Financial Analysis of Toyota Motors and Sustainability Reporting under GRI

Running head: FINANCIAL MANAGEMENT
Financial Management
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FINANCIAL ANALYSIS
Executive Summary
This report takes an honest attempt to analyse various aspect of sustainability reporting under
GRI for the business operations of Toyota Motors. This report takes into account the major
effects of the business operations of Toyota Motors. After that, it shows the compliance of
the company with the disclosure requirement of GRI. The next part compares the
sustainability reports of Toyota Motors and BMW Group. The last part indicates towards the
benefits of sustainability reporting for the investors.

FINANCIAL ANALYSIS
Table of Contents
Part A.........................................................................................................................................4
Introduction............................................................................................................................4
Environmental and Social Impact of Toyota Motor Corporation’s Operations.....................4
Four Key GRI Disclosures.....................................................................................................5
Importance of Global Reporting Standards............................................................................8
Part B........................................................................................................................................10
Part C........................................................................................................................................12
Breakeven Analysis..............................................................................................................12
Memo...................................................................................................................................14
Conclusion................................................................................................................................16
Reference..................................................................................................................................17

FINANCIAL ANALYSIS
Part A
Introduction
In today’s business worlds, it has become mandatory for the business entities around
the globe to disclose all of their activities related to environment and sustainability as the
customers all over the world has become aware of the negative effects of the business
activities on the environment. For this reason, it has become necessary for the companies to
publish their sustainability reports from which the customers can obtain information about the
sustainability activities of the companies. In this context, it is needed to mention about Global
Reporting Initiative (GRI) Standards as it is the first global standards for the purpose of
sustainability reporting. More specifically, ‘GRI-102: General Disclosures’ puts the
obligation on the business organization to disclose all the required information related to the
sustainability reporting of the companies (globalreporting.org, 2018). The main aim of this
report is to conduct an analysis and evaluation of different sustainability reporting related
activities of Toyota Motor Corporation.
Environmental and Social Impact of Toyota Motor Corporation’s Operations
It can be seen from the 2017 Annual Report as well as Sustainability Report of Toyota
Motors that the business operations of the company have some major effects on the
environment as well as the society and they are discussed below:
The first major negative impact of the business operations of Toyota Motors is the
emission of carbon. Carbon emission from the motor vehicles of Toyota Motors has major
negative impact on the environment. Apart from this, another major source of carbon
emission in Toyota Motors is their production facility (Toyota-global.com, 2018). In this
context, it needs to be mentioned that some of the operations of Toyota Motors involve in
massive carbon emission like process of material production and others; and all these