Toyota Releases 2025 North American Environmental Sustainability Report

Rhea-AI Summary

Toyota (NYSE:TM) published its 2025 North American Environmental Sustainability Report on December 3, 2025, summarizing progress across Carbon, Circular Economy, Water and Biodiversity in the U.S., Canada and Mexico.

Key disclosed results include 83% of Toyota and Lexus models offered with an electrified option, a 32% reduction in Scope 1 & 2 GHG vs FY2019, >75% cut in on-site single-use plastics, 15% water consumption decline in FY2025 vs FY2024 (40% vs FY2020), and an added 6,185 acres of pollinator habitat (20,616 acres total since 2022).

Positive

• 83% of Toyota and Lexus models have an electrified option
• 32% reduction in Scope 1 & 2 GHG emissions vs FY2019
• On-site single-use plastics reduced by >75%, meeting five-year target
• Water consumption down 15% in FY2025 vs FY2024 (40% vs FY2020)
• Added 6,185 acres pollinator habitat in FY2025 (20,616 acres since 2022)

Negative

• None.

News Market Reaction

-0.79%

1 alert

-0.79% News Effect

On the day this news was published, TM declined 0.79%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Electrified options: 83% of models GHG reduction: 32% reduction Dealer participation: 114 dealerships +5 more

8 metrics

Electrified options 83% of models Toyota and Lexus models in North America with an electrified option

GHG reduction 32% reduction Scope 1 & 2 operations-related emissions vs FY2019

Dealer participation 114 dealerships Dealers in environmental engagement program by end of FY2025

Dealer power cut 20% reduction Electricity from non-renewable sources at participating dealers

Single-use plastics >75% reduction On-site food service single-use plastics as of FY2025

Water consumption 15% / 40% decrease FY2025 vs FY2024 and FY2020 total water consumption

Pollinator habitat FY2025 6,185 acres Additional pollinator habitat developed in FY2025

Total pollinator habitat 20,616 acres Cumulative pollinator habitat developed since 2022

Market Reality Check

Price: $231.42 Vol: Volume 335,036 is 20% abo...

normal vol

$231.42 Last Close

Volume Volume 335,036 is 20% above the 20-day average of 279,355. normal

Technical Price at $203.56 is trading above the 200-day MA at $188.65 and 3.64% below the 52-week high of $211.24.

Peers on Argus

TM gained 2.26% with above-average volume, while key peers GM (+0.65%), F (+1.83...

TM gained 2.26% with above-average volume, while key peers GM (+0.65%), F (+1.83%), HMC (+0.92%) and STLA (+0.34%) also traded higher; RACE slipped 0.65%, indicating mostly supportive sector sentiment around auto manufacturers.

Common Catalyst One peer, Ferrari (RACE), had same-day corporate finance and partnership headlines, but there is no broad, shared news theme across the auto sector tied specifically to environmental reporting.

Historical Context

5 past events · Latest: Dec 04 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 04	Holiday campaign launch	Positive	+1.4%	Bilingual holiday ad campaign and charity support tied to Toyotathon.
Dec 03	ESG report release	Positive	-0.8%	Publication of Environmental Sustainability Report with progress metrics.
Nov 18	Capacity expansion	Positive	-1.5%	Announced $912M U.S. hybrid production investment and 252 new jobs.
Nov 12	Battery plant launch	Positive	+0.6%	Opened $13.9B North Carolina battery plant with 30 GWh capacity.
Nov 04	Vehicle concept debut	Positive	-0.9%	Revealed Scion 01 side-by-side hybrid off-road concept at SEMA.

Pattern Detected

Recent news has generally been positive, yet price reactions have been modest and sometimes negative, suggesting limited immediate re-rating on strategic or sustainability updates.

Recent Company History

Over the last month, Toyota announced several North American initiatives. On Nov 4, 2025 it unveiled the Scion 01 off-road concept. On Nov 12, 2025 it began production at a new $13.9 billion U.S. battery plant, followed by a $912 million hybrid-production investment on Nov 18, 2025. On Dec 3, 2025 it released this Environmental Sustainability Report, and on Dec 4, 2025 launched a holiday marketing campaign. Price moves around these events stayed relatively modest, reflecting incremental rather than transformational news flow.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-06-20

Toyota has an effective automatic shelf registration on Form F-3ASR dated 2025-06-20, allowing issuance of senior debt securities over time. The shelf runs until 2028-06-20 and has been used at least 2 times, including sustainability bond-related prospectus supplements in June 2025.

Market Pulse Summary

This announcement centers on Toyota’s 2025 North American Environmental Sustainability Report, highl...

Analysis

This announcement centers on Toyota’s 2025 North American Environmental Sustainability Report, highlighting an 83% electrified model mix and a 32% reduction in Scope 1 & 2 GHG emissions versus FY2019. It also notes substantial cuts in single-use plastics, lower water consumption, and expanded pollinator habitat. Recent sustainability bond offerings and an effective F-3ASR shelf show financing support for these initiatives. Investors watching this theme may track future emissions, water, and circular-economy metrics.

Key Terms

scope 1 & 2, greenhouse gas (ghg) emissions, circular economy, global reporting initiative (gri), +4 more

8 terms

scope 1 & 2 technical

"32% reduction in Scope 1 & 2 (operations-related) greenhouse gas (GHG) emissions"

Scope 1 and Scope 2 are categories of a company's greenhouse gas emissions: Scope 1 covers direct emissions from sources the company owns or controls (like fuel burned in company vehicles or onsite boilers), while Scope 2 covers indirect emissions from purchased electricity, steam, heating or cooling. Investors care because these measurements reveal where a company can most easily cut emissions, reduce energy costs, and manage regulatory, operational and reputational risks—think of Scope 1 as your own car’s tailpipe and Scope 2 as the electricity bill from the power plant.

greenhouse gas (ghg) emissions technical

"32% reduction in Scope 1 & 2 (operations-related) greenhouse gas (GHG) emissions vs. FY2019."

Greenhouse gas (GHG) emissions are gases released into the atmosphere—most commonly carbon dioxide, methane and nitrous oxide—that trap heat and raise global temperatures, like a blanket warming the planet. Investors watch GHG emissions because they influence regulatory costs, physical climate risks, insurance and supply-chain stability, and public reputation; companies with lower emissions may face fewer future expenses and attract more capital, while higher emissions can lead to fines, disruption or divestment.

circular economy technical

"The Report outlines Toyota's environmental strategy... in its four priority areas—Carbon, Circular Economy, Water and Biodiversity."

A circular economy is a way of designing and using products so that materials are reused, repaired, or recycled rather than discarded as waste. It mimics natural systems where resources are continually reused, reducing environmental impact and conserving resources. For investors, it represents an opportunity to support sustainable businesses that focus on efficiency and long-term resource management.

global reporting initiative (gri) regulatory

"includes a Global Reporting Initiative (GRI) context index with disclosures aligned with GRI standards."

A widely used set of guidelines for how organizations report their environmental, social and governance performance, the Global Reporting Initiative (GRI) gives a common “recipe” for describing impacts such as emissions, labor practices and community relations. For investors it matters because consistent, comparable reporting makes it easier to assess long-term risks and opportunities that aren’t visible in financial statements alone — like pollution liability, supply-chain problems, or reputation exposure.

pollinator habitat technical

"An added 6,185 acres of pollinator habitat were developed in FY2025 through collaboration with Pollinator Partnership (P2)..."

Pollinator habitat is land or planting managed to provide food, shelter and nesting sites for insects and animals that carry pollen, such as bees, butterflies and certain birds. For investors it matters because healthy pollinators support crop yields and supply chains, reduce risks from declining biodiversity, can affect regulatory compliance and access to sustainability-minded markets, and often improves a company’s environmental credentials much like maintaining a healthy supply line supports production.

wildlife habitat council (whc) conservation certification regulatory

"Conservation programs at 17 of our sites covering over 640 acres have achieved Wildlife Habitat Council (WHC) Conservation Certification..."

A Wildlife Habitat Council (WHC) Conservation Certification is a third‑party endorsement that a company’s land stewardship or conservation program meets recognized standards for protecting and restoring wildlife and habitat. For investors, it acts like a visible seal of responsible environmental management—helping reduce regulatory and operational risks, enhance reputation and community relations, and contribute to stronger environmental, social and governance (ESG) credentials that can influence long‑term value.

integrated biodiversity assessment (ibat) tool technical

"Top 10 facilities with high overall biodiversity significance scores were identified using the Integrated Biodiversity Assessment (IBAT) tool."

A tool that brings together global data on species, protected areas and ecosystems to show where biodiversity is most at risk and how a specific location or project overlaps with those risks. Investors use it like a weather map for nature: to spot environmental exposure that could threaten assets, operations or legal standing, guide due diligence, and design mitigation steps that protect value and reputation.

nature-positive activities technical

"This plan focuses on three critical areas... and participating in nature-positive activities."

Nature-positive activities are actions a business takes to protect, restore or enhance natural systems so they leave the environment in better shape than before, such as planting native habitat, reducing harmful land use, or improving water quality. Investors care because these efforts can reduce regulatory and supply-chain risks, improve long-term resource resilience and reputation, and create value the way a gardener’s care increases a yard’s health and productivity over time.

AI-generated analysis. Not financial advice.

• Highlights Investment in Multi-Pathway Approach to Work Toward Carbon Neutrality Goal
• Details on Upstream and Downstream Approach in Four Focus Areas
• Near- and Mid-Term Milestones to Advance Toyota's Environmental Challenge 2050

PLANO, Texas, Dec. 3, 2025 /PRNewswire/ -- Toyota Motor North America announces the publication of its 2025 North American Environmental Sustainability Report (the "Report"), an annual report highlighting company initiatives across the United States, Canada, and Mexico.

"In North America, we focus on creating a positive impact on both society and the planet," said Tim Hilgeman, senior director of environmental sustainability, Toyota Motor North America. "During fiscal year 2025, Toyota celebrated many environmental achievements, including key targets set in the reduction of single-use plastics and increased dealer participation in sustainability programs. We are looking forward to the continued momentum on the targets set for each of the environmental focus areas."

The Report outlines Toyota's environmental strategy, while highlighting the company's advancements in its four priority areas—Carbon, Circular Economy, Water and Biodiversity. The Report also presents data in an organized environmental metrics table and includes a Global Reporting Initiative (GRI) context index with disclosures aligned with GRI standards.

Highlights found in this year's Report include:

Carbon

• 83% of Toyota and Lexus models available for purchase or lease in North America now have an electrified option, and more are on the way. Explore Toyota's electrified lineup here.
• 32% reduction in Scope 1 & 2 (operations-related) greenhouse gas (GHG) emissions vs. FY2019.
• At the end of FY2025, 114 dealerships participated in our dealer engagement program which helps dealers improve their environmental performance. Through the end of the fiscal year, participating dealers have reduced their use of electricity from non-renewable sources by 20%.

Circular Economy

• Reduced single-use plastics at on-site food service by over 75% as of FY2025, meaning the five-year target has been met.
• Reduced the use of single-use packaging materials by almost 31% compared to FY2018, which is above the five-year target of 25%.
• See our story, What Goes Around, Comes Around: How Recycled Aluminum Plays a Key Role at Toyota, for an example of how Toyota recycles.

Water

• Achieved a 6.7% decrease in the current year for the number of gallons of water withdrawn per vehicle manufactured when compared to FY2021.
• Water consumption decreased 15% in FY2025 compared to FY2024, and 40% compared to FY2020.
• To learn more about saving fresh water and protecting water ecosystems, visit our Commitment to Water Stewardship.

Biodiversity

• An added 6,185 acres of pollinator habitat were developed in FY2025 through collaboration with Pollinator Partnership (P2) and the National Environmental Education Foundation (NEEF). This brings the total number of acres to 20,616 since 2022. For more information, see our story on Toyota's Commitment to Enhancing Pollinator Habitat.
• Conservation programs at 17 of our sites covering over 640 acres have achieved Wildlife Habitat Council (WHC) Conservation Certification, a voluntary certification standard.
• Top 10 facilities with high overall biodiversity significance scores were identified using the Integrated Biodiversity Assessment (IBAT) tool.

To stay informed about the progress of ongoing projects and for real-time updates or feature stories, visit Toyota's Environment Sustainability website. The site offers a comprehensive view of agreements, announcements, and initiatives, highlighting the dynamic nature of Toyota's environmental sustainability journey.

LOOKING AHEAD
Toyota remains deeply committed to its global vision of sustainability and continues to pursue initiatives with the mindset to reduce our environmental footprint while creating a positive impact on both society and the planet.

"Toyota has an unwavering commitment to sustainability," said Sandra Phillips, chief sustainability officer, Toyota Motor North America. "This includes the great progress embodied in our latest Environmental Report, and more broadly how we develop our people, invest in our communities, and create accessible products for our customers."

Building on the foundation laid in previous years, our North American team has worked closely across divisions to develop targets for our 8^th Environmental Action Plan which goes into action during fiscal year 2027. This plan focuses on three critical areas: striving to achieve carbon neutrality by 2050, contributing to the establishment of a circular economy, and participating in nature-positive activities.

To view the complete Report, visit Toyota's Environmental Sustainability Website.

About Toyota

Toyota (NYSE:TM) has been a part of the cultural fabric in North America for nearly 70 years, and is committed to advancing sustainable, next-generation mobility through our Toyota and Lexus brands, plus our more than 1,800 dealerships.

Toyota directly employs nearly 64,000 people in North America who have contributed to the design, engineering, and assembly of nearly 49 million cars and trucks at our 14 manufacturing plants. In 2025, Toyota's plant in North Carolina began to assemble automotive batteries for electrified vehicles.

For more information about Toyota, visit www.ToyotaNewsroom.com.

Media Contacts:
Amanda Roark
amanda.roark@toyota.com

Olivia Boisineau-Beckett
olivia.boisineau-beckett@toyota.com

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/toyota-releases-2025-north-american-environmental-sustainability-report-302631273.html

SOURCE Toyota Motor North America

FAQ

What carbon progress did Toyota (TM) report in the 2025 North American sustainability report?

Toyota reported a 32% reduction in Scope 1 & 2 GHG emissions versus FY2019 and 83% of models with electrified options.

How much did Toyota reduce single-use plastics in FY2025 according to the 2025 report (TM)?

Toyota reduced on-site food-service single-use plastics by more than 75%, meeting its five-year target.

What water-use improvements did Toyota (TM) disclose in the 2025 North American report?

The report shows water consumption decreased 15% in FY2025 versus FY2024 and 40% versus FY2020; gallons withdrawn per vehicle fell 6.7% vs FY2021.

How much pollinator habitat did Toyota add in FY2025 according to the 2025 report (TM)?

Toyota added 6,185 acres of pollinator habitat in FY2025, bringing the total to 20,616 acres since 2022.

How many dealerships participate in Toyota's environmental dealer program as of FY2025 (TM)?

At the end of FY2025, 114 dealerships participated in the dealer engagement program, reducing non-renewable electricity use by 20% among participants.

Does the 2025 North American sustainability report mention Toyota production of EV batteries in 2025 (TM)?

Yes — the report notes Toyota's plant in North Carolina began assembling automotive batteries for electrified vehicles in 2025.