Suzuki Motor Corporation
Climate Impact & Sustainability Data (2020-04 to 2021-03, 2021-04 to 2022-03)
Reporting Period: 2020-04 to 2021-03
Environmental Metrics
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Reduced CO₂ from business activities by 25% compared to FY2005
- Reduced CO₂ emitted from new automobiles by 25% in Well-to-Wheel base compared to FY2010 by 2030
- Achieved higher compression ratio and increased thermal efficiency in DF140BG and DF115BG outboard motors by revising the air intake mechanism
- Reduced the vehicle body weight of the new Solio while increasing its body dimensions by optimizing the cross-section shape of the frame
- Reduced rolling resistance of the new Solio by adopting dedicated tires
- Achieved lower vehicle interior VOC concentration than the target value voluntarily set by Japan Automobile Manufacturers Association, Inc.
- Maintained 70% or higher ASR recycling rate
- Maintained the level of less than 0.5% landfill waste compared with FY1990 (Suzuki) and FY2002 (Group)
- Reduced water consumption by switching compressors used at the headquarters and the die plant from a water-cooled type to an air-cooled type
- Globally reinforce environmental management by promoting acquisition of ISO14001 certification
- Developed the world's first Micro-Plastic Collecting Device for outboard motors
Social Achievements
- Solved labor-management strife in India by mutually sharing information and ideas through persistent communication
- Improved correspondence quality at the Customer Relations Office
- Launched employee well-being program focusing on mental and physical health
- Implemented Goal Challenge System to allow employees to set and achieve higher goals
- Introduced various systems to support work and family balancing, including childcare leave and family-care leave
- Increased the number of female employees with job titles
- Improved rate of paid holiday taken by all employees including managers
- Established a system to collect and recycle used lithium-ion batteries
- Supported various social welfare activities, including donations and community cleanup activities
Governance Achievements
- Established the Sustainability Promotion Department to promote cross-organizational initiatives to respond to social issues
- Improved corporate governance by appointing Outside Directors
- Established a whistleblowing system (Suzuki Group Risk Management Hotline)
- Implemented recurrence prevention measures for improper sampling inspection of fuel consumption and exhaust gas and improper conducts in final vehicle inspection
- Formulated a business continuity plan (BCP)
Climate Goals & Targets
- Reduce CO₂ emitted from new automobiles by 90% in Well-to-Wheel base compared to FY2010 by 2050
- Reduce CO₂ from business activities by 80% in base unit per sales unit compared to FY2016 by 2050
- Realize use of sustainable water resources through minimizing load on water environment by 2050
- Promote reduction, recycle, and proper treatment of wastes from manufacturing activities and products through globally expanding recycling technologies and systems developed in Japan by 2050
- Reduce CO₂ emitted from new automobiles by 40% in Well-to-Wheel base compared to FY2010 by 2030
- Reduce CO₂ from business activities by 45% in base unit per sales unit compared to FY2016 by 2030
- Achieve zero CO₂ emissions at the Hamamatsu Plant by 2030
- Reduce CO₂ emitted from new automobiles by 30% in Well-to-Wheel base compared to FY2010 by 2025
- Reduce CO₂ emission per production by 25% compared to FY2016 by 2025
- Reduce CO₂ emission per sales by 9% compared to FY2016 by 2025
- Reduce water use per production by 10% compared to FY2016 by 2025
- Reduce VOC emissions per painted area by 50% or more compared to FY2000 by 2025
- Reduce amount of plastic used in packing materials by 12t compared to FY2020 by 2025
Environmental Challenges
- Frequent quality problems and recalls
- Fraud in fuel efficiency tests and final inspection
- Delay in CASE development
- Global warming and climate change
- Water shortage
- Resource depletion
- COVID-19 pandemic
Mitigation Strategies
- Prioritized three issues: CO₂ emissions in use, CO₂ emissions from production, and quality assurance in the new Mid-Term Management Plan
- Intensively developing electrification technologies
- Promoting electrification in India
- Deepening alliance with Toyota Motor Corporation
- Implementing various improvements by automating inspections
- Implementing infection prevention measures for Suzuki Group employees
- Adopting customer service and sales methods in which representatives do not directly interact with customers
Supply Chain Management
Responsible Procurement
- Suzuki Green Procurement Guideline
- Suzuki CSR Guidelines for Suppliers
Climate-Related Risks & Opportunities
Physical Risks
- Rise in the average temperature
- Changes in water resource risk
- More frequent and intensifying natural disasters
Transition Risks
- More stringent CO₂ and fuel efficiency standards for automobiles
- Implementation or reinforcement of carbon tax and other systems
- Changes in consumer preference and/or investor behavior
Opportunities
- Maintaining and reinforcing competitiveness and enhancing corporate value through small cars that emit less CO₂ throughout their life cycle
- Capturing sales opportunities by developing electrified vehicles at affordable prices
- Contributing to sustainable economic development by leading electrification in India and emerging countries
Reporting Standards
Frameworks Used: GRI Standards (Global Reporting Initiative), TCFD (Task Force on Climate-related Financial Disclosures)
Certifications: ISO 14001, ISO 9001
UN Sustainable Development Goals
- Goal 7 (Affordable and clean energy)
- Goal 9 (Industry, innovation and infrastructure)
- Goal 11 (Sustainable cities and communities)
- Goal 13 (Climate action)
- Goal 17 (Partnerships for the goals)
Suzuki's initiatives contribute to these goals through the development and production of fuel-efficient vehicles, renewable energy adoption, community development projects, and collaborations with various stakeholders.
Sustainable Products & Innovation
- Electrified vehicles
- Micro-plastic Collecting Device for outboard motors
Awards & Recognition
- 2020 Energy Conservation Grand Prize (ECCJ Chairman Prize)
- Japan Packaging Contest 2020 Logistics Award
- Boating Industry Top Products award (DF140BG and DF115BG outboard motors)
Reporting Period: 2021-04 to 2022-03
Environmental Metrics
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Reduced CO2 emitted from new automobiles by 23.7% compared to FY2010
- Reduced CO2 from business activities by 4.8% compared to FY2016
- Reduced water consumption per unit of global automobile production by 4.3% compared to FY2016 (increase in water consumption per unit of global automobile production by 4.3% compared to FY2016)
- Reduced plastic packaging materials by 11 tons compared to FY2020
- Reduced use of plastic in outboard motor-related materials by 12 tons compared to FY2020
- Achieved lower vehicle interior VOC concentration than the target value voluntarily set by Japan Automobile Manufacturers Association, Inc.
- Reduced VOC emissions per painted area by 40.3% compared to FY2000
Social Achievements
- Launched a biogas demonstration project in India
- Established a new human rights policy
- Improved the rate of paid annual leave taken by all employees by 19% compared to FY2018
- Increased the number of female employees with job titles by 2.6 times compared to FY2015
Governance Achievements
- Established the Intellectual Property Promotion Committee
- Established the Suzuki Group’s basic policy regarding human rights
Climate Goals & Targets
- Reduce CO2 emitted from new automobiles by 90% on a Well-to-Wheel basis compared to FY2010 by 2050
- Reduce CO2 from business activities per sales unit by 80% compared to FY2016 by 2050
- Achieve carbon neutrality in Japan and Europe by 2050
- Achieve carbon neutrality in India by 2070
- Reduce CO2 emitted from new automobiles by 40% on a Well-to-Wheel basis compared to FY2010 by 2030
- Reduce CO2 from business activities per sales unit by 45% compared to FY2016 by 2030
- Achieve carbon neutrality of domestic plants in FY2035
- Reduce water consumption per unit of global automobile production by 10% compared to FY2016 by FY2025
- Reduce CO2 from business activities by 25% compared to FY2016 by FY2025
Environmental Challenges
- More stringent CO2 and fuel efficiency standards for automobiles
- Implementation or reinforcement of carbon tax and other systems
- Changes in consumer preference and investor behavior
- Rise in the average temperature
- Changes in water resource risk
- More frequent and intensifying natural disasters
- Supply chain disruptions due to the COVID-19 pandemic and semiconductor shortages
Mitigation Strategies
- Intensively developing electrification technologies
- Promoting electrification in India
- Deepening alliance with Toyota Motor Corporation
- Launching a biogas demonstration project in India
- Promoting ongoing CO2 reduction measures
- Creating carbon neutral energy
- Procuring renewable energy-derived electricity in India
- Developing alternative sourcing strategies
- Improving supply chain visualization
Supply Chain Management
Responsible Procurement
- Suzuki Green Procurement Guideline
- Suzuki CSR Guidelines for Suppliers
Climate-Related Risks & Opportunities
Physical Risks
- Rise in the average temperature
- Changes in water resource risk
- More frequent and intensifying natural disasters
Transition Risks
- More stringent CO2 and fuel efficiency standards for automobiles
- Implementation or reinforcement of carbon tax and other systems
- Changes in consumer preference and investor behavior
Opportunities
- Maintaining and reinforcing competitiveness and enhancing corporate value through small cars that emit less CO2 throughout their life cycle
- Capturing sales opportunities by developing electrified vehicles and carbon-neutral fuel-compatible vehicles at affordable prices
- Contributing to sustainable economic development by leading electrification and carbon-neutral fuel compatibility in India and emerging countries
- Extending energy-saving technologies that leverage the benefits of “Sho-Sho-Kei-Tan-Bi” to Group companies and business partners
- Contributing to sustainable economic development by leading the use of renewable energy in India and emerging countries
Reporting Standards
Frameworks Used: GRI Standards, TCFD
Certifications: ISO 14001, ISO 9001, FSC®
UN Sustainable Development Goals
- Goal 7 (Affordable and clean energy)
- Goal 9 (Industry, innovation and infrastructure)
- Goal 11 (Sustainable cities and communities)
- Goal 13 (Climate action)
- Goal 17 (Partnerships for the goals)
Suzuki’s business activities contribute to these goals through the development and popularization of environmentally friendly compact cars, creation of jobs in emerging countries, promotion of renewable energy, reduction of CO2 emissions, and community development initiatives.
Sustainable Products & Innovation
- Electrified vehicles
- CNG vehicles
- Micro-Plastic Collecting Device for outboard motors
- Bio polycarbonate resin
Awards & Recognition
- Minister of Economy, Trade and Industry Award in the 2022 Japan Packaging Contest
- FY2017 Governor’s Award (Shizuoka Prefecture)
- 2021 Shizuoka Governor’s Commendation for Global Warming Prevention Activities