TOYOTA LOGISTIC SUPPLY

CHAIN CONTRIBUTION TO
NATION
(CN INITIATIVE)
 Content

I. Background & Global Commitment towards Global

Warming & Carbon Neutrality

II. TMMIN Vision to achieve Carbon Neutrality, Scope & Target

III. Target to measure, Schedule & Request to Related

IV. Question / Answer & Closing

 I. Global Warning & impact towards Environment
• Earth Temperature has risen 1.1°C from year 1900 until now.
• From year 2000 earth temperature is expected to increase by 2.6ºC by year 2050

IMPACT • Global Warming Phenomenon, resulting in below condition :

 I.1 Commitment to combat global warming
Kyoto Protocol
(1997)
Set binding targets in reducing GHG emissions
by an average of 5% against 1990
levels, over the 2008-2012 period. Put a
heavier burden on developed countries.
The Paris Climate Agreement : Key Points
Source : https://unfccc.int/
Paris Agreement
COP28 (2023)
COP21 (2015)
Countries submit action plan
Nationally Determined Contributions (NDCs) The first Global Stocktake* will assess progress on
Paris Agreement goals and chart a way forward.
Provides a framework for financial, technical
and capacity building support to those
countries who need it.
 I.2 World Concern towards Global Warming
Reduce economy-wide greenhouse
gas emissions by at least 68% by
2030, compared to 1990 levels.
United Kingdom (UK)
Reduce net GHG emissions 50- To reduce 40% from the total
52% below 2005 levels in national GHG emissions in
2030. 2018,, by 2030.
United States (US) Korea Selatan

Domestic reduction of greenhouse Reduce economy-wide GHG Lower its CO2 emissions per
gas emissions by at least 55% emissions in 2030 by 41%, unit of gross domestic product
compared to 1990 by 2030, compared to the BAU scenario (GDP) by over 65% from the
without contribution from given in Türkiye’s first NDC 2005 level
European Union (EU) international credits. Turkiye China

Reduction of 53.1%, or, in reduce its greenhouse gas

To reduce Emissions Intensity of its emissions by 46% in fiscal
GDP by 45% by 2030, from 2005 comparison with 2005,
according to the latest inventory year 2030 from its fiscal year
level. 2013 levels
data
India Brazil Japan

To reduce GHG emissions by 15.8% To reduce its greenhouse gas

below business-as-usual levels To reduce its GHG emissions to emissions by 30% from the
(BAU) by 2030 compared to 9% in around 60 MtCO2e in 2030 projected business-as-usual
the previous NDC. after peaking emissions earlier (BAU) level by 2030
Vietnam Singapore Thailand
 I.3 Indonesia Commitment in Paris Agreement

Indonesia commits to to reduce its GHG emission by

29% from BAU (Business As Usual) level without
without Global
support :-29% international assistance and 41% with international
assistance by 2030
Business As Usual (BAU)
Baseline
GHG Emission

With Global
support :-41%

Indonesia ratified Paris Agreements on October

Estimated GHG in the future 2016 and submitted to UNFCCC on 6 November
2016

2015 2030
 I.4 ID company scope target
• As of now, many other companies in ID have set net zero target.
• Among these, some industry leaders set their Scope 1 and 2 CN target by 2030

• Company Net-Zero Target by Industry Group

Industry • (■ All scope ● Scope 1,2 only)

ID Govt CN Target
Group
Energy Scope 1,2
Intensive
Industry

(Cement, Steel,
Chemicals,
Mining)

Scope 1,2

Manu-
Philip Morris
facturing Scope 1,2
Scope 1,2
Scope 1,2
Scope 1,2

Scope 1,2
Service
Company
Scope 1,2
& Others
Scope 1,2

2020 2025 2030 2035 2040 2045 2050 2055 2060 2065

Source: Various public sources, Deloitte analysis

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 I.5 TMC Direction to Carbon Neutrality

In 2020, Mr. Akio Toyoda, President of TMC has

mentioned that Toyota respect and earnestly
engage in the Sustainable Development Goals

Principles & Key-concepts

No Principles Key Concepts

1. No one left behind We have responsibility to help make this planet and lives of the people that live on it better
2. Triple bottom line Instead of being known as mass producer of cars, Toyota think that we are mass producer of
happiness
3. Back-casting Contribute to the combined future of all the citizen of earth
4. Ambition to action Each Toyota person takes action that lead to the happiness of humankind
5. Multi stakeholders We think about the well-being of Automotive industry, Earth itself and future generation of
partnership children
 II. TMMIN vision to achieve Carbon Neutral
• Toyota ID has vision to be frontrunner in CN and will achieve that using Indonesia-specific multi-solution

Considerations
• As industry & market leader, Toyota ID should
support Govt to lead & drive change toward CN

To be frontrunner in CN • Toyota ID has largest network of supply chain to

To effectively contributing to Indonesia emission reduction as well as
VISION the automotive industry development, and go beyond to lead and
be role model
help drive big CN impact to ID auto industry
• ID is largest market in SEA, so Toyota ID is
responsible for largest emission among Toyota SEA
affiliate
• Other ID leading manufacturing MNCs have started
making CN commitment

Considerations
Indonesia-specific multi-solution • ID economy still emerging, emission will still
grow in short term
Be open to all potential emission reduction solutions and consider
• ID possess many natural resources and is
APPROACH Indonesia’s readiness and limitations in choosing and prioritizing
source to many job employment
which solutions to take
• Big time & investment needed to develop the
required infrastructure & technology
• etc.

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 II.1 Carbon Neutral Scope
• Company’s emission calculation can be grouped into 3 scopes – Scope 1 is direct, Scope 2 and 3 are indirect

DIRECT e mission INDIRECT e mission INDIRECT e mission

Scope Scope Scope

1 2 3
Logistic

Power
Plant Supply Chain
Natural Gas
Fuel
Electricity
Generation
Manufacturing Manufacturing
Use of Sold Product

Fuel Co mb us tio n Us e o f s o ld p r o d uc ts 3.1

-Furnace, test bench
-Genset
Mo b ile Co mb us tio n
Purchased electricity, L o g is tic s 3.2
-Forklifts
heating/ cooling (Transportation & Distribution)

-Pool cars for own use

Sup p ly Chain 3.3
Air -Co nd (Fuel & Energy related activities)
-AC refrigerants

Source: GHG Protocol, TMMIN

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 II.2 TMMIN target summary
We aim for an advanced emission reduction target and unique qualitative target for some emission scopes

Fuel Mobile Purchased Sold Logistics Supply

combustion combustion electricity products chain

Scope 1 Scope 2 Scope 3

TMC Avg. 119gr/km ▼32% by 2030 ▼25% by 2025
Plant CN by 2035; Overall ▼68% by 2035 (v. 2019)
direction by 2030 (v. 2019) ▼35% by 2030
+ CN by 2030 (v. 2018)

3.3
3.1 3.2 Supply Chain
Our target Overall Electricity Product Logistics (tier-1)**
as
frontrunner CN by 2033 CN Flattening ▼32% by 2030 ▼25% by 2025
by 2028 by ~2030 (v. 2019) ▼35% by 2030
(v. 2018)

under consideration for Most comprehensive 100% participation

further advancement logistic coverage by tier-1 suppliers

Growth
assumption 6.6% production growth* until 2030 6% sales growth* until 2030 7% export growth* until 2030

*based on existing business planning 2030; growth against 2022 actuals; **TDEM Target
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 II.3 TMMIN CN Strategy for Logistics
• We will be the leading advocate of CN in logistics by below 3 means

Most comprehensive 01 Active driver for CN 02 Exemplary in 03

tracking of logistics initiatives collaboration showcasing use of
emission among stakeholders advanced technology
Logistics
service providers

By covering & tracking logistics points as

comprehensively as possible, we are setting
example of CN effort in logistics area to other
manufacturers.
Trial EV truck showcase in TMMIN Regular
Logistic Route for Junbiki/ interplant routes
# of Logistics Points Tracked

16 15 Govt authority User industry

14 (i.e. manufacturers)
10 10 9
8 8 Total Export Import
7 Government – Logistics – Industry merging of
5 4 ideas discussion on potential initiatives,
2
e.g. container rail transport for export to
Trial FCEV truck showcase (in line with
Patimban port
TMMIN TMT TKM TMV Pertamina’s H2 fuel station plan)

Plan Do
 III. TMMIN Logistics Flow Process
TMMIN

Inland Inland
Transport Transport
VEHICLE YARD
VEHICLE PLANT
EXPORTER PORT CONTAINER YARD [KRW] CUSTOMER
PORT
[11 EXPORTER, 8 [TJ PRIOK] [KRW]
COUNTRY]
[PATIMBAN & TJ PRIOK]
Pool Car Carrier

Measured
Milk Run / Direct / Inland Transport UNIT PLANT Area
[STR 1 &
[2nd/3rd
tier – 520] [ MR 1171 Cycle/day
Direct 276 Cycle/day
[ KRW]
Pool Container Truck
SUPPLIER As September 23
[254 Supplier]

CKD EXPORT
Container Depot
[KRW, STR 1, STR 2]

Pool Truck

Measured SERVICE PARTS

Area [STR 1] CY PORT
[TJ PRIOK]
CUSTOMER
[STR ] [12 COUNTRY]
III.1 Milestone Schedule
FY 23/24 FY 24/25 FY 25/26
Jan Feb Mar Q2 Q3 Q4 Q1 Q2

Key
Milestone Grasping & feedback

Workshop Workshop #2
#1 Commitment
signing
Grasping Plan for Mitigation Execution & Monitoring

Working
Level Monthly Meeting
III.2 Request

• Conduct Workshop to level up understanding of Logistic Partner of

Carbon Neutrality (Calculation Scope, Method & reporting)
(6 Feb’24 tent.)

• Request to assign member to follow the workshop and be key member

in Carbon Emission Calculation in your Company by end of Jan’24

• Commitment Management to work together to realise TMMIN Vision for

Carbon Neutrality reduction & milestone (end of Feb’24)
THANK YOU