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CALIFORNIA VOLUNTARY CARBON MARKET DISCLOSURES ACT
Toyota Motor North America, Inc. (“TMNA”) provides the following disclosure in compliance with Section 44475 of the California Health and Safety Code, as added by California Assembly Bill 1305, referred to as the Voluntary Carbon Market Disclosures Act. This information relates to statements made or activities undertaken by TMNA as of December 2025. TMNA is a wholly owned subsidiary of Toyota Motor Corporation (“TMC”) (collectively, including affiliates “Toyota”).
In North America, TMNA, Toyota Motor Manufacturing Canada Inc. (“TMMC”) and Toyota Canada Inc. (“TCI”) (together “Toyota North America”) have been producing an annual regional environmental report covering activities in the United States, Canada, and Mexico since 2002. The Toyota North American Environmental Sustainability Report (“NAESR”) is prepared with reference to the Global Reporting Initiative Sustainability Reporting Standards. The NAESR features information about TMNA’s environmental sustainability strategy, targets, and performance. TMNA’s measurements of progress toward its carbon reduction goals are updated in the most recent NAESR, which are included in this disclosure.
TMNA’s claims related to California’s Voluntary Carbon Market Disclosures Act are primarily found in the NAESR. Additionally, claims can also be found on TMNA’s environmental sustainability website and in certain Newsroom press releases or feature stories.
TNMA does not sell, market, or use voluntary carbon offsets covered by the Voluntary Carbon Market Disclosures Act. For purposes of Section 44475.2 of AB 1305 regarding carbon reduction claims, TMNA discloses the following:
Toyota Motor North America Disclosure Pursuant to Section 44475.2 of AB 1305
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Claim |
Progress measurement (Section 44475.2(a)) |
Documentation (Section 44475.2(a)) |
Independent third-party verification (Section 22275.2(b)) |
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Reduce global average GHG emissions from new vehicles by 33.3% by 2030 and by more than 50% by 2035, compared to 2019 levels.
2025 NAESR, p. 10 |
GHG emissions per mile from TMNA’s new vehicles have decreased 21% since 2019.
GHG emissions per mile from TCI’s new car fleet have decreased 31% and 32% from the new truck fleet since 2019.
2025 NAESR, p. 10 |
Measurements of GHG emissions are required to certify vehicles for sale and are reported to regulatory authorities. GHG emissions per mile are reported to regulatory authorities to meet compliance requirements.
Vehicle GHG emissions are compared against a baseline to measure TMNA’s contribution to Toyota’s global target. |
The individual progress measurements are not independently verified. |
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Reduce absolute Scope 1 and 2 GHG emissions by 68% by 2035, compared to 2019 levels.
2025 NAESR, p. 10, 21 |
In North America, total Scope 1 and 2 CO2 emissions (combined) were 32% lower at the end of FY2025 than they were in FY2019. We continue to invest in renewable energy for our operations and are on track to becoming carbon neutral at our facilities by 2035.
2025 NAESR, p. 10
In North America, our Scope 1 and 2 emissions (combined) in FY2025 were 32% less than in FY2019. This is due to GHG efficiency measures, installation of more renewable energy onsite, and increases in renewable electricity purchases, which includes the purchase of RECs from the market.
2025 NAESR, p. 21 |
TMNA measures or estimates energy consumption, then calculates Scope 1 and 2 emissions for North America (including Canada and Mexico).
Scope 1 and Scope 2 emissions are then compared against a baseline to measure TMNA’s contribution to Toyota’s global target. |
The individual progress measurements are not independently verified. |
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Increase purchased renewable electricity to 45% or more of total electricity purchased by FY2026.
2025 NAESR, p. 11, 18
TMNA aims to use 100% renewable electricity at our North American plants, offices, and other facilities by 2035. This is part of our larger commitment to make all facilities carbon neutral by 2035.
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Currently at 35%. This includes the purchase of RECs from the market. We are on track to achieve at least 45% by the end of FY2026 as more virtual power purchase agreements and other renewable electricity contracts come online. This target supports the mid-term milestone for all Toyota North America facilities to be carbon neutral by 2035.
2025 NAESR, p. 11, 18 |
TMNA’s renewable electricity target is based on either generating more on-site renewable electricity or matching grid electricity with RECs, such as through utility contracts or virtual power purchase agreements.
TMNA tracks the amount of renewable electricity purchased for North American operations. To meet the renewable electricity target, TMNA is taking a variety of actions, including installing additional on-site solar arrays and investing in virtual power purchase agreements (VPPAs). TMNA has signed contracts for VPPAs and other renewable energy projects and is confident the target is achievable. |
The individual progress measurements are not independently verified. |
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As of the end of FY2025, 114 dealerships have participated in the Dealer Environmental Excellence Program and have reduced their use of electricity generated from nonrenewable sources by 20%.
2025 NAESR, p. 10, 22 |
Not applicable |
Based on data reported to TMNA by participating dealerships. |
The data reported by participating dealerships are not independently verified. |
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We aim to be carbon neutral at all our North American facilities by 2035 and across the vehicle life cycle no later than 2050.
2025 NAESR, p. 18
Achieve carbon neutrality at all North American facilities by 2035.
2025 NAESR, p. 21
We aim to make all of our North American facilities carbon neutral by 2035.
https://www.toyota.com/usa/environmentalsustainability/carbon
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Toyota North America defines carbon neutrality to apply to all our facilities, not just manufacturing plants. Total Scope 1 and 2 CO2 emissions (combined) were 32% less in FY2025 than in FY2019. This is due to GHG efficiency measures, installation of more renewable energy onsite, and increases in renewable electricity purchases, which includes the purchase of RECs from the market.
2025 NAESR, p. 21
We continue to invest in renewable energy for our operations and are on track to becoming carbon neutral at our facilities by 2035.
2025 NAESR, p. 10 |
TMNA tracks energy consumption and uses this data to calculate Scope 1 and Scope 2 GHG emissions.
TMNA tracks the amount of renewable electricity purchased for North American operations. To meet the renewable electricity target, TMNA is installing additional on-site solar arrays and investing in virtual power purchase agreements (VPPAs), among other things. TMNA has signed contracts for VPPAs and other renewable energy projects and is confident the target is achievable. |
The individual progress measurements are not independently verified. |
Revised as of December 2025
** Disclaimer This disclosure, including the reports referred to in this disclosure, contain forward-looking statements regarding the expectations, forecasts, targets, and plans of TMNA. These forward-looking statements are based on information currently available to TMNA and are stated in this disclosure based on the outlook at the time that the reports referred to in this disclosure were produced. These forward-looking statements contain certain assumptions that are subjective and may prove to be incorrect. Should any underlying assumption prove to be incorrect, actual results in the future may vary materially from some of the forward-looking statements in this disclosure. TMNA has no obligation or intent to update any forward-looking statements contained in this disclosure or the documents referred to in this disclosure, except to the extent required by law.
