Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Governance
• Corporate Citizenship
• Social Responsibility

Environmental Achievements

• Accelerated introduction of CVTs (continuously variable transmission) to reduce CO2 emissions, aiming for 1 million CVT-fitted vehicles by fiscal year 2007.
• Planned wind farm at Sunderland plant in the UK, expected to reduce CO2 emissions by approximately 10,000 tons per year.
• Achieved a vehicle recovery rate of approximately 80% in Japan.
• Achieved zero landfill volume and a total recycling rate of 99.2% in Japan.
• More than 90% of gasoline vehicles sold in Japan were U-LEVs as of March 2004.

Social Achievements

• Established the Diversity Development Office (DDO) to promote diversity.
• Launched the Nissan-NPO Learning Scholarship Program, providing internships with non-profit organizations.
• Increased the number of LV-approved dealerships in Japan, offering welfare vehicles and support for customers with special needs.
• Donated 100 million Japanese yen in humanitarian aid after the Sumatra earthquake and tsunami.
• Provided food and emergency supplies after the Niigata earthquake.

Governance Achievements

• Assigned a corporate officer to sustainability and established a Sustainability Office.
• Published the Nissan Management Way Values Reference Manual.
• Established a new position, Project Quality Director (PQD), responsible for vehicle lifetime quality.
• Announced a new three-year dividend plan.

Climate Goals & Targets

Environmental Challenges

• Managing CO2 emissions from plants and vehicles.
• Protecting air, water, and soil.
• Recycling resources.
• Increasing the ratio of female managers in Japan.
• Improving customer service quality globally.

Mitigation Strategies

• Implementing energy-saving measures and introducing clean energy vehicles.
• Improving chemical and wastewater management at plants.
• Developing and implementing the Nissan Sales and Service Way (NSSW).
• Setting a target to increase the ratio of female managers in Japan to 5% by the end of fiscal year 2007.
• Establishing a global strategy for CO2 management.

Supply Chain Management

Supplier Audits: More than 95% of Nissan’s suppliers in Japan were certified to ISO14001 by March 2005.

Responsible Procurement

• Nissan Global Code of Conduct
• Nissan Green Procurement Guidelines
• Nissan 3-3-3 Program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI (2002 version), Japan’s Ministry of the Environment’s Environmental Reporting Guidelines (2003 version)

Sustainable Products & Innovation

• CVT vehicles
• Hybrid electric vehicles
• Fuel cell vehicles

Awards & Recognition

• Asahi Corporate Citizenship Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Environmental Challenges

• Unfavorable political or economic factors
• Legal or regulatory changes
• Potentially adverse tax consequences
• Labor disputes including strikes
• Difficulties in recruiting and retaining personnel
• Social, political or economic turmoil due to terrorism, war or other destabilizing factors
• Sudden and greater-than-anticipated changes in business environment or customer preferences impacting new technologies
• Product defects and potential recalls
• Fluctuation in foreign currency exchange rates
• Risks associated with derivative transactions
• Lawsuits and claims
• Increasingly stringent government regulations (emissions, fuel economy, safety)
• Difficulty protecting intellectual property rights in certain markets
• Risk of earthquake damage to facilities in Japan
• Risks in sales financing business (interest rate, residual value, credit risk)
• Counterparty credit risk
• Uncertainties in employee retirement benefit calculations
• Market conditions affecting raw material and parts procurement

Mitigation Strategies

• Comprehensive and integrated projection of global economic outlook
• Forecasting and evaluating risks in overseas markets
• Insurance policies to cover product liability
• Utilizing derivatives transactions for hedging
• Managing counterparty credit risk by limiting counterparties to high credit-rated institutions
• Ongoing investments to ensure compliance with government regulations
• Establishment of Intellectual Property Rights Management Department
• Risk-management guidelines relating to earthquake damage and global task force for disaster prevention and recovery
• Strengthening manufacturing facilities with anti-seismic reinforcement
• Strict risk-management policies in sales financing
• Comprehensive annual assessment of customers’ financial condition

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI (2002 version), Japan’s Ministry of the Environment’s Environmental Reporting Guidelines (2003 version)

Environmental Metrics

ESG Focus Areas

• Integrity
• Economic Contribution
• Brand
• Quality
• Environment
• Employees
• Safety
• Value Chain
• Philanthropy

Environmental Achievements

• Launched Nissan Green Program 2010 (NGP2010) with medium-term targets for 2010.
• Reduced global per vehicle CO2 emissions by 4% from FY2005 levels.
• Achieved 100% factory recycling rates at several plants in Japan.
• Achieved 95.2% recovery rate for ELVs in Japan in FY2006 (four years ahead of NGP2010 target and nine years ahead of legal requirement).
• Introduced new 1.5-liter gasoline engine and Xtronic CVT in the Note, exceeding 2010 fuel efficiency standards by 20%.
• Globally introduced VVEL system, reducing CO2 emissions up to 10%.
• Introduced clean diesel engines in Europe meeting Euro4 standards.

Social Achievements

• Increased efforts to promote workplace diversity, particularly for women in management.
• Revised childcare support system, extending eligibility for shorter working hours.
• Launched Nissan Diversity Forums to promote a diversity mindset.
• Implemented the Employee Assistance Program (EAP) for employee mental health.
• Achieved 52% VCT participation in Nissan South Africa's HIV/AIDS Workplace Program.
• Launched the Nissan Student Government Leadership program in the US.
• Partnered with WWF on the Nissan-WWF Environmental Leadership Program.

Governance Achievements

• Established a CSR Steering Committee to manage progress in CSR areas.
• Published CSR scorecard for increased transparency.
• Strengthened global compliance system and established compliance standards.
• Implemented Easy Voice System for internal reporting.
• Improved data security systems following an information leak incident.

Climate Goals & Targets

Environmental Challenges

• Potential conflict between CSR activities and short-term business goals.
• Ensuring CSR compliance across a globalized supply chain.
• Varying social values across different regions.
• Inadequate contribution to overall social development.
• Insufficient action in regions other than Japan, North America, and Europe.
• Information leak incident.

Mitigation Strategies

• Integrating CSR into long-term vision and business plan.
• Selecting suppliers based on CSR compliance.
• Rolling out CSR as a global standard.
• Implementing Nissan Green Program 2010.
• Strengthening communication and marketing of CSR efforts.
• Strengthening data security systems and implementing stricter measures to prevent recurrence of information leaks.

Supply Chain Management

Responsible Procurement

• The Renault-Nissan Purchasing Way booklet.
• Requiring suppliers to provide written statements on CSR commitments.
• Nissan Green Procurement Standards in Japan.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and alternative energy vehicles.

Reporting Standards

Frameworks Used: GRI (2002 version and G3), Japan’s Ministry of Environment’s Environmental Reporting Guidelines (2003 version)

Sustainable Products & Innovation

• Altima Hybrid
• Note with efficient engine and CVT
• X-Trail FCV
• Clean diesel vehicles
• Vehicles running on biofuel blends

Awards & Recognition

• Energy Star Award (Smyrna and Canton plants)
• DuPont Safety Award (Sunderland Plant)
• Nikkei Childcare Support Award
• Japan Telework Association’s Telework Promotion Award

Environmental Metrics

ESG Focus Areas

• Integrity
• Economic Contribution
• Brand
• Employees
• Environment
• Quality
• Safety
• Value Chain
• Philanthropy

Environmental Achievements

• Global per vehicle CO2 emissions down 10% from FY2005
• VOC emissions in Japan down 4.2% from FY2005 (bodies and bumpers)
• 94.9% recovery rate achieved for FY2007 (Japan)
• 100% recycling rate achieved at Nissan (4 plants, 1 office) and 3 group production companies (Japan)
• Launch of global Green Procurement Guidelines

Social Achievements

• Launched Nissan Monozukuri Caravan program for elementary school students (Japan)
• Improved scores for management quality and employee motivation; share of positive responses to questions in employee attitude surveys
• Increased number of successful applicants under Open Entry and Shift Career Systems

Governance Achievements

• Establishment of a system in which conduct violations are duly reported
• Global, group-wide introduction of a system to evaluate activities to prevent compliance violations, with quantifiable targets set for future activities

Climate Goals & Targets

Environmental Challenges

• Inadequate contribution to overall social development
• Action to combine business with environmental and social aspects
• Insufficient action in regions other than Japan, North America and Europe
• Falling demand in mature markets and increasing costs of fuel and raw materials

Mitigation Strategies

• Developed CSR Management Way based on PDCA cycle (Plan-Do-Check-Act)
• Implemented materiality analysis to prioritize issues
• Engaged with stakeholders through various methods (shareholder meetings, environmental advisory meetings, supplier meetings)
• Commitment to becoming the world leader in zero-emission vehicles

Supply Chain Management

Responsible Procurement

• Renault-Nissan Purchasing Way
• CSR briefings for suppliers
• Global Green Procurement Guidelines

Climate-Related Risks & Opportunities

Opportunities

• Development of zero-emission vehicles

Sustainable Products & Innovation

• VVEL system
• 7-speed automatic transmission
• Clean diesel engine
• Armada FFV
• All-electric vehicle

Awards & Recognition

• Minister of Land, Infrastructure, Transport and Tourism Prize
• Eco-Products Awards
• Agency for Natural Resources and Energy Director-General’s award
• Energy Conservation Grand Prizes
• Minister of Economy, Trade and Industry e-Learning Award

Environmental Metrics

ESG Focus Areas

• Integrity
• Quality
• Safety
• Economic Contribution
• Environment
• Value Chain
• Brand
• Employees
• Philanthropy

Environmental Achievements

• Achieved 10% reduction from FY2005 levels in global per vehicle CO2 emissions
• Released the clean diesel X-TRAIL 20GT in Japan
• Introduced ultralow precious metal catalyst in the Cube
• Achieved 100% recycling rate (at five Nissan plants and one business office) and at three affiliate factories (Japan)
• Achieved 95.7% recovery rate (Japan)
• Market vehicles with Nissan’s proprietary hybrid technologies in North America and Japan by fiscal 2010
• Introduce all-electric vehicles in Japan, U.S. by FY2010; mass-market globally by FY2012

Social Achievements

• Held our total accident frequency ratio to 0.19, well within our goal of 0.27 or lower
• Launched Nissan Excellence Program (NEP) to improve quality
• Increased the ratio of female car-life advisors (CAs) to 6%, roughly twice the ratio in fiscal 2003
• Increased the ratio of female technical advisors (TAs) to 13%, roughly twice the fiscal 2003 ratio
• Introduced a mental healthcare program, Advantage EAP (Employee Assistance Program)

Governance Achievements

• Implemented Financial Instruments and Exchange Law (J-SOX) requirements
• Established a global evaluation system for prevention of noncompliance and a medium- to long-term action plan
• Produced the Nissan Global Code of Conduct in 2001

Climate Goals & Targets

Environmental Challenges

• Global financial crisis impacting investments and sales
• Need to balance short-term crisis management with long-term sustainability goals
• Reducing CO2 emissions to sustainable levels requires societal cooperation
• Maintaining competitiveness while implementing environmental measures

Mitigation Strategies

• Implementing Nissan Green Program 2010
• Investing in innovative environmental technologies
• Introducing clean diesel vehicles and CVT-equipped cars
• Developing and mass-marketing zero-emission vehicles
• Cooperating with governments and other sectors to promote electric vehicles
• Implementing QCT-C framework (Quality, Cost, Time, CO2)

Supply Chain Management

Responsible Procurement

• Nissan Green Procurement Guidelines
• The Renault-Nissan Purchasing Way
• CSR procurement policy
• Supplier meetings on Nissan GT 2012

Climate-Related Risks & Opportunities

Opportunities

• Development of zero-emission vehicles
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G3, Japan’s Ministry of the Environment’s Environmental Reporting Guidelines (2003 version)

Certifications: ISO 14001 (17 of 18 production sites)

Sustainable Products & Innovation

• Electric vehicles
• Fuel-cell vehicles
• Clean diesel vehicles
• CVT-equipped vehicles
• Biofuel vehicles
• Eco Pedal system
• Around View Monitor
• Lane Departure Prevention
• Side and Back-up Collision Prevention

Awards & Recognition

• Eco First company (Japan’s Ministry of the Environment)
• Award for Excellence in Corporate Disclosure (SAAJ)
• Minister’s Prize and Agency for Natural Resources and Energy Director-General’s award (Japan)
• Global Quality and Global Innovation Awards (suppliers)

Environmental Metrics

ESG Focus Areas

• Environment
• Safety
• Corporate Governance
• Economic Contribution
• Employees
• Philanthropy
• Value Chain

Environmental Achievements

• Achieved 10% reduction from FY2005 levels in global per vehicle CO2 emissions
• Achieved 100% recycling rate at five Nissan plants and one business office and at five affiliate factories (Japan)
• Launched Nissan LEAF electric vehicle
• Expanded the Nissan Eco Series of environmentally conscious cars

Social Achievements

• Appointed two female production line instructors (a first for the Japanese car industry)
• Launched Nissan Monozukuri Caravan program for elementary school students (Japan)
• Nissan volunteers built homes in partnership with Habitat for Humanity International
• Launched Nissan Kids Safety Campaign in Korea and the Middle East

Governance Achievements

• Established a department for broadly managing risks related to corporate strategies
• Implemented a PDCA cycle for risk management
• Came top for the third year in a row in the automobiles, auto parts and tires category in the 15th Awards for Excellence in Corporate Disclosure of the Securities Analysts Association of Japan

Climate Goals & Targets

Environmental Challenges

• Global financial crisis impacting the automotive industry
• Balancing growth with environmental measures
• Meeting increasingly strict regulations on CO2 emissions and other environmental issues
• Ensuring supplier compliance with CSR standards

Mitigation Strategies

• Implemented short-term controls to protect free cash flow and improve business performance
• Launched Nissan Green Program 2010
• Developed and marketed zero-emission vehicles
• Created Renault-Nissan CSR Guidelines for Suppliers

Supply Chain Management

Responsible Procurement

• Renault-Nissan Purchasing Way
• Renault-Nissan CSR Guidelines for Suppliers
• Nissan Green Purchasing Guidelines

Climate-Related Risks & Opportunities

Opportunities

• Development of zero-emission vehicles

Reporting Standards

Frameworks Used: GRI G3, Japan’s Ministry of the Environment’s Environmental Reporting Guidelines (2003 version)

Certifications: ISO 14001 (18 of 20 production sites)

Sustainable Products & Innovation

• Nissan LEAF
• Nissan Eco Series
• X-TRAIL FCV
• Fuga hybrid

Awards & Recognition

• Awards for Excellence in Corporate Disclosure
• ANRE Director-General’s award in the FY2009 Energy Conservation Prizes
• Minister’s Prize in the fifth annual Eco-Products Awards

Environmental Metrics

ESG Focus Areas

• Environment
• Safety
• Philanthropy
• Quality
• Value Chain
• Employees
• Economic Contribution
• Corporate Governance & Internal Control

Environmental Achievements

• Sales of the all-electric Nissan LEAF were 30,500 units and cumulative sales since its launch through the end of March 2013 exceeded 58,000 units.
• 24.9% improvement in corporate average fuel economy (in Japan, U.S., Europe, China, vs. fiscal 2005)
• 8.3% reduction in CO2 emissions from corporate activities (t-CO2/vehicle, vs. fiscal 2005)
• EV motor using less rare earth elements developed and adopted in Nissan LEAF
• Reduced CO2 emissions by introducing three-wet-paint process in plants globally

Social Achievements

• Expanded partnership with Habitat for Humanity, an international NGO
• Conducted Nissan Safety Driving Forum in India
• Met with those heading social contribution activities in each regional office worldwide to strengthen our global structure

Governance Achievements

• Global implementation of information security training, including a self-evaluation program at the Global Headquarters
• Update of the statement on security-related export controls
• Establishment of Global Anti-bribery Policy and implementation of employee training
• Strengthening of corporate governance & internal control on a global basis

Climate Goals & Targets

Environmental Challenges

• Reconciling environmental conservation and the joy and comfort that mobility can bring
• Reducing the environmental impact and resource consumption of corporate activities and the entire lifecycle of vehicles
• Addressing concerns over climate change
• Meeting tougher regulations and responding to society’s demands
• Management of chemical substances, waste reduction, recycling and the potential depletion of water, energy and resource materials

Mitigation Strategies

• Implementing Nissan Green Program 2016 (NGP2016)
• Promoting efficient use of energy and resources
• Promoting and widening the application of green technologies
• Using materiality assessments to analyze potential opportunities and risks
• Working with Alliance partner Renault on environmental technologies and vehicles
• Taking steps throughout the value chain to address issues

Supply Chain Management

Supplier Audits: 70% of global purchases; environmental data of suppliers examined

Responsible Procurement

• Renault-Nissan CSR Guidelines for Suppliers
• Nissan Green Purchasing Guidelines

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Guidelines

Certifications: ISO 14001

Third-party Assurance: PricewaterhouseCoopers Aarata Sustainability Certification Co., Ltd.

Sustainable Products & Innovation

• Nissan LEAF
• e-NV200
• Hybrid models (Pathfinder, Q50, QX60)
• PURE DRIVE vehicles

Awards & Recognition

• Catalyst Award
• Toyo Keizai Diversity Management Awards
• J-Win Diversity Awards
• METI Diversity Management Selection 100
• Tokyo Stock Exchange Nadeshiko brand

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• Zero-emission mobility
• Electric Vehicles (EVs)
• Quality
• Cost reduction
• Brand Power
• Sales Power
• Business Expansion
• Autonomous Driving

Environmental Achievements

• Global sales of Nissan Leaf surpassed 100,000 units.
• Nissan Leaf achieved almost 50% market share of global EV market.
• Introduction of e-NV200, Nissan's first all-electric commercial vehicle.
• Partnership with Bhutan to support their transition to an electric vehicle fleet.

Social Achievements

• Launched Japan's first-ever car-sharing program with ultra-compact EVs in Yokohama.
• Strengthened management structure with new appointments (Chief Competitive Officer, Chief Performance Officer, Chief Planning Officer).
• Increased dividend payout ratio from 25% to 30%.

Governance Achievements

• Enhanced corporate governance system (details in sustainability report).
• Established specialized departments and appointed officers to promote compliance policy.
• Implemented a new six-region sales organization.

Climate Goals & Targets

Environmental Challenges

• Intense global competition.
• Sluggish conditions in Europe.
• Volatile demand in emerging markets.
• Costs associated with product enrichment and regulatory requirements.
• Difficulties in the US market in 2012 with new vehicle launches and quality.

Mitigation Strategies

• Accelerating efforts to build competitiveness, contain costs, and improve brand power.
• Implementing a new six-region sales organization.
• Focusing on cost-management and reducing total delivered cost (TDC) per vehicle.
• Improving product quality and customer opinions.
• Strengthening brand marketing and advertising campaigns.
• Improving customer experience in dealerships.
• Leveraging the Renault-Nissan alliance for synergies in product development, procurement, and engineering.
• Investing in new plants in Mexico and Brazil, expanding operations in Russia and India, and production in Vietnam.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Nissan Leaf
• e-NV200

Environmental Metrics

ESG Focus Areas

• Environment
• Safety
• Philanthropy
• Quality
• Economic contribution
• Employees
• Value chain
• Renault-Nissan Alliance
• Corporate Governance & Internal Control

Environmental Achievements

• Improved corporate average fuel efficiency by 36.4% from 2005 (Japan, U.S., Europe, China)
• Reduced CO2 emissions of global corporate activities by 22.6% (t-CO2/vehicle, vs. FY2005)
• Increased recycled material usage ratio per new vehicle (Japan, U.S., Europe)
• Achieved 99.6% ELV recovery rate in Japan
• Reduced waste by 7.0% globally
• Reduced CO2 emissions from manufacturing activities by 23.9% (t-CO2/vehicle, vs. FY2005)
• Reduced CO2 emissions in logistics by 3.3% (Japan, North America, Europe, China, t-CO2/vehicle, vs. FY2005)
• Nissan LEAF sales reached 170,000 units worldwide

Social Achievements

• Launched the e-NV200, a commercial EV
• Launched the Venucia e30 for the Chinese market
• Developed world’s first high-capacity energy storage system built with used batteries
• Expanded Nissan Energy Saving Collaboration (NESCO) diagnoses worldwide
• Promoted widespread adoption of ITS technologies
• Bolstered cooperation with partners aimed at increasing recovery rate for interior plastic from scrapped vehicles
• Continued activities to reduce environmental impact through understanding upstream in the supply chain
• Participated in CDP supply chain program and adopted global standards for supplier surveys
• Introduced the Nissan New Mobility Concept for short-distance trips

Governance Achievements

• Established a global framework for environmental management
• Established Global Environmental Management Committee (G-EMC)
• Established regional environmental management committees
• Acquired ISO 14001 certification for environmental management systems
• Implemented Nissan Green Program 2016 (NGP2016)

Climate Goals & Targets

Environmental Challenges

• Stringent environmental regulations becoming more stringent year by year
• Changing consumer needs and wishes concerning environmental performance
• Rising costs or depletion of mineral resources caused by growing demand
• Environmental effects of topsoil excavation, deforestation and wastewater from mining
• Reduction of volatile organic compounds (VOCs) in vehicle production processes
• Water scarcity and climate change impacts on water resources

Mitigation Strategies

• Materiality assessments to analyze potential opportunities and risks
• Nissan Green Program 2016 (NGP2016) to reduce environmental impact and promote harmony between resource consumption and ecology
• Closed-loop recycling of steel, aluminum and plastic
• Three-wet paint process to reduce CO2 emissions in painting process
• Energy-saving activities in manufacturing process
• Modal shift to rail and maritime transport
• Use of renewable energy in global business activities
• Water usage reduction initiatives at vehicle production plants
• Rainwater harvesting and wastewater recycling

Supply Chain Management

Responsible Procurement

• Renault-Nissan Purchasing Way
• Renault-Nissan CSR Guidelines for Suppliers
• Nissan Green Purchasing Guidelines

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Increased use of batteries as energy storage devices

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, TÜV Rheinland certification for LCA methodology

Sustainable Products & Innovation

• Nissan LEAF
• e-NV200
• Venucia e30
• PURE DRIVE vehicles
• Nissan New Mobility Concept

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Dependency
• Air Quality
• Water Scarcity
• Human Rights
• Traffic Safety
• Diversity and Inclusion
• Quality
• Supply Chain
• Employees
• Community Engagement
• Corporate Governance

Environmental Achievements

• Achieved a 37.4% reduction in CO2 emissions from new cars (vs. FY2000; Japan, U.S., Europe, and China)
• Achieved a 33.7% reduction in overall corporate CO2 emissions per vehicle sold (vs. FY2005; global)
• Reduced CO2 emissions from global manufacturing sites by 29.7% (vs. 2005/per vehicle manufactured)
• Reduced water intake at global production sites by 16% (vs. 2010)
• Achieved a 10.5% renewable energy usage rate in manufacturing plants
• Introduced a closed-loop recycling system for aluminum parts, saving more than 90% of the energy needed to make new aluminum
• Reduced VOC emissions per painted surface area by 36.8% (vs. FY2010)

Social Achievements

• Increased the percentage of women among Nissan managers globally to 14.7% (from 7% in 2008)
• Reduced fatalities involving Nissan vehicles in Japan by 76% compared to 1995 levels
• Launched various initiatives to support employees balancing work with childcare or nursing care, including in-house childcare centers and seminars
• Expanded the Nissan Waku-Waku Eco School program globally to educate youth on environmental issues

Governance Achievements

• Adopted the three-statutory-committee format in June 2019, separating management and supervisory functions
• Includes sustainability indicators in the performance evaluation of senior management, including executive officers

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on supply chain and production bases (extreme weather)
• Transition risks from regulatory changes, market shifts, and increased R&D costs
• Meeting rising expectations for companies to address human rights issues
• Ensuring cost-competitiveness of electrified vehicles to drive customer acceptance

Mitigation Strategies

• Developing battery innovations for cost-competitive and more efficient EVs
• Improving energy efficiency of e-POWER powertrains
• Developing a battery ecosystem to support decentralized renewable energy generation
• Implementing a Global Customer Privacy Policy
• Undertaking Human Rights Impact Assessments across facilities
• Investing in cost-competitive electrified vehicles

Supply Chain Management

Responsible Procurement

• Renault-Nissan CSR Guidelines for Suppliers
• Nissan Green Purchasing Guidelines
• Responsible Minerals Sourcing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting supply chain and production

Transition Risks

• Tighter regulations on fuel economy and CO2 emissions
• Increased competition in the EV market

Opportunities

• Expansion of V2X energy management solutions
• Increased demand for emergency power sources using EV batteries

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

Nissan's initiatives contribute to these goals through various programs related to climate action, clean energy, sustainable cities, gender equality, responsible resource management, traffic safety, and community engagement.

Sustainable Products & Innovation

• Nissan LEAF
• Nissan ARIYA
• e-POWER vehicles

Awards & Recognition

• FTSE4Good Index Series constituent
• FTSE Blossom Japan Index constituent
• CDP A List company for Water Security
• Clarivate Top 100 Global Innovators
• RJC Technology of the Year
• Japan Car of the Year Best Innovation Award
• SAE/AISI Sydney H. Melbourne Award

Environmental Metrics

ESG Focus Areas

• Carbon Neutrality
• Respect for Human Rights
• Corporate Governance

Environmental Achievements

• Launched Nissan Green Program 2030 (NGP2030) aiming for carbon neutrality by 2050.

Social Achievements

• Launched Nissan Social Program 2030 (NSP2030) to address societal issues.
• Established a dedicated hotline and new department for business partners to address concerns following a Subcontract Act violation.

Governance Achievements

• Strengthened corporate governance, transitioning to a company with three statutory committees in June 2019.
• Established a global, independent, internal audit function reporting directly to the Audit Committee.
• Implemented standards for independent directors based on the Japan Association of Corporate Directors model and international trends.
• Conducts annual Board of Directors Effectiveness Evaluation, including a triennial third-party evaluation.

Climate Goals & Targets

Environmental Challenges

• Recommendation from the Fair Trade Commission regarding Japan's Subcontract Act.

Mitigation Strategies

• Issued refunds to business partners, discontinued rebates, established a dedicated hotline and new department to address concerns proactively.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Carbon Neutrality
• Circular Economy
• Human Capital Strategy
• Corporate Culture Reform

Environmental Achievements

• Reduced lifecycle CO2 emissions by 11% compared to 2018
• Reduced production CO2 emissions by 12% compared to 2018
• Increased sustainable material ratio to 32%

Social Achievements

• Launched Nissan Social Program 2030 (NSP2030)
• Global employee survey score of 71 points
• 15.9% women in management positions

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Impact of the COVID-19 pandemic on production volumes
• Not disclosed

Mitigation Strategies

• Shifting strategy to focus on electrification and expanding mobility possibilities
• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: International Integrated Reporting Framework

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Dependency
• Air Quality & Water
• Safety
• Quality
• Intellectual Property
• Responsible Sourcing
• Communities
• Power of Employees
• Human Rights
• Diversity, Equity, and Inclusion

Environmental Achievements

• Reduced CO2 emissions in 2030 goals: Lifecycle (t-CO2/vehicle) Global -30%, Product (gCO2/km) Global -32.5%, 4 regions* -50%, Manufacturing (t-CO2/vehicle) Global -52%
• Expanded sustainable material (weight basis) 4 regions* 40%
• Reduced water usage at manufacturing sites; Zero high-risk sites; Managed wastewater quality at manufacturing sites
• Improved management of vehicle emission including non-tail pipe; Managed VOC at manufacturing sites; Managed air quality in cabin

Social Achievements

• Launched OUR NISSAN initiative to promote corporate culture transformation
• Improved employee engagement score by 2 points compared to the previous year
• Established Employee Resource Groups (ERGs) in Japan focusing on Gender, LGBTQ+ allies, Multiculture, and Working Parents

Governance Achievements

• Established a dedicated hotline for business partners and a partnership transformation office
• Discontinued the rebate system to address concerns raised by the Fair Trade Commission

Climate Goals & Targets

Environmental Challenges

• Global warming and geopolitical issues
• Inconsistent shift to electric vehicles across different governments
• Rapid market evolution with the rise of Chinese OEMs and EV-focused manufacturers
• Diverse and evolving customer needs
• Market fragmentation across the globe
• Need to change existing development and production methods to achieve cost parity with ICE vehicles by fiscal year 2030

Mitigation Strategies

• Developed a flexible platform shared across five models in the same family
• Introduced a new production way that significantly reduces the production time per unit by 20% through extensive automation
• Enhanced collaboration with suppliers
• Realigned business structure, maintained a sharp focus on quality of sales, optimized production capacity and streamlined product lineup
• Formulated Nissan Leadership Way and Our Promise to create a positive working environment
• Investing in core technologies and promoting the development of electrification and advanced autonomous driving technologies

Supply Chain Management

Responsible Procurement

• Establish human rights due diligence system in supply chain to aim for No human rights violation

Climate-Related Risks & Opportunities

Physical Risks

• Expanded impact of carbon taxes
• Increased burden of energy costs

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Expansion of electric vehicle production and mobility innovation
• Building an EV ecosystem

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi), Task Force on Climate-related Financial Disclosures (TCFD)

Certifications: SBT certification

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 11 (Sustainable Cities and Communities)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

Nissan's initiatives contribute to these goals through vehicle electrification, renewable energy integration, sustainable resource management, and community development.

Sustainable Products & Innovation

• Electrified vehicles
• All-solid-state batteries (ASSBs)