Transcript New Coordinator Training

Environmental Pragmatism:
The Key to “Moving Forward”
Bob Wade
Corporate Manager
Environmental, Hazmat & Safety
Presentation Overview
1. Continuing regulatory, political and public
pressures to reduce emissions and carbon
footprint
2. Toyota’s environmental program – going
beyond compliance
3. How to “Move Forward” and achieve results in
today’s reality
Public Opinion Context
Continuing public concern and
pressure to address global
climate change . . .
despite lack of
major progress
at Copenhagen.
Personal Stakes are High
Regulatory Context
• Continued focus at the Federal and state levels on
addressing emissions and GHG reductions
• EPA decision to grant California waiver for GHG emission
standards for motor vehicles . . . soon 2016 and beyond
• Possible Federal climate change legislation
• CARB diesel emission reduction programs, spanning:
– On-road vehicles (trucks, buses, etc.)
– Off-road vehicles and equipment (locomotives, tractors,
cargo handling equipment, etc.)
– Marine vessels (harbor craft, ocean vessels, shore power)
– Stationary engines & portable equipment
Toyota Environmental Program
Toyota’s Global Earth Charter
TMS Environmental
Policy
Toyota’s Global 5 Year
Environmental Action Plan
TMS Environmental Action Plan
North American Environmental Report
Global Environmental Report
TMS Environmental Action Plan
Environmental Action Plan
1. Energy & Climate Change
2. Recycling & Reduce Resources
• Set goals & targets
• Report annual results
2009 NA Report Results
3. Substances of Concern
• Exceeded CAFE
4. Air Quality
• 25% less energy use - TMS
5. Environmental Management
• 90% recycling rate at TLS
6. Cooperation with Society
• Logistics GHG reduction
Today’s Challenge
How do we achieve further environmental gains
in today’s regulatory and economic climate
- and –
at the same time, avoid undue burden and cost
impacts on shipping?
Answer
“Environmental Pragmatism”
“Environmental Pragmatism”
Recipe
“Short-Term Small” + “Long-Term
Large” + Common Sense
“Short-Term Small”
• Identify small investments and process
changes that have short-term ROI and achieve
environmental goals
• String them together to maximize return
Example #1 – Fuel Efficiency
Initiative
A cross-affiliate team from service parts,
completed vehicle logistics and manufacturing
parts logistics developed some 19 separate
initiatives to reduce fuel costs
Annualized Savings = $2.76M + GHG & Emissions Reductions
Toyota Transport
TQPE
TEMA
• Post MPG
• 18 trailers w/skirts
• Governed Speed
• Driver Incentive (Post
MPG)
• Governed Speed
• 2 trailers w/skirts
• 2 trailers w/Nose cone
• MPG target for fuel
surcharge calculation
(6.3 mpg  6.53 in
FY10)
$274,658
$ 188,764
$2.3M
Toyota Transport - Governed Speed
Speed reduction of 5mph
68mph to 63 mph
Unit cost:
$15 – labor
Launch date:
July 08
MPG gain:
2.97%
ROI:
< 1 week
Savings/Yr.:
$1,258/truck
44 trucks:
$55,352/yr.
Service Parts - Driver Incentive
Driver Incentive Program
.5mpg Increase
Unit cost:
$7,000 max
Launch date:
April 09
MPG gain:
.575mpg Q2
ROI:
2 weeks
Savings/Yr.:
$138K/yr.
Example #2 – Service Parts
Truck Efficiency Kaizen
• Through route kaizen &
increased cube
efficiency, TMS reduced
miles traveled to deliver
service parts and
accessories by 2.5M
miles over the previous
year.
“Long-Term Large”
• Patient investment – facilities, equipment and
process changes
• Longer-term plans and expectations
• No instant ROI – but perhaps greater longterm return
Energy Use – U.S. Sales &
Distribution
90,000
80,000
25%
70,000
60,000
BTU/Square
Foot
Energy
Savings
50,000
40,000
30,000
20,000
10,000
0
FY01
FY05
FY06
FY07
FY08
FY09
“Long-Term Large”
NAPCC Rooftop Solar
“Long-Term Large” Benefits
NAPCC Rooftop Solar
• 2.3 megawatt solar roof
array – second largest in
North America
• No upfront capital costs
• Generates 58% of NAPCC
electricity requirements
• Prevents 2.4 million
pounds of CO2 annually
• Annual utility cost savings
of $360K annually
Application to Port Operations
• Led by the Ports of LA and
Long Beach – greater
emphasis on environment
• Some requirements – like
cold-ironing, stack sock,
vessel retrofits – are very
costly and sometimes
impractical
• There may well be better,
more practical and more
cost-effective solutions!!
Conclusion
• These are challenging times on the economic and
regulatory fronts
• The key to “Moving Forward” in achieving
environmental goals without creating undue financial
burdens on shipping will require . . .
“Environmental Pragmatism”
“Short-Term Small” + “Long-Term Large” +
Common Sense