Responding to Climate Change and Energy Issues

In recent years, extreme weather, such as heat waves, droughts and floods due to heavy rain, has caused disasters one after another around the world. The largest cause of these extreme-weather events is climate change, whose major factor seems to be global warming caused by increases in CO₂ and other greenhouse gases.

Global efforts to reduce CO₂ emissions are accelerating. As international frameworks for achieving a sustainable society such as the Paris Agreement and the United Nations Sustainable Development Goals (SDGs) progress, the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28), held in November and December 2023, implemented the Global Stocktake and indicated the need to reduce greenhouse gas emissions by 43% by 2030 and 60% by 2035 compared to 2019 levels.

Automobiles generate CO₂ throughout the life cycle, from production to driving and disposal. For this reason, MITSUBISHI MOTORS has identified “responding to climate change and energy issues” as a material issue, taking into account its impact on the economy, environment and people. Furthermore, in the Environmental Plan Package, we position this as one of the important challenges to address directly, and are working to achieve carbon neutrality throughout its supply chain by 2050. We have set specific targets, and efforts are underway to achieve this goal. Furthermore, in the mid-term business plan “Challenge 2025,” also includes “Working toward Carbon Neutrality” as one of the 3 major challenges, and we position it as a theme to be pursued by the entire company.

As for products, starting with our original plug-in hybrid electric vehicles (PHEV) and Kei-car segment commercial electric vehicles, we will promote electrification while leveraging the technologies of Alliance to proactively introduce the electrified vehicles that best meet the energy situation, infrastructure development status, and customer needs of each country and region. In parallel with our electrification efforts, we will work to improve our fuel efficiency technologies for vehicles powered by internal combustion engines. In our business activities, in addition to reinforcing energy saving measures as well as pursuing productivity-enhancing technologies, we will promote fuel conversion and the development and introduction of next-generation production technologies.

Furthermore, we will expand the use of renewable energy, centering on the introduction and expansion of solar power generation facilities at major plants.

To achieve carbon neutrality throughout the supply chain, it is essential for us to reduce CO₂ emissions in the production phase of raw materials and parts, as well as in the transportation of products. We will promote activities to visualize and reduce CO₂ emissions in cooperation with our suppliers. At the product disposal stage, we will promote recycling of products and materials through the adaptation of low-CO₂ materials and recycling-conscious design.

We will also explore various carbon offset options for CO₂ emissions that cannot be ultimately reduced through these efforts.

In addition, our electrified vehicles have large-capacity batteries that can be used in energy management and as emergency power sources in times of disaster. Through these measures, we are also engaging in measures to adapt to climate change.

As expectations for companies to curb climate change are expected to increase, we will continue reinforcing our efforts to further reduce CO₂ emissions.

We are making progress on “Responding to Climate Change and Energy Issues” under our framework for promoting sustainability. The Sustainability Committee, chaired by the Executive Officer, President & CEO, deliberates on climate change risk and opportunity assessments and response measures and checks progress and performance toward our “Environmental Targets 2030.”

In our Environmental Targets 2030, MITSUBISHI MOTORS set the target of achieving a 40% reduction in average CO₂ emissions from new vehicles by 2030 (compared with FY2010 levels). To meet this target, we have raised our target ratio of electrified vehicle sales to 50% by 2030 and to 100% by FY2035. This change focuses our core technologies on responding to climate change and energy issues through electrified vehicles, which emit low CO₂ while driving, and concentrates on their development. Centering on our strength in plug-in hybrid electric vehicles (PHEV), we will expand our lineup of electrified vehicles, thereby promoting their popularization and use in society and contributing toward the realization of a sustainable society.

Electric vehicles (EV) are driven by electricity in battery, so they emit no exhaust gases such as CO₂ while driving.

We released the “i-MiEV” as the world’s first mass-produced EV in 2009. In addition to its environmental performance, the “i-MiEV” performed better than conventional gasoline engine vehicles on quietness and acceleration starting from maximum torque. In 2011, we launched the “MINICAB-MiEV,” a Kei-car segment commercial electric EV. In 2012, we began offering the “MINICAB-MiEV TRUCK,” also an EV in the Kei-car segment. These technologies are the foundation of next-generation EVs, such as PHEV.

We believe that expanding the lineup of Kei-car EVs, which are expected to be used in more everyday situations, will be the key to the spread of electrified vehicles. Accordingly, in June 2022 we launched the “eK X EV,” a new EV in the Kei-car segment, and in December 2023 we launched the “MINICAB EV,” new commercial EV in the Kei-car segment. We will continue to focus on the development of EV to contribute toward the realization of a carbon neutral society.

PHEV are powered by electricity stored in batteries and by the motor, using the engine to generate electric power when the battery level is low. PHEV combine the powerful driving performance, high level of quietness, and driving stability characteristic of electric vehicles, without the concern that battery capacity will limit the vehicle's driving range.

Our journey in PHEV began with the “OUTLANDER PHEV” in 2013, followed by the “ECLIPSE CROSS PHEV model” in 2020 and the launch of the All-New “OUTLANDER PHEV model” in 2021. At low to medium speeds, the PHEV system uses electric power from the battery, but when the battery level is low, it generates electric power during operation using the engine while also supplying power to the motor and battery. Furthermore, during high-speed driving, the vehicle is driven by the engine and simultaneously assisted by the battery-powered motor. In this way, the drive mode is automatically selected according to the situation. CO₂ emissions are substantially lower than conventional gasoline engine vehicles, delivering outstanding environmental performance.

MITSUBISHI MOTORS’ HEV system offers EV mode, series hybrid mode, parallel hybrid mode, and regenerative mode. The system automatically selects the optimal driving mode according to driving conditions and remaining drive battery capacity to achieve low fuel consumption and powerful and pleasant motor drive.

When starting off or at low speeds, in EV mode the vehicle runs on electric power alone, with the drive battery supplying power to the motor. In series hybrid mode, when the vehicle is climbing or accelerating, the engine is used to generate electricity, and the motor is used to drive the vehicle in combination with power from the drive battery. At higher speeds, the system switches to parallel hybrid mode, in which the car runs on engine power and is assisted by the motor. In regenerative mode, the vehicle recovers energy from deceleration, which it converts into electric power and stores in the drive battery.

In FY2023 we launched the “COLT HEV model” in Europe and the “XPANDER” and “XPANDER CROSS HEV model” in Thailand. In FY2024, we are launching the new “ASX HEV model,” starting in Europe from June.

By leveraging the large-capacity batteries on its electric vehicles (EV) and PHEV to supply electricity, we are contributing to measures in various countries and industries to adapt to climate change and energy issues. We are applying these to such areas as areas as energy management, V2X^*8 and use as emergency power sources in times of disaster.

MITSUBISHI MOTORS is continuously promoting the development of powertrain technologies to reduce fuel consumption and improve energy efficiency.

This technology involves the intensive charging of the battery using electric power generated while decelerating. This reduces the amount of power required from the engine, thereby improving fuel economy.

The new “TRITON” we launched in Thailand in July 2023 is equipped with a new 2.4L diesel turbo engine. The weight and friction losses of the engine are reduced due to the optimally designed key components such as the cylinder block, piston and connecting rods. Additionally, the fuel injection system has been upgraded to the next generation, providing high performance while achieving excellent fuel efficiency and clean exhaust gas characteristics.

In February 2024, we added a higher-output version of the engine with a two-stage turbocharger. With a maximum output of 150 kW and maximum torque of 470 Nm, it delivers powerful acceleration and abundant torque that rises responsively from low to mid-range speeds.

To become carbon neutral, MITSUBISHI MOTORS will approach the issue from both the “demand side” (energy consumption) and the “supply side” (energy generation and procurement). To ensure our activities are carried out systematically, we have formulated a medium- to long-term roadmap toward carbon neutrality. Following this plan, we are working to develop future technologies, improve production processes and expand the introduction of renewable energy.

We have established the CO₂ Reduction Promotion Subcommittee as an infrastructure of the Sustainability Committee. The subcommittee, which has members from production, development and sales companies in Japan and overseas, aims to help the entire MITSUBISHI MOTORS Group achieve carbon neutrality in its business activities. The subcommittee shares information on the progress of action plans, actual CO₂ emissions, and other pertinent data. It also drafts reduction measures, considers future technologies, and deliberates the future energy mix.

MITSUBISHI MOTORS is actively seeking to use renewable energy in its operations, taking into consideration the energy situation at each site. To do so, we are introducing in-house renewable energy generation and purchasing renewable energy from energy suppliers.

We believe solar power offers us an important way to achieve carbon neutrality, and we are proactively introducing solar power generation at our locations. In addition, in FY2023 we began introducing CO₂-free electricity derived from renewable energy sources for some of our domestic production facilities.

To reduce CO₂ emissions from production activities, we have established a medium- to long-term roadmap to achieve carbon neutrality in each area of production technology—pressing, welding, painting, assembly and powertrain—and we are developing future technologies and improving production processes to this end.

We are sharing good practices among all sites and incorporating a variety of plans into our annual capital investment plans at individual bases and implementing them. We are improving the efficiency of production equipment, using electric equipment instead of the use of fuels, steam or compressed air, and upgrading general equipment to more energy-saving models.

In energy-saving activities involving participants from production sites and production technology and motive power departments, we are working to improve the operation of energy-intensive processes such as painting and casting. We also review the operation and management of power supply equipment such as boilers and compressors, and strive to prevent air leaks and other losses. These activities focus on operational improvements following the introduction of new facilities.

MITSUBISHI MOTORS encourages our dealers in Japan to acquire Eco-Action 21 certification and carry out activities such as reducing the amount of energy and water they use, lowering the amount of waste they produce, and promoting the widespread use of electrified vehicles.

Eco-Action 21 is an environmental management certification and registration system based on guidelines recommended by Japan’s Ministry of the Environment. Eco-Action 21 has the following three features.

For details on Eco-Action 21, please see the website of the system’s central secretariat (only in Japanese).

MITSUBISHI MOTORS is promoting to capture and visualize Global Logistics CO₂ emissions across the global supply chain, including overseas operations.

In addition to the ongoing efforts to understand Logistics CO₂ emissions from overseas production plants, in FY2023, we expanded the scope to include overseas vehicle sales subsidiaries. Furthermore, we are analyzing the visualized Logistics CO₂ emissions and promote initiatives to reduce emissions.

We are promoting initiatives to reduce Logistics CO₂ emissions in the transportation of production parts, after sales parts, and finished vehicles. Key logistics efficiency measures include not only improvements driven by our own efforts, such as packaging improvements and increasing transport loading rates, but also active and comprehensive initiatives through collaboration with logistics partners. These include promoting eco-driving, increasing the size of transport equipment, modal shifts, reducing transport distances through joint transportation with alliance partners, and shared use of logistics facilities. In addition to these proactive and comprehensive measures, we are considering collaborating more closely with logistics partners to encourage the introduction of vehicles that run on non-fossil fuels.