“Sustainability”
… Does it have a future in
manufacturing ?
Steve Hope GM
Environmental Affairs and Corporate Citizenship Toyota Motor Europe
Sustainable development is the kind of development
that meets the needs of the present without
compromising the ability of future generations to meet their own needs.
(Gro Harlem Bruntland - Our Common Future 1987)
The word sustainability is derived from the Latin sustinere (tenere, to hold; sus, up).
Dictionaries provide more than ten meanings for
sustain, the main ones being to “maintain”, “support”, or “endure”.
What does sustainability mean to Manufacturing Industry ? (1)
The common focus = Environmental Sustainability…. ….the rate of renewable resource harvest, pollution creation, and non-renewable resource depletion that can be continued indefinitely.
(picture image: Ellen MacArthur Foundation) The Circular Economy
Moving away from…. Take, Make, Consume, Dispose Towards…. Extending Life, Reusing,
What does sustainability mean to Manufacturing Industry ? (2)
A balance of all three factors :- • Economic
• Social
• Environment
For competitive manufacturing industries all three factors must be respected !!
• Must satisfy the increasing demands and expectations of customers and society • The consequent demands of regulation
• Must do all of this whilst respecting the environment
• But whilst also remaining profitable, delivering tangible value to shareholders / society (tax)
What does sustainability mean to Toyota ?
We are now more attuned to the
importance of sustainable growth …… …. an increase in production does not necessarily equate to growth. (Akio Toyoda 2013 Sustainability Report)
1) Application of Toyota’s Guiding Principles
• Monozukuri (Sustainable Manufacturing / Craftsmanship) • Toyota Production System (Minimisation of Waste)
• Meiruka – (Visualisation)
• A Comprehensive Vision …. Better Cars – Better Lives – Better Business 2) Challenging Goals and relentless follow up – Ambition = Aim Zero Emissions 3) Continuous innovation and application of science & technology
On February 24, the 5th anniversary
of when I attended the U.S.
congressional hearing, we were able to take the first step towards innovation for the next 100 years with an event celebrating the line-off of the Mirai, our new fuel cell vehicle.
(Akio Toyoda 2015 Shareholders meeting) Following the recall crisis and tsunami ….
Akio Toyoda looks forward to the next 100 years of profitable business ……
What issues should manufacturing industry consider ? (1)
Examples only :- Society
Population increase Urbanisation
Social equity / equality Poverty
Health and Safety Mobility Aging Population Healthcare Education Climate Change Air Quality Human Migration Employment Social Contribution Congestion Tax contribution Smart City Smart grid Geo-Political Fuel Scarcity Fuel Poverty Fuel Security Material Scarcity Material Security Biofuels / Renewables Conflict Materials Industrial Migration Free Trade Land-use Social Responsibility Tax avoidance Customer Quality of life Specification Consumerisation Digital transition Connected society Big Data
Value for Money Fashion and taste Quality Use vs Ownership Service Level Regulation Emissions Trading Energy Efficiency Chemical Management Producer Responsibility ECO Design Safety
Air / Water Emissions Waste regulation
Product specific Circular Economy Product Passport
Product Env’t Footprint Org’n Env’t Footprint CCL / CCD /REO Congestion Charging Low Emission Zones Air Quality
Energy Policy
What issues should manufacturing industry consider ? (2)
Some examples of potential conflicts - Automotive Industry
Lightweight / Economy vs Safety
Extended Life vs
New product efficiency gain
Range Anxiety vs Pure Electric Power
Composite Materials vs Recycling
Chemical Management vs Use of Recycled Materials
Biofuels vs Land Use Personal Mobility vs
Environmental Impact
Centralised vs
Distributed Production Just In Time vs Logistics Mode
Water Based Paints vs Energy Use
Labour Cost vs Production Location Environmentally Friendly Products vs
Use of Rare Earth / Precious Metals
EV, PHEV and FCEV vs Primary Energy (CO2)
Safety / Quality vs Reused Parts New Technology vs Productivity / Cost
What issues should manufacturing industry consider ? (2)
Some examples of potential conflicts - Automotive Industry
Lightweight / Economy vs Safety
Extended Life vs
New product efficiency gain
Range Anxiety vs Pure Electric Power
Composite Materials vs Recycling
Chemical Management vs Use of Recycled Materials
Biofuels vs Land Use Personal Mobility vs
Environmental Impact
Centralised vs
Distributed Production Just In Time vs Logistics Mode
Water Based Paints vs Energy Use
Labour Cost vs Production Location Environmentally Friendly Products vs
Use of Rare Earth / Precious Metals
EV, PHEV and FCEV vs Primary Energy (CO2)
Safety / Quality vs Reused Parts New Technology vs Productivity / Cost
Environmentally Friendly Products vs Use of Rare Earth / Precious Metals
EV, PHEV and FCEV vs Primary Energy (CO2)
• A paradox ….. Environmentally friendly products need to use
potentially undesirable materials from a sustainability view point
• Typical Toyota Countermeasures :- • Develop recovery and recycling
technologies – taking life cycle responsibility and thinking beyond the core business
• Minimise the use of materials at source by the continuous
application of Monozukuri
• A shift of environmental impact from tailpipe to fuel supply (well to wheel) – out of Toyota’s traditional scope • Typical Toyota Countermeasures :-
• Develop partnerships as an “integrated” or “comprehensive” approach (Gov’t / Fuel
Producers / Distributors etc) • Create demand signals to fuel
supply partners by sharing IPR to stimulate technology uptake
How Toyota Typically Manages Sustainability Conflicts
TOYOTA MOTOR EUROPE
A personal view :- Potentially “yes” over a mid to long term basis
• Recycling & pollution prevention solutions are advancing – improved methods to handle negative impacts
• Companies show some flexibility in business models
• But it remains unclear if societal behaviour will change dramatically in the short term • But - energy could be the major bottleneck !!
• Supply side challenges
• Climate Change – regulatory reduction in CO2 (fossil fuels) • Shift away from Nuclear power
• Resistance to renewables
• Variation / instability of supply – solar (day only) wind (variable) etc
• Lack of large scale renewable storage / need to strengthen infrastructure • Demand side challenges
• Energy efficiency
• Population increase / Increase in developed economy • Climate change – increased cooling demand
• Direct / Indirect product electrification (Vehicles, Fuel cells, Heat Pumps, Planes) • Net result is likely be :- efficiency improvement < demand increase
So … can there a future for sustainability in manufacturing ?
Chicken & Egg
Toyota Mirai – available in Europe Autumn 2016 Air Liquide Hydrogen Filling Station
An open question to the audience :-
• How will / can your sector or company respond ? • What conditions will be necessary ?
• Supportive regulation and consumer signals • Education and Awareness
• Modify society expectations and behaviours • Global harmonisation and standardisation • Enlightened investors / shareholders
Thank you for your attention
Watch this space …The Lexus Hoverboard is coming ! The Ideal car ?
