FY2021 Material Issues Targets and Results

FY2021 Materiality Targets and Results

Environment

Material Issues: Responding to Climate Change and Energy Issues

Items FY2021 Targets and Results Self-Evaluation
By 2030, reduce CO2 emissions from new vehicles by 40% (compared with FY2010)

Identify CO2 emissions from new vehicles based on new business plan, and reflect in product plans for next fiscal year measures that will erase gaps between targets and identified results:

CO2 emissions Down 14% (result)

Achieve an electrified vehicles sales ratio of 50% by 2030

Identify ratio of electrified vehicles sales based on new business plan, and reflect in product plans for next fiscal year measures that will erase gaps between targets and identified results:

electrified vehicles sales ratio 7% (result)

By 2030, reduce CO2 emissions from business activities by 40% (compared with FY2014)%

Reduction measures implemented:

Installed a solar power system, upgraded to energy-saving equipment Established a system for promoting CO2 reduction activities and set targets for each site and fiscal year

Result of establishing a roadmap and implementing reduction measures:

CO2 emissions Down 31% (result)

Enact measures in response to climate change

Promote disaster countermeasures, such as electricity supply systems that use electrified vehicles. Specifically, introduced various measures, including the DENDO DRIVE STATION/HOUSE, DENDO Community Support Program and V2X demonstration project

〇: As planned △: Delayed

Material Issues: Resource Recycling Initiatives

Items FY2021 Targets and Results Self-Evaluation
Expanding adoption of plastic materials not derived from oil

Finished assessing products to adopt plastic materials not derived from oil. Achieved fiscal 2021 target in line with roadmap.

Achievement of zero direct landfill waste (less than 0.5%) by FY2030

Plants in Japan: Achieved zero direct landfill waste (less than 0.5%)

Overseas plants: Have begun managed operations of data on waste using an environmental performance management system

Reuse of batteries used in electrified vehicles

Installed equipment for verification testing of BESS*1 at the Okazaki Plant, conducted a VPP*2 verification test, verified the benefits of a cut in peak electricity consumption and established an effective operation method

〇: As planned △: Delayed

  1. BESS stands for battery energy storage system.
  2. VPP stands for virtual power plant, which involves using information and communication technology for the integrated control of dispersed energy resources, creating a virtual plant that operates as if it were a single power plant.

Material Issues: Prevention of Pollution

Items FY2021 Targets and Results Self-Evaluation
Properly manage hazardous substances in products

Properly manage hazardous substances:

We are obtaining information on GADSL*3 regulated substances, upgrading our management system, and switching parts and making design changes in accordance with the ELV directive.

〇: As planned △: Delayed

  1. GADSL:Global Automotive Declarable Substance List, a list to facilitate the exchange of information on environmentally hazardous substances, created by consensus of a group of automotive manufacturers in various countries

Material Issues: Conservation of Water Resources

Items FY2021 Targets and Results Self-Evaluation
Manage water risks at each production facility

Completed facility for processing sewage and domestic waste water at the Mizushima Plant

Commenced operation of a wastewater recycling plant at Mitsubishi Motors (Thailand) Co., Ltd. (MMTh)

〇: As planned △: Delayed

Material Issues: Preservation of Biodiversity

Items FY2021 Targets and Results Self-Evaluation
Promote preservation activities that leverage the results of ecosystem surveys at locations in Japan

Nurture and protect indigenous species at business sites in Japan:

At the Kyoto Plant, continued to manage a biotope*4 and cultivated rare aquatic plants

At Kyoto Plant-Shiga, engaged in wetland conservation and cultivation of rare white egret flower

Conduct tree-planting and cultivation activities in Japan and overseas:

Planted and cultivated trees at Pajero Forest (Yamanashi Prefecture)

Conducted an afforestation project in Thailand"

〇: As planned △: Delayed

  1. A biotope is a space where organisms can live in natural surroundings.

Social

Material Issues: Delivering Products which Help Prevent Traffic Accidents

Items FY2021 Targets and Results Self-Evaluation
Delivering products which help prevent traffic accidents

Increased introduction of advanced safety technologies

〇: As planned △: Delayed

Material Issues: Improvement of Product, Sales, and Service Quality

Items FY2021 Targets and Results Self-Evaluation
Improving product quality

Ratio of defects identified within 3 months in service of new vehicle sale: Achieved reduction target

Improving sales quality

Achieved Sales Satisfaction Index (SSI) target (top three ranking in industry surveys) in three of five ASEAN5 countries*5

Improving service quality

Achieved Customer Satisfaction Index (CSI) target (top three ranking in industry surveys) in two of five ASEAN5 countries*5

〇: As planned △: Delayed

  1. Three countries of Indonesia, Philippians and Malaysia set internal target instead of industry survey because these countries were not conducted industry survey.

Material Issues: Contribution to Local Economy through Business Activities

Items FY2021 Targets and Results Self-Evaluation
Employment

Continuous creation of local employment:

Created local employment for 12,000 people in Thailand, Indonesia, the Philippines and Vietnam (including non-full-time employees)

Human resource development

Support for the development of personnel responsible for the development of the local economy:

<Representative examples of training> Sales and service training for dealer staff, business-level-enhancement seminars for local employees,"manufacturing training" to enhance technical skills

Investment

Continuous implementation of capital investment that supports the growth of the local economy:

<Principal investment plans> Established a new paint plant in Thailand, considered a new plant in Vietnam

Technology transfer

By continuing with local production, support advances in the local manufacturing industry:

Established at a new paint plant in Thailand; in Thailand, Indonesia, the Philippines and Vietnam, provided scholarships to vocational training schools and technical universities, provided training vehicles, and conducted online courses

Export

Supporting growth of the local economy through the acquisition of foreign currency by means of export:

<Number of vehicles exported> Exported 319,000 vehicles from Thailand and 42,000 from Indonesia

Environment and social contribution

Leverage our technologies and services to help resolve local social issues:

  • Started joint study of Kei-car segment commercial BEV in Thailand and Indonesia with logistics companies and state-owned postal service
  • Began environmental contribution project to install rooftop solar power systems at hospitals in Thailand
  • Installed DENDO DRIVE HOUSE, a vehicle-to-home (V2H) system that stores electricity generated by solar panels in electrified vehicles, at the headquarters of a sales distributor in Indonesia
  • In Indonesia, donated three "Outlander PHEV" vehicles to support COVID-19 vaccine transportation

〇: As planned △: Delayed ー: Results confirmed only

Material Issues: Promotion of Work Style Reforms in Response to the New Normal(Diversity, Work-Life Balance)

Items FY2021 Targets and Results Self-Evaluation
Promotion of work style reforms Ongoing implementation of work style reform measures

Creating a remote work environment that further enhances productivity

Paid leave taken (administrative and engineering staff*6, manufacturing workers*7, medical workers*8): 17.8 days/year

Promotion of women's participation and advancement in the workplace

Measures based on our action plan to promote women's advancement

Conduct questionnaire survey on personal awareness/workplace climate Initiatives to promote the use of childcare leave

Promotion of employment of people with disabilities

Ongoing promotion of employment of people with disabilities

Percentage of employees with disabilities 2.44% (As of March 2022)

〇: As planned △: Delayed

  1. Administrative and engineering staff: Employees who work in corporate planning, adjustment, research, auditing, and other professional and engineering categories
  2. Manufacturing workers: Employees engaged directly in manufacturing work or parts supply, equipment maintenance, testing or other supplementary work; also, employees who engage in supervision or instruction, technical instruction, or on-site support
  3. Medical workers: Employees who engage in medical and health-related work, such as doctors, pharmacologists and nurses

Material Issues: Stepping up Human Resource Development

Items FY2021 Targets and Results Self-Evaluation
Finding the best mix of online and face-to-face training

Conduct online training through interactive communication using conference tools to make the training more effective

In the second half, conducted face-to-face training (with thorough infection control measures in place)

Enhancing managers' ability to manage

Conduct training on a trial basis with a view to a companywide rollout

Planned and conducted selective training for managers

Augment communication skills

Introduced a cross-mentoring system for new employees in addition to the existing mentoring system, with the aims of revitalizing communication in the remote work environment and helping employees gain traction early on in the workplace and making them more competitive.

〇: As planned △: Delayed

Material Issues: Promoting Occupational Health and Safety

Items FY2021 Targets and Results Self-Evaluation
Creation of safe workplaces

Ongoing measures for the creation of safe workplaces: Overall accident rate*9 0.20 (result)

Promote physical and mental health

Ongoing promotion of employees' physical and mental health: New mental patient incidence rate*10 0.62% (result)

×

〇: As planned ✕: Failed to meet target

  1. Number of accidents with or without loss of workdays per 1 million working hours
  2. (Total number of new mental health patients ÷ total number of workers)×12

Material Issues: Achieving a Sustainable Supply Chain

Items FY2021 Targets and Results Self-Evaluation
Reinforcement of CSR in the supply chain

Support for supplier CSR evaluations by third-party organization:

Explained the purpose of CSR evaluations to business partners, and conducted such evaluations at 70% of business partners (based on purchase amounts)

〇: As planned △: Delayed

Material Issues: Promoting Social Contribution Activities

Items FY2021 Targets and Results Self-Evaluation
Promote ongoing activities that address social issues and regional needs

Increase the number of disaster cooperation agreements concluded

Target: 150
Actual: 190

Promote activities in the "STEP" field

Target: Continue conducting activities in response to the "new normal"

Actual: Considered moving activities online and conducted activities

〇: As planned △: Delayed

Governance

Material Issues: Strengthening Governance and Ensuring Compliance

Items FY2021 Targets and Results Self-Evaluation
Operate internal control committees

Meet twice during the year, report the status and evaluation of internal control to the Executive Officer, President & CEO :

Meetings convened in April and November

Prevent serious incidents

Enact thorough effective internal control to prevent serious incidents :

Serious incidents None occurred

〇: As planned △: Delayed