnataka

Karnataka









Amount outlay


wise

1.30

3.00

1.00

5.00

4.00

2.00

1.80

10.00

1.00

5.00

11.40

3.00

6.00

5.00

59.50




1.03

3.17

1.03

6.74

6.93

1.35

1.62

14.69

1.34

0.00

6.57

2.06

0.68

1.67

48.88


up to the reporting

period

1.03

3.17

1.03

6.74

6.93

1.35

1.62

1.34

0.00

6.57

2.06

0.68

1.67

14.69


implementing egency

Direct

Direct






Direct






SLNo

1

2

3

4

5

6

7

8

9

10

11

12

13





48.88



EconomicPerformance

2015-16 2013 - 14



52.02

96.04

51.88

83.47

32.77

83.63


2015 -16 2013 - 14



Other Expenses


Interest Charges


14999.9

205.95

13665.22

684.32

44.89

6.47

13215.77

171.75

12772.33

743.28

58.05

0.00


13808.68

221.80

12395.65

806.55

1.44

4.89





a. Gratuity Fund


c. Leave Encashment


e. VPF



h. NPS




87

j. Company Loans














Education








School Sanitation


Public sanitation




Civic amenities


Special education








undertaken

Bidadi Hobli

Bangalore

Bangalore &

Delhi

Bidadi Hobli

Uttar Kannada







Ramanagara,

Karnataka

Bangalore,

Karnataka

Karnataka









Amount outlay


wise

1.30

3.00

1.00

5.00

4.00

2.00

1.80

10.00

1.00

5.00

11.40

3.00

6.00

5.00

59.50




1.03

3.17

1.03

6.74

6.93

1.35

1.62

14.69

1.34

0.00

6.57

2.06

0.68

1.67

48.88


up to the reporting

period

1.03

3.17

1.03

6.74

6.93

1.35

1.62

1.34

0.00

6.57

2.06

0.68

1.67

14.69


implementing egency

Direct

Direct






Direct






SLNo

1

2

3

4

5

6

7

8

9

10

11

12

13





48.88



EconomicPerformance

2015-16 2013 - 14



52.02

96.04

51.88

83.47

32.77

83.63


2015 -16 2013 - 14



Other Expenses


Interest Charges


14999.9

205.95

13665.22

684.32

44.89

6.47

13215.77

171.75

12772.33

743.28

58.05

0.00


13808.68

221.80

12395.65

806.55

1.44

4.89





a. Gratuity Fund


c. Leave Encashment


e. VPF



h. NPS




87

j. Company Loans














Education








School Sanitation


Public sanitation




Civic amenities


Special education








undertaken

Bidadi Hobli

Bangalore

Bangalore &

Delhi

Bidadi Hobli

Uttar Kannada







Ramanagara,

Karnataka

Bangalore,

Karnataka

Karnataka









Amount outlay


wise

1.30

3.00

1.00

5.00

4.00

2.00

1.80

10.00

1.00

5.00

11.40

3.00

6.00

5.00

59.50




1.03

3.17

1.03

6.74

6.93

1.35

1.62

14.69

1.34

0.00

6.57

2.06

0.68

1.67

48.88


up to the reporting

period

1.03

3.17

1.03

6.74

6.93

1.35

1.62

1.34

0.00

6.57

2.06

0.68

1.67

14.69


implementing egency

Direct

Direct






Direct






SLNo

1

2

3

4

5

6

7

8

9

10

11

12

13





48.88



EconomicPerformance

2015-16 2013 - 14



52.02

96.04

51.88

83.47

32.77

83.63


2015 -16 2013 - 14



Other Expenses


Interest Charges


14999.9

205.95

13665.22

684.32

44.89

6.47

13215.77

171.75

12772.33

743.28

58.05

0.00


13808.68

221.80

12395.65

806.55

1.44

4.89





a. Gratuity Fund


c. Leave Encashment


e. VPF



h. NPS




87

j. Company Loans









TERM DEFINITION

Anzen Leader Safety Leader

ASM Annual Supplier Meet

BCM Business Communication Meeting

EMR Environment Management Representative

ESCO Energy Saving Company

Gemba Japanese term for identification of problems and finding a solution to it at site

Genchi Genbutsu Japanese term for going to the source to make correct decisions

GPG Green Purchasing Guidelines

Jidoka Built in Quality

Jiritsuka Japanese term for Self Reliance

JIT Just in Time

Kaizen Japanese term for Continuous Improvement

Kiken Yochi Danger Prediction

KIADB Karnataka Industrial Area Development Board

KPI Key Performance Indicator

KSPCB Karnataka State Pollution Control Board

Monozukuri Japanese term for Manufacturing

Muda Un-necessary movement

MBR Membrane Bio-Reactor

OECD Organization for Economic Co-operation and Development

OSS On Site Suppliers

PDCA Plan Do Check Act

RO Reverse Osmosis

RLNG Regasfied Liquefied Natural Gas

SINE QUA NON An indispensable condition, element or factor

SOC Substance’s Of Concern

SSC Supplier Support Centre

TKSA Toyota Kirloskar Supplier Association

TMAP Toyota Motor Asia Pacific

TMAP-EM Toyota Motor Asia Pacific - Environment Management

TMC Toyota Motor Corporation

UNEP United Nations Environment Programme

VOC Volatile Organic Compound

Yokoten Best practices sharing


GLOSSARY


DISCLOSURE REPORTED

STRATEGY AND ANALYSIS

GRI G4 CONTENT INDEXGENERAL

STANDARDDISCLOSURES

ORGANIZATIONAL PROFILE

A statement from the most senior decision-maker of the organization about the relevance of sustainability to the organization and the organization’s strategy for addressing sustainability

Description of key impacts, risks and opportunities.

Name of the organization.

Primary brands, products, and/or services

Location of the organization’s headquarters

Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report

Nature of ownership and legal form

Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries)

Scale of the reporting organization

Total number of employees by employment contract and gender

G4-1

G4-2

G4-3

G4-4

G4-5

G4-6

G4-7

G4-8

G4-9

G4-10

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Message from the Managing Director, Message from Vice Chairman

Stakeholder Engagement & Materiality

Company Profile

Company Profile

Company Profile

Company Profile

Company Profile

Company Profile

Company Profile

Our Stakeholders - Partners in

Growth: Employees

CHAPTER NAME

Percentage of total employees covered by collective bargaining agreementsG4-11 Fully Our Stakeholders - Partners in

Growth: Employees

Organization’s supply chainG4-12 Fully Our Stakeholders - Partners in

Growth: Suppliers

Significant changes during the reporting period regarding size, structure, ownership or its supply chain

Whether and how the precautionary approach or principle is addressed by the organization

Externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses

Memberships of associations (such as industry associations) and national or international advocacy organizations

IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES

All entities included in the organization’s consolidated financial statements or equivalent documents

Process for defining the report content and the Aspect Boundaries

G4-13

G4-14

G4-15

G4-16

G4-17

G4-18

Fully

Fully

Fully

Fully

Fully

Partially

Company Profile

Company Profile

Company Profile

Company Profile

Stakeholder Engagement &

Materiality

All Material Aspects identified in the process for defining report contentG4-19 Fully Stakeholder Engagement & Materiality

For each material Aspect, the Aspect Boundary within the organizationG4-20 Fully Stakeholder Engagement & Materiality

For each material Aspect, the Aspect Boundary outside the organizationG4-21 Fully Stakeholder Engagement & Materiality

No significant changes in the reporting period

TERM DEFINITION











JIT Just in Time












RO Reverse Osmosis













GLOSSARY


DISCLOSURE REPORTED



STANDARDDISCLOSURES












G4-1

G4-2

G4-3

G4-4

G4-5

G4-6

G4-7

G4-8

G4-9

G4-10

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully



Company Profile

Company Profile

Company Profile

Company Profile

Company Profile

Company Profile

Company Profile


Growth: Employees

CHAPTER NAME


Growth: Employees


Growth: Suppliers








G4-13

G4-14

G4-15

G4-16

G4-17

G4-18

Fully

Fully

Fully

Fully

Fully

Partially

Company Profile

Company Profile

Company Profile

Company Profile


Materiality





TERM DEFINITION











JIT Just in Time












RO Reverse Osmosis













GLOSSARY


DISCLOSURE REPORTED



STANDARDDISCLOSURES












G4-1

G4-2

G4-3

G4-4

G4-5

G4-6

G4-7

G4-8

G4-9

G4-10

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully



Company Profile

Company Profile

Company Profile

Company Profile

Company Profile

Company Profile

Company Profile


Growth: Employees

CHAPTER NAME


Growth: Employees


Growth: Suppliers








G4-13

G4-14

G4-15

G4-16

G4-17

G4-18

Fully

Fully

Fully

Fully

Fully

Partially

Company Profile

Company Profile

Company Profile

Company Profile


Materiality





TERM DEFINITION











JIT Just in Time












RO Reverse Osmosis













GLOSSARY


DISCLOSURE REPORTED



STANDARDDISCLOSURES












G4-1

G4-2

G4-3

G4-4

G4-5

G4-6

G4-7

G4-8

G4-9

G4-10

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully



Company Profile

Company Profile

Company Profile

Company Profile

Company Profile

Company Profile

Company Profile


Growth: Employees

CHAPTER NAME


Growth: Employees


Growth: Suppliers








G4-13

G4-14

G4-15

G4-16

G4-17

G4-18

Fully

Fully

Fully

Fully

Fully

Partially

Company Profile

Company Profile

Company Profile

Company Profile


Materiality





91

DISCLOSURE REPORTED

REPORT PROFILE

Reporting period (such as fiscal or calendar year) for information provided

Date of most recent previous report (if any)

Reporting cycle (such as annual, biennial)

Contact point for questions regarding the report or its contents

G4-28

G4-29

G4-30

G4-31

Fully

Fully

Fully

CHAPTER NAMEGENERAL

STANDARDDISCLOSURES

About the report

About the report

About the report

About the report, Message from the Editor's desk

Effect of any restatements of information provided in previous reports, and the reasons for such restatement

G4-22 Fully No such restatements are provided

Significant changes from previous reporting periods in the Scope and Aspect Boundaries.

List of stakeholder groups engaged by the organization

G4-23

G4-24

Fully

Fully

No significant changes from previous reporting period


Basis for identification and selection of Stakeholders with whom to engageG4-25 Fully Stakeholder Engagement & Materiality


Organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group

Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns

G4-26

G4-27

Fully

Fully



The ‘in accordance’ option the organization has chosen

Organization’s policy and current practice with regard to seeking external assurance for the report

GOVERNANCE

Governance structure of the organization, including committees of the highest governance body

Process for delegating authority for economic, environmental and social topics from the highest governance body to senior executives and other employees.

Whether the organization has appointed an executive-level position or positions with responsibility for economic, environmental and social topics, and whether post holders report directly to the highest governance body

Processes for consultation between Stakeholders and the highest governance body on economic, environmental and social topics

Composition of the highest governance body and its committees

Whether the Chair of the highest governance body is also an executive officer.

Nomination and selection processes for the highest governance body and its committees, and the criteria used for nominating and selecting highest governance body members

Processes for the highest governance body to ensure conflicts of interest are avoided and managed

Highest governance body’s and senior executives’ roles in the development, approval, and updating of the organization’s purpose, value or mission statements, strategies, policies, and goals related to economic, environmental and social impacts

Measures taken to develop and enhance the highest governance body’s collective knowledge of economic, environmental and social topics

Processes for evaluation of the highest governance body’s performance with respect to governance of economic, environmental and social topics

G4-32

G4-33

G4-34

G4-35

G4-36

G4-37

G4-38

G4-39

G4-40

G4-41

G4-42

G4-43

G4-44

Fully

Fully

Partially

Fully

Fully

Fully

Fully

Fully

Fully

Partially

Partially

Fully

Fully

Fully

About the report

Our Environment

Corporate Governanace












ETHICS AND INTEGRITY

Remuneration policies for the highest governance body and senior executives

Process for determining remuneration

How Stakeholders’ views are sought and taken into account regarding remuneration, including the results of votes on remuneration policies and proposals

Ratio of the annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median annual total compensation for all employees in the same country

Ratio of percentage increase in annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median percentage increase in annual total compensation for all employees in the same country

Organization’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics

Internal and external mechanisms for seeking advice on ethical and lawful behavior, and matters related to organizational integrity, such as help lines or advice lines

Internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity, such as escalation through line management, whistle blowing mechanisms or hotlines

G4-51

G4-53

G4-54

G4-55

G4-56

G4-57

G4-58

Partially

Fully

Not Reported

Not Reported

Fully

Fully

Fully

GENERAL STANDARD

DISCLOSURESDISCLOSURE REPORTED CHAPTER NAME

Corporate Governance





Highest governance body’s role in the identification and management of economic, environmental and social impacts, risks, and opportunities

Highest governance body’s role in reviewing the effectiveness of the organization’s risk management processes for economic, environmental and social topics

Frequency of the highest governance body’s review of economic, environmental and social impacts, risks, and opportunities

Highest committee or position that formally reviews and approves the organization’s sustainability report and ensures that all material Aspects are covered

Process for communicating critical concerns to the highest governance body

Nature and total number of critical concerns that were communicated to the highest governance body and the mechanism(s) used to address and resolve them

G4-45

G4-46

G4-47

G4-48

G4-49

G4-50

Fully

Fully

Not Reported

Fully

Fully

Partially







89

DISCLOSURE ON MANAGEMENT APPROACH

SPECIFIC STANDARD DISCLOSURES

DISCLOSURE ON MANAGEMENT APPROACH- EC

Economic performance

Market presence

Indirect economic impacts

Procurement practices

Aspects

SPECIFIC STANDARD


Fully

Fully

Fully

Partially



Our Stakeholders - Partners in Growth Community

Our Stakeholders - Partners in Growth: Suppliers

G4-52 Fully

91

DISCLOSURE REPORTED

REPORT PROFILE





G4-28

G4-29

G4-30

G4-31

Fully

Fully

Fully

CHAPTER NAMEGENERAL

STANDARDDISCLOSURES

About the report

About the report

About the report






G4-23

G4-24

Fully

Fully







G4-26

G4-27

Fully

Fully





GOVERNANCE












G4-32

G4-33

G4-34

G4-35

G4-36

G4-37

G4-38

G4-39

G4-40

G4-41

G4-42

G4-43

G4-44

Fully

Fully

Partially

Fully

Fully

Fully

Fully

Fully

Fully

Partially

Partially

Fully

Fully

Fully

About the report

Our Environment






















G4-51

G4-53

G4-54

G4-55

G4-56

G4-57

G4-58

Partially

Fully

Not Reported

Not Reported

Fully

Fully

Fully

GENERAL STANDARD













G4-45

G4-46

G4-47

G4-48

G4-49

G4-50

Fully

Fully

Not Reported

Fully

Fully

Partially







89





Market presence



Aspects

SPECIFIC STANDARD


Fully

Fully

Fully

Partially





G4-52 Fully

91

DISCLOSURE REPORTED

REPORT PROFILE





G4-28

G4-29

G4-30

G4-31

Fully

Fully

Fully

CHAPTER NAMEGENERAL

STANDARDDISCLOSURES

About the report

About the report

About the report






G4-23

G4-24

Fully

Fully







G4-26

G4-27

Fully

Fully





GOVERNANCE












G4-32

G4-33

G4-34

G4-35

G4-36

G4-37

G4-38

G4-39

G4-40

G4-41

G4-42

G4-43

G4-44

Fully

Fully

Partially

Fully

Fully

Fully

Fully

Fully

Fully

Partially

Partially

Fully

Fully

Fully

About the report

Our Environment






















G4-51

G4-53

G4-54

G4-55

G4-56

G4-57

G4-58

Partially

Fully

Not Reported

Not Reported

Fully

Fully

Fully

GENERAL STANDARD













G4-45

G4-46

G4-47

G4-48

G4-49

G4-50

Fully

Fully

Not Reported

Fully

Fully

Partially







89





Market presence



Aspects

SPECIFIC STANDARD


Fully

Fully

Fully

Partially





G4-52 Fully

91

DISCLOSURE REPORTED

REPORT PROFILE





G4-28

G4-29

G4-30

G4-31

Fully

Fully

Fully

CHAPTER NAMEGENERAL

STANDARDDISCLOSURES

About the report

About the report

About the report






G4-23

G4-24

Fully

Fully







G4-26

G4-27

Fully

Fully





GOVERNANCE












G4-32

G4-33

G4-34

G4-35

G4-36

G4-37

G4-38

G4-39

G4-40

G4-41

G4-42

G4-43

G4-44

Fully

Fully

Partially

Fully

Fully

Fully

Fully

Fully

Fully

Partially

Partially

Fully

Fully

Fully

About the report

Our Environment






















G4-51

G4-53

G4-54

G4-55

G4-56

G4-57

G4-58

Partially

Fully

Not Reported

Not Reported

Fully

Fully

Fully

GENERAL STANDARD













G4-45

G4-46

G4-47

G4-48

G4-49

G4-50

Fully

Fully

Not Reported

Fully

Fully

Partially







89





Market presence



Aspects

SPECIFIC STANDARD


Fully

Fully

Fully

Partially





G4-52 Fully

DISCLOSURE ON MANAGEMENT APPROACH -LA

DISCLOSURE ON MANAGEMENT APPROACH-HR

Aspects

Aspects

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Partially

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Partially

Fully

Fully

SPECIFIC STANDARD


Employment

Labor/management relations

Occupational health and safety

Training and education

Diversity and equal opportunity

Equal remuneration for women and men

Supplier assessment for labor practices

Labor practices grievance mechanisms

Investment and procurement practices

Non-discrimination

Freedom of association and collective bargaining

Child labor

Prevention of forced and compulsory labor

Security practices

Indigenous rights

Assessment

Supplier human rights assessment

Human rights grievance mechanisms

Transport

Overall

Supplier environmental assessment

Environmental grievance mechanisms

Our Stakeholders - Partners in Growth: Employees


















Our Environment

Our Environment

Our Environment

Our Environment

DISCLOSURE ON MANAGEMENT APPROACH- EN

Materials

Energy

Water

Biodiversity

Emissions, effluents and waste

Products and services

Compliance

90

Fully

Fully

Fully

Partially

Fully

Fully

Fully

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

DISCLOSURE ON MANAGEMENT APPROACH - PR

Aspects

Fully

Fully

Fully

Fully

Fully

Customer health and safety

Product and service labeling

Marketing communications

Customer privacy

Compliance

Our Stakeholders - Partners in Growth: Customers






PERFORMANCE INDICATORS



CATEGORY: ECONOMIC

Market Presence

Market Presence

Procurement Practices

Materials

CATEGORY: ENVIRONMENTAL

G4-EC1

G4-EC2

G4-EC3

G4-EC4

G4-EC5

G4-EC6

G4-EC7

G4-EC9

G4-EN1

G4-EN2



Our Stakeholders - Employees


Our Stakeholders -Partners in Growth: Community

Local referring to India operations

Our Environment

Our Environment

Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments

Financial implications and other risks and opportunities for the organization's activities due to climate change

Coverage of the organization's defined benefit plan obligations

Financial assistance received from government

Ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation

Proportion of senior management hired from the local community at significant locations of operation

Development and impact of infrastructure investments and services supported

Proportion of spending on local suppliers at significant locations of operation.

Materials used by weight or volume.

Percentage of materials used that are recycled input materials.

Fully

Fully

Fully

Fully

Not Reported

Partially

Fully

Partially

Fully

Fully

DISCLOSURE ON MANAGEMENT APPROACH -SO

Aspects

Fully

Fully

Fully

Fully

Fully

Not Reported

Fully

Local communities

Anti-Corruption

Public policy

Anti-competitive behavior

Compliance

Supplier assessment for impacts on society

Grievance mechanisms for impacts on society

Our Stakeholders - Partners in Growth: Community






G4-EC8 Our Stakeholders -Partners in Growth: Community

Significant indirect economic impacts, including the extent of impacts Partially

Energy

G4-EN3

G4-EN4

G4-EN5

Our Environment

Our Environment

Our Environment

Energy consumption within the organization

Energy consumption outside of the organization

Energy intensity.

Partially

Fully

Partially

Aspects




Aspects

Aspects

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Partially

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Partially

Fully

Fully

SPECIFIC STANDARD


Employment









Non-discrimination


Child labor


Security practices

Indigenous rights

Assessment



Transport

Overall





















Our Environment

Our Environment

Our Environment

Our Environment


Materials

Energy

Water

Biodiversity



Compliance

90

Fully

Fully

Fully

Partially

Fully

Fully

Fully

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment


Aspects

Fully

Fully

Fully

Fully

Fully




Customer privacy

Compliance










CATEGORY: ECONOMIC

Market Presence

Market Presence


Materials


G4-EC1

G4-EC2

G4-EC3

G4-EC4

G4-EC5

G4-EC6

G4-EC7

G4-EC9

G4-EN1

G4-EN2







Our Environment

Our Environment











Fully

Fully

Fully

Fully

Not Reported

Partially

Fully

Partially

Fully

Fully


Aspects

Fully

Fully

Fully

Fully

Fully

Not Reported

Fully

Local communities

Anti-Corruption

Public policy


Compliance











Energy

G4-EN3

G4-EN4

G4-EN5

Our Environment

Our Environment

Our Environment



Energy intensity.

Partially

Fully

Partially

Aspects




Aspects

Aspects

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Partially

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Partially

Fully

Fully

SPECIFIC STANDARD


Employment









Non-discrimination


Child labor


Security practices

Indigenous rights

Assessment



Transport

Overall





















Our Environment

Our Environment

Our Environment

Our Environment


Materials

Energy

Water

Biodiversity



Compliance

90

Fully

Fully

Fully

Partially

Fully

Fully

Fully

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment


Aspects

Fully

Fully

Fully

Fully

Fully




Customer privacy

Compliance










CATEGORY: ECONOMIC

Market Presence

Market Presence


Materials


G4-EC1

G4-EC2

G4-EC3

G4-EC4

G4-EC5

G4-EC6

G4-EC7

G4-EC9

G4-EN1

G4-EN2







Our Environment

Our Environment











Fully

Fully

Fully

Fully

Not Reported

Partially

Fully

Partially

Fully

Fully


Aspects

Fully

Fully

Fully

Fully

Fully

Not Reported

Fully

Local communities

Anti-Corruption

Public policy


Compliance











Energy

G4-EN3

G4-EN4

G4-EN5

Our Environment

Our Environment

Our Environment



Energy intensity.

Partially

Fully

Partially

Aspects




Aspects

Aspects

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Partially

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Partially

Fully

Fully

SPECIFIC STANDARD


Employment









Non-discrimination


Child labor


Security practices

Indigenous rights

Assessment



Transport

Overall





















Our Environment

Our Environment

Our Environment

Our Environment


Materials

Energy

Water

Biodiversity



Compliance

90

Fully

Fully

Fully

Partially

Fully

Fully

Fully

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment


Aspects

Fully

Fully

Fully

Fully

Fully




Customer privacy

Compliance










CATEGORY: ECONOMIC

Market Presence

Market Presence


Materials


G4-EC1

G4-EC2

G4-EC3

G4-EC4

G4-EC5

G4-EC6

G4-EC7

G4-EC9

G4-EN1

G4-EN2







Our Environment

Our Environment











Fully

Fully

Fully

Fully

Not Reported

Partially

Fully

Partially

Fully

Fully


Aspects

Fully

Fully

Fully

Fully

Fully

Not Reported

Fully

Local communities

Anti-Corruption

Public policy


Compliance











Energy

G4-EN3

G4-EN4

G4-EN5

Our Environment

Our Environment

Our Environment



Energy intensity.

Partially

Fully

Partially

Aspects


Emissions

Effluents and Waste

Products and Services

Compliance

Transport

G4-EN13

G4-EN14

G4-EN15

G4-EN16

G4-EN17

G4-EN18

G4-EN19

G4-EN20

G4-EN21

G4-EN22

G4-EN23

G4-EN24

G4-EN25

G4-EN26

G4-EN27

G4-EN28

G4-EN29

G4-EN30

Fully

Fully

Fully

Fully

Not Reported

Not Reported

Fully

Fully

Fully

Fully

Partially

Partially

Partially

Partially

Fully

Partially

Fully

Fully

Direct greenhouse gas (GHG) emissions (scope 1)

Energy indirect greenhouse gas (GHG) emissions (scope 2

Other indirect greenhouse gas (GHG) emissions (scope 3)

Greenhouse gas (GHG) emissions intensity

Reduction of greenhouse gas (GHG) emissions

Emissions of ozone-depleting substances (ODS)

NOx, SOx, and other significant air emissions

Total water discharge by quality and destination

Total weight of waste by type and disposal method

Total number and volume of significant spills

Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel convention 2 annex I, II, III, and VIII, and percentage of transported waste shipped internationally

Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the organization’s discharges of water and runoff

Extent of impact mitigation of environmental impacts of products and services.

Percentage of products sold and their packaging materials that are reclaimed by category

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations

Significant environmental impacts of transporting products and other goods and materials for the organization's operations, and transporting members of the workforce

Habitats protected or restored

Total number of IUCN red list species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

No significant spills reported

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

92Water

G4-EN6

G4-EN7

G4-EN8

G4-EN9

G4-EN10

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Reduction of energy consumption.

Reductions in energy requirements of products and services

Total water withdrawal by source

Water sources significantly affected by withdrawal of water

Percentage and total volume of water recycled and reused

Fully

Fully

Fully

Partially

Fully

Biodiversity

G4-EN11

G4-EN12

Our Environment

NA

Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.

Fully

NA


Employment

Labor/Management Relations

Occupational Health and Safety

G4-LA1

G4-LA2

G4-LA3

G4-LA4

G4-LA5

G4-LA6

G4-LA7

G4-LA8

Total number and rates of new employee hires and employee turnover by age group, gender and region

Benefits provided to full-time employees that are not provided to temporary or part time employees, by significant locations of operation

Return to work and retention rates after parental leave, by gender

Minimum notice periods regarding operational changes, including whether these are specified in collective agreements

Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs

Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender

Health and safety topics covered in formal agreements with trade unions

Fully

Fully

Not Reported

Fully

Fully

Fully

Fully

Fully

Our Stakeholders -Partners in Growth: Employees







Overall

Supplier Environmental Assessment

SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK

CATEGORY: SOCIAL

Environmental Grievance Mechanisms

G4-EN31

G4-EN32

G4-EN33

G4-EN34

Fully

Fully

Fully

Not Reported

Total environmental protection expenditures and investments by type

Percentage of new suppliers that were screened using environmental criteria

Significant actual and potential negative environmental impacts in the supply chain and actions taken

Number of grievances about environmental impacts filed, addressed, and resolved through formal grievance mechanisms

Our Environment

Our Environment

Our Environment

Training and Education

Diversity and Equal Opportunity

Equal Remuneration for Women and Men

G4-LA9

G4-LA10

G4-LA11

G4-LA12

G4-LA13

Average hours of training per year per employee by gender, and by employee category

Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings

Percentage of employees receiving regular performance and career development reviews, by gender and by employee category

Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity

Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation

Fully

Fully

Partially

Partially

Fully

Our Stakeholders -Partners in Growth: Employees -TTTI





Workers with high incidence or high risk of diseases related to their occupation

Emissions

Effluents and Waste


Compliance

Transport

G4-EN13

G4-EN14

G4-EN15

G4-EN16

G4-EN17

G4-EN18

G4-EN19

G4-EN20

G4-EN21

G4-EN22

G4-EN23

G4-EN24

G4-EN25

G4-EN26

G4-EN27

G4-EN28

G4-EN29

G4-EN30

Fully

Fully

Fully

Fully

Not Reported

Not Reported

Fully

Fully

Fully

Fully

Partially

Partially

Partially

Partially

Fully

Partially

Fully

Fully



















Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment


Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

92Water

G4-EN6

G4-EN7

G4-EN8

G4-EN9

G4-EN10

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment






Fully

Fully

Fully

Partially

Fully

Biodiversity

G4-EN11

G4-EN12

Our Environment

NA



Fully

NA


Employment



G4-LA1

G4-LA2

G4-LA3

G4-LA4

G4-LA5

G4-LA6

G4-LA7

G4-LA8








Fully

Fully

Not Reported

Fully

Fully

Fully

Fully

Fully








Overall



CATEGORY: SOCIAL


G4-EN31

G4-EN32

G4-EN33

G4-EN34

Fully

Fully

Fully

Not Reported





Our Environment

Our Environment

Our Environment




G4-LA9

G4-LA10

G4-LA11

G4-LA12

G4-LA13






Fully

Fully

Partially

Partially

Fully







Emissions

Effluents and Waste


Compliance

Transport

G4-EN13

G4-EN14

G4-EN15

G4-EN16

G4-EN17

G4-EN18

G4-EN19

G4-EN20

G4-EN21

G4-EN22

G4-EN23

G4-EN24

G4-EN25

G4-EN26

G4-EN27

G4-EN28

G4-EN29

G4-EN30

Fully

Fully

Fully

Fully

Not Reported

Not Reported

Fully

Fully

Fully

Fully

Partially

Partially

Partially

Partially

Fully

Partially

Fully

Fully



















Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment


Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

92Water

G4-EN6

G4-EN7

G4-EN8

G4-EN9

G4-EN10

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment






Fully

Fully

Fully

Partially

Fully

Biodiversity

G4-EN11

G4-EN12

Our Environment

NA



Fully

NA


Employment



G4-LA1

G4-LA2

G4-LA3

G4-LA4

G4-LA5

G4-LA6

G4-LA7

G4-LA8








Fully

Fully

Not Reported

Fully

Fully

Fully

Fully

Fully








Overall



CATEGORY: SOCIAL


G4-EN31

G4-EN32

G4-EN33

G4-EN34

Fully

Fully

Fully

Not Reported





Our Environment

Our Environment

Our Environment




G4-LA9

G4-LA10

G4-LA11

G4-LA12

G4-LA13






Fully

Fully

Partially

Partially

Fully







Emissions

Effluents and Waste


Compliance

Transport

G4-EN13

G4-EN14

G4-EN15

G4-EN16

G4-EN17

G4-EN18

G4-EN19

G4-EN20

G4-EN21

G4-EN22

G4-EN23

G4-EN24

G4-EN25

G4-EN26

G4-EN27

G4-EN28

G4-EN29

G4-EN30

Fully

Fully

Fully

Fully

Not Reported

Not Reported

Fully

Fully

Fully

Fully

Partially

Partially

Partially

Partially

Fully

Partially

Fully

Fully



















Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment


Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment

92Water

G4-EN6

G4-EN7

G4-EN8

G4-EN9

G4-EN10

Our Environment

Our Environment

Our Environment

Our Environment

Our Environment






Fully

Fully

Fully

Partially

Fully

Biodiversity

G4-EN11

G4-EN12

Our Environment

NA



Fully

NA


Employment



G4-LA1

G4-LA2

G4-LA3

G4-LA4

G4-LA5

G4-LA6

G4-LA7

G4-LA8








Fully

Fully

Not Reported

Fully

Fully

Fully

Fully

Fully








Overall



CATEGORY: SOCIAL


G4-EN31

G4-EN32

G4-EN33

G4-EN34

Fully

Fully

Fully

Not Reported





Our Environment

Our Environment

Our Environment




G4-LA9

G4-LA10

G4-LA11

G4-LA12

G4-LA13






Fully

Fully

Partially

Partially

Fully







G4-HR2

G4-HR3 Total number of incidents of discrimination and corrective actions taken

Total hours of employee training on human rights policies or procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained

Partially

Not Reported

Non-discrimination



Supplier Assessment for Labor Practices

Labor Practices Grievance Mechanisms

Investment

SUB-CATEGORY: HUMAN RIGHTS

Employment

G4-LA14

G4-LA15

G4-LA16

G4-HR1

Percentage of new suppliers that were screened using labor practices criteria

Significant actual and potential negative impacts for labor practices in the supply chain and actions taken

Number of grievances about labor practices filed, addressed, and resolved through formal grievance mechanisms

Total number and percentage of significant investment agreements and contracts that include human rights clauses or that underwent human rights screening

Partially

Partially

Partially

Partially





G4-HR4

G4-HR5

G4-HR6

G4-HR7

G4-HR8

G4-HR9

G4-HR10

Operations and suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and measures taken to support these rights

Operations and suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor

Operations and suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor

Percentage of security personnel trained in the organization's human rights policies or procedures that are relevant to operations

Total number of incidents of violations involving rights of indigenous peoples and actions taken

Total number and percentage of operations that have been subject to human rights reviews or impact assessments

Percentage of new suppliers that were screened using human rights criteria

Fully

Partially

Fully

Fully

Partially

Partially

Not Reported

Freedom of Association and Collective Bargaining

Child Labor

Forced or Compulsory Labor

Security Practices

Indigenous Rights

Assessment

Supplier Human Rights Assessment See refer

Our Stakeholders -Partners in Growth: Suppliers

Our Stakeholders - Partners in Growth Suppliers






Anti-corruption



Total number and percentage of operations assessed for risks related to corruption and the significant risks identified

Communication and training on anti-corruption policies and procedures

G4-SO3

G4-SO4

Partially

Partially

G4-HR11

G4-HR12

G4-SO1

G4-SO2

Percentage of operations with implemented local community engagement, impact assessments, and development programs

Operations with significant actual and potential negative impacts on local communities

Significant actual and potential negative human rights impacts in the supply chain and actions taken.

Number of grievances about human rights impacts filed, addressed, and resolved through formal grievance mechanisms

Fully

Fully

Fully

Fully

Local Communities

SUB-CATEGORY: SOCIETY

Employment

Remediation

Human Rights Grievance Mechanisms S






Confirmed incidents of corruption and actions takenG4-SO5 Partially

Public Policy


Total value of political contributions by country and recipient/beneficiaryG4-SO6 Fully

Anti-competitive Behavior

Compliance

Supplier Assessment for Impacts on Society

Grievance Mechanisms for Impacts on Society

SUB-CATEGORY: PRODUCT RESPONSIBILITY

Customer Health and Safety






Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations

Percentage of new suppliers that were screened using criteria for impacts on society

Significant actual and potential negative impacts on society in the supply chain and actions taken

Number of grievances about impacts on society filed, addressed, and resolved through formal grievance mechanisms

Percentage of significant product and service categories for which health and safety impacts are assessed for improvement

Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes

G4-SO7

G4-SO8

G4-SO9

G4-S10

G4-S11

G4-PR1

G4-PR2

Partially

Partially

Partially

Partially

Partially

Partially

Fully



G4-HR2



Partially

Not Reported

Non-discrimination





Investment


Employment

G4-LA14

G4-LA15

G4-LA16

G4-HR1





Partially

Partially

Partially

Partially





G4-HR4

G4-HR5

G4-HR6

G4-HR7

G4-HR8

G4-HR9

G4-HR10








Fully

Partially

Fully

Fully

Partially

Partially

Not Reported


Child Labor


Security Practices

Indigenous Rights

Assessment









Anti-corruption





G4-SO3

G4-SO4

Partially

Partially

G4-HR11

G4-HR12

G4-SO1

G4-SO2





Fully

Fully

Fully

Fully

Local Communities


Employment

Remediation








Public Policy




Compliance

















G4-SO7

G4-SO8

G4-SO9

G4-S10

G4-S11

G4-PR1

G4-PR2

Partially

Partially

Partially

Partially

Partially

Partially

Fully



G4-HR2



Partially

Not Reported

Non-discrimination





Investment


Employment

G4-LA14

G4-LA15

G4-LA16

G4-HR1





Partially

Partially

Partially

Partially





G4-HR4

G4-HR5

G4-HR6

G4-HR7

G4-HR8

G4-HR9

G4-HR10








Fully

Partially

Fully

Fully

Partially

Partially

Not Reported


Child Labor


Security Practices

Indigenous Rights

Assessment









Anti-corruption





G4-SO3

G4-SO4

Partially

Partially

G4-HR11

G4-HR12

G4-SO1

G4-SO2





Fully

Fully

Fully

Fully

Local Communities


Employment

Remediation








Public Policy




Compliance

















G4-SO7

G4-SO8

G4-SO9

G4-S10

G4-S11

G4-PR1

G4-PR2

Partially

Partially

Partially

Partially

Partially

Partially

Fully



G4-HR2



Partially

Not Reported

Non-discrimination





Investment


Employment

G4-LA14

G4-LA15

G4-LA16

G4-HR1





Partially

Partially

Partially

Partially





G4-HR4

G4-HR5

G4-HR6

G4-HR7

G4-HR8

G4-HR9

G4-HR10








Fully

Partially

Fully

Fully

Partially

Partially

Not Reported


Child Labor


Security Practices

Indigenous Rights

Assessment









Anti-corruption





G4-SO3

G4-SO4

Partially

Partially

G4-HR11

G4-HR12

G4-SO1

G4-SO2





Fully

Fully

Fully

Fully

Local Communities


Employment

Remediation








Public Policy




Compliance

















G4-SO7

G4-SO8

G4-SO9

G4-S10

G4-S11

G4-PR1

G4-PR2

Partially

Partially

Partially

Partially

Partially

Partially

Fully



Product and Service Labeling




Type of product and service information required by the organization’s procedures for product and service information and labeling, and percentage of significant product and service categories subject to such information requirements

Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes

Results of surveys measuring customer satisfaction

G4-PR3

G4-PR4

G4-PR5

Fully

Fully

Fully

96

Customer Privacy

Compliance



Sale of banned or disputed products

Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes

Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data

Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services

G4-PR6

G4-PR7

G4-PR8

G4-PR9

Fully

Fully

NANA

NANA






[email protected]





Product and Service Labeling




Type of product and service information required by the organization’s procedures for product and service information and labeling, and percentage of significant product and service categories subject to such information requirements

Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes

Results of surveys measuring customer satisfaction

G4-PR3

G4-PR4

G4-PR5

Fully

Fully

Fully

96

Customer Privacy

Compliance



Sale of banned or disputed products

Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes

Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data

Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services

G4-PR6

G4-PR7

G4-PR8

G4-PR9

Fully

Fully

NANA

NANA






[email protected]





For further information and feedback on this report please contactEnvironment department

Plant Administration Division

TOYOTA KIRLOSKAR MOTOR PVT. LTD.Plot No. 1, Bidadi Industrial Area, Bidadi, Ramanagara District

Pin 562 109, Karnataka, IndiaTelephone : +91 80 66294890 / 66292098

Fax : +91 80 27287078 / 77E-mail : [email protected]

www.toyotabharat.com

To read the report onlinehttp://www.toyotabharat.com/environment/sustain-report/2016/ D

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NURTURING

INCLUSIVEGRO TH

TOYOTA KIRLOSKAR MOTOR PVT. LTD.

SUSTAINABILITY REPORT 2016

Documents

INCLUSIVE GRO TH - Toyota India