{"id":9002,"date":"2016-11-03T19:27:42","date_gmt":"2016-11-03T23:27:42","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/toyota-the-xxi-century-race-to-the-moon\/"},"modified":"2016-11-03T19:27:42","modified_gmt":"2016-11-03T23:27:42","slug":"toyota-the-xxi-century-race-to-the-moon","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/toyota-the-xxi-century-race-to-the-moon\/","title":{"rendered":"Toyota: The XXI Century Race to the Moon"},"content":{"rendered":"

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\u201cWe have focused on environmental issues as one of the top priorities of managerial problems\u2026we wish to incorporate new ideas, actions and technologies to realize a truly sustainable society.\u201d\u00b9<\/em><\/p>\n

Mr. Takeshi Uchiyamada, Chairman of Toyota<\/p>\n

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Toyota and Climate Change<\/u><\/strong><\/p>\n

Throughout its history Toyota has been synonym with innovation. From Just in Time production to the Prius, the Japanese company has characterized itself by setting lofty goals to advance the frontiers of the automobile industry. Because of that, Toyota is the largest automobile manufacturer in the world. In its 79 years of existence, the company has had to deal with all sort of challenges from a weakening Japanese economy to massive recalls. Most recently, the company has identified a new challenge: Climate Change.<\/u><\/p>\n

Climate Change can have a profound impact on businesses. As temperatures rise due to greenhouse gases, a series of health, food, water, and political risks are emerging impacting the day-to-day operations of almost every firm. Climate change is of concern to Toyota\u2019s executives for several reasons. For example, political and security risks caused by the pressure on water and food can disrupt the demand for its cars. Furthermore, given the polluting nature of automobiles, changing consumer behavior can diminish the appeal of the brand and also hurt demand. Lastly, regulatory shifts that require more efficient cars can disrupt the business model of car manufacturers.<\/p>\n

However, opportunities can also surface. Can Toyota position itself as the \u201cclean\u201d automaker to increase its attractiveness? Could introducing clean technologies help reduce production costs and increase competitiveness?<\/p>\n

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The Toyota Environmental Challenge<\/u><\/strong><\/p>\n

Toyota recognized that to remain competitive and act according to its values it needed to 1) pursue environmental technologies and 2) develop voluntary actions to address environmental issues. The main goal behind these actions was to increase demand, reduce costs and give back to society. In 2015 Toyota launched its Environmental Challenge 2050. In it, the company committed that by mid-century it would go beyond zero environmental impact and have a net positive impact on society. The plan has 6 main components:<\/p>\n

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Increase Demand<\/strong><\/p>\n