Introduction
The creation of a world that is sustainable on all fronts—environmentally, socially, and economically—requires the implementation of sustainable development practices. It is impossible to overestimate the importance of sustainable development since it is essential to making the future a better place for future generations (Abubakar and Handayani, 2019, p. 104). Future focus can assist in identifying possible environmental, social, and economic dangers as well as possibilities that may materialize in the future. Toyota, for instance, might utilize future focus to pinpoint possibilities and risks related to the adoption of electric cars, shifting consumer tastes toward eco-friendly goods, and the possible effects of climate change on its supply chain (Abubakar and Handayani, 2019, p. 104). Since it enables us to understand how various components of a system are interrelated and impact one another, system thinking is crucial to sustainability.
A method based on systems thinking can assist firms in understanding how many factors and trends may ultimately affect their sustainability efforts in the face of VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) (Sontakke and Jaju, 2021). The development of knowledge of what the future may hold and the repercussions of our actions requires a significant amount of concentration on the end.
In the context of sustainable development, Toyota’s commitment to promoting hydrogen-powered engines and environmentally friendly technology is an essential case. Toyota is committed to building a more sustainable future, as seen by its investment in hydrogen fuel cell technology and the launch of the Toyota Mirai (Bai and Liu, 2021). Toyota acknowledges the significance of establishing a more sustainable future (Luo et al., 2021). A connection can be made between this situation and the Sustainable Development Goals (SDGs) of the United Nations (Lukin et al., 2022). More specifically, this case can be connected to SDGs 7, 9, 11, 12, 13, and 17, geared toward promoting sustainable energy, infrastructure, innovation, sustainable consumption and production, climate action, and partnerships for sustainable development.
Literature Review
Sustainability is the capacity of diverse ecological, social, and economic systems to endure across time. A method known as sustainable development aims to satisfy current demands without compromising the capacity of future generations to satisfy their own needs. This strategy seeks to strike a balance between environmental conservation, social development, and economic progress. In order to create a sustainable future, the United Nations (UN) has defined 17 Sustainable Development Goals (SDGs), and several scholars have emphasized the significance of acting quickly to accomplish these objectives (Lukin et al., 2022). The notions of sustainability and sustainable development are intricate and multi-faceted ideas, each of which is interpreted uniquely by various persons and organizations (Rindova and Martins, 2022, p. 218). At its most fundamental level, sustainability can be seen as the capacity to fulfill the current generation’s requirements without jeopardizing subsequent generations’ ability to do the same for themselves.
Recently, numerous nations have prioritized hydrogen fuel cell technology to help efforts to reduce carbon emissions. When compared to conventional power sources, fuel cell technologies have been renowned for their advantages, including high efficiency, strong dependability, reduced time requirements, and environmental benefits (Baharuddin et al., 2021, p.2). This approach to development is known as “green” development. In contrast, futures and foresight relate to investigating and picturing alternative future scenarios and comprehending the repercussions of different decisions and actions that could be taken in the present and the future
Horizon scanning is the procedure of methodically compiling data on new trends, dangers, and opportunities that may have an influence on an organization’s future. The use of futures and foresight approaches can help in horizon scanning and strategic planning. Organizations may better predict and prepare for a variety of circumstances by investigating prospective, probable, and feasible futures (Kim et al., 2022). This is one of the most significant advantages of future thinking. Due to this, businesses can better understand the direction in which the world is moving and design strategies and plans that are more effective and better aligned with their long-term objectives (Rubio et al., 2023). This assists companies in becoming better ready to adapt to upcoming changes and develop more resilient and adaptable strategies and plans.
Many different types of tools, such as backcasting, wheels, branches, 2×2 grids, and SWOT analyses, can be utilized by businesses to assist in thinking about the future. Every tool has advantages and disadvantages, and companies have to choose the tool that best fits their requirements and objectives to succeed (Meng et al., 2021). In the context of sustainability, it is essential to recognize the primary drivers and trends that can influence the organization’s future and the future of the world in general (Meng et al., 2021, pp. 28888). Organizations must participate in systems thinking and grasp the interdependence of many variables and systems to project the future forward 10 or 20 years.
In order to foster a more sustainable approach to growth, organizations need to embrace new ways of thinking that challenge established assumptions and practices. Identification of the major forces and trends that might affect the organization’s and the world’s future is crucial in the setting of managerial myopia (Thummalapalli, 2019). The need for immediate action to address sustainability problems and promote sustainable development is growing (Naeemah and Wong, 2022, p. 561). Thinking about the future and thinking about systems are both significant skills that can assist companies in predicting and preparing for changes in the future, as well as in developing strategies and plans that are more effective (Shi et al., 2023). The adoption of new mental models and the promotion of a development strategy that is more sustainable and that takes into account the requirements of future generations are, on the other hand, necessary steps toward achieving success.
Toyota Case Study
Porter’s value chain is a framework that aids businesses in examining their internal processes to find opportunities to add value and acquire a competitive edge. Toyota has been utilizing the value chain framework to pinpoint areas where its sustainability procedures might be strengthened. From the creation of raw materials through the destruction of cars at the end of their useful lives, Toyota has been embracing sustainable methods (Benkarim and Imbeau, 2021).
One of the most successful automobile manufacturers in Japan, Toyota, is renowned for its dedication to both environmentally responsible practices and technological advancement. The company has been promoting hydrogen-powered engines, which are better for the environment than conventional gasoline-powered ones. Through its supply chain management practices, Toyota has taken preventative measures to lessen its impact on the environment and advance the cause of sustainable business practices (Thummalapalli, 2019). The organization has launched a number of initiatives, some of which include the use of renewable energy sources, the reduction of waste and greenhouse gas emissions, and the promotion of sustainable procurement practices.
Toyota is a leading automaker that has made significant efforts toward sustainability, focusing on developing engines fueled by hydrogen. The company’s Environmental Challenge 2050, a set of goals aiming at achieving a net positive impact on the environment by the year 2050, is evidence of the company’s commitment to sustainable development (Benkarim and Imbeau, 2021). The program consists of a total of six tasks, some of which are the minimization of water consumption, the reduction of carbon emissions, and the promotion of renewable energy sources. Lean manufacturing practices, which aim to eliminate waste and reduce resource consumption, have been adopted by Toyota as part of the company’s commitment to sustainable development. These practices are represented in Toyota’s production processes (Karlsson and Magnusson, 2019).
In addition, the corporation has taken steps to increase the fuel efficiency of its vehicles, such as the development of hybrid and electric vehicles as well as the promotion of the use of technology that utilizes hydrogen fuel cells.
The use of hydrogen fuel cell technology is one of the primary focuses of Toyota’s attempts to reduce its environmental impact, and the corporation is making significant investments in the research and development of this technology. The technology provides various advantages over conventional internal combustion engines, including zero-emission operation, quiet operation, and enhanced fuel efficiency. These advantages may be found in the engine (Bohnsack et al., 2020, p. 731).
In addition, hydrogen is a source of abundant and sustainable energy, making it a compelling alternative to fuels derived from fossils. One of the most important problems that Toyota’s hydrogen fuel cell technology may help solve for sustainable development is the problem of lowering carbon emissions. Traditional internal combustion engines substantially contribute to pollution and global carbon emissions (Dash et al., 2022). Transportation is a significant contributor to global carbon emissions. The technology of hydrogen fuel cells provides an alternative that is both clean and efficient, with the potential to drastically cut emissions and assist in mitigating the effects of climate change.
Transitioning to renewable energy sources is another aspect of sustainable development that Toyota’s hydrogen fuel cell technology can help. Renewable energy sources are becoming increasingly vital as the world works toward a more sustainable future. This transition can be made easier with the help of a technology known as hydrogen fuel cell technology (Kar et al., 2023). This technology provides a clean and efficient energy source, and it can be generated from restrongly emphasized using. In summation, Toyota’s efforts to encourage the adoption of hydrogen fuel cell technology are evidence of the company’s dedication to developing sustainable practices (Thummalapalli, 2019). The technology can potentially address numerous significant SD issues, such as the reduction of carbon emissions and the shift to renewable energy sources. It offers several advantages over standard internal combustion engines (Goel and Vishnoi, 2022). Toyota’s focus on hydrogen fuel cell technology is a step in the right direction towards achieving a net positive impact on the environment as the world continues to move towards a more sustainable future.
Analysis of Toyota’s Future Focus and Sustainability Efforts
One of the most successful vehicle manufacturers in the world, Toyota, has been a driving force behind initiatives to advance sustainable development and future-oriented thinking. Using the FF model, we will analyze Toyota’s future focus and sustainability initiatives in this part and link it to SD-related concerns and system thinking (Dash et al., 2022). As a means of fostering sustainable transportation, Toyota has been strongly emphasizing the utilization of hydrogen-powered engines.
Backcasting model is a futures-thinking technique that businesses may employ to create long-term plans. It includes determining the necessary steps to obtain a desired future state by starting with it and working backwards from there. Backcasting might be utilized in the context of Toyota’s sustainability initiatives to determine what steps the corporation has to take to meet its sustainability objectives (Thorén and Vendel, 2019, p. 299). The model has the advantage of assisting businesses in identifying the major forces for change that will be required to bring about the desired future state. For instance, in order to meet its sustainability objectives, Toyota might need to collaborate with vendors, clients, and other parties. Backcasting can assist the business in identifying those important relationships and formulating plans to reinforce them (Thorén and Vendel, 2019, p. 305). It can also assist businesses in avoiding the traps of short-term thinking.
Future Focus Model
The Future Focus (FF) model is a technique that is used to investigate several possible futures and to comprehend the consequences of probable, plausible, and possible futures. The FF model includes the phases of scanning, forecasting, visioning, and planning as its constituent components (Dash et al., 2022). In order to evaluate Toyota’s plans for the future and its commitment to sustainability, they will utilize this approach. Toyota has been monitoring the surrounding environment in search of patterns and subtle signals that may have an impact on the company’s operations in the future (Lim, 2022, p. 147).
The necessity of environmentally friendly transportation is one of the developments that Toyota has been concentrating on as a trend (Trapp et al., 2022). Toyota has come to terms with the fact that the world cannot go along the same road of carbon-intensive transportation for much longer (Ito and Kawazoe, 2021, p. 420). As a result, Toyota has been making significant investments in hydrogen-powered engines, the only type of engine that emits water vapor as a byproduct of its operation.
Toyota has been making predictions of environmentally friendly transportation, and the company has concluded that hydrogen-fueled engines will play an important part in attaining this objective. The Japanese automaker Toyota has lofty plans to sell 30,000 hydrogen fuel cell automobiles around the globe by the year 2025 (Lukin et al., 2022). In addition, Toyota has been working closely with various other stakeholders, including governments and energy companies, to construct hydrogen refueling infrastructure, which is essential for the broad adoption of hydrogen-powered engines. Toyota has a different picture of a more environmentally friendly future in which alternative power sources like hydrogen drive transportation (Jayakumar et al., 2022). Creating a hydrogen society, in which hydrogen is created from renewable sources and utilized as a carrier of clean and sustainable energy, is one of Toyota’s long-term goals.
Toyota has been working toward realizing this goal by investing in the research and development of hydrogen-powered engines and encouraging the use of vehicles fueled by hydrogen. Planning: Toyota has been preparing to realize its vision of a society powered by hydrogen by crystal-clearly defining its aims and objectives (Trencher et al., 2021). Compared to levels in 2010, Toyota has established the goal of lowering the carbon dioxide (CO2) emissions that its vehicles produce by 90 percent by the year 2050. In addition, Toyota has been investing in the research and development of new technologies.
Systems thinking and mental models: To attain sustainable mobility, Toyota has been pushing systems thinking and new mental models to achieve its goals. Toyota acknowledges that achieving environmentally responsible transportation is a difficult challenge that calls for a holistic strategy. The concept of mobility being viewed more as a service than a product has been at the forefront of Toyota’s efforts to promote a new mental model (Trudel, 2019, p. 90).
Toyota’s efforts toward more environmentally friendly transportation are admirable; yet, there are some problems with how the information is presented. One of the criticisms against Toyota is that the company places excessive emphasis on hydrogen-powered engines and does not consider other viable solutions for sustainable transportation, such as electric vehicles (Wang et al., 2022, p. 847). This mental model acknowledges that the future of mobility will not just be about individual cars but also the entirety of the transportation system, which will include infrastructure, logistics, and the experience provided to customers.
Conclusion
Toyota is committed to focusing on the future and sustainability as fundamental principles. One step toward achieving sustainable development is the corporation’s work to create hydrogen-powered engines and raise awareness of the benefits those engines may bring to society. Backcasting is one method of future thinking that has helped Toyota envisage a future in which hydrogen-powered engines are the norm and design a strategy for how to get there. This has allowed Toyota to develop a road map toward realizing its vision of the future. Toyota’s efforts towards sustainable development are more than simply lip service; rather, they reflect the company’s dedication to making the future a better place for everyone. The mental models of the corporation have moved from a concentration on short-term benefits to a more long-term strategy that considers the impact that its activities have on society and the environment.
Despite this, there is still space for improvement in Toyota’s efforts to promote environmentally friendly development. The Triple Bottom Line (TBL), created by John Elkington, is one of the ideas that backs the FF model used by Toyota (Zaharia and Zaharia, 2021, p. 76). The application of the Futures Foresight (FF) and Sustainable Development (SD) approaches for organizational mentality development is supported by a number of theories and concepts. The Triple Bottom Line (TBL) framework is one such theory, which contends that organizations should not only concentrate on economic success but also take social and environmental implications into account. The SD strategy, which aims to strike a balance between economic development and social and environmental sustainability, fits well with the TBL framework. The Theory of Change, which emphasizes the necessity for businesses to clearly articulate their goals and to identify the procedures necessary to accomplish those goals, is another pertinent theory.
Recommendation
Toyota can consider the following suggestions to advance its efforts in sustainable development:
- Increased investment in renewable energy sources can help Toyota lessen its dependence on non-renewable resources like fossil fuels by powering its operations with renewable energy sources like solar and wind.
- Reduce carbon footprint: Toyota can continue to cut back on its carbon footprint by putting money into more productive production methods and looking for ways to use less energy internally.
It may be challenging to alter long-held traditions and attitudes, particularly in a big business. Lack of resources or budgetary restrictions is another factor. The company has not been able to achieve these recommendations due to the company’s culture and mindset which is not accommodative for all kinds of sustainability (Trapp et al., 2022). It could be necessary to change goals and make a large expenditure to implement new sustainable practices.
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