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Toyota NZ outlines ‘Balanced Path’ to carbon neutrality in 2025 Sustainability Report

by Kyle Cassidy
October 8, 2025
Toyota Corolla Cross with wind turbines

Toyota New Zealand has launched its 2025 Sustainability Report, reaffirming its commitment to achieving carbon neutrality by 2050 and reducing total (Scope 1–3) emissions by 46 percent by 2030. The report was unveiled at an Auckland event hosted by broadcaster Paddy Gower, attended by industry partners, dealers, and environmental stakeholders.

Assistant Vice President of Marketing, Sustainability & Technology Susanne Hardy said the new report reflects Toyota’s pragmatic approach to decarbonising transport while keeping customers and communities at the core of its strategy.

“Our focus remains on delivering practical, scalable, and inclusive solutions that support New Zealand’s broader sustainability goals,” Hardy said. “We’re investing in a diverse range of sustainable technologies — from EVs and hydrogen to smart systems — while supporting local initiatives such as battery and tyre recycling to enhance circularity and reduce environmental impact.”

Hardy emphasised the importance of balancing environmental ambition with commercial reality as the policy landscape evolves. “The future of mobility in New Zealand won’t be defined by one technology. It’s about giving people real, affordable, low-emission choices that suit their lifestyles and locations.”

According to the report, 82 percent of all new Toyota vehicles sold in FY25 were electrified, up from 55 percent the previous year. Average tailpipe emissions dropped from 161 g/km to 155 g/km, with a target of 128 g/km by 2027. Toyota’s luxury brand Lexus achieved a 90 percent electrification mix, while more than half of Toyota’s used-vehicle sales were hybrids.

Toyota Prius PHEV front quarter angle, in white, parked on Auckland rooftop

Toyota NZ has also achieved a 38 percent reduction in operational (Scope 1 and 2) emissions, aided by programmes such as hybrid-battery recycling — 454 units processed through Phoenix Recycling Group — and participation in the Tyrewise scheme, which has diverted more than 18,000 end-of-life tyres from landfill.

Hardy said these initiatives show how Toyota’s “One Toyota” network delivers measurable results through local action. “Our sustainability framework connects every part of our business — environment, economy and society — so that every decision contributes to preserving our great Kiwi lifestyle for future generations.”

The report also outlines Toyota’s growing investment in hydrogen mobility, including the deployment of fuel-cell generators, a collaboration with Global Bus Ventures on heavy-vehicle conversions, and support for TR Group’s hydrogen-truck fleet.

Chief Executive Officer Tatsuya Ishikawa said Toyota’s commitment to customer-focused sustainability is reflected in its expanding range of hybrid models. “We are proud to deliver the Toyota Prado and Hilux in hybrid powertrains, without sacrificing their performance and capability,” he said.

With more than one in four vehicles on New Zealand roads wearing a Toyota badge, Ishikawa said the company recognises the influence that comes with its position. “Preserving our great Kiwi lifestyle for future generations is at the heart of our sustainability vision.”

Read the full report here

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