Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Recycling
• Environmental Risk Prevention
• Biodiversity Conservation
• Quality
• Respect for Employees
• Human Rights
• Supply Chain Management
• Social Contribution
• Corporate Governance
• Compliance
• Risk Management

Environmental Achievements

• Reduced CO2 emissions from business activities to 179,773 t-CO2e in FY2024 (target: 205,630 t-CO2e or less)
• Reduced waste generated by business activities to 6,202 tons in FY2024 (target: 6,290 tons or less)
• Reduced water consumption in business activities to 2,114,103 tons in FY2024 (target: 2,330,900 tons or less)
• Achieved zero emissions with no waste sent to landfills since FY2012
• Successfully met targets for reducing and recycling plastic product industrial waste in FY2024
• Maintained VOC emissions per painted area of 18.2 g/m2 in the cab painting process in FY2024 (target: 19.2 g/m2 or less)
• Approximately 25% of Isuzu's electricity consumption was decarbonized in FY2024 through the use of hydroelectric power and non-fossil certificates.
• Introduced biomass materials in packaging, reducing CO2 emissions by approximately 120 tons per year.

Social Achievements

• Launched a new human resources system in April 2024 to maximize employee growth motivation.
• Held plant tours for employees' families, with positive feedback received.
• Achieved a 91% success rate in delivery quality evaluation among business partners in FY2024.
• Implemented measures to support employees balancing work and childcare, including flexible leave-taking and telecommuting options.
• Isuzu Motors South Africa achieved Level 1 certification on the B-BBEE scorecard for four consecutive years.
• Held the Isuzu World Service Skills Competition (I-1GP) in person for the first time in four years, with 99 participants from 33 countries and regions.

Governance Achievements

• Conducted an annual evaluation and analysis of the effectiveness of the Board of Directors.
• Established a CxO system to improve expertise, accelerate management speed, and strengthen governance.
• Established three consultation counters for internal reporting and consultation on compliance issues.

Climate Goals & Targets

Environmental Challenges

• Climate change risks, including transition risks (e.g., stricter environmental regulations, increased development costs for carbon-neutral vehicles) and physical risks (e.g., increased natural disasters).
• Securing water resources and mitigating water-related risks.
• Managing chemicals used in business activities and products.
• Maintaining biodiversity in local communities.
• Ensuring the quality of purchased products from external business partners.
• Maintaining a safe and healthy work environment.
• Addressing human rights issues in the supply chain, particularly concerning foreign workers.
• Supply chain disruptions due to geopolitical risks and import restrictions.

Mitigation Strategies

• Developing multi-pathway carbon-neutral solutions, including BEVs, FCVs, and carbon-neutral fuels.
• Implementing energy-saving activities and expanding the use of renewable energy.
• Strengthening environmental management and supplier engagement.
• Conducting regular environmental education for employees.
• Establishing a quality management structure for purchased products.
• Implementing various measures to improve occupational health and safety, including risk assessments, safety training, and workplace environment improvements.
• Conducting interviews with foreign workers and implementing improvement initiatives based on feedback.
• Holding larger inventories and exploring alternative sourcing strategies to mitigate supply chain disruptions.

Supply Chain Management

Supplier Audits: On-site audits conducted for new business partners and some existing partners during direct supply contract renewal assessments.

Responsible Procurement

• Isuzu Group Supplier Sustainability Guidelines
• Isuzu Green Procurement Guideline
• Responsible Minerals Sourcing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Increased flooding, typhoons, and other extreme weather events

Transition Risks

• Stricter environmental regulations
• Increased development and production costs for carbon-neutral vehicles
• Decreased market share due to delayed response to environmental regulations

Opportunities

• Increased demand for zero-emission vehicles
• Expansion of open innovation and adoption of affordable clean energy
• Increased need for automated driving and platooning systems

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standard, SASB Standards, TCFD

Certifications: ISO 14001, IATF 16949

Third-party Assurance: Independent assurance provided for environmental data since FY2018 and social data since FY2023 (Specific provider not explicitly mentioned).

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Various initiatives contribute to these goals through decarbonization efforts, sustainable product development, community engagement, resource efficiency, and waste reduction.

Sustainable Products & Innovation

• BEVs (N-Series, ELFmio EV, ERGA EV)
• FCVs
• Medium-duty battery electric trucks (North America)

Awards & Recognition

• 3 stars in the 2023 Nikkei SDGs Management Survey
• AA rating in the March 2024 MSCI ESG Ratings
• B rating in the 2022 CDP Climate Change Questionnaire