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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 Message from the CSO Aiming to expand mobility, we are also advanc- ing preparations for Woven City, a living labora- tory for testing new technologies and services. Yumi Otsuka Chief Sustainability Officer Toyota Is Transforming in Pursuit of "Producing Happiness for All" Transforming to Help Realize a Sustainable World With a corporate mission of "producing happi- ness for all," Toyota is advancing novel initia- tives toward the realization of a sustainable world. These initiatives will help Toyota survive the once-in-a-century upheaval taking place in the automotive industry as it transforms into a mobility company. Specifically, we are working to establish a more agile development approach to enhancing overall vehicle performance. To this end, we are further honing our basic sourc- es of competitiveness, such as the Toyota Production System (TPS) for making ever-better cars and cost reductions, and our motorsports- bred cars. In addition, to create a new mobility company business model, we are advancing the development of software and connected technol- ogies, including the Mobility Services Platform and the Arene vehicle software development platform. Human Resource Development is Key The social issues we face today are increasingly complex and serious. As such, the challenges we must take on are broad ranging, from building a mobility society of the future in such areas as car- bon neutrality and mobility for all, to creating of environments that ensure respect for human rights throughout the supply chain and leverage diverse talent, regardless of gender, disability, or age. To advance these initiatives with speed and agility amid drastic change and growing uncer- tainty, developing people with the aspiration and passion to build a better future as well as the skills to make that aspiration a reality will be key. President Toyoda has said that developing human resources with the spirit of working for the sake of others, a spirit that has been handed down since the Group's founding, is essential to be committed to the Sustainability Development Goals. This idea is a pillar of our efforts to pro- mote sustainability in society and within Toyota. Promoting Diversity and Passing on Philosophy, Skills, and Behavior Conveying philosophy, skills, and behavior is essential to human resource development. President Toyoda and top management convey their philosophy through the Toyota Times, Akio Toyoda's Juku (roundtable with employees) and dialogue using other communication tools. Furthermore, we have reaffirmed the position of the TPS as a source of our competitiveness. This has enabled us to advance Kaizen (continuous improvement) at both production sites and other workplaces through the application of the TPS, and the TPS has become a central touchpoint for digital transformation (DX) efforts. To transform into a mobility company, we are also working to secure software talent and promote diversity and inclusion. As a result of these initiatives, all of our employees are gaining a greater awareness of social issues and beginning to proactively take action that extends beyond our conventional fields of activity. Forging Partnerships through Action At the same time, to help realize a sustainable world, we need like-minded partners who share our aspirations. Toyota is strengthening its rela- tionships with suppliers and other existing stake- holders while also working to foster new partnerships across diverse fields, such as energy and connected technologies. For example, we are advancing the technological development of hydrogen engine vehicles, which are still in the early development stages, by entering them in endurance races. Through such partnerships, we have successfully gained a wider range of part- ners with whom to work hand in hand toward car- bon neutrality. Seeing this has taught me first-hand the lesson that action has power to move people. Iwatarii AMING As CSO, I will continue working to strengthen engagement with both internal and external stakeholders while advancing initiatives aimed at helping realize a sustainable world based on the strengths and values that make us Toyota. TOYOTA MOTOR CORPORATION 31 INTEGRATED REPORT
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