Toyota Motor Philippines Corp. (TMP) said Friday it signed a retail supply contract (RSC) with Team (Philippines) Energy Corp. to tap renewable energy (RE) for its manufacturing operations.
The agreement will allow TMP to achieve 100-percent RE ratio, the company said in a statement.
“This energy transition will neutralize TMP’s Scope 2 Emissions, particularly the indirect carbon dioxide emissions from purchased electricity for manufacturing operations,” said TMP president Atsuhiro Okamoto.
Okamoto said the agreement is important for TMP to address climate change. It will also place TMP at the forefront of renewable power utilization among car companies in the region.
The agreement will start rolling by Dec. 26, 2023. Based on the RSC, every megawatt hour will be supported by an international renewable energy certificate or I-REC(E), which verifies its sourcing from a domestic RE plant.
TMP said that by 2035, it would have worked its way to decarbonizing the rest of its energy sources for manufacturing, particularly for petrol-type generators, ovens and boilers for painting processes.
Global Toyota in 2020 set its target for all its manufacturing plants to be carbon-neutral by 2035 under the company’s overall net zero commitment or the Toyota Environmental Challenge (TEC) 2050.
The commitment is to enable the company to expand access to electrified vehicles for diversified customers, while reducing the environmental impact of the automotive industry’s value chain through appropriate life cycle actions.
Toyota suppliers and dealers also followed TMP’s lead and implemented energy efficiency and RE initiatives.
Several companies decided to step up their sustainability efforts to achieve 100-percent RE ratio, either by investing in onsite solar power facility or procuring RE through the Philippine government’s Green Energy Option Program or GEOP.
