Patterson Cheney Toyota in Dandenong Victoria has become the first car dealership in Australia to achieve a 5 Star Toyota Environmental Dealership (TED) rating.

Launched in May 2010, the environmental benchmarking program integrates environmental thinking and sustainable business practices into the daily operations of Toyota dealerships.

TED allocates points for environmental action against seven environmental dimensions including recycling and waste management, energy and water use, environmentally preferred purchasing and social contribution. Dealerships can be awarded 3, 4 or 5 stars for their overall environmental performance.

Toyota Australia president and chief executive Max Yasuda said, "Overseas research shows that a higher percentage of new and used-vehicle shoppers would prefer to buy their vehicle from an en environmentally responsible dealer, rather than from a dealer with no environmental program."

"Dealerships recognise the advantages and opportunities in showing leadership to address environmental issues. Many Toyota dealers have already made progress in some areas of environmental management and TED provides them with a practical roadmap to achieve further environmental gains," said Mr Yasuda.

Patterson Cheney Toyota dealer principal Colin Uden said the program had opened his eyes to the countless ways small businesses could bring about positive environmental change.

"Energy efficient cooling and lighting and water saving technology use to be reserved for the most environmentally conscious, but now it is widely available to the community and business sector. Many of the changes we've made to reduce our environmental footprint are so simple that I don't know why we didn't adopt them sooner," said Mr Uden.