NAME: Alizaib Dhanani

Course: 2023-24 MGT3318 Sustainable

Business
MISIS: M00908759
Course coordinator: Rory McConnon

1
COMPARISON OF TOYOTA VS HONDA
Contents
1. The Triple Bottom Line .......................................................................................................... 3
2. Toyota ..................................................................................................................................... 3
2.1. Implementation of Triple Bottom Line at Toyota ............................................................. 3
3. Honda ...................................................................................................................................... 3
3.1. Implementation of Triple Bottom Line at Honda ............................................................. 4
4. Life Cycle Assessment of Companies ..................................................................................... 4
5. Findings................................................................................................................................... 6
6. Recommendations ................................................................................................................... 6
6.1. Toyota .............................................................................................................................. 6
6.2. Honda .............................................................................................................................. 7
7. References ............................................................................................................................... 8

2
 1. The Triple Bottom Line
The Triple Bottom Line (TBL) is a theory
comprises corporate success with three
essential dimensions: economic, which
focuses on a company's financial success like
earnings, revenue, and economic value; and
social, which concentrates on the well-being
of its employees. Social performance
evaluates a company's impact on
individuals within and beyond the firm. It
covers corporate social responsibility (CSR),
staff wellness, and business ethics.
Environmental performance involves attempts
to lower carbon footprints, consume fewer
resources, and alleviate pollution (Harvard,
2022).

2. Toyota
Toyota Motor, formed in 1937, is a Japanese MNE. It is among the world's leading automakers,
noted for its dedication to excellence, innovation, & sustainability. Toyota manufactures a wide
variety of automobiles, spanning sedans, SUVs, pickup trucks, hybrids, and EVs. The Corolla,
Prius, RAV4, & Mirai hydrogen fuel cell automobiles are among its best-selling models (Toyota,
2023).

2.1. Implementation of Triple Bottom Line at Toyota

Toyota's economic growth has remained robust due to efficient manufacturing techniques, cost
management, and expanding markets worldwide. The corporation extensively spends in R&D to
innovate in green technologies like hybrid & hydrogen fuel cell solutions. The company has a
solid framework for CSR. Its primary goals are to promote safety, education, & community
development. Toyota offers projects such as the Toyota Environmental Challenge 2050, which
aims for an era in which automobiles, society, and ecology coexist together. Toyota a hybrid
technology leader, with the Prius serving as its most iconic model. Mirai, that also pushed into
hydrogen fuel cell innovation. The firm is dedicated to decreasing the ecological footprint by
using environmentally friendly production techniques and encouraging recycling in its
automobiles (Yanusik, 2019).

3. Honda
Honda Motor is also a Japanese MNE that produces cars, bikes, and power tools. Honda, which
was founded during 1948, is well-known for its engineering prowess. The CR-V, Accord, Civic,
and its Clarity plug-in hybrid are among the famous models (Honda, 2019).

3
 3.1. Implementation of Triple Bottom Line at Honda
With its powerful worldwide presence and diverse product range, Honda has proved financial
viability. The corporation invests in R&D for renewable fuels as well as efficient production
techniques. Honda is dedicated to social responsibility, with a particular emphasis on schooling,
protecting the environment, and disaster aid. The corporation prioritizes safety, as evidenced by
the modern safety systems built into most of its automobiles. Honda has created hybrid and
EVs including the Clarity and the Honda e. The corporation has set a target of becoming carbon
neutral by 2050, with a focus on reducing greenhouse gas emissions in its goods and business
operations (EMBA, 2022).

4. Life Cycle Assessment of Companies

STAGES TOYOTA HONDA

SOURCING OF Company has incorporated recycled resources into its
MATERIAL manufacturing procedures, such as reused iron, plastic, as
well as cloth, however they continue to rely on unsafe
resources for their high output.
Some of the less expensive interior elements have been
swapped with environmentally friendly alternatives like
non-petroleum polymers, and a leather substitute. We
discovered, yet, that company's metal and electronic parts
are frequently supplied with price before ecology.
Toyota claims recycling of scrap metal about 670 million
pounds during 2019. Lithium is utilized in the batteries'
production for Toyota's complete EV & hybrid vehicles.
Toyota never employs recycled lithium, resulting in high
transportation emissions. Company has extensive plans to
implement lithium recycling, however, they only recover
battery shells and cables, largely from obsolete NiMH
batteries (Kamprad, 2023).
PRODUCTION The manufacturing activities of Toyota are entirely
unsustainable, as the company generates CO2 emissions
and garbage in millions tons. Green sources of energy
and materials were introduced, although such initiatives
have fallen short of expectations. Worryingly, Toyota's
most efficient factories in their native nation are being
criticized of abusing employees' rights. these help clarify
the company's carefully crafted public portrayal of their
production process.
TRANSPORTATION Company's transportation doesn't seem highly
environmentally friendly because it relies heavily on
current fossil-fuel supply lines. When a product
of Toyota completed, it is delivered via one of company's
distributor facilities, then being shipped to Toyota
dealership for consumers to buy. It is based on supply
chains involving shipping containers and by-road
vehicles, which are among the biggest polluting sectors
(Kamprad, 2023).
USAGE Car usage of Toyota is just marginally sustainable.
The automobiles are extremely durable and are designed
Honda Supplier Green Excellence Program
during 2019 formed after implementing global
'Green Purchasing' rules since 2011. Over 500
of Honda's suppliers presently disclose their
greenhouse gases to the company and are
constantly working to lower their
environmental impact. Honda record crucial
environmental statistics, like CO2 emissions,
and discover new decrease potential. Honda
additionally assists vendors in setting
corporate energy targets and lowering energy
expenses. These firms account for 96% of
Honda's overall North American components
purchasing costs (Honda Global, 2022).
About ninety-eight percent of CO2
emissions from its North American industrial
plants.
CO2e fell by 29.5% during 2022. During
2022, Honda's production plants was 98.6%
trash free, with an objective of 99%.
Honda signed VPPAs for sustainable solar
and wind energy which will meet over sixty
percent of Honda's electricity needs (CSR,
2023).
Honda decreased the CO2 carbon footprint of
service parts exports by 3.7% year ago and
54% from 2009.
Throughout 2011, Honda's Green Dealer
Program has assisted over 600 Honda and
Acura vehicle, machinery, and powersports
dealerships in reducing their ecological
footprint.
Based on current research, in-use operating
accounts for 73% of the CO2 emissions

4
 to be recycled and repurposed at the end of their useful
lives. Yet, Toyota's persistence on producing gasoline-
powered vehicles implies their extended lifetimes are
spent polluting the environment.
END OF LIFE Toyota vehicles have a rather long life cycle.
Company makes investments in infrastructure for
handling its current models, which are meant to be
readily removed and recycled. sadly, Toyota does not
have recycling systems in place for their famous Li-ion
battery hybrids (Honda Global, 2022).
HR/MARKETING Toyota's marketing claims that "98.4% waste is recycled"
Although this figure is quite high, company nevertheless
generates more than 11 million pounds’ waste annually
(EV, 2023).
Toyota' advertisement of approximately $1.6 billion in
the United States alone in 2021 that portray company as a
responsibly operated firm that is improving its business
practices for being more sustainable. However, this
is not correct. In recent times, company has accused of
Greenwashing, and further investigation has revealed that
Toyota may have warped its public image to mislead
their true actions.
REPORTING Toyota discloses data on all carbon dioxide emissions
from manufacturing. Toyota also displays their use
of resources like water, & recycled material gathered in
pounds over a number of years.
Although, the company's Climate Action Plans provide
precise figures & lacked the context necessary to assess
their true ecological impact. Plus, Toyota's penalties for a
decade of Clean Air Act reporting violations calls into
question their self-published statements.
Moreover, Company was penalized during 2021 for
postponing emissions files for ten years, which caused
environmental recalls for high-emitting vehicles to be
postponed. Toyota allegedly withheld data from
authorities on purpose, resulting in a $180 million
penalties (Toyota, 2022).
generated by a typical car throughout its
lifecycle. With each gallon of gasoline
consumed, a car generates around 19.6 pounds
of carbon dioxide. As a result, raising the
amount of miles traveled per gallon burnt will
lower CO2 emissions. As per the 2022 EPA
Automotive Trends Report, Honda vehicles
have a fleet-average fuel economy of 28.5
mpg, and overall CO2e emissions caused by
real-world usage of Honda vehicles are 10.1%
lower than the market average.
Numerous vehicle parts recycling initiatives
are critical components of Honda's strategy.
Honda saved over 42,894,729 pounds of
garbage from landfill in fiscal year 2022
(Honda Global, 2022).
Honda has portrayed strong reputation in the
automobile business, but it is additionally
accused of greenwashing. Company made
assertions that its automobiles were driven
"by nature" and built with environmentally
friendly components, despite the fact that no
independent testing supported these
assertions. All of those examples demonstrate
how simple it is for automobile manufacturers
to employ deceptive language and exploit
consumers' growing worries regarding
sustainability with the goal to increase sales
(EV, 2023).
By the use of its methodology and GRI
Guidelines, Honda assures compliance
with best procedures for addressing
sustainability challenges. The model for
sustainability of the company outlines how it
does it operate and is backed by rules,
standards, values, and management systems. It
pledges the organization to evaluate and
accept accountability for the environmental
and sustainable activities, as well as to
collaborate with all parties involved
throughout its value chain to achieve the
greatest beneficial effects. It includes data
about consumptions of direct and indirect
emissions, waste generation, and water usage
(Honda Global, 2022).
5
 5. Findings
Toyota prioritizes scrap metal recycling. It aims to undertake lithium recycling, notably from
outdated NiMH batteries. Toyota automobiles
are built to last and recyclable, resulting in an
extended product lifespan. Toyota boasts an
outstanding recycling percentage,
demonstrating their dedication to waste
minimization. However, Toyota keeps
depending on hazardous materials in order to
achieve strong output, prompting worries
regarding the detrimental effects of its material
procurement. Toyota's production operations
produce large CO2 emissions & waste,
prompting concerns about the long-term
viability of its production procedures. Toyota's
transportation is significantly reliant on petroleum-based supply lines, which adds to ecological
concerns. research highlights a possible disconnect among its public face and its true actions
(Toyota, 2022).
Honda focuses on sustainable buying practices and engages
over 500 suppliers in decreasing their environmental effect.
Honda lowered its ecological footprint of service components,
highlighting its efforts to lessen transportation's ecological
impact. Honda inked VPPAs to generate clean solar & wind
energy, which will meet more than 60% of company
electricity requirements. Utilizing its approach and GRI
Guidelines, Honda ensures that it follows the latest standards
for tackling sustainability concerns. Honda's sustainability
model emphasizes the company's dedication to sustainable
activities across its value chain (Atlas, 2023). On Contrary,
Honda has been accused of greenwashing, implying a
discrepancy within its marketing promises and real actions.
Honda is being accused of making promises about their vehicles' ecological footprint without
conducting independent assessments to back up such assertions.

6. Recommendations
6.1. Toyota
1. Partner with suppliers to find and adopt sustainable metal and electrical part options.
Create criteria for choosing suppliers that take into account not just cost-effectiveness but
additionally their devotion to sustainability.
2. Minimize waste and emissions by investing and using cleaner technology in
manufacturing operations.

6
3. Engage in an eco-friendly vehicle for product transportation to reduce dependency on old
fossil energy sources. Improve the supply chains to reduce shipping's ecological
footprint. Considering route optimization, cargo consolidation, and the utilization of
various forms of transport (SDGs, 2021).
4. Invest in R&D for enhancing the efficacy of sustainable technology. Launch instructional
efforts that encourage customers to drive safely. Highlight the environmental advantages
of eco-friendly driving practices while offering rewards for the usage of sustainable
vehicles.
5. Create consumer education initiatives on the value of recycling as well as correct disposal
of end-of-life automotive parts.
6. Perform a thorough examination of advertising methods to ensure that they are consistent
with genuine attempts at sustainability. Increase honesty in marketing communications to
gain and keep consumer trust. Align marketing funds to activities that actually contribute
to long-term sustainability.
7. Stakeholders should be informed about sustainability objectives, progress, and issues.
Improve internal systems for ensuring accurate reporting & environmental compliance.
To preserve trust, audit as well as validate reported data on a regular basis.

6.2. Honda
1. Encourage suppliers to take an active role in decreasing environmental impact and
increasing transparency throughout the supply chain. Collaborate jointly with suppliers to
investigate and implement more sustainable material solutions. It may involve increasing
the use of recycled and renewable resources in the production procedure.
2. Adopt circular economy concepts by developing items that are recyclable and reusable.
Create closed-loop solutions that reduce waste while promoting material recycling during
the manufacturing process.
3. Invest more in R&D to expand vehicle technology, with an eye on enhancing fuel
efficiency and researching alternate fuels. Throughout the utilization phase, it will help to
reduce the total carbon impact. Conduct educational programs to enhance consumer
knowledge of the detrimental effects of vehicle use. Encourage safe driving practices and
provide knowledge on how one's actions can help the environment.
4. Work with industry stakeholders to develop comprehensive recycling systems for
automotive components, with a particular emphasis on the safe disposal of Li-ion
batteries. It could entail developing industry-wide recycling regulations.
5. Employ greenwashing prevention measures and ensure transparency in all promotional
communications. Increase the brand's connection to sustainability by incorporating it into
Honda's basic principles and marketing.
6. Improve sustainability reporting to give a more complete picture of Honda's (ESG)
performance. Assure reporting adheres to accepted standards and contains both
accomplishments and challenges.

7
 7. References

Atlas. (2023). CSR Framework. Atlas Honda. https://www.atlashonda.com.pk/csr-framework/

CSR. (2023). Measuring Honda’s Environmental Impact. Honda Corporate Social

Responsibility. https://csr.honda.com/longform-content/environmental-impact/

EMBA. (2022). [2022] Honda Motor Triple Bottom Line Analysis. Embapro.com.

https://embapro.com/frontpage/tblcoanalysis/13882-honda-motor

EV. (2023, February 13). Greenwashing in Automotive. LinkedIn.

https://www.linkedin.com/pulse/greenwashing-automotive-theevcafe/

Harvard . (2022, December 9). An Explanation of the Triple Bottom Line. UW Extended

Campus. https://uwex.wisconsin.edu/stories-news/triple-bottom-

line/#:~:text=Triple%20bottom%20line%20theory%20expands

Honda. (2019). Honda Global | Honda Motor Co.,Ltd. Global.honda. https://global.honda/

Honda Global. (2022). Honda Global | pdf download. Global.honda.

https://global.honda/en/sustainability/report.html

Kamprad, D. (2023). How Sustainable Are Toyota Cars? A Life-Cycle Analysis. Impactful Ninja.

https://impactful.ninja/how-sustainable-are-toyota-cars/

SDGs. (2021). SDGs | Sustainability | Honda Global. Honda Motor Co.,Ltd. | Honda Global.

https://global.honda/en/sustainability/sdgs.html?from=navi_header

Toyota. (2022). Sustainability Data Book - The latest version.

https://global.toyota/pages/global_toyota/sustainability/report/sdb/sdb22_en.pdf

Toyota. (2023). Toyota Indus – Indus Motor Company Limited. https://toyota-indus.com/

8
Yanusik, Y. (2019). Corporate social responsibility of Toyota - Analytical report.

Www.academia.edu.

https://www.academia.edu/40113585/Corporate_social_responsibility_of_Toyota_Analyt

ical_report