Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance
• Safety
• Community Engagement

Environmental Achievements

• Reduced CO2 emissions by 61.3% compared to 1990 levels (exceeding a 39% target).
• Over 98% of trucks sold in 2018 complied with stricter fuel efficiency standards.
• Reduced landfill waste to under 1% of total waste generated.
• Improved average fuel efficiency of UD-brand trucks.

Social Achievements

• Held safe-driving seminars for 4,315 participants in 2018.
• Organized seminars and test drives for female truck drivers to address driver shortages.
• Conducted eco-driving seminars for 1,018 truck drivers, resulting in a 24.9% average fuel efficiency improvement.
• Held a global driving skills competition (UD Extra Mile Challenge).
• Implemented various initiatives to promote diversity and inclusion in the workplace, including harassment prevention workshops and seminars for managers.

Governance Achievements

• Maintained ISO 9001 and ISO 14001 certifications.
• Implemented a CSR framework aligned with Volvo Group policies.
• Established an internal whistleblower system and audit program.

Climate Goals & Targets

Environmental Challenges

• Shortage of truck drivers in Japan.
• Stricter environmental regulations and upward trending fuel prices.
• Need to reduce vehicle emissions.

Mitigation Strategies

• Developing autonomous driving and electromobility technologies (Fujin & Raijin. Vision 2030).
• Conducting autonomous driving trials.
• Improving fuel efficiency of trucks through technological advancements and eco-driving seminars.
• Promoting diversity and inclusion to attract more drivers.

Supply Chain Management

Supplier Audits: 35 supplier audits in 2018 (mainly in China, India, and South Africa)

Responsible Procurement

• Volvo Group procurement policies; sustainability self-assessment questionnaire for suppliers; code of conduct for suppliers; conflict minerals program.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Stricter fuel efficiency standards

Opportunities

• Development of fuel-efficient trucks and alternative fuel technologies.

Reporting Standards

Frameworks Used: ISO 9001, ISO 14001

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Fuel-efficient trucks; trucks with advanced safety features.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Better for Logistics
• Better for the Planet
• Better for People
• Better for Business

Environmental Achievements

• Reduced CO2 emissions by 61.8% compared to 2013, exceeding the target of 8%
• Increased electricity from renewable sources by 57% year on year, equivalent to a reduction of 1,215 tonnes of CO2 emissions
• Reduced CO2 emissions by 169 tonnes (0.7%) through LED lighting upgrades at the Ageo Plant
• Reduced landfilled waste to under 1% of total waste generated, a 99.9% reduction compared to 1990

Social Achievements

• Held Diversity & Inclusion Week to promote a diverse workplace
• Conducted road safety programs for elementary school children
• Donated engines to schools to support education of future mechanics
• Provided COVID-19 relief efforts in Japan, South Africa, and Thailand

Governance Achievements

• Established a Sustainability Committee with an ESG framework
• Created the UD Trucks Code of Conduct to promote ethical business practices
• Launched a compliance program for sales departments in Japan
• Revised compliance policies based on Isuzu Motors’ system after joining the Isuzu Group

Climate Goals & Targets

Environmental Challenges

• Shortage of truck drivers in Japan
• Stricter fuel efficiency standards for heavy-duty vehicles
• Climate change and resource depletion
• COVID-19 pandemic impacting operations and community needs

Mitigation Strategies

• Developed UD Active Steering to reduce driver fatigue and improve safety
• Developed smaller, more fuel-efficient engines (GH8)
• Implemented vehicle telematics to minimize downtime
• Held eco-driving and safe-driving seminars
• Implemented COVID-19 prevention measures in the workplace
• Provided online training and events during the pandemic

Supply Chain Management

Responsible Procurement

• UD Trucks Supplier Code of Conduct
• Sustainable purchasing program
• Responsible sourcing of conflict minerals

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals

Certifications: ISO 9001, ISO 14001

Sustainable Products & Innovation

• UD Active Steering
• GH8 8-liter engine
• Fuel-efficient technologies in Quon trucks

Environmental Metrics

ESG Focus Areas

• Better for Logistics
• Better for the Planet
• Better for People
• Better for Business

Environmental Achievements

• Reduced CO2 emissions by 1,215 tonnes in 2020 and another 1,100 tonnes in 2021 at the Ageo Plant by purchasing electricity from renewable sources.
• Reduced CO2 emissions by approximately 700 tons per year at the Bangkok Plant by installing solar panels.
• Improved fuel efficiency of Quon heavy-duty trucks by over 10% compared with 2015 standards.
• Released Quester and Croner truck models compliant with Euro 5 emission standards.

Social Achievements

• Held test drive events and workshops for female drivers to promote diversity and inclusion.
• Conducted road traffic safety seminars for local schools.
• Provided disaster relief support to communities.
• Introduced a job-based employment system to promote diverse work practices.

Governance Achievements

• Established a Sustainability Committee to oversee ESG initiatives.
• Created the UD Trucks Code of Conduct to promote ethical business practices.
• Launched a compliance program for sales departments to ensure fair and lawful transactions.
• Established an internal whistleblower system.

Climate Goals & Targets

Environmental Challenges

• Shortage of truck drivers in Japan.
• Increasingly strict regulations and the need for safer roads.
• Pressure to cut costs and improve efficiency in the logistics industry.
• Climate change and resource depletion.

Mitigation Strategies

• Developing next-generation technologies in connectivity, electromobility, and autonomous driving.
• Offering solutions to partners and customers to enhance their business.
• Reducing CO2 emissions and eliminating waste across operations.
• Exploring renewable energy and reducing the CO2 footprint of products and sites.
• Collaborating with suppliers to reduce environmental impacts across the value chain.
• Improving vehicle efficiency, reducing environmental impacts, and maximizing driver comfort.

Supply Chain Management

Responsible Procurement

• UD Trucks Supplier Code of Conduct
• Sustainability criteria in procurement process
• Responsible sourcing of conflict minerals

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Quon heavy-duty truck with fuel-efficient GH engine and ESCOT-VI transmission
• Quester and Croner trucks meeting Euro 5 emission standards
• Electric trucks (research and development)

Environmental Metrics

ESG Focus Areas

• Logistics
• Environment
• People
• Business

Environmental Achievements

• Reduced CO2 emissions by 1,060 tonnes in 2022 at the Ageo Plant through renewable energy.
• Reduced CO2 emissions by approximately 700 tonnes per year at the Bangkok Plant through solar panels.
• Achieved a 10% reduction in annual electricity consumption at the Gunma Parts Distribution Center using solar heat reflective paint.
• Released Quon trucks with 11-liter and 13-liter engines meeting new Japanese fuel efficiency standards ahead of schedule.

Social Achievements

• Received Eruboshi certification for promoting women's success in the workplace.
• Held sign language classes for employees.
• Conducted road safety programs for elementary school children.
• Donated engines to vocational schools to support training of mechanics.

Governance Achievements

• Established a Sustainability Committee with an ESG framework.
• Created the UD Trucks Code of Conduct.
• Revised compliance-related policies and guidelines based on Isuzu Motors’ system.
• Established an internal whistleblower system.

Climate Goals & Targets

Environmental Challenges

• Shortage of truck drivers in Japan.
• Stricter environmental regulations.
• Climate change and resource depletion.
• Electricity shortages in some markets (e.g., South Africa).

Mitigation Strategies

• Developing next-generation technologies in connectivity, electromobility, and autonomous driving.
• Improving vehicle efficiency and driver comfort.
• Reducing CO2 emissions and waste across operations.
• Collaborating with suppliers to reduce environmental impacts.
• Offering solutions to partners and customers to enhance their business.

Supply Chain Management

Responsible Procurement

• UD Trucks Supplier Code of Conduct
• Sustainability criteria in procurement process
• Responsible sourcing of conflict minerals

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (floods, landslides, droughts)

Transition Risks

• Changes in environmental regulations
• Market shifts towards electric vehicles

Opportunities

• Development of energy-efficient products and services
• Growth in demand for sustainable transport solutions

Reporting Standards

Frameworks Used: ISO 14001, ISO 9001

Certifications: ISO 14001, ISO 9001, Eruboshi

Sustainable Products & Innovation

• Electric trucks (planned for mass production by 2030)
• Fuel-efficient trucks with advanced technologies

Awards & Recognition

• Eruboshi certification