Industrial associations, External initiatives on ESG that MITSUBISHI MOTORS supports and participates

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The GX(※1) League is a framework to discuss and implement socio-economic system transforms by the group of companies leading the GX to realize carbon neutrality in 2050, promoted by the Ministry of Economy, Trade and Industry (METI). The GX League requests participating companies to achieve the Japanese government‘s 2030 GHG emission reduction target of -46% from FY2013, and starts GX-ETS, a trial voluntary emissions trading scheme in FY2023. The GX-ETS will be implemented on a trial basis from FY2023 to FY2025 (1st Phase) and on a full-scale basis from FY2026 onwards (2nd Phase), with the intention of developing emissions trading in stages.

(※1) GX: Green Transformation. Transforming from fossil energy to clean energy in the social structure..

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JCI was established on July 6, 2018, and as non-state actors, pledge to stand at the forefront of global challenges in order to realize the decarbonized society envisioned by the Paris Agreement.

In order to realize the Japanese government's declaration of “it would aim to reach carbon neutral by 2050,In addition, the government announced that it would aim to reduce greenhouse gas emissions by 46% by FY2030 and pursue a further challenge of a 50% reduction” JCI will deepen collaborations among domestic and international non-state actors.

MITSUBISHI MOTORS decided to participate in JCI in May 2023 because our stance, which aims to achieve carbon neutrality in 2050 and have set the Environmental Target 2030 as a milestone, is consistent with JCI's direction.

Based on cooperation with JCI, we will proactively send our messages regarding climate change countermeasures and also make recommendations to the government and other parties.

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JAMA member companies will make maximum efforts towards carbon neutrality by 2050.

In September 2022,to understand based on quantitative and objective assessments, possible pathways towards carbon neutrality in automotive transport by 2050, JAMA analyzed the scenarios.

The results obtained in this analysis demonstrate that global CO2 emissions reductions in automotive transport can be in line with the Intergovernmental Panel on Climate Change’s(IPCC) 1.5℃ scenarios for 2050 with not only a rapid EV(※2) conversion scenario, but also a scenario premised on the wide use of PHEV(※3), HEV(※4), and carbon-neutral fuels.

JAMA believes that individual countries and regions should pursue carbon neutrality by following pathways tailored to their own particular circumstances, without narrowing down the options.

(※2) Electric Vehicles

(※3) Plug-in Hybrid Electric Vehicles

(※4) Hybrid Electric Vehicles

MITSUBISHI MOTORS is taking the same stance as JAMA, and we will continue releasing EV, PHEV, and HEV in line with the actual situation in the particular market where the vehicles are being sold while also working to reduce carbon emissions in the product manufacturing process. We also actively participate in discussions as members of JAMA's Board of Directors and various committees, leading to policy proposals on carbon neutrality.

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The Financial Stability Board established the Task Force on Climate-related Financial Disclosures (TCFD), which in 2017 announced its recommendations. These recommendations encourage companies to disclose information related to climate change so that investors can appropriately assess climate-related risks and opportunities.

Recognizing the potential of climate change to present medium- to long-term risks and opportunities that affect its business domains, in July 2021 MITSUBISHI MOTORS expressed its support for the TCFD Recommendations. Accordingly, We are analyzing the impact of climate change on our businesses and finances (scenario analysis) and improve information disclosure in accordance with the TCFD Recommendations.

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The Japan-based network of the『United Nations Global Compact』, which is the world's largest cooperate sustainability initiative to support UN goals.

The United Nations Global Compact requests companies and organizations to comply with and practice Ten Principles on human rights, labor, environment and anti-corruption.

In 2019, MITSUBISHI MOTORS signed 『United Nations Global Compact』, and joined GCNJ.

As a participating company, we support and respect international standards and norms such as “the International Bill of Human Rights”, “the United Nations Guiding Principles on Business and Human Rights” and “the ILO’s Declaration on Fundamental Principles and Rights at Work. Through the disclosure under this initiative, we consider that we can demonstrate internally and externally our commitment to action toward the sustainable development of society by addressing various social issues including human rights.