| Responding to Climate Change and Energy Issues |
- Declaration of carbon neutrality by more than 140 countries/regions by 2050
- For global warming to be kept to 1.5℃ , greenhouse gas emissions must be reduced by 43% by 2030 and by 60% by 2035 (COP28) compared to 2019
- There have been moves by the governments of various countries to raise their CO2 and fuel efficiency standards, strengthen their ZEV and LCA regulations, prohibit the sale of internal combustion engines, introduce emissions trading systems, and the like. There are also moves to mandate the disclosure of sustainability information
- Promoting the electrification of vehicles and the diversification of fuels with the aim of achieving carbon neutrality by 2050
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- High expectations for the reuse of resources in related fields and for measures aimed at improving energy usage efficiency, in addition to demonstrating environmental consciousness throughout the supply chain, including business activities and our products
- Growing interest among investors in corporate ESG activities
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- Increased development/procurement/ production costs to comply with stricter regulations
- Increase in fines, credit purchase costs, and stakeholder litigation expenses due to non-fulfillment of regulations
- An increasing tax burden on our emissions due to the introduction and expansion of carbon taxes and other sorts of carbon pricing, as well as higher prices on carbon, and higher costs due to a price shift toward the procurement, production and logistics stages
- Damage to buildings, facilities, and vehicles in inventory caused by typhoons and torrential rains, and the suspension of operations at production facilities due to supply chain disruptions (delays in the supply of parts stemming from damage to suppliers and the disruption of transportation routes)
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- Expand sales of electrified vehicles by improving product capabilities and taking advantage of government and municipal measures to promote electrified vehicles
- Increase sales of electrified vehicles and V2X*1-related equipment/services in line with the growing value of electrified vehicles as energy infrastructure
- Boost sales of electrified vehicles that can help supply power in response to growing demand to secure sources of emergency power in times of disaster
- A general term encompassing vehicle to home (V2H) and vehicle to grid (V2G), among others
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FY2030 targets:
- Average CO2 emissions from new vehicles: -40% (Tank to Wheel, compared with FY2010)
- Electrified vehicles sales ratio: 50% (100% by FY2035)
- CO2 emissions from business activities: -50% (Scope 1 and 2 total emissions, compared with FY2018)
- Promoting CO2 reduction activities with major suppliers
- Promoting CO2 reduction activities in cooperation with logistics companies
- Providing energy management services utilizing electrified vehicles and used batteries
- Implementing measures to adapt to climate change
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- Contribute to the realization of a society more resilient to climate change as we move toward net-zero CO2 emissions through the growing proliferation of electrified vehicles and renewable energy
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| Resource Recycling Initiatives |
- Expansion of the shift to a circular economy (Europe →Global)
- Materialization of domestic and international waste and resource depletion problems (e.g., import restrictions in emerging countries)
- Moves towards the conclusion of a treaty to prevent plastic pollution and towards stricter European battery regulations, ELV regulations, and the like
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- Rising demand for environmental considerations
- Expanding ESG investment (promotion of transformation of corporate activities by investors)
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- Increasing raw material procurement costs due to resource constraints resulting
- Suspension of automobile production due to resource depletion
- Increasing costs due to tighter regulations on the use of recycled materials, recycling, etc. and higher response costs
- Declining corporate image due to delayed response to resource recycling and suspension of automobile production
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- Stabilizing procurement costs by reducing our dependence on depleted resources
- Reducing costs by using resources more efficiently and reusing waste
- Improving competitiveness through 3R design and advanced recycling technologies
- Increasing opportunities to utilize end-of-life batteries
- Enhancing our image by appealing to our efforts to contribute toward a recycling-oriented society
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- Promote the adoption of non-fossil-based plastics
- Achieving zero direct landfill waste (less than 0.5%)
- Reusing batteries used in electrified vehicles
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- Contribute to a resourcerecycling-oriented society by minimizing input resources and maximizing resource efficiency
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| Prevention of Pollution |
- Strengthening of Emission Regulations in each country and region
- Strengthening of regulations on chemical substances in each country and region
- Strengthening of regulations on import/ export of hazardous wastes (plastic wastes)
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- Rising demand for environmental considerations
- Expanding ESG investment (promotion of transformation of corporate activities by investors)
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- Increasing costs of managing environmentally hazardous substances due to stricter and expanded regulations resulting in increased damage to human health and loss of ecosystems
- Paying lawsuits, fines or sanctions due to serious leaks involving air or water
- Stopping parts procurement due to shutdown of operations in our suppliers due to environmental problems
- Declining in our social image due to delays in complying with regulations
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- Reducing costs through more efficient management, including the supply chain
- Maintaining competitiveness by providing safe and secure products through enhanced management, including the supply chain
- Improving our image through management based on voluntary standards that are stricter than regulations
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- Complying with regulations on environmentally hazardous substances in products
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- Contribute toward a society free of environmental pollution by reducing the environmental impact of our products and the pollution resulting from our business activities
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| Conservation of Water Resources |
- Worsening of global environmental changes and water shortages due to extreme phenomena associated with the progression of climate change
- Worsening of water pollution due to population growth and urban development in emerging countries
- Expansion of marine pollution problems caused by plastics
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- Rising demand for environmental considerations
- Expanding ESG investment (promotion of transformation of corporate activities by investors)
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- Increasing instability in procurement and costs due to water shortages and water pollution
- Shutting down operations and reducing revenues due to flooding and other damage caused by climate change
- Increasing costs due to water withdrawal restrictions and stricter wastewater regulations
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- Reducing water stress impacts through reduced dependence on water resources
- Reducing costs through reduced water consumption and increased reuse
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- Promoting climate change countermeasures, resource recycling, and prevention of environmental pollution
- Managing water consumption and monitoring of wastewater quality based on water risks at each production site
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- Contribute to the reduction of water risks and conservation of water resources by addressing these issues in light of the impact of climate change, resource extraction, and environmental pollution on water resources (torrential rains, droughts, water pollution, water shortages, etc.)
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| Preservation of Biodiversity |
- Enhancement of international conservation in accordance with an assessment report published in 2019 by IPBES*2
- Adoption of the Kunming-Montreal Global Biodiversity Frame-work at the United Nations Biodiversity Conference (COP15) in 2022
- Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services
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- Rising demand for environmental considerations
- Expanding ESG investment (promotion of transformation of corporate activities by investors)
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- Increasing procurement costs and instability in procurement of resources due to environmental changes resulting from loss of ecosystems
- Declining in our social image due to loss of ecosystems caused by land use in business operations
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- Avoiding the loss of ecosystems that could lead to environmental changes that raise the uncertainty and cost of procuring resources
- Avoiding damage to our image by mitigating or restoring the impact on ecosystems caused by land use in the project
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- Promoting climate change countermeasures, resource recycling, and prevention of environmental pollution
- Promoting community-based environmental initiatives
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- Contribute to the reduction of ecosystem loss by addressing these issues in light of the impact of climate change, resource extraction, and environmental pollution on ecosystems (e.g., species extinction and migration, reduction, and disappearance of habitats and habitat areas)
- Ensure implementation of conservation measures in harmony with regional biodiversity
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| Achieving a sustainable supply chain |
- Initiatives by national governments, local governments, companies, and individuals to achieve the SDG targets adopted by the UN General Assembly in 2015
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- Demands by stakeholders related to ESG management, such as carbon neutrality and respecting workersʼ human rights, are expanding from our company to our entire supply chain
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1）
Environmental conservation (efficient use of resources, carbon neutrality, waste reduction)
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2）
Legal and regulatory compliance, risk management (compliance with environmental, labor, and other regulations, risk management by increasing transparency across the supply chain)
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3）
Ensuring economic viability (cost reduction, brand value improvement, response to consumer needs)
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4）
Social contributions, improving trust placed in us by society, etc.
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- Loss of trust from society/negative impact on stable procurement of supplies as a result of problems such as human rights violations or environmental damage within the supply chain
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- Improving evaluations by investors and stakeholders through our contributions to manufacturing by engaging in sustainable and steady procurement and making ESG improvements to our supply chain
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- Improving awareness of CSR, which is demanded by society, among suppliers and promote improvement initiatives
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Promoting CSR evaluations by third parties and improving scores by explaining the importance of CSR activities
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Evaluating CSR when selecting new component suppliers and when performing annual supplier evaluations, using these evaluations as one of the judgment criteria when selecting supplier
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Establishing regular measures with suppliers for reducing CO2 emissions in the procurement field
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Engaging in CO2 emissions reduction activities in the procurement field by coordinating with suppliers and industry groups (JAMA, etc.), establishing methods for determining amount of CO2 emission reductions
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Performing cost conversions for CO2 emissions, using these figures as evaluation factors when selecting new component suppliers
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- Enhance business continuity by strengthening the BCP*3 system in cooperation with industry associations and government
- Reduce impact on human rights and the environment by promoting CSR throughout the supply chain through addressing conflict minerals and other issues related to human rights with suppliers
- Business continuity plan
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| Promoting diversity and inclusion, and enhancement of employee engagement |
- United Nations' Guiding Principles on Business and Human Rights
- Information disclosure on human capital (annual securities report, ISO 30414)
- Raising of legally mandated rate of employment of persons with disabilities (2.7% in July 2026)
- Mandating of disclosure of status of use of childcare leave by male employees, etc. (enacted in April 2023)
- General Employer Action Plans based on the Act on the Promotion of Womenʼs Active Engagement in Professional Life and the Act on Advancement of Measures to Support Raising Next-Generation Children (Mitsubishi Motors action plan period: April 2024 to March 2029)
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- Preventing and addressing negative impacts on human rights to create fair working environments
- Expectations for companies to draws in exceptional human resources to grow
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- Outflow of personnel to companies with greater diversity or better working environments
- Risk of not being seen as a company that respects human rights
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- Securing talented human resources and creating value from diverse perspectives
- Increasing productivity by improving workplaces based on individual circumstances
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- Developing workplaces where diverse human resources can thrive (improve employee engagement)
- Creating more productive and comfortable workplaces, taking the above perspectives into consideration
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- Enhance corporate value by building an organization in which diverse human resources can proactively leverage their skills and potential to contribute to organizational mission
- Provide value by creating a comfortable work environment that further enhances productivity
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Strengthening Human
Resource Development |
- Changes in career visions and workstyles of workers (from pandemic to post-pandemic period)
- Increased human resource fluidity
- Rapid changes in the automotive industry (CASE, MaaS)
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- Developing and hiring human resources capable of high levels of performance when performing hybrid work that combines work performed at company sites with remote work
- Creating work environments in which mid-career hires can thrive
- Developing leaders who can adapt to changes in the environment
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- Early attrition and delays in employee development due to lack of communication and reduced sense of personal growth in hybrid working environments
- Weakening of organization due to failure to optimize personnel volume and quality
- Delays in handing off of baton to next generation due to failure to cultivate a culture of personnel development
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- Improving operation capabilities, engagement, and retention rates through the implementation of educational programs that contribute to long-term growth
- Creating a more resilient organization by developing and hiring human resources with a high level of operation execution skills and expertise
- Securing future business growth and continuity by developing the next generation of management personnel
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- Preparing and implementing departmentspecific training programs for general employees
- Early empowerment of mid-career hires
- Systematic development of the next generation of management personnel
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- Enhance corporate value by strengthening managersʼ management skills
- Provide value by improving ability to respond flexibly to changes in the environment
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Promoting Occupational
Health and Safety |
- Growth in the number of occupational accidents and people suffering from mental illnesses or lifestyle-related diseases
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- Employees being able to work safely and in good health
- Helping employees respond to environmental, age and lifestyle changes
- Requiring business continuity
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- Negative impact on our image and interruption of our business due to the occurrence of occupational accidents, increases in the number of patients with mental illnesses or lifestyle-related diseases, and other factors that impede the mental and physical health of employees
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- Ensuring business stability by creating safe and secure workplaces and maintaining/ improving employee health
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- Improving hazard prediction abilities
- Thoroughly establishing safety-first behavior
- Conducting interviews with all new employees and all employees in specific workplaces
- Implementing primary preventive measures
- Strengthening occupational health organization
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- Increase engagement by providing an environment where each employee can work and play an active role in a rewarding, healthy and energetic manner, both physically and mentally
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| Delivering Products which Help Prevent Traffic Accident |
- Strengthening of traffic accidentrelated laws and regulations, government safety targets and safety performance evaluation standards
- Introduction of safety standards and regulations for CASE and other advanced technologies
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- Customers: Increasing Expectations for Active Safety Technologies
- Local communities: Providing a safe means of mobility for all people
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- Increase in accidents due to aging drivers worldwide and rapid increase in car ownership in emerging markets
- Frequent occurrence of fatal motorcycle accidents in ASEAN countries
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- Securing MITSUBISHI MOTORSʼ brand recognition and expand sales by introducing advanced technologies
- Securing brand image and earnings through the development and introduction of vehicle safety technologies for motorcycles for the ASEAN market
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- Leading the way in the environmental sustainability, we provide the transportation with peace of mind, confidence and comfort
- Developing safety technologies suited to the ASEAN road traffic environment
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- Contribute to the realization of a mobility society with zero traffic accidents through penetration and expansion of safety technologies
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Improvement of Product,
Sales, and Service Quality |
- Diversification of customer needs in line with the increasing sophistication of vehicles (electrification and intelligence)
- Expansion of off-board vehicle functions (connected and smartphone integration)
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- Customer perspective: Customer satisfaction with the quality of our products and at every touchpoint with Mitsubishi Motors
- Business perspective: Maintaining and strengthening management to preserve trust in quality
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- Declines in customer satisfaction and purchasing intent due to quality issues resulting from product or service quality
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- Enhancing loyalty and acquiring new customers by delivering high-quality products, sales and services
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- Achieving top-level customer evaluations with core models in core markets*4
- Australia and the mother market of Japan have been added to the five ASEAN core markets (Thailand, Indonesia, the Philippines, Vietnam, and Malaysia).
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- Enhancing customer satisfaction by delivering product, sales, and service quality that exceed customer expectations
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| Contribution to Local Economy through Business Activities |
In the ASEAN region
- Gradual expansion of the automobile market, driven by ongoing economic growth and rising wages
- Increased competitiveness due to advances by overseas manufacturers
- Promotion of protective measures by countries seeking to develop their own industries
- Promotion of initiatives by national governments toward a carbon-neutral society
- Increased severity of environmental problems caused by economic development, numerous natural disasters caused by climate change
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- Developing the region by hiring, developing people, investing, transferring technology, exporting, protecting the environment and contributing to society
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- Increasing intra-regional and income disparity due to economic development (and resulting slowdowns in automotive markets)
- Increasing global investment in the ASEAN region, resulting in labor shortages and rising labor costs
- Increased burdens placed on companies by new tax systems instituted in conjunction with tightening of environmental regulations
- Impact of natural disasters on supply chain (factory operation stoppages, distribution network slowdowns, suspension of sales activities)
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- Strengthening of the management base by continuously securing and developing human resources through good working conditions
- Improving the work environment and productivity through continuous capital investment
- Promoting technical innovation by dealing with regulatory trends
- Positive evaluations of ESG contributions to the achievement of carbon neutrality, resulting in improved brand image
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- Continuously work to contribute to the economic development of the community in the five areas of employment, human resource development, investment, technology transfer, and exports by developing and continuing business activities in the ASEAN region
- As announced in the mid-term business plan, continue to concentrate management resources in the ASEAN region, a core area of business and further promote business focused on contributions to all stakeholders and communities
- With respect to environmental and social contributions, which are growing in importance, utilize our technologies to launch electrified vehicles, including HEVs, in ASEAN markets, thereby helping reduce environmental impacts in the region
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- Develop and address issues in the regions where we do business and grow with them
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| Promoting Social Contribution Activities |
- Collaborations is essential to solving regional problems, primarily those of municipalities in Japan where we have business offices
- Contributions to the realization of a carbon-neutral society
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- Joint efforts and active participation in addressing diversifying regional issues
- Promoting initiatives to realize a carbon-neutral society in cooperation with local government agencies and communities
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- Undermining relationships and loss of trust due to failure to meet the expectations of local governments and regions
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- Increasing credibility with local governments and residents by supporting regional development
- Enhancing local residents' understanding of our business, improving our image and increasing opportunities to promote our vehicles through the implementation of cooperative measures with local governments
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- Ensuring the implementation of activities in STEP fields as defined in the Social Contribution Activities Policy
- Implementing activities to address local issues
- Promoting two-way communication with stakeholders
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- Ensure the safety and security of community life
- Develop local communities through the use of each employeeʼs skills, know-how and products
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Strengthening Governance
and Ensuring Compliance |
- Revision of business-related laws and regulations
- Business interruptions due to natural disasters or outbreaks of infectious diseases
- Frequent information leaks and business interruptions due to cyberattacks and other issues
- Occurrence of wars, terrorism, political unrest, or deterioration of public safety in our key markets
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- Expecting business continuity and enhanced trust
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- Increasing of social problems of corporate fraud
- Stopping business due to natural disasters or outbreaks of infectious diseases
- Increasing number of cyberattacks and other issues related to information leaks, as well as their increasing severity
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- Ensuring soundness and transparency by establishing a robust governance system, and earning societyʼs trust
- Ensuring safety and sustainability of corporate business through enhanced risk management
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- Creating and maintaining a stronger governance system through continuous operation of an effective internal control system, earning the trust of stakeholders
- Preventing serious incidents through strict compliance
- Minimizing the negative impact of risks that manifest themselves and creating a structure that ensures business continuity
- Continuously acquiring and analyzing information regarding cyber attacks, improving technical countermeasures, and using ongoing employee training to build and operate a sustainable information security system
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- Ensure confidence in the Company by further strengthening governance, such as by ensuring compliance with laws and regulations, and the appropriateness and efficiency of business execution
- Ensure business continuity of the Company by properly identifying risks, preventing them from becoming apparent, and minimize their impact if they do become apparent
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