transport CO2 emissions is expected to comefrom non-OECD countries;n Strains of urbanisation: Urban areas,particularly in the developing world where thegrowth of vehicle use is highest, urgently needto address both congestion and air qualitychallenges;n Accessibility and affordability: For the solutionsand technologies to address the first threechallenges to be effective, they need to beaccessible and affordable to consumers in boththe developed and developing world.The letter stated that: "To find solutions to thesechallenges, we commit to a vision of de-carbonisingautomotive transport."THE NEED FOR AN INTEGRATEDAPPROACHAutomakers and suppliers cannot, however, solve thesector's carbon reduction problem on their own. Toimplement significant greenhouse gas emissionreductions partnerships are needed. Building trust andmaintaining dialogue with all stakeholders isfundamental. The car industry, suppliers, regulators,fuel and infrastructure providers, and even users ofvehicles, can all make a significant contribution. For example, energy providers and utilities will needto provide low-carbon fuels such as hydrogen andelectricity generated from clean renewable sources.Consumers need better education to understand the transport choices available and to drive theirvehicles in an eco-friendly way. Governments need to implement consistent, long-term policies to assistin bringing advanced technology vehicles to themarket and create the necessary infrastructure tofacilitate widespread use of these technologies. Such anintegrated approach, bringing all stakeholders together,is indispensable if we are to make quick progress. LEADING THE WAY In Toyota's Global Vision, we state that: "We want tolead the way to the future of mobility, enriching livesaround the world with the safest and most responsibleways to move people." The key to creating a low-carbon society is eliminatingreliance on oil. Toyota will use the technologiescreated through hybrid vehicle development andproceed with further technology development,incorporating such technologies in products. While the automotive world has been debating all-electric cars, Toyota has put more than 3.3 millionhybrids on the road since our first Prius in 1997. Thishas already generated a reduction of 21 million tons ofCO2. In Europe, we are well on our way to reaching theTHE TOYOTA VIEW OF MOBILITY TOMORROWTHE WHOLE VEHICLE LIFE CYCLE106TRANSPORT & MOBILITY

European Union's CO2 targets of 120g/100km onaverage by 2015, having achieved a considerableimprovement, most of it through technologicalimprovements rather than simply selling more smallcars. We are preparing to commercially launch arechargeable version of our Prius hybrid, the PriusPlug-In Hybrid, from 2012 in all European countries,the United States and Japan and will continue toexpand the offering of hybrid powertrains in the othervehicles of our range. THE RIGHT VEHICLE IN THE RIGHTPLACE AND AT THE RIGHT TIMEAt this time, we believe that plug-in hybrid electricvehicles, which can operate as electric vehiclesduring normal operation and as hybrid vehicles whenthe battery is discharged, are the most feasible andaffordable means of utilising electricity. But we arealso developing other solutions adapted to differentuses, such as pure electric vehicles that are ideal forshort-distance travel and fuel cell vehicles as vehicleswith a wide range of applicationsBEYOND AUTOMOBILESTackling the mobility of the future is also leading us to think beyond our original competency of makingautomobiles. Partnering with other stakeholders andcompanies in various parts of the world, we areadvancing our research and development into so-calledSmart Grids. The Smart Grid refers to a new electricitynetwork where power supply and demand is effectivelycontrolled using information technology to ensurestable power supply and energy saving. The first triggerfor our involvement in Smart Grid is our launch of Plug-In Hybrid Electric and Electric Vehicles (PHEV and EV).The amount of electricity these vehicles will consumedaily would account for over 30 per cent of an ordinaryhousehold's total power consumption. If all these carsstarted charging at the same time, there would be apeak time in societal power consumption. It is thereforecrucial to optimally control this charging time. The second trigger is Toyota Home's Smart House. Asmart home is equipped with a mechanism to efficientlycontrol solar power generation and electricityconsumption, enabling self-supply of power and optimalcontrol of car charging at home. Tapping into sources ofrenewable energy like solar or wind is also an importantpart of creating our future sustainable lifestyle. Startingwith an environment-friendly vehicle connected to asmart house - itself connected to renewable energy -Toyota plans to gradually develop a large eco-city. Ourresearch is also taking us into many areas beyond theautomobile, such as personal mobility to accomplish"the last mile", biotechnologies for producing eco-friendly materials, artificial intelligence, etc.360-DEGREE APPROACHToyota's environmental policy aims at environmentalsustainability not just for our vehicles but throughout thewhole vehicle life cycle. All our employees are committedto leading by example to reduce the environmentalimpact of our operations, from design and development,to manufacturing, distribution, use on the road, aftersales and service, and end-of-life recycling. You haveour full commitment that we will continue to contributeour passion and energy to solving one of the world'smost challenging issues, climate change. nABOUT THE AUTHORDidier Leroy is currently President and Chief ExecutiveOfficer of Toyota Motor Europe and Chief RegionalOfficer for Europe of Toyota Motor Corporation. MrLeroy began his career in the automotive industry in1982 with Renault, where he held a number of seniorpositions at their production plants over a 16-yearterm. He joined Toyota Motor Manufacturing France(TMMF) in September 1998 as Vice-President incharge of Manufacturing. In this role, Mr Leroy tookan active part in setting up the company andconstructing the plant, which began operations inJanuary 2001. In January 2005, Mr Leroy wasappointed President of Toyota Motor ManufacturingFrance. In June 2007, he became a ManagingOfficer of Toyota Motor Corporation in Japan andwent on to become Executive Vice-President of theEuropean headquarters, Toyota Motor Europe,overseeing manufacturing improvements, beforebeing assigned to the new responsibility of ExecutiveVice-President of Sales in 2009. In 2010, Mr Leroybecame President of Toyota Motor Europe and inApril 2011, Chief Regional Officer of Toyota MotorCorporation for Europe.TRANSPORT & MOBILITY107Below: The president andCEO of Toyota MotorEurope, Didier Leroy