Environmental Management System (EMS) Report: Toyota Corporation

This report provides a detailed analysis of Environmental Reporting and Management Systems (EMS) with a focus on Toyota Motor Corp. It begins by defining EMS and outlining the benefits of implementing such a system, including improved regulatory compliance, resource efficiency, enhanced brand image, and increased investment opportunities. The report then conducts a PESTLE analysis to identify the political, economic, social, technological, legal, and environmental factors impacting Toyota's operations, as well as the risks and opportunities that can be managed through EMS implementation. The report also addresses the integration of legal and other requirements into the EMS, followed by a discussion of social, political, and economic trends affecting the automotive industry and their incorporation into the EMS. Furthermore, the report explores potential barriers to EMS implementation and concludes by highlighting the most important elements of an effective EMS.

Environmental Reporting and
Management Systems

Table of Contents
INTRODUCTION...........................................................................................................................5
What benefits will the organisation receive if they implement a formal externally audited
Environmental Management System?.........................................................................................5
Consider what external (PESTLE) factors are most likely to have an impact now and in the
future of the company’s operations? Can you identify risks and opportunities that will be best
managed with the implementation of an EMS?...........................................................................6
How will the organisation integrate its legal and other requirements in the implementation of
the EMS?.....................................................................................................................................6
What social political and economic trends affect the company chosen and/or their sector? How
will these be incorporated into the EMS?....................................................................................7
What barriers might the organisation face in implementation?...................................................9
What do you think is the most important element of an EMS and why?....................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Environmental management system refers to a system of databases which integrates the
process and procedure in order to train up personnel, monitor them, summarise and report their
performance specialised to the effect on environmental factors. These details can be taken from
internal as well as external stakeholders of a firm. This management system is information
technology which can bring solutions to track the problems related to environmental data. The
basic goal of this management system is to maintain all the legal proceedings and requirements
which are to be complied by a company so that they do not face any government intervention.
Waste reduction is another compliance with every company needs to follow and the
environmental management system is also focusing on waste management. The following report
is carried on Toyota motor Corp. It is a Japanese multinational company manufacturing auto
mobile vehicles. It was set up in Japan in 1937. The company now operates worldwide. It is a
global leader in manufacturing hybrid electric vehicles and also have a mass market throughout
the globe. It has a total of 606 listed subsidiaries. In the following report various benefits of how
organisation my temperament environmental management system internally and externally on
their organisation is mentioned (Mazzi, and et.al.., 2016). Various analysis suggest PESTLE
analysis is conducted on how will environmental management system affect the future of
company. Other than this all the requirements which are necessary to implement the system on
an organisation also discussed. There are a number of social, political and economic trends
which will affect this chosen industry for incorporating environmental management system in it.
Company will also have to face a number of barriers to implement this on their organisation
which are mentioned in the following report. At the end of the report all the important elements
of EMS are mentioned.
What benefits will the organisation receive if they implement a formal externally audited
Environmental Management System?
Environmental management system (EMS) can be defined as system that is used to
monitor environmental data for the organisation. The main feature of this system is to improve
environmental performance and design operational process in such manner so that pollution
control can be done. Advantage of using this application for Toyota is described as below:

 One of the major benefit that Toyota receive by implementing this EMS system is it can
become able to manage regulatory compliances in better manner. Use of this system
always support in knowing responsibility towards environment hence company can make
changes in operations if its operations are causing harm to atmosphere. Hence regulatory
compliances can be managed effectively.
 AS implementation of EMS is done with proper supervision, as company needs to follow
proper policies and procedure hence it is beneficial for Toyota in utilising resources in
most effective manner. This helps in eliminating wastage of resources hence it aids
Toyota in reducing its resource cost to great extent.
Use of externally audited EMS system gives amazing benefit to organisation as entity can
promote its brand greatly. Business credentials can be highlighted significantly. By this way
Toyota can make its buyers aware with kits operational process. This will show how committed
firm is towards fulfilling its corporate social responsibilities (de Oliveira Neves, Salgado, and
Beijo, 2017). Hence entity can market this brand through advertisements and through its annual
reporting system. This will improve brand image of organisation and will attract more investors
towards the brand.
 Use of externally audited environmental management system is used by limited firms
only. It requires changes in exiting process and policies which is not easy to implement
for every firm. Hence companies such as Toyota can get more financing opportunities by
using this EMS system. This will increase its investments from banks as banks like to
give funds to business because it is putting great efforts towards environmental protection
(Set up an environmental management system (EMS), 2020).
 EMS implementation gives opportunities to Toyota to raise its sales and revenues. Most
of the corporate houses and consumers like to buy services of company that has effective
EMS system.
 Each company which is using this EMS system gets certification from ISO which raise
creditability of Toyota and also can meet expectation of stakeholders. This will enhance
recognition of business unit in market and enterprise can be able to gain competitive
advantage as well.
 Implementation of audited EMS system encourage workforce, as they feel that they are
working with well established firm hence they will be more focus about legality and

norms. By this way Toyota can be able to encourage its staff members and will be able to
retain knowledgeable employees in firm for longer duration.
 EMS will reduce risk of legality as firm which is using audited EMS system and showing
their efforts towards environmental protection gets benefit of less visits of environment
audit team. Apart from this, it has to pay less fees to environmental regulators hence
lighter regulations is another benefit that firm can receive from it.
Consider what external (PESTLE) factors are most likely to have an impact now and in the
future of the company’s operations? Can you identify risks and opportunities that will be
best managed with the implementation of an EMS?
PESTLE analysis is an analysis is used by marketers to analyse the macro environment or
the external environment of an organisation. With the help of this all the external effects on
businesses through a number of factors can be assumed and various strategies can be made by
business in order to overcome the changes or threats it might have to face in future. This stands
for political, economic, social, technological, legal and environmental factors in external
environment of a business affecting the business directly or indirectly. This analysis on Toyota
on how environmental management system might impact it in future and present along with risks
and opportunities are mentioned below:
Political factors: Toyota is subjected to a number of political conditions. It is necessary that
company maintains political stability in the markets of all the countries where it has its business.
Company needs free trade agreement to move freely in a number of countries and penetrate in
their nations. When considering the implementation of EMS in Toyota the political issues might
include the changes in tax, the influence from a number of NGOs, unions and other external
bodies on the company (Massoud, and et.al, 2017). It is also necessary for Toyota to make sure
that they need to focus on changes in governmental policies so that no external political factors
can have negative influence on implementation of EMS in the company.
Social factors: The social factors which company is facing includes the increase in interest of
hybrid cars by the customer which is a great opportunity for the company. Also the increase in
demand for electric cars and raising interest of customers in this sector will be great opportunity

for company. The threat which social environment have brought for company includes the
widening of wealth gap. The implementation of EMS will have to face the changes in climate of
society, the media exposure, engagement from staff and employees of organisation and societal
pressure towards cultural trends.
Economic factors: There are a number of economic trend which will have a great impact on
Toyota’s organisational development. The major economic factors which will affect Toyota are
the weakening of Yen versus dollar, the gradual growth in the economy of United States and
Japan, growth in all the companies which are its competitors as well as development in
economies of developing countries. When taking implementation of EMS in Toyota the
economic issues which company might have to deal with regarding this management system are
the cost related to implementation of this management system. There will be a number of budget
changes and requirement of funds by the company during this implementation which are
required to be taken care of. Other than this energy cost, changes to taxes, economic climate and
so on are various economic factors which will influence company while implementation of EMS.
Technological factors: there are a number of technological factors present in external
environment of Toyota which have positive as well as negative effect for the company some of
them include the rising use of e-commerce which is a great opportunity for company. The
trending mobile technology have also proved to be an opportunity for company. Along with all
this technological growth the amount of cybercrime is also increasing which might prove to be a
threat for Toyota. The technological factors which will impact the implementation of EMS on
Toyota includes the implementation of new technologies, drawbacks in the already existing
infrastructure of company, the cost related to this technology and the funding available for the
technology is to be brought in company through environmental management system.
Legal factors: The legal intellectual property laws are a great opportunity for company to make
sure that the development in the relations are not copied by any of their competitors. Other than
this there are a number of complex consumer laws and environmental laws which company
needs to follow and following this they can build brand image in the minds of customers
(Yilmaz, Kara, and Yetis, 2017). Legally there are a number of factors which Toyota needs to
consider while implementing EMS. This include staff knowledge, communication,
accountability, responsibility and all the operational changes required to implement this

management system. Along with this the enforcement of this law and cost of compliance for this
system will also be included in legal factors affecting implementation of EMS on Toyota.
Environmental factors: when talking about ecological or environmental factors which have an
effect on the environment and function of Toyota the changes in climate are a major factor. It is
also seen that the global oil reserves are declining which have created an opportunity for Toyota
to work on electric cars which do not need such all reserves. Environmental factors also
emphasis on sustainable development of company which is a great opportunity for Toyota. When
considering implementation of EMS on Toyota it is seen that the climatic changes, availability of
resources, available infrastructure with company and location of the company as some of the
environmental factors which might have a negative effect on implementation of environment
management system in Toyota.
How will the organisation integrate its legal and other requirements in the implementation of the
EMS?
Legal requirements include:
• Federal requirements • State or local requirements • Permit conditions Other requirements
might include ( for example): • Company-specific codes • Standards in locations where you sell
products • International Chamber of Commerce (ICC) Charter for Sustainable Development
(Ejdys, Matuszak-Flejszman, and et.al. , 2016) • Chemical Manufacturers Association’s (CMA)
Responsible Care • American Petroleum Institute’s Strategies for Today’s Environmental
Partnership (API STEP)
What social political and economic trends affect the company chosen and/or their sector? How
will these be incorporated into the EMS?
The automobile industry is one of the oldest industries that providing services within market
there are various environmental ramifications of the automobile industry. Any organisation
which is providing vehicles and automobiles has to analyse the profitability of producing the
product in market. There are various political trends within the automotive industry on which the
company decides about the environmental management system. It is concluded that it is very
important for the company to manage the working of the company by analysing the political

factors (Kouziokas, 2016). Some of the political factors which affect the automotive industry are
mentioned below –
Safety regulations - motor vehicles and four wheelers can be dangerous to life of people. There
are various people who think that travelling through Airways is dangerous but it is also show a
harsh truth that riding a car or motor vehicle can also be dangerous. Because of this condition,
government of different countries have enforce strict safety regulations for the automotive
industry. The automotive industry has to obey these regulations and they have to built
requirements like seatbelts for ensuring safety of the passenger. The automotive company like
Toyota is also advised to work more upon wheels of cars because it provides safety and in this
way and value is also maintained.
EMMISSION policies - there are various politicians who take lot of interest in environmental
consequences of motor vehicles. There are all motorcycles, cars and passes which are powered
by fossil fuels like diesel or petrol and these are involved in producing a lot of environmental
pollutants. The motor vehicles are major concern for the government as this produce carbon
emission which means they produce carbon dioxide within environment. For controlling this
problem, government has showed great interest and evaluated emission statistics of new as well
as existing vehicles (Tasleem, Khan, and Nisar, 2018). This is a regulatory hoop for the
automotive manufacturers. It is important for the government that they are managing the
emission problems in effective manner and working properly.
All these factors of political trends affect the environmental management system. It is seen that
the automobile industry has to analyse the political trends mentioned above before
implementing any e new environmental management system. This is concluded that for a
company like Toyota it is very essential to build a good brand value by offering quality vehicles
and they should have environmental management system policy.
There are some economic trends automotive industry. It is very important for all the
organisations that work is managed properly so that there are no consequences of doing a
business in country and affecting the economic trends. It is very important for the organisation
to analyse the working of all the business operations and activities which are in contribution of
environmental efficiency and management. Some of the economic factors that are affecting the
automotive industry are mentioned below –

Growing disposable income – nowadays, people have an objective of earning a lot of money.
They want that every year the income they are earning must increase. Due to this, they will be
able to spend lot of money on buying luxurious items like electronics, automobiles, new
technological equipments, etc (El-Mousawi, and Charbaji, 2016). This has increased the
demand of automobiles and motor vehicles in market at gradual speed. In some of the African
States, the economic development has provided opportunity to poor households in a folding own
car. Because of growing demand of motor vehicles it is possible for this industry to be more
profitable as the number of customers are increasing every year.
Socio-cultural factors - there are are some of the factors which effect needs and demands of the
customers which have to be fulfilled by the companies. Some of the socio-cultural factors are
mentioned below
Popularity of driving - according to the perspective of socio cultural aspect, people are more
prone towards driving. There are various families and people who enjoy to go on long drives on
their motor vehicles. It is also seen that. One or more motor vehicles is sign of of pride in various
countries. There are lot of public transport provided by the government but going personal
vehicle provides convenience and ease to customers.
From the above discussion, it is concluded that the environmental management system has to be
incorporated with the social, political and economic trends of the industry so that there are no
issues while managing the implementation of EMS.
What barriers might the organisation face in implementation?
There are a number of reasons due to which company might face some barriers in
implementing environmental management system in their organisation. Some of those barriers
faced by company while implementing the system in the business are mentioned below:
Lack of commitment of management: It is often seen that employees do not perceive the benefit
which management system of environment will bring to them. They cannot understand the
personal benefit they might have from this environmental management system. Another
requirement for Toyota is to make sure that the employees of company are aware about this
management system (Welford, ed., 2016). An awareness of this management system because
barriers for Toyota in implementing the system in their organisation. It is also seen that the
organisational structure of company does not clearly defines the personals who are required to

make everyone aware about this system. Toyota needs to assign person who will effectively help
the company in making sure that all the employees of company are well aware about this
management system. It is often seen that companies change priority according to their needs.
Lower profits may also result in shifting the priorities leading to non-application of EMS on the
organisation. It is also seen that management finds there are a number of paperwork required in
order to complete this implementation. Due to this heavy paperwork many a times companies
ignore implementation of this system.
Understanding the standards: Often the understanding of various standards and deep analyses
of the management system also needs to become a barrier for the company. There are a number
of international voluntary standards which are specifying the minimum elements required for
environmental management system. In 1996 the international organisation for standardization
have published various factors and elements which are necessary for this implementation. It is
often seen that there are many misconceptions about this in people and also people or not fully
aware about this standard (Schaltegger, and Burritt, 2017). Also when conducting business in
certain countries, regions or some markets the following standards could not be applied and it
creates another barrier for company in implementing the system.
 Tackling with environmental aspects: It is often seen that every company assumes the
environmental aspects of this system and the standards required to be met for
environmental aspects are most challenging for many of the companies. This on the other
hand is also most rewarding for many of the countries. Environmental aspect refers to all
the elements of an organisation which are interacting with environment. For Toyota there
will be a number of factors which have a significant environmental impact on the
environment such as the pollution released by the cars and vehicles, the resources used by
them to manufacture it, the fuel requirement which is extracted through nature.
Other than this there are also some barriers such as institutional weakness, lack of financial
support as well as legislative framework for the company (Jorgensen, ed., 2016). These factors
of barriers usually depend on location of the business, there for the community and society in
which a business develops have a great impact on implementation of environmental management
system. On the other hand, when considering the internal barriers most common barrier is lack of
time with the organisation to implement it. This is a complex method and have a number of
environmental aspects to deal with. Due to this the implementation process requires a lot of time.

Organisations don’t usually provide such time to their management in order to apply this. It is
often seen that due to inconsistent top management support many organisations are not able to
implement EMS efficiently. All these factors together form a number of barriers in implementing
environmental management system. It is necessary that Toyota manage its finances and the top
and executive level managers come together to form a proper strategy in order to implement
EMS in their organisation. They need to develop a plan along with timeline which should be
long enough to make sure that proper implementation of management system for environment is
done in the company
What do you think is the most important element of an EMS and why?
Environmental management system is defined as framework which is helpful for the
company to achieve environmental goals by continuously reviewing, evaluating and improving
the environmental performance. There is requirement of consistent reviewing and evaluating for
identifying opportunities in order to improve the environmental performance of company.
Environmental management system is involved in the achievement of environmental
performance of the company. Environment management system is helpful for the company to
address the regulatory demands in systematic as well as cost effective way (Siva, and et.al,
2016). This is a proactive approach which is helpful for minimising the risk of non-compliance.
This is also helpful in in increasing the improvement in health and safety practices for
employees and public. EMS is also helpful for addressing various non-regulated issues dike
energy conservation and it is helpful for promoting stronger operational control as well as
employees stewardship. An EMS has various elements which are described below
 Reviewing the environmental goals of the company
 Analysing the impact on environment and legal requirements
 Setting the environmental objectives and targets for minimising environmental impact
and comply with legal requirements
 Establishment of programs for meeting the targets and objectives
 Monitoring as well as measuring progress for achieving the objective
 Ensuring environmental awareness among employees
 Reviewing progress of EMS hand making several improvements

From the above discussion, it is concluded that for Toyota, the most important element is to
setting the environmental objectives and targets in order to reduce the environmental impact and
comply it with the legal requirements (Qian, Hörisch, and Schaltegger, 2018). It is essential for
the company to manage the working properly and maintaining the working in effective manner.
This is very important for the company to manage the functioning of the company in proper
manner.
CONCLUSION
From the above discussion, it is analysed that all the organisations must include the management
of the company and managing the business operations. The instalment of EMS is important as it
helps in managing the work in proper manner. This is important for the organisation to maintain
the effectiveness of system installed for managing the work for managing the efficiency. This is
essential factor for working for the management of company in order to manage the functioning
properly. The following report clearly concludes that environmental management system is an
important part in the management system which is introduced in the business in order to make
sure that all the requirements regarding the surrounding of a business or managed by every
organisation. There are a number of factors which an organisation needs to focus on before they
implement this management system on their organisation. They need to take care of a number of
things so that positive impact of application of this management system can be seen in the
organisation for a longer period of time. It is also concluded from the report that this helps in
environmental performance of the company and also provides a systematic way for managing an
organisation of all the environmental affairs related to company. This create a good environment
between employees as well as customers. It also encourages contractors as well as suppliers to
establish this management system on their own businesses. This helps organisation to bring in
continuous improvement and also a number of ways to implement strategies in this dynamically
changing environment. From the following report it can be concluded that Toyota is taking
benefits from this management system and this will help it in success and achievement of goals
for a longer period of time.

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Online
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