Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Activities
• Corporate Social Responsibility (CSR)
• Corporate Governance
• Compliance

Environmental Achievements

• Achieved an overall fleet average fuel economy of 15.5 km/L for its gasoline cars in Japan in fiscal year 2005, a 28% improvement over the average for fiscal year 1990.
• Reduced total CO2 emissions from production and logistics operations at MMC’s plants in Japan by approximately 26% compared with fiscal 1990 year levels.
• Achieved an automobile shredder residue (ASR) recovery rate of 64.2%, surpassing the regulatory level of 30% for fiscal year 2005 and that of 50% for fiscal year 2010.

Social Achievements

• Launched two new models in Japan (Outlander SUV and i minicar) that received strong customer praise.
• Improved operating profitability, exceeding expectations.
• Implemented initiatives to improve customer satisfaction and dealer relationships in the U.S.

Governance Achievements

• Strengthened corporate governance through legal and regulatory compliance, improved transparency, and clarified management responsibilities.
• Established the Business Ethics Committee and Business Revitalization Monitoring Committee for external oversight.
• Implemented company-wide compliance initiatives and training programs.

Climate Goals & Targets

Environmental Challenges

• Slow sales recovery in the U.S. and Australian markets.
• High crude oil prices and rising materials costs.
• Need to rationalize the global production system.
• Damage to the Mitsubishi brand caused by past management missteps.

Mitigation Strategies

• Dispatched management personnel to the U.S. to conduct sweeping reforms of the operating structure.
• Implemented cost reduction efforts and pursued favorable exchange rates.
• Took additional asset impairment losses in fiscal year 2005 to ensure sound profitability.
• Introduced new models and special editions to stimulate demand.
• Implemented cost-cutting measures and strengthened relationships with trading partners.

Supply Chain Management

Responsible Procurement

• Shifting from volume-based to quality-based purchasing
• Collaborating with trading partners from the component design phase
• Extending the periods of supply contracts

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Development of electric vehicles

Sustainable Products & Innovation

• Electric vehicles
• Clean diesel engines
• Plant-based resins (Green Plastics)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Launched various traffic safety education programs, including face-to-face education, provision of educational materials, and information dissemination; Improved customer satisfaction through various initiatives, including the introduction of tablet PCs for product explanations and customer service questionnaires; Expanded the lineup of safety support cars; Implemented a new certification system for EV/PHEV service staff; Increased the number of employees participating in Quality Forums; Introduced a remuneration system that allows for appropriate compensation based on roles and contributions; Implemented measures to shorten total working hours and promote work-life balance; Established a Diversity Promotion Policy; Increased the maximum number of hours of work that can be performed from home under the telecommuting system; Held get-to-know-you lunch meetings for employees on childcare leave; Provided individual nursing care consultations; Conducted leadership training for women and role model lectures; Increased employment of people with disabilities; Launched the Mitsubishi Motors STEP Funds for employee social contributions.

Governance Achievements

• Established the Mitsubishi Motors Global Code of Conduct; Revised the Personnel system for management and non-management personnel; Established a Quality Strategy Committee; Established PDCA for raising customer satisfaction; Established internal and external consultation offices (helplines) for whistle-blowing and consultation; Formulated Supplier CSR Guidelines; Established a Business Partner Helpline; Implemented measures in response to improper conduct regarding fuel consumption and emissions testing.

Climate Goals & Targets

Environmental Challenges

• Workplace accidents increased to 20 in 2017 from 17 in 2016; Number of employees absent from work due to mental health issues increased by 6% in 2017; Incident involving overseas trainees from the Philippines not complying with the Technical Intern Training Act; Improper conduct regarding fuel consumption and emissions testing in 2016.

Mitigation Strategies

• Positioned the enhancement of introductory training as a key measure for 2018 to address workplace accidents; Introduced an outside Employee Assistance Program (EAP) to address mental health issues; Working on improving from every aspect in response to the overseas trainee incident; Reviewed and established internal structures and processes relating to catalog production guidelines and other issues in response to the fuel consumption and emissions testing issue.

Supply Chain Management

Supplier Audits: Process audits at 92 suppliers and 126 plants in fiscal 2017; Quality self-checks at 287 supplier plants

Responsible Procurement

• Supplier CSR Guidelines; Green Procurement Guidelines; Conflict minerals policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3.6 (Road safety)

Initiatives related to traffic safety education and development of safety technologies contribute to SDG 3.6.

Sustainable Products & Innovation

• Safety support cars; EVs/PHEVs

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environment
• Social
• Compliance

Governance Achievements

• Improved and enhanced corporate governance, including the introduction of the executive officer system and an Audit & Supervisory Board with a majority of outside members.
• Established a Global Risk Control Officer to manage compliance and operational risk.
• Revised internal control system to improve efficiency and compliance with laws and regulations.
• Established a global whistleblowing contact point.

Climate Goals & Targets

Environmental Challenges

• Improper conduct in fuel consumption testing.
• Past quality problems.

Mitigation Strategies

• Profound reforms to its internal control system.
• Appointment of a Global Risk Control Officer.
• Revision of the internal control system.
• Establishment of internal and external consultation offices (helplines).
• Implementation of compliance-related education and training programs.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions from production plants through various initiatives including equipment improvements, renewable energy adoption (photovoltaic panels at MMTh), and waterborne paint methods.
• Implemented measures to prevent air pollution by reducing VOC, NOx, SOx emissions, and particulate matter.
• Prevented soil and water pollution through effluent purification, emergency reservoir tanks, and abolishing waste incinerators.
• Managed chemical substances effectively, including PRTR substances and hazardous waste, and implemented appropriate management of PCB waste.
• Promoted effective use of resources by converting industrial waste into reusable resources and maintaining a zero landfill waste disposal rate.
• Conserved water resources through water recycling, rainwater reuse, and monitoring water quality.

Social Achievements

• Expanded Green Procurement Guidelines to suppliers, promoting environmental management systems and reducing environmental impact throughout the supply chain.
• Participated in the CDP Supply Chain Program to investigate climate change risk factors in the supply chain.
• Promoted energy conservation and recycling activities at dealerships, and expanded next-generation dealers (“Dendo Drive Station”) equipped with EV charging and V2H capabilities.
• Promoted the acquisition of “Eco-Action 21” certification by dealers in Japan.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Reducing the environmental impact of vehicle production and distribution.
• Managing water resources effectively in high water stress areas.
• Reducing the environmental impact of the supply chain.

Mitigation Strategies

• Implementing various initiatives to reduce CO2 emissions, prevent pollution, and conserve resources.
• Conducting water risk assessments and implementing water conservation measures.
• Expanding Green Procurement Guidelines and participating in the CDP Supply Chain Program to engage suppliers in environmental initiatives.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards

Certifications: Eco-Action 21

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 Recycling
• Product Safety
• Product Quality
• Sales Quality
• Service Quality
• Contribution to Local Economy
• Human Resource Development
• Work Style Reforms
• Women's Participation
• Employment of People with Disabilities
• Occupational Health and Safety
• Sustainable Supply Chain
• Social Contribution Activities
• Governance
• Compliance

Environmental Achievements

• Reduced CO2 emissions from business activities by 37% compared to 2014.
• Achieved zero direct landfill waste (less than 0.5%) at plants in Japan.
• Installed a battery energy storage system (BESS) at the Okazaki Plant.

Social Achievements

• Created local employment for 11,000 people in Thailand, Indonesia, the Philippines, and Vietnam.
• Formulated a new Social Contribution Activities Policy.
• Improved the ratio of defects identified within 3 months of new vehicle sales.

Governance Achievements

• No serious incidents occurred.
• Internal Control Committee meetings convened in April and November.

Climate Goals & Targets

Environmental Challenges

• Meeting CO2 emission reduction targets for new vehicles and business activities.
• Expanding adoption of plastic materials not derived from oil.
• Achieving zero direct landfill waste at overseas plants.
• Improving sales satisfaction index (SSI) and customer satisfaction index (CSI) in ASEAN countries.
• Reducing overtime hours and promoting work-life balance.
• Increasing the number of female managers.
• Improving the overall accident rate.
• Reinforcing CSR in the supply chain.

Mitigation Strategies

• Identifying CO2 emissions from new vehicles and reflecting them in product plans.
• Creating a roadmap for expanding the use of plastic materials not derived from oil.
• Gathering data and implementing managed operations of waste at overseas plants.
• Implementing ongoing measures to improve SSI and CSI.
• Implementing work style reform measures.
• Implementing ongoing measures to promote women's participation and advancement.
• Implementing ongoing measures for the creation of safe workplaces.
• Expanding Supplier CSR Guidelines to overseas production bases and supporting supplier CSR evaluations.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier CSR Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Electric Vehicles (EVs), Plug-in hybrid electric vehicles (PHEVs), Hybrid electric vehicles (HEVs)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable Supply Chain
• Climate Change and Energy Issues
• Traffic Accident Prevention
• Water Resource Conservation
• Product, Sales, and Service Quality
• Contribution to Local Economy
• Work Style Reform
• Governance and Compliance
• Biodiversity Preservation
• Resource Recycling
• Occupational Health and Safety
• Human Resource Development
• Social Contribution Activities

Climate Goals & Targets

Environmental Challenges

• Climate change and energy problems
• Changes in the automotive industry (new technologies, business models)

Mitigation Strategies

• Reducing greenhouse gases from business activities
• Addressing social issues through business activities
• Establishing the Sustainability Committee and Sustainability Promotion Department

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions from business activities by 31% (compared with FY2014)
• Reduced CO2 emissions from new vehicles by 14% (compared with FY2010)
• Achieved 7% electrified vehicle sales ratio

Social Achievements

• Launched three electrified vehicle models: Eclipse Cross PHEV Model, All-New Outlander PHEV Model, and eK X EV
• Concluded disaster cooperation agreements with 203 municipalities
• Improved the ratio of defects identified within 3 months in service of new vehicle sales

Governance Achievements

• Included CO2 emissions from business activities and employee engagement as indicators for determining medium-to long-term performance-linked compensation for executives
• Conducted human rights assessments for the first time at its head office and three domestic manufacturing plants
• Expressed support for the TCFD Recommendations

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the global spread of COVID-19 and the Russia-Ukraine issue
• Shortages in the supply of semiconductors and other components
• Climate change risks (strengthening of requirements for fuel economy/CO2 and zero-emission vehicles, introduction and expansion of carbon pricing, increasing frequency and intensity of meteorological disasters)

Mitigation Strategies

• Working closely with suppliers to minimize production impact
• Promoting Digital Transformation (DX) and Customer Experience (CX) strategies
• Formulating the Environmental Plan Package to promote climate change countermeasures
• Promoting electrification, energy conservation, and the introduction of renewable energy
• Formulating business continuity plans for flooding and other risks

Supply Chain Management

Supplier Audits: 70% of business partners (based on purchase amounts) underwent third-party CSR evaluations.

Responsible Procurement

• Supplier CSR Guidelines
• Green Procurement Guidelines
• Supplier Commitment agreements
• Declarations of Conformity to Regulations on Substances of Concern

Climate-Related Risks & Opportunities

Physical Risks

• Increasing frequency and intensity of meteorological disasters

Transition Risks

• Strengthening of requirements for fuel economy/CO2 and zero-emission vehicles
• Introduction and expansion of carbon pricing

Opportunities

• Growing demand for electrified vehicles

Reporting Standards

Frameworks Used: GRI Standards, TCFD Recommendations, Environmental Reporting Guidelines (2018 edition) issued by the Ministry of the Environment of Japan

Certifications: ISO 14001, Eco-Action 21

UN Sustainable Development Goals

• Goal 3
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 15
• Goal 17

The report mentions alignment with SDGs throughout, but lacks specific details on how initiatives contribute to each goal.

Sustainable Products & Innovation

• Electrified vehicles (EVs, PHEVs, HEVs)

Awards & Recognition

• Technology Car of the Year Award (2021–2022 Japan Car of the Year)
• Forest Revitalization & Forestry Resource Development Award (Thailand’s Royal Forest Department)
• Green Partner 2022 (Forestry Agency, Japan)

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• semiconductor shortages and production constraints due to lockdowns in Shanghai (first half of fiscal 2022)
• intermittent interest rate hikes, inflation, decrease in consumer purchasing motivation, challenges in the sales environment (second half of fiscal 2022)
• logistical problems, including a shortage of shipping capacity (Oceania)
• material cost hikes and semiconductor and vessel shortages

Mitigation Strategies

• focused on segments with relatively low supply constraints and worked to eliminate order backlogs
• suppressed fleet sales, prioritizing sales to dealers (North America)
• concentrate on profit-focused sales efforts (Latin America/Middle East/Africa, others)

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• XPANDER HEV
• all-new Triton
• eK X EV
• MINICAB-MiEV
• all-new Outlander (PHEV model)
• DELICA Mini
• all-new compact SUV, the ASX
• all-new COLT

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Circulation
• Pollution Prevention
• Traffic Safety
• Human Rights
• Diversity & Inclusion
• Employee Engagement
• Supply Chain Sustainability
• Community Involvement
• Governance

Environmental Achievements

• Reduced CO2 emissions from business activities by 33% compared to FY2018.
• Reduced average CO2 emissions from new vehicles by 18% compared to FY2010.
• Achieved 11% electrified vehicle sales ratio.
• Achieved less than 0.5% direct landfill waste.
• Installed 1.75MW of solar panels at MMKI, reducing annual CO2 emissions by 1,800t.
• Eliminated kerosene use at Mizushima Plant, lowering annual CO2 emissions by 50 tons.

Social Achievements

• Increased percentage of female instructors in technical fields to 13.1%.
• Increased percentage of male employees taking childcare leave to 68.4%.
• Conducted human rights assessments at headquarters and three domestic plants in FY2021, and at Mitsubishi Motors (Thailand) Co., Ltd. (MMTh) in FY2022.
• Concluded disaster cooperation agreements with 250 municipalities.
• Total social contribution expenditures of ¥416 million.

Governance Achievements

• Added ESG-related items as an indicator for determining medium- to long-term performance-linked compensation for Executive Officers.
• Consistently selected as a constituent of the “FTSE4Good Index Series” and the “FTSE Blossom Japan Index” for four consecutive years.
• Received Gold certification in the PRIDE Index for consecutive years.

Climate Goals & Targets

Environmental Challenges

• Strengthening of fuel economy/CO2 and ZEV regulations.
• Introduction and expansion of carbon pricing.
• Increasing frequency and intensity of meteorological disasters.
• Resource constraints.
• Stringent regulations on emissions and hazardous substances.
• Water shortages and pollution.
• Ecosystem losses.
• Supply chain disruptions.
• Human rights violations in the supply chain.

Mitigation Strategies

• Developing electrified vehicles and improving fuel efficiency technologies.
• Promoting energy conservation and renewable energy.
• Collaborating with suppliers and logistics companies to reduce CO2 emissions.
• Developing alternative sourcing strategies.
• Implementing climate change adaptation measures.
• Promoting resource recycling and waste reduction.
• Strengthening management of hazardous substances.
• Reducing water consumption and reusing discharged water.
• Promoting preservation activities.
• Conducting supplier CSR evaluations and audits.
• Formulating BCPs.

Supply Chain Management

Supplier Audits: 80 cases/year

Responsible Procurement

• Supplier CSR Guidelines
• Green Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Increasing frequency and intensity of meteorological disasters

Transition Risks

• Strengthening of regulations for fuel economy/CO2 and zero-emission vehicles
• Introduction and expansion of carbon pricing
• Changes in the energy mix
• Tight supply and demand for raw materials

Opportunities

• Growing demand for electrified vehicles
• Advancement in energy technologies

Reporting Standards

Frameworks Used: GRI Standards, TCFD Recommendations

Certifications: ISO 14001

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)

Initiatives contribute to these goals through electrification, renewable energy, sustainable supply chain, community involvement, and disaster relief.

Sustainable Products & Innovation

• Electrified vehicles (EVs and PHEVs)
• eK X EV
• MINICAB MiEV
• OUTLANDER PHEV model
• ECLIPSE CROSS PHEV model
• TRITON with new 2.4L diesel turbo engine

Awards & Recognition

• 2023 Certified Health & Productivity Management Outstanding Organizations

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Recycling
• Pollution Prevention
• Human Rights
• Supply Chain Sustainability
• Employee Well-being
• Diversity and Inclusion
• Corporate Governance
• Compliance

Environmental Achievements

• Installed 16.25MW of solar power generation equipment at plants.
• Achieved less than 0.5% direct landfill waste.
• Reduced CO2 emissions from business activities by 34% compared to FY2018.
• Increased electrified vehicle sales ratio to 15%.

Social Achievements

• Conducted human rights assessments at headquarters and key overseas plants with no significant violations.
• Launched HEV models for Colt, Xpander, and Xpander Cross.
• Launched MINICAB EV in Indonesia.
• Achieved top three ranking in industry surveys for sales and service quality in four ASEAN countries.

Governance Achievements

• Established the Carbon Neutrality Council to promote carbon neutrality.
• Consistently selected as a constituent of FTSE4Good Index Series, FTSE Blossom Japan Index, and Morningstar Japan ex-REIT Gender Diversity Tilt Index.
• Implemented multifaceted competency evaluation systems for managers and employees.
• Established internal and external consultation offices (helplines) and the MITSUBISHI MOTORS Global Hotline.

Climate Goals & Targets

Environmental Challenges

• Stricter fuel efficiency, CO2 emissions, and ZEV regulations.
• Increasing procurement costs for electricity and raw materials.
• Damage to plants due to severe weather disasters.
• Supply chain disruptions.
• Resource constraints resulting from the depletion of natural resources.
• Tighter regulations on the use of recycled materials.
• Increasing costs of managing environmentally hazardous substances.
• Water shortages and water pollution.
• Loss of ecosystems caused by land use in business operations.

Mitigation Strategies

• Expanding lineup of electrified vehicles.
• Securing emergency power sources.
• Reducing dependence on depleted resources.
• Using resources more efficiently and reusing waste.
• Implementing 3R design and advanced recycling technologies.
• More efficient management of the supply chain.
• Providing safe and secure products.
• Reduced water consumption and increased reuse.
• Mitigating or restoring the impact on ecosystems.

Supply Chain Management

Supplier Audits: 80 suppliers at 101 plants

Responsible Procurement

• Supplier CSR Guidelines
• Green Procurement Guidelines
• Prohibition of child labor, forced labor, and the nonuse of conflict minerals

Climate-Related Risks & Opportunities

Physical Risks

• More frequent and severe weather disasters
• Supply chain disruptions

Transition Risks

• Stricter fuel efficiency, CO2 emissions, and ZEV regulations
• Increasing procurement costs for electricity and raw materials
• Carbon taxes and other carbon pricing measures

Opportunities

• Increasing sales by enhancing our lineup of electrified vehicles
• Acquiring new demand for securing emergency power sources
• Contribute to a society more resilient to climate change

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD Recommendations

Certifications: ISO 14001, Eco-Action 21

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 10 (Reduced Inequalities)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

The report details how various initiatives contribute to these goals throughout the document.

Sustainable Products & Innovation

• Electrified vehicles (EVs, PHEVs, HEVs)
• Autonomous street lighting system using used batteries from PHEVs
• Battery Cube (movable storage battery)

Awards & Recognition

• 2024 Certified Health & Productivity Management Outstanding Organizations
• PRIDE Index Gold certification (six consecutive years)