Toyota’s Global Impact on the Environment
Toyota is a global automotive industry from Japan that manufactures diverse lineup of vehicles. Toyota is famous as an innovative leader and in its management philosophies as well as the producers of the first mass market hybrid cars in the world (toyota-global.com 2018). As of 2014, Toyota had a market share of 12.19% in the production of cars (statista.com 2018). This makes Toyota one of the largest automaker in the world (Market Realist 2018).
The global impact of emissions from greenhouse gases like carbon dioxide has adverse effects on the environment, increasing the global average temperatures, and further causing massive changes in the environmental patterns. Due to this reductions of carbon emission have been at the forefront of all major environmental assessments and summits. The international carbon action partnership is a global forum that focuses on governments and public authorities to implement policies to reduce carbon emissions (Frerk 2018). Keeping in line with such aims, Toyota also aimed to reduce their carbon emissions to zero by the year 2050 (toyota-global.com 2018). Toyota have already implemented various strategies to minimize the carbon emission at various manufacturing units globally (using solar energy), which can be further improved to ensure better and more efficient harvesting of renewable sources of energy.
Alternative sources of energy source are a significant aspect of consideration of any manufacturing industry. Different types of alternative (non-conventional) sources of energy are possible: namely Solar Energy, Wind Energy, Geothermal Energy, and Hydroelectricity, Biomass energy, Tidal energy and Hydrogen energy. Toyota has made it an organizational policy to move towards more nonconventional and renewable sources of energy from the conventional ones to power their factories and manufacturing units and also reduce their emissions gradually. Solar energy has been utilized by Toyota factories in various locations globally. The Toyota factory in North Wales, utilizes 12,860 solar modules which provides 10% of the annual energy demands of the unit, providing around 3.4 million kWh per year which can be used to produce 22,500 engines (solarpowerportal.co.uk 2018).
Picture 1: Solar energy usage by Toyota at Deeside, North Wales (source: solarpowerportal.co.uk 2018).
In San Antonio plant (USA), Toyota started solar panels for harnessing energy by 2017, generating about 200 kWh of energy, making a savings of approximately $15,000 on electricity bills each year (Chapa 2017). Similarly, in Altona North manufacturing plant in Melbourne (Australia) installed 2000 Kyocera Solar Modules to a 22000 v medium voltage network, making it the largest solar power system in Victoria and third largest in Australia. The system produces 668,460 kWh of energy annually. In addition, the system also helps in the reduction of emissions of carbon dioxide by 668,460 kg (Como 2018).
Toyota’s Policies on Nonconventional and Renewable Energy Sources
The Toyota plant in Kyushu, Japan planned the implementation of hydrogen power of fuel cells to power factory equipments. The hydrogen is produced by the solar electricity, electrolyzing water to make hydrogen. This energy is then used to power forklifts and fuel cell systems, and surplus energy can also be used to power the manufacturing plant. It is estimated that this system can be used to reduce the emissions of C) 2 by up to 50% (Kaneko, 2016).
As of 2015, the total Global Energy Consumption by Toyota industries was estimated at 89.4 x105 joules (petajoules or PJ), thereby spending 8.80 x109 Joules (gigajoules GJ) per unit. The highest consumption is in Japan (45.1 PJ), followed by North America (12.8 PJ). Also, the main sources of energy in the plant are: electricity (37.5 PJ), city gas (26.9 PJ), natural gas (16.0 PJ), LPG (2.3 PJ) and LNG (0.9 PJ). Other sources of energy includes: coke (1.0 PJ), Coal (0.5 PJ), Heavy Oil (1.2 PJ), Diesel oil (0.5 PJ), Kerosine (0.3 PJ), Steam (1.1 PJ), hot water (0.5 PJ), renewable energy (0.3 PJ) and others (0.1 PJ).This is shown by the tables below:
Table 2: Energy consumption of Toyota, globally (source: Toyoda 2016).
Table 3: Types of energy resources used by Toyota (source: Toyoda 2016)
The 2005 audit showed that 27% of the energy consumption of Toyota was in Japan and 30% globally, while 43% was from non consolidated sources. Highest consumption among these was from the manufacturing of engines (33%), consumption by compressors (29%), vehicular consumption (23%), materials handling machinery (10%), textile machinery (2%) and others (3%).
Figure 4: Energy consumption of Toyota (source: Toyoda 2018).
The major pollutants emitted from the various plants of Toyota in Japan includes: CO2, volatile organic compounds, fluorocarbons, and oxides of sulphur. The types of environmental impacts of the various processes in the Japanese manufacturing units of Toyota are shown in the table below:
Figure 5: Emissions are environmental impacts at each process in Japan (source: Toyoda 2018).
This shows that CO2 is a significant and common pollutant from the different processes in the Toyota factories in Japan. Also, the energy consumption report shows a continued reliability on sources of energy like electricity, gas and oil, all of which can have significant carbon footprint and carbon dioxide emissions. The Zero emission challenge of Toyota, have shown significant improvement in the carbon dioxide emissions across various locations over the years. Toyota motor corporations (TMC) were able to reduce the carbon dioxide emissions per unit produced from 0.415 in 2012 to 0.398 in 2016, globally.
Solar Energy Usage by Toyota at Various Manufacturing Units Globally
Figure 6: Trends in Total CO2 Emissions (from Energy Consumption at Stationary Emission Sources) and CO2 Emissions per Unit Produced at TMC (source: toyota-global.com 2018)
Figure 7: Trends in Global CO2 Emissions (from Energy Consumption at Stationary Emission Sources) and CO2 Emissions per Unit Produced (source: toyota-global.com 2018).
The figures (6 and 7) above, shows that Toyota was able to reduce their carbon dioxide emissions globally, however also points out that more can be done to further reduce the carbon dioxide emissions in order to fulfill the ‘zero co2 emissions’ policy.
The specific recommendations that can be utilized to further reduce emissions and increase the usage of non-conventional, renewable and less polluting (non CO2 emitting source of energy). This recommendation will be discussed next:
A. Increasing solar power usage:
The current rate of harnessing solar energy to power equipments in Toyota can be further increased by installing additional solar panels in the manufacturing units. More number of solar panels will help to produce more power, however would require a lot of space for installation. For example, the Tengger Desert Solar park in China has a solar panel field covering 27 sq km of land and produces approximately 850 mW of power (as of 2013) (Philips 2013). The project is estimated to produce up to 2GW of energy upon completion (Clover 2018). The utilization of solar energy can also go beyond the conversion of solar energy to electrical energy using solar cells, and include heating water using the solar energy producing high energy steam as another source of energy. Steam boiler systems integrated with solar energy harnessing system can further reduce emissions of carbon dioxide and improve energy savings. For example, the Bosch steam boiler system can be used for reducing emissions of CO2 by 85% and improve energy savings by 15%. A single unit can provide 2500 kWh of energy using 320 sq m of solar panels to heat 6000 liter of water to 103 degree Celsius (Bosch-industrial.com 2018). Several of such units can be utilized alo0ng with conventional solar panels to allow harnessing of additional energy
B. Using stationary pure hydrogen fuel cells:
This will allow the use of hydrogen as a source of energy using stationary pure hydrogen fuel cells. These cells have an average power output of 3.5kW. This cell combines the solar energy harnessing technology, with storage batteries (toyota-global.com 2018). The solar panels provide power to the fuel cell systems, in which water is electrolyzed to obtain pure hydrogen, which is then stored and later used to provide energy. This system in addition to storage batteries can be used to supplement the total energy demand of the facility (Newsroom.toyota.co.jp 2018). A stationary hydrogen fuel kit consists of a fuel cell, hydrogen safety system, hydrogen storage tank, hydrogen piping system, inverter, AC/DC converter, remote sensing and monitoring system and can be used to power transportation systems (Hydrogen fuel cell kit 2018). Hydrogen fuel cell system of Toshiba, for example can provide 100kW of energy per cell and provide zero carbon electricity as well as hot water, as it does in the island of Honshu, Japan (doi.org 2017).
Hydrogen Power of Fuel Cells for Powering Toyota Manufacturing Equipment
Figure 8: Meeting the energy demand using solar energy, fuel cell and storage batteries. (Source: Newsroom.toyota.co.jp 2018).
A significant challenge exists in the safe storage of pure hydrogen, which is highly combustible. Due to this, different types of storage options can be utilized: like storing compressed gas or storing liquid hydrogen or in solid form by absorption or reaction with metals or chemical compounds (in the form of chemical hydrates and complex chemical hydrates). The costs of storage (in USD) and energy required (per unit volume and weight) are shown in the diagram below:
Figure 9: Storage of hydrogen (source: fsec.ucf.edu 2018).
C. Using Tidal energy
In addition of harnessing solar energy for supplying energy for the plant, tidal energy can also be utilized to further improve the utilization of re3newable source of energy and reducing carbon emissions. In this technique, the energy is derived from the tidal waves of the ocean (Bahaj 2013). This can reduce the carbon dioxide emissions and reduce the use of conventional sources of energy. Toyota manufacturing units which are at close proximity to the sea can significantly utilize this freely available source of energy to supplement the existing energy budget of the organization and also reduce the emission levels further. Tidal energy therefore can be considered as an important renewable, sustainable and predictable source of energy (Nicholls-Lee and Turnock 2018). Moreover, in large turbine farms, short term storage of energy is an inherent property which was studied by Vennell and Adcock (2014). This can be useful in maintaining a high energy throughput from the turbine farms that harnesses the tidal energy.
D. Using Wind energy
Wind energy can be harnessed through windmills that utilize the kinetic energy of the moving blades of the turbine to produce electrical energy, which can be stored later. The offshore wind farms for example in Tokyo, Japan which is estimated to produce up to 10 gigawatt of energy by 2020, which shows the promising future in wind energy harvesting technologies (Tsukimori 2017).
Change in the organization can be implemented using change management theories like the freeze unfreeze model of Kurt Lewin.
The Kurt Lewin’s 3 stage model for change management involves the implementation of a change in an organization in a three step process. These steps include: unfreezing, changing and refreezing.
In the unfreeze state, the need for change is identified by the organization. In the current context, it would be the further reduction of emissions from the Toyota manufacturing units. This step allows the status quo to be discontinued, thereby fostering the implementation of new changes in the operational process. In this stage, existing sources of energy usage will be analyzed, to identify processes which can be supplemented with alternate sources of energy. To do this, the beliefs, attitudes and values of the organization will be scrutinized, to identify the factor which allows the utilization of energy sources with high levels of emission. In this stage, it can be useful to communicate the ‘zero emission’ goals of the organization, which further implies the reduction in current emission levels, and adoption of technologies to ensure zero emissions. This can be made possible through increased utilization of renewable, non-conventional, zero emission based sources of energy. Since Toyota already uses solar energy across various manufacturing units globally, increase in the energy throughput from solar energy can be made possible through the addition of more solar panels installed in the solar energy harvesting units. Moreover, the existing system can also be upgraded to allow solar powered heating of water and solar powered electrolysis of water to produce hydrogen. Both these sources: superheated water and pure hydrogen can provide additional sources of energy with zero carbon emission.
Global Energy Consumption by Toyota in 2015
Steps in the Unfreeze stage:
- Identifying what needs to change (current levels of emission)
- Understanding the current emission levels
- Understanding why emissions needs to change (Zero emission policy)
- Ensuring support from senior management
- Using stakeholder analysis and management to get support
- Create a need for change
- Compelling argument why emissions needs to change (environmental impact and pollution)
- Vision and strategy for change (Zero emissions)
- What actions are required to implement the change
- Understand doubts and concerns related to the change process.
- Employee concerns, doubts to be addressed,
In the Change stage, new behaviors, values and attitudes are developed through organizational restructuring and development techniques. This involves ensuring that the employees are in alignment with the organizational objective of attaining a zero carbon emission level for Toyota. During change, people would tend to believe in the cause of change, and act in ways which will foster the process of change. This stage can involve the following strategies:
- Frequent communication
- During change planning and change implementation
- Outline benefits of the change
- Making it clear who will be benefited by the change and how
- Ensuring the employees are aware of what will happen during the change process
- Addressing notions and rumors
- Addressing any concerns and doubts of the employees honestly and openly
- Promptly addressing any concerns and doubts and preventing any wrong ideas/notions to develop
- Connecting the necessity for change with the operational objectives
- Support Action
- Provide opportunity of the involvement of the employee in the change process
- Ensuring that the management directs the daily activities during the process of change
- Involving people in the change
- Reinforcing change through short term goals
- Interacting and negotiating with key stakeholders.
- Reduction in emissions
- Increasing number of solar panels
- Upgrading solar systems and including solar powered boilers
- Using solar powered hydrogen fuel cells
- Supporting and fostering employee behavior that ensures optimum use and minimal wastage of energy and minimum emissions of pollutants.
In the refreeze stage, the new process created due to the change is finalized and maintained in place. This happens when the organization is able to successfully adapt to the new working process (that is, operating under zero emission standards). This is characterized by stability in the organization charts, and ensuring that all the changes implemented before are used and incorporated to daily operations of the unit. Key strategies in this stage include:
- Attaching the changes to the work culture
- Highlight factors that support the change
- Highlight the barriers to the sustenance of change
- Developing methods for the sustenance of the change
- Continued support from leadership and management
- Implementing reward system
- Implementing feedback system
- Implementing an organization wide plan
- Provide training and support
- Ensuring all employees is aware of the change process and is able to implement necessary practice changes in operations.
- Measuring success
- Ensuring the maintenance of the aim to reduce carbon emissions to zero.
Conclusion
Toyota is one of the largest manufacturers of automobiles, and has a global presence. It is also a market leader in innovation and technology. The organization has been able to show their commitment in the reduction of emissions from their manufacturing units consistently over the years. By 2050, the industry plans to reduce emissions to zero, by utilizing completely renewable and non emission sources. Solar energy is already been implemented to supplement the energy needs at various units, and provisions can be made to increase the energy output. To increase the use of renewable, zero pollution energy, an increase in the solar panel usage can be recommended; along with integration of hydrogen fuel cells and solar powered boilers as well as other sources of energy like wind energy and tidal energy. This change can be implemented organization wide using the Kurt Lewin’s model for change. This involves reducing the current levels of emission through the usage of alternative energy source and also through optimizing its energy use and minimizing wastage. These strategies can help the organization to achieve the zero emission targets in the near future, and further cement the position of Toyota as a global leader in environmental awareness and responsibility, paving way for other organizations and countries to follow.
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