Climate Change Data

Environmental Metrics

ESG Focus Areas

• Carbon Neutrality
• Employee Job Satisfaction
• Traffic Accident Reduction
• Resource Circulation
• Community Enrichment

Environmental Achievements

• Installation of a 1.1 MW solar power generation system at the Hiroshima plant to power EV battery charging and manufacturing processes.
• Reduction of approximately 850 tons of packaging and wrapping materials in FY2021 through the use of returnable containers.

Social Achievements

• Joined The Valuable 500 initiative to promote disability inclusion.
• Increased the number of female managers by approximately 2.5 times from FY2014 to FY2021.
• Implemented a system to ensure continued employment for post-retirement employees who wish to continue working.

Governance Achievements

• Established the Mazda Global Hotline to receive reports regarding non-compliance and other issues.
• Promotes sustainability efforts with suppliers, assessing corporate compliance structure and environmental protection initiatives.

Climate Goals & Targets

Environmental Challenges

• Achieving carbon neutrality by 2050, requiring CO2 emission reduction throughout the vehicle lifecycle and a shift to renewable energy.
• Improving employee job satisfaction amidst uncertainties and securing a diverse workforce.
• Realizing a motorized society free from traffic accidents, particularly in emerging markets.
• Transitioning to a circular economy and reducing resource consumption and waste.

Mitigation Strategies

• Multiple power unit choices adapting to regional energy sources, energy value maximization, and supply chain collaboration.
• Promoting flexible work styles, diversity and inclusion, and human resources training based on the Mazda Way principles.
• Developing advanced safety technologies based on the Mazda Proactive Safety philosophy, including the Mazda Co-Pilot Concept.
• Implementing 3R initiatives (reduce, reuse, recycle), promoting returnable containers, and improving vehicle recyclability.

Supply Chain Management

Responsible Procurement

• Comprehensive supplier evaluation including corporate compliance structure and environmental protection initiatives.

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 3
• Goal 7
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 17

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Mazda MX-30 EV with sustainable materials in the cabin interior.

Environmental Metrics

ESG Focus Areas

• Climate change
• Human Capital
• Safety
• Diversity & Inclusion
• Community Engagement
• Corporate Governance

Environmental Achievements

• Reduced CO2 emissions from all Mazda Group factories, offices, and other facilities in Japan by 60% from FY March 1991.
• Reduced CO2 emissions in logistics, including transportation, by 66% from FY March 1991.
• Introduced the Three-Layer Wet Paint System (2002) and Aqua-Tech Paint System (2009), reducing energy consumption in painting.
• Reduced thickness and weight of cast items, reducing raw material use and energy consumption.

Social Achievements

• Expanded remote work program during the COVID-19 pandemic.
• Raised the retirement age.
• Presented diverse work styles for diverse human resources.
• Launched the Essential Car Care program in the US, providing free services to healthcare workers.

Governance Achievements

• Transitioned from a company with a board of company auditors to a company with an audit & supervisory committee (June 2019).
• Increased board diversity with six outside directors of various genders, careers, and academic backgrounds.
• Formulated the Basic Policy on Sustainability (December 2021).

Climate Goals & Targets

Environmental Challenges

• Securing a labor force in developed countries.
• Changing market circumstances and globalization uncertainties.
• Identifying diversifying customer needs and innovating to seize new revenue-generating opportunities.
• Responding flexibly to risks and making them into business opportunities.
• Achieving carbon neutrality by 2050.
• Addressing climate change.
• Reducing CO2 emissions throughout a vehicle’s life cycle.
• Meeting diverse regional energy sources and power generation methods.

Mitigation Strategies

• Pursuing diversity management to secure a diverse range of human resources.
• Cultivating a work climate and work-style frameworks that motivate employees.
• Implementing Group-wide human resources policies and measures.
• Promoting human resources training based on the Mazda Way principles.
• Adopting a multiple solution strategy for reducing CO2 emissions.
• Engaging in in-depth dialogue with stakeholders and improving information disclosure under TCFD.
• Implementing energy value maximization and energy diversification in manufacturing and logistics.
• Cooperating with local governments and other industries throughout the entire supply chain.

Supply Chain Management

Responsible Procurement

• Requesting partners to formulate plans to reduce GHG emissions.

Climate-Related Risks & Opportunities

Physical Risks

• Damage by torrential rain, production halts caused by supply chain disruption
• Greater impact from frequent and severe natural disasters, flood damage from high tide

Transition Risks

• Stricter regulations on fuel economy and exhaust gas emissions, carbon pricing, including introduction of carbon tax
• Increase in resources to develop electrification technologies, including electric drive system or batteries
• Implications on investment decisions considering ESG by investors
• Rise in raw material prices for electrification and weight reduction and tight procurement of semiconductor components
• Energy price spikes and supply instability due to tight fossil fuel and renewable energy supplies caused by political conditions and market forces

Opportunities

• Efficient use of raw materials through thorough material recycling
• Stable reception of carbon-neutral electricity by promoting the expansion of demand and supply of electricity
• Diverse selection of renewable energy sources
• Deployment of products that suit each region through Building Block concept and Multiple-Solution
• Diversification of products that adapt to next-generation automobile fuels (alternative fuels such as biofuels, synthetic fuels, etc.)
• Expansion of market opportunities through deployment of products that suit each region and diversification of products

Reporting Standards

Frameworks Used: SASB Standards, International Integrated Reporting Framework (IIRC), Guidance for Collaborative Value Creation (Ministry of Economy, Trade and Industry, Japan), TCFD

Certifications: ISO 14001

UN Sustainable Development Goals

• Goal 3
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 17

Mazda's initiatives are aligned with various SDGs, focusing on environmental sustainability, social well-being, and responsible governance.

Sustainable Products & Innovation

• MX-30 EV
• CX-60 PHEV
• Vehicles equipped with e-Skyactiv D and e-Skyactiv PHEV technologies

Environmental Metrics

ESG Focus Areas

• Carbon Neutrality
• Human Capital
• Safety
• Resource Circulation
• Quality Improvement
• Stakeholder Engagement
• Human Rights

Environmental Achievements

• Reduced total CO2 emissions from four principal domestic sites by 33.4% compared with FY March 2014.
• Reduced emissions per unit of sales revenue by 54.3%.
• Achieved zero landfill waste from FY March 2009 to FY March 2023.
• Reduced the amount of waste in FY March 2023 by 86% compared with FY March 1991 levels.
• Reduced CO2 emission per ton-kilometer in domestic transportation by 10.7% compared with FY March 2014 levels.

Social Achievements

• Launched MX-30 Self-empowerment Driving Vehicle, a vehicle with hand controls.
• Received the Minister of the Economy, Trade and Industry Award at the 57th Promotion of Machine Industry Awards for MX-30 Self-empowerment Driving Vehicle.
• Held Mazda Driving Academy seven times in FY March 2023.
• Participated in Mazda Fan Endurance with 646 participants in 6 races in FY March 2023.
• Increased the number of female managers to 65 (approximately 3.1 times the number in FY March 2015) in FY March 2023.

Governance Achievements

• Established Mazda Human Rights Policy in August 2023.
• Board of Directors includes six outside directors with diverse knowledge and experience, two of whom are female.
• A female executive officer has been appointed.

Climate Goals & Targets

Environmental Challenges

• Global warming and the need to achieve carbon neutrality by 2050.
• Resource depletion and the need to transition to a circular economy.
• Declining working population and competition for human resources with digital skills.
• Increasingly diverse customer needs.
• Traffic accidents and congestion.

Mitigation Strategies

• Endeavor to achieve carbon neutrality for its entire supply chain by 2050 and carbon neutrality at its global factories by 2035.
• Multi-solution approach to powertrains, including internal combustion engines, electrification technologies, and alternative fuels.
• Initiatives to maximize people’s contributions, including active contribution by management, nurturing an open corporate culture, human resources system reform, people development reform, and recruitment reform.
• Establishing a system to deliver products and services to customers in the most appropriate way considering the cultures and trends of each country and region.
• Promoting safety initiatives from the three viewpoints of vehicles, people, and roads and infrastructure.

Supply Chain Management

Responsible Procurement

• Mazda Green Purchasing Guidelines
• Requirement for ISO 14001 certification from suppliers
• Conflict minerals survey

Climate-Related Risks & Opportunities

Physical Risks

• Damage by torrential rain
• Storm surges
• Water depletion

Transition Risks

• Stricter regulations on fuel economy and exhaust gas emissions
• Carbon pricing
• Increase in resources to develop electrification technologies
• Rise in raw material prices
• Energy price spikes

Opportunities

• Development of electrification technology
• Expansion of demand for carbon-neutral electricity
• Deployment of products that suit each region through Building-Block concept and multi-solution
• Diversification of products that adapt to next-generation automobile fuels

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 45001

Sustainable Products & Innovation

• MX-30 EV
• Bio-based engineering plastic

Awards & Recognition

• NEDO 2022 Energy Conservation Technology Development Awards (Chairman’s Award)
• 2020 Commendation for Science and Technology by the Minister of Education, Culture, Sports, Science and Technology
• Aoki Katashi Innovation Award from the Japan Society of Polymer Processing
• METI Minister’s Prize at the Ninth Monodzukuri Nippon Grand Awards
• Ichimura Industrial Achievement Award at the 55th Ichimura Industrial Awards
• Human Rights Merit Award by Japan’s Ministry of Justice and the National Federation of Consultative Assemblies of Civil Liberties Commissioners

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Circulation
• Human Capital
• Safety
• Supply Chain Management
• Diversity, Equity, and Inclusion
• Quality
• Customer Satisfaction

Environmental Achievements

• Reduced total CO2 emissions from Mazda’s principal domestic sites by 22% compared with FY March 2014
• Reduced CO2 emission per unit of sales revenue by 55.8% compared with FY March 2014
• Achieved zero landfill waste from FY March 2009 to FY March 2024 at four principal domestic sites
• Reduced volumes of packaging and wrapping materials used by 18.9% in comparison to FY March 2020
• Reduction of approximately 224 tons in use of packaging and wrapping materials through shift to returnable containers

Social Achievements

• Launched Blueprint organizational culture reform program in 2023, involving roughly 11,000 back-office employees
• Established the Mazda Human Rights Policy and an internal human rights due diligence project team in 2023
• Increased number of female managers to 71 (triple the level in FY March 2015)
• Achieved 54.4% ratio of applicable male employees taking childcare sabbatical

Governance Achievements

• Introduced a new Team Management approach and Chief Officer system in 2023
• Revised officer remuneration systems to include evaluation indicators for performance-based remuneration that include return on equity and greenhouse gas emissions reductions amounts as well as indicators related to employee engagement and customer-oriented mindsets

Climate Goals & Targets

Environmental Challenges

• Global warming and the need to achieve carbon neutrality
• Increasing demand for resources and rising amount of waste
• Changes in values regarding mental and social health
• Decline in the labor force and globalization of the market
• Fatal road traffic accidents
• Declining population, falling birthrate and aging society, and concentration of population in urban centers
• Quality issues
• Once-in-a-century transformation (CASE)

Mitigation Strategies

• Endeavoring toward carbon neutrality by 2050, with a target of 69% decrease in CO2 emissions at plants and operational sites in Japan by FY March 2031
• Promoting resource circulation through the 3Rs (reduce, reuse, and recycle) and circular economy initiatives
• Strengthening human capital through various programs to enable employees to enjoy their work
• Promoting technology development based on Mazda Proactive Safety
• Building a model of social contribution that will enrich lives by offering safe, secure, and unrestricted mobility
• Promoting consistent quality in all stages, from planning to production
• Exploring partnerships for co-creation with others

Supply Chain Management

Responsible Procurement

• Mazda Supplier Sustainability Guidelines
• Mazda Green Purchasing Guidelines
• Conflict minerals surveys

Climate-Related Risks & Opportunities

Physical Risks

• Torrential rains
• Storm surges
• Water depletion
• Heat waves

Transition Risks

• Stricter regulations on fuel economy and exhaust gas emissions
• Carbon pricing
• Increase in resources to develop electrification technologies
• Rise in raw material prices
• Energy price spikes
• Implications on ESG-minded investment decisions

Opportunities

• Efficient use of raw materials
• Stable supply of carbon-neutral electricity
• Deployment of products that suit each region
• Diversification of products that accommodate next-generation automobile fuels
• Expansion of market opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, Japanese Ministry of the Environment’s Environmental Reporting Guidelines, Japanese Ministry of the Environment’s Environmental Accounting Guidelines, ISO 26000, TCFD

Certifications: ISO 14001, ISO 45001

UN Sustainable Development Goals

• Goal 3
• Goal 6
• Goal 7
• Goal 9
• Goal 11
• Goal 12
• Goal 13

Mazda's initiatives contribute to these goals through various environmental, social, and governance programs

Sustainable Products & Innovation

• Mazda MX-30 e-SKYACTIV R-EV
• Mazda EZ-6 EV
• Bio-based engineering plastics

Awards & Recognition

• Human Rights Merit Award (Ministry of Justice)
• Award for Science and Technology (Minister of Education, Culture, Sports, Science and Technology)
• Aoki Katashi Innovation Award (Japan Society of Polymer Processing)
• METI Minister’s Prize (Ninth Monodzukuri Nippon Grand Awards)
• Ichimura Industrial Achievement Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Human Rights
• Employee Development
• Brand Value Management

Environmental Achievements

• Target of achieving a 69% decrease in CO2 emissions at its plants and operational sites in Japan by FY March 2031, compared to FY March 2014. Interim target of achieving a usage rate of electricity generated from non-fossil fuel sources of 70% or more.
• Launched large plug-in hybrid electric vehicles (PHEVs) and the MX-30 e-Skyactiv R-EV.
• Unveiled the new Mazda EZ-6 EV at Beijing International Automotive Exhibition 2024.

Social Achievements

• Launched the Blueprint organizational culture reform program in 2023 for back-office employees, aiming to expand to production employees.
• Established the Mazda Human Rights Policy and an internal human rights due diligence project team in 2023.
• Established the Brand Experience Promotion Division in November 2023 to enhance brand experiences and customer connection.
• Planning the opening of Mazda Innovation Space Tokyo in 2024 for co-creation with employees and partners.
• Introduction of an alumni hiring program for re-hiring former Mazda employees.

Governance Achievements

• Revised officer remuneration systems to drive changes in management’s perspectives and actions as part of brand value management efforts. Evaluation indicators include return on equity (ROE) and GHG emissions reductions.
• Introduced a new Team Management approach and chief officer system in 2023 to improve responsiveness to front-line needs and customer input.

Climate Goals & Targets

Environmental Challenges

• Impacts of climate change and supply chain repercussions of international instability.
• Adapting to economic changes in the US and China, geopolitical risks, rising concern regarding human rights, and advancements in generative AI and other IT technologies.

Mitigation Strategies

• Implementing the Management Policy up to 2030, with three pillars: contribution to curbing global warming, realization of a safe automotive society, and creation of unique value.
• Multi-solution approach to electrification, utilizing Mazda’s technology assets to offer combinations of high-efficiency internal combustion engines and electrified devices.
• Collaboration with Toyota Motor Corporation and Subaru Corporation to develop new engines tailored toward the era of electrification.
• Developing sophisticated driving support technologies and expanding the lineup of large products equipped with advanced safety technologies such as the Driver Emergency Assist system (DEA).
• Enhancing efficiency and operation rates by eliminating waste, irregularities, and overburdens in preparation for the expansion of electrified products.
• Doubling productivity through human resource investments and IT utilization, reforming organizational culture, and promoting digital transformation.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• MX-30 e-Skyactiv R-EV
• Mazda EZ-6 EV

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions (Scope 1, 2, and 3) from 60,049 t-CO₂e in FY March 2020 to 50,976 t-CO₂e in FY March 2024.
• Improved recycling ratio for end-of-life vehicles from 94% in FY March 2020 to 97.1% in FY March 2024.

Social Achievements

• Increased percentage of female managers from 3.9% in FY March 2022 to 4.3% in FY March 2024.
• Uptake rate of paternity leave increased from 6.1% in FY March 2022 to 6.1% in FY March 2024.

Governance Achievements

• Inclusion in key indices such as MSCI ESG Leaders Indexes, S&P/JPX Carbon Efficient Index, FTSE4Good, and others.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Awards & Recognition

• EcoVadis A-