Why Circular Economy is an Important Issue

Circular Economy refers to practices that optimize resource use and minimize waste across the entire production and consumption cycle. When a product reaches the end of its life, its materials are kept within the economy wherever possible thanks to recycling. These materials can be productively used again and again. This model challenges the traditional, linear model based on a take-make-consume-throw away pattern. 

Transitioning to a circular economy can benefit the environment by decoupling economic activity from the consumption of finite resources, which, in turn, reduces habitat disruption and biodiversity loss. Using recycled materials instead of virgin materials also reduces greenhouse gas emissions.

Plastics are a prime example: By 2030, plastic waste is expected to increase by more than 50%. Globally, only 14% of plastic packaging is collected for recycling and, according to the United Nations Environment Program (UNEP), the equivalent of 2,000 garbage trucks full of plastic are dumped into the world’s oceans, rivers and lakes every day.¹ According to the Ellen MacArthur Foundation, a circular economy has the potential to reduce the annual volume of plastics entering the oceans by 80% and can reduce greenhouse gas emissions by 25%, by 2040.

Finding more sustainable ways to extract, use and manage materials would change the relationship between material consumption and economic growth for the better. Businesses are expected to play a significant role in achieving the bold and transformative steps urgently needed to shift the world onto a sustainable and resilient path. Toyota Motor North America (TMNA) is committed to doing our part to ensure responsible and sustainable production. That's why we named "Circular Economy" one of our four environmental sustainability focus areas.

_{[1] https://www.unep.org/plastic-pollution}

Our Circular Economy Strategy

In North America, Toyota's circular economy strategy emphasizes finding ways to keep materials circulating and out of landfills. Our projects focus on:

Using Sustainable Materials

Using sustainable materials conserves natural resources and contributes to a circular economy. We strive to increase our use of sustainable materials, which include reclaimed materials and materials with recycled and/or renewable content. Using sustainable materials emphasizes using less as well as reducing toxic chemicals and environmental impacts across the whole life cycle. We continue to develop and commercialize technologies that enable the use of sustainable materials with reduced environmental impacts, such as bio-based plastics and post-industrial garment clippings, in a range of vehicle components. 

Eliminating Waste

To minimize the negative impacts our activities can have on the environment and to optimize efficiency in our operations, we practice the 3R's: Reduce waste at the source, Reuse, and Recycle. Our efforts keep materials circulating, which helps to alleviate the demand for natural resources and keeps waste out of landfills and incinerators. We recycle more than 90% of all waste from operations every year.