Working Toward the Mobility Society of the Future

Message from the President The Source of Our Value Creation: What Makes Us Toyota Value Creation Story: Working toward the Mobility Society of the Future Business Foundations for Value Creation Corporate Data >Message from the CSO >Roundtable Discussion with the Outside Directors > Dialogue with Institutional Investors on Corporate Governance > Corporate Governance Message from the CFO > Capital Strategy > The Environment > Vehicle Safety > Quality and Information Security > Intellectual Property and Privacy Value Chain Collaboration Human Rights Diversity and Inclusion > Human Resource Development > Health and Safety and Social Contribution Activities > Risk Management and Compliance Human Rights Fundamental Approach Toyota refers to and respects the United Nations Guiding Principles on Business and Human Rights (UNGP) and promotes actions related to human rights based on the UNGP. Seeking the happiness of others than ourselves is a part of Toyota's founding principles and was a driving force that led to the invention of the automatic loom, which can be considered the beginning of Toyota. This spirit and pursuit is still within us today. Under the mission of "producing happi- ness for all," within every country and every region in which we operate, we aim to be the best company in town, one that is both loved and trusted by the people. The automobile industry depends on the support of numerous people, including local communities, business partners (such as suppliers and dealers), and customers. We will continue to protect the human rights of our employees, customers, and all people involved in our business activities and to improve such protections in order to benefit these stakeholders and society. Human Rights Policy > Human Rights Due Diligence*1 To address human rights-related issues through- out the supply chain, Toyota applies the Toyota Supplier Sustainability Guidelines, which specifi- cally state its expectation that its suppliers respect human rights. Working together with suppliers on risk monitoring, countermeasure development, tracking, and remediation, Toyota provides guidance and support to potentially affected stakeholders. Furthermore, we work with NGOs and other external stakeholders to both understand societal expectations and assess our prioritized activities from a third-party perspective. By doing so, we hope to increase transparency and ensure that corporate activities are fair and appropriate. Toyota's Action Taken for Forced Labor of Migrant Workers (Statement on the Modern Slavery Acts) Based on the United Kingdom's Modern Slavery Act 2015 and similar legislation of other coun- tries, Toyota issues statements under the title "Toyota's action taken for Forced Labor of Migrant Workers (Statement on the Modern Slavery Acts)," covering its domestic facilities and aimed at promoting efforts at both domestic and over- seas production facilities. In this statement, we disclose Toyota's commit- ment to the relevant laws and describe measures we have implemented to prevent any instance of modern slavery, including human trafficking, in either our direct operations or supply chain. Toyota's action taken for Forced Labor of Migrant Workers (Statement on Modern Slavery Acts) Addressing Human Rights Issues Related to Foreign Workers: Participating in the Japan Platform for Migrant Workers towards a Responsible and Inclusive Society In 2020, Toyota took part in the establishment of the Japan Platform for Migrant Workers towards a Responsible and Inclusive Society (JP MIRAI), *3 a multi-stakeholder framework for resolving issues faced by migrant workers in Japan. In May 2022, JP MIRAI launched a grievance mechanism on a trial basis for migrant workers with the aim of understanding and resolving issues in a timely manner. This mechanism has the support and cooperation of Toyota. *1 The process of identifying, preventing, and mitigating negative human rights impacts *2 Australia's Modern Slavery Act 2018, etc. *3 JP MIRAI comprises over 400 members, consisting of a variety of stakeholders, such as private companies, local govern- ments, NPOs, academics, and lawyers Japan Platform for Migrant Workers towards Responsible and Inclusive Society Responsible Mineral Sourcing Toyota has formulated its Policies and Approaches to Responsible Mineral Sourcing based on the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-affected and High-risk Areas and strives to prevent such human rights violations as child labor and forced or coerced labor. Policies and Approaches to Responsible Mineral Sourcing ▸ Investigation and Disclosure of the Use of Conflict Minerals (Compliance with the U.S. Dodd-Frank Act) Since 2013, Toyota has been conducting reason- able country-of-origin inquiries throughout its sup- ply chain based on the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-affected and High-risk Areas. We request that the suppliers make cor- rections if there are any errors or omissions in their responses in order to improve the effectiveness of our efforts. In cooperation with the Responsible Minerals Initiative (RMI), Toyota Motor North America (U.S.) takes part in the activities of the Conflict-free Sourcing Working Group and the working group of the Automotive Industry Action Group (AIAG) on conflict minerals originating from the Democratic Republic of Congo. Conflict Minerals Report Responsible Sourcing of Cobalt Cobalt, used in batteries and other products nec- essary for automobile electrification, is an import- ant mineral resource for Toyota. Toyota recognizes that there are concerns associated with the mining of cobalt regarding child labor and other human rights violations and abuses. Toyota has been advancing activities to clarify the supply chain for batteries, in which cobalt is the primary component, using the Cobalt Reporting Template, or CRT, provided by RMI. As of March 2020, we had identified several smelters in our supply chain. Toyota will continue conducting background surveys of smelters and implementing appropriate measures to mitigate any risks identified. Meanwhile, by participating in the activities of the RMI Cobalt Working Group, Toyota Motor North America (U.S.) is encouraging smelters and refiners to acquire related certifications. Education related to Human Rights To promote correct understanding of human- rights issues and non-discrimination and encour- age action toward open and honest communication, we implement the following human rights training for executives, employees, and business partners. Human Rights in General Training for Executives (Toyota Motor Corporation) All employees (Toyota Motor Corporation) Top management and HR employees to be transferred to overseas affiliates (including main suppliers) Purchasing function employees to be transferred to overseas affiliates (Toyota Motor Corporation) Anti-harassment Training for Employees, including executives, supervisors, management, overseas transferees, and new hires (Toyota Motor Corporation) Supervisors (Toyota Motor Corporation) Details • Explanation of international human rights guidelines and associated expectations, the responsibilities required of companies, and recent key human rights issues • Learn about corporate responsibilities and their scope based on international norms using positive and negative examples, thereby helping protect human rights in daily operations • Examples of positive labor-management communications, past labor disputes, and labor-management negotiations as well as the latest trends in human rights, international norms, and regulations Training on building healthy labor-manage- ment relationships at local suppliers, includ- ing human rights issues, to support ordinary purchasing duties at overseas postings Details • Awareness of harassment prevention in various situations FY2022 Results • All senior professionals/senior management and all professionals/ management: Approx. 8,000 employees, 3,000 hours • All assistant managers and all those in lower ranks: Approx. 20,000 employ- ees, 6,500 hours All shop floor employees: Approx. 42,000 employees, 14,000 hours On-line training by psychiatry and psy- chology specialists FY2022 Results • Supervisors: Approx. 12,000 employees TOYOTA MOTOR CORPORATION 49 INTEGRATED REPORT