Disclosure based on the TCFD’s recommendations

Governance

Organizational structure related to climate change risks and opportunities

Suzuki has established the Committee for Carbon Neutrality and Environmental Committee, which are executive and business operations committees, and the Corporate Governance Committee under the Board of Directors for the purpose of the Group’s overall environmental management.
The Board of Directors instructs and supervises the Committee for Carbon Neutrality, Environmental Committee, and Corporate Governance Committee, and receives reports from the three committees and is the ultimate decisionmaking body.
The Committee for Carbon Neutrality focuses on the theme of climate change (carbon neutrality) and holds intensive monthly deliberations on decarbonization so the committee can operate more flexibly.
The Environmental Committee meets twice yearly and discusses environment- related themes other than carbon neutrality, such as air conservation, water resources and resource circulation.
The Corporate Governance Committee considers matters related to comprehensive compliance and risk management, etc. and promotes measures and countermeasures for crossorganizational issues while coordinating with related divisions.
Clearly defining the themes of the three committees enhances their effectiveness and further accelerates decision- making toward decarbonization.

• * A subcommittee of the Environmental Committee had previously deliberated on climate change, but in April 2023 this was reorganized as the Committee for Carbon Neutrality and developed as one of the executive and business operations committees.

■ Disclosure and governance based on TCFD recommendations

(As of April 2024)

Strategy

Alignment with the TCFD’s recommendations

Climate-related risks and opportunities, scenario analysis

Suzuki has been identifying business risks and opportunities to promote business activities in a sustainable manner. Since the impact of climate change, in particular, is intrinsically uncertain, we believe that it is crucial to assess the degree of its impact on risks and opportunities from a broader future perspective and respond appropriately.
Based on this recognition, we have evaluated differences in the impact of climate change on risks and opportunities by using two scenarios. One is the “4°C scenario” in which climate change causes marked physical effects, and the other is the “1.5°C/2°C scenario” in which mitigation measures are being implemented at an accelerated pace toward the realization of the Paris Agreement. In assuming these scenarios, we have referred to externally developed scenarios that are based on the scientific knowledge of the IEA^*1, IPCC^*2, and other organizations.

• *1 IEA: International Energy Agency
• *2 IPCC: Intergovernmental Panel on Climate Change

Climate-related risks and opportunities for Suzuki

As more stringent laws and regulations, including emission gas, CO₂, and fuel efficiency regulations, are being adopted as mitigation measures against climate change, the resulting increase in development expenses needed to comply with these regulations may greatly impact Suzuki’s business performance. On the other hand, small cars, which are a strength of Suzuki, require less materials and energy to produce and emit less CO₂ while in use. We believe that we can create opportunities by leveraging such a unique strength of Suzuki and by handling risks appropriately.
Moreover, from the previous fiscal year we have started financial impact analysis based on the scenario analysis related to climate change that we have disclosed. The purpose of this is to reduce and avoid natural disaster risks and enable us to continue our business through assessments of the impact of natural disaster risks such as typhoons, floods, and high tides caused by global warming. We carried out our initial impact assessment on Company sites in Japan and India in addition to domestic primary suppliers.
We will continue to hold careful discussions to reduce or avoid risks caused by climate change, capture opportunities for the future, and increase our competitive edge, and we will incorporate the outcomes of these discussions into our business strategies.

■ Suzuki’s climate-related risks and differences in impact by scenario

Key risks (examples of anticipated impact) *Underlined items represent particularly significant risks			Differences in impact
			4°C scenario	1.5°C/2°C scenario
Transition risks	Policies, regulations, and technologies	(1) More stringent CO2 and fuel efficiency standards for automobiles (Payment of fines, loss of sales opportunities, etc.)	No change	Increase
		(2) Implementation or reinforcement of carbon tax and other systems (Increase in operating costs, etc.)	No change	Increase
	Reputation	(3) Changes in consumer preference and investor behavior (Decline in corporate value, etc.)	No change	Increase
Physical risks	Chronic	(4) Rise in the average temperature (Increase in energy costs, etc.)	Increase	No change
		(5) Changes in water resource risk (Disruptions in the supply chain, increase in production costs, etc.)	Increase	No change
	Acute	(6) More frequent and intensifying natural disasters (Business sites sustaining disaster damage, suspension of business activities, etc.)	Increase	No change

■ Details of particularly significant risks, creation of opportunities, and status of Suzuki’s response

Risk management

Risk management system

The Corporate Governance Committee deliberates on issues that arise or are recognized in each department and identifies and ascertains potential risks, not limiting itself to just climate-related issues. For environment- related risks, either the Committee for Carbon Neutrality or Environmental Committee conducts intensive examination depending on the theme, and instructs or manages departments.

Themes handled by respective meeting bodies

• Corporate Governance Committee
  Ascertains risks arising or recognized in each department, deliberates and issues instructions to the department to resolve the issue.
• Committee for Carbon Neutrality
  Of environment-related risks, deliberates the risks and opportunities related to climate change (carbon neutrality) and resolves and promotes them.
• Environmental Committee
  Deliberates on environment-related risks and opportunities apart from climate change, such as water resources and biodiversity, and resolves and promotes them.

Envisaged risks related to climate change

For climate change-related risks, we assess risks and their impact under the two scenarios of the “1.5°C/2°C scenario” and the “4°C scenario.” Regarding the types of risks, we observe risks and their impact from the viewpoints of two types, “transitional risks” from policies, regulations, etc., and “physical risks,” from natural disasters, etc.

Indicators and targets

Basic policy

Recently, irregular weather phenomena caused by global warming have been occurring more frequently. The Paris Agreement, which aims to limit the increase in global average temperature to less than 2°C above pre-industrial levels and to achieve virtually zero greenhouse gas emissions in the second half of this century, was adopted to suppress the impact of this climate change.
Suzuki has for a long time continued to make products with lower CO₂ emissions during manufacture and during use in line with the philosophy of “Sho-Sho-Kei-Tan-Bi (Smaller, Fewer, Lighter, Shorter, Beauty),” and to achieve the so-called 1.5°C target, it has set reduction targets aligned with climate science and promotes efforts with the awareness of the issue requiring a need to further reduce CO₂ emissions.
Moreover, emerging countries also need to think about economic growth and not just climate change measures. Suzuki will aim for growth together with emerging countries and promote climate change measures while working to enrich the lives of people in emerging countries.
Suzuki has set multiple climate-related targets and indicators, and promotes these and manages their progress.
Indicators have been set for such matters as CO₂ emissions, climate change and related energy, air conservation and water resource conservation. Indicators have been set in three broad areas related to targets and we aim to achieve each of these goals.
Three major indicators have been set according to their timeframe, and we aim to achieve each target.

• Long-term: Suzuki Environmental Vision 2050
• Medium-term: Milestone 2030
  Growth Strategy for FY2030
• Short-term: Suzuki Environmental Plan 2025

Please refer to Suzuki Environmental Plan 2025 for details on indicators and targets.

Efforts regarding product use

Disclosure of GHG emissions in the entire value chain

Suzuki believes that for reducing greenhouse gas (GHG) emissions released through overall business activities, including procurement of materials/parts, manufacturing of vehicles and sale of final products, it is important to know and disclose the emissions from those activities. Therefore, we have been making efforts to quantify the emissions of GHG resulting not only from major business activities, but also from the entire value chain^*1 since FY2013.
GHG emissions generated through the entire value chain during FY2023 stood at 108.71 million t-CO₂, of which the emissions falling under Scope 3 (indirect emissions from other activities)^*1 were 107.75 million t-CO₂ that include 85.58 million t-CO₂ classified into Category 11 (Use of products sold by Suzuki)^*2 accounting for 78.7% of the total emissions through the overall value chain.
Recognizing that it is very important to reduce the CO₂ emissions released through the use of our products for reducing the total GHG emissions in the entire value chain, we will make continuous efforts to emphasize improvement of fuel efficiency during product development and improvement.

■ Classification of Scopes 1 and 2 and categories of Scope 3 quantified by Suzuki

• * Category 8 (Leased assets (upstream)) is excluded because it is included in Scope 1 and 2. Category 10 (Processing of sold products), Category 13 (leased assets (downstream)), Category 14 (Franchises) and Category 15 (Investments) are not included as they are not part of the calculation

GHG emissions in the entire value chain
Scope 1, 2, and 3

Third party guaranteed items are marked with 
(10,000 t-CO₂)

	FY2021	FY2022	FY2023
Entire value chain (total of Scope 1, 2, and 3)	9,207	10,370	10,871
Direct emissions from corporate activities (Scope 1*1)	40	42	41
Domestic	15	15	15
Overseas	25	27	26
Indirect emissions from energies (Scope 2*1)	71	72	54
Domestic	26	28	11
Overseas	45	45	43
Emissions from corporate activities (total of Scope 1 and 2)	111	114	95
Emissions from use of products by users (Scope 3: Category 11)*2	7,532	8,270	8,558
Other emissions (other than Scope 3: Category 11)	1,564	1,986	2,217
Other indirect emissions (total of Scope 3)	9,096	10,256	10,775

[FY2023 Emissions calculation conditions and reporting standard]

*1 <Scope 1 and 2>

• Calculation range
  • - Domestic: Suzuki Motor Corporation and 66 domestic manufacturing and non-manufacturing subsidiaries
  • - Overseas: 32 overseas manufacturing and non-manufacturing subsidiaries
• Target gases: Greenhouse gases (seven gases: carbon dioxide, methane, dinitrogen monoxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and nitrogen trifluoride)
• Calculation method: Scope 2 emissions were calculated based on the market standard of the GHG Protocol.
• Emission coefficients
  • - Electricity: Adjusted emission coefficients by electricity provider for Japan (results for FY2022), and 2021 values of IEA Emissions Factors 2023 for overseas
  • - Fuel: Emission coefficients under Japan’s Mandatory Greenhouse Gas Accounting and Reporting System (Ver 5.0) were used in Japan, and IPCC Guidelines 2006 were used overseas. Unit calorific values for city gas are based on those released by suppliers.

*2 <Scope 3 Category 11>

• Calculation range: Suzuki Group
• Products subject to calculation: Automobiles, motorcycles, outboard motors, motorized wheelchairs, and other Suzuki products
• Outline of calculation method
  • - Calculated by multiplying the estimated lifetime running distance of products sold in the fiscal year under review by the emissions intensity for each model.
  • - Annual running distance and years of use are based on published information, primarily the IEA SMP Model.
  • - Emissions intensity for each model are based on the certified values prescribed by the regulations of each country and converted to WTW (Well-to-Wheel).

Power consumption amount of Suzuki Group

(GWh)

Calculation range: Suzuki Motor Corporation and 66 domestic and 32 overseas manufacturing and non-manufacturing subsidiaries
(includes consumption of renewable energies generated within sites)

Calculation of CO₂ emissions of products using Life Cycle Assessment (LCA)

■ Ratio of CO₂ emissions of Suzuki vehicles by life cycle stages

• * Result of a vehicle’s lifetime running distance of 110,000 km (13 years) driven in each mode.
• * Running stage takes production of replacement parts into consideration, including tires, engine oil, and batteries.

■ Ratio of CO₂ emissions by each model

• * Result of a vehicle’s lifetime running distance of 110,000 km (13 years) driven in JC08 mode and WLTC mode.
• * “H” represents Hybrid vehicles and “MH” represents Mild Hybrid vehicles.

Efforts in design and development

Efforts in next-generation vehicles Development of electric vehicles

Suzuki is developing electric vehicles tailored to the conditions of each country around the world and the way that customers use them toward the realization of carbon neutrality. At the Japan Mobility Show 2023, held in Japan in October 2023, we unveiled our first global strategic electric vehicle, the eVX concept model, along with the world premiere of the eWX electric mini-wagon and the e Every Concept, an electric commercial mini-van. We will develop diverse electric vehicles and deliver “exciting answers” to customers around the world.

Efforts for motorcycles

Hydrogen can be stored and transported, and it does not emit CO₂ when combusted. The only substance given off is nitrogen oxide, which is hardly produced when hydrogen is lean-burned, offering numerous advantages. In recent years hydrogen has drawn attention as a fuel for internal combustion engines.
Suzuki has equipped a large scooter with a hydrogen tank and developed a test vehicle that uses hydrogen as the engine fuel. We are considering the possibilities for hydrogen fuel on two-wheel vehicles.

Efforts for outboard motors

For small outboard motors that are often used in lakes and rivers, we plan to launch four models by 2030 and for a battery EV ratio of 5%.
For large outboard motors used in the ocean, we are considering adopting carbon-neutral fuels.

R&D expenses, capital expenditures

Efforts for products

Automobiles

● Global average CO₂ emissions of new models^*1

• Suzuki has set a new target for the reduction of CO₂ emissions, which are considered a factor in climate change, by 30% of the global average CO₂ emissions from new vehicles (compared to FY2010 results) for automobile products under the Suzuki Environmental Plan 2025. We continue our environmental conservation efforts.
• The result for FY2023 was a reduction of 27.7% compared to FY2010.
• In promoting the Suzuki Environmental Plan 2025, we aim to further develop and spread electrification technologies and contribute to the reduction of CO₂ emissions by achieving the Suzuki Environmental Vision 2050.

• *1 Global average CO₂ emissions for new models are calculated according to internal regulations based on CO₂ emissions (fuel efficiency) measured by the methods specified in each country.

  Global new models

  Applies to all new cars Suzuki sells globally

  CO₂ emissions

  Consideration given to Well-to-Wheel

■ Trends in reduction of global average CO₂ emissions of new models

● Status of average CO₂ reductions in main markets

■ Status of average CO₂ reductions in Japan^*2 (passenger cars)

• *2 Values converted from 10.15 mode or WLTC mode to JC08 mode

■ Status of average CO₂ reductions in India

■ Status of average CO₂ reductions in Europe

[Japan]

In FY2023, we launched the new Swift and new Spacia with improved fuel efficiency and Every with CVT specifications to reduce emissions by 6%pt compared to FY2022.

[India]

In FY2023, we launched CNG specifications for Fronx with improved fuel efficiency, the new Swift, and CVT specifications for Invicto to lower emissions by 2%pt compared to FY2022.

[Europe]

In 2023, as a result of changing the sales mix, emissions increased by 2%pt compared to 2022.

● Major fuel efficiency improvement technology

Fuel efficiency improvement technology			Outline	Main models on sale in FY2023
(1)	Hybrid system	Hybrid system	Compact system that realizes motor assistance and EV driving, and both high fuel efficiency and strong driving.	Solio HYBRID SZ
		Mild Hybrid system	Hybrid system that realizes high fuel efficiency by generating electricity during deceleration and assisting the engine with such electricity upon acceleration.	New Swift HYBRID MZ
(2)	ENE-CHARGE		Energy generated during deceleration is used to generate electricity with an alternator (generator) to charge the lead battery and lithium-ion battery. The system achieves high fuel efficiency by supplying that power to electric components.	Lapin X
(3)	High fuel efficiency engine	DUALJET engine	Engine that realizes both power and environmental performances by increasing thermal efficiency through adopting two injectors per cylinder and homogenizing the air-fuel mix.	Brezza ZXI+
		BOOSTERJET engine	Direct-injection turbo engine that realizes high output and torque.	Fronx Alpha
(4)	Cool-storage air conditioning system (ECO-COOL)		System that freezes the freezable substance built in the air conditioning unit with cold air emitted while operating the air conditioner, and maintains cold wind even while sending air in idle-stop mode.	New Spacia HYBRID X WagonR Smile HYBRID S Limited
(5)	IDLING STOP		System that stops the engine automatically when the vehicle speed decreases to a specific level or lower.
(6)	HEARTECT		New platform designed by totally changing the major structure and component layout, realizing an improvement in the basic performance and weight reduction.
(7)	TECT		A lightweight shock-absorbing body that achieves both high safety and lighter vehicle weight by using high-strength and lightweight materials. It contributes to high fuel efficiency by reducing the burden on engines through lighter weight.

Motorcycles

● Global average CO₂ emissions of new models

We are striving to improve fuel efficiency and reduce CO₂ emissions through the improvement in combustion, reduction of friction loss, and weight reduction.
In FY2023, we achieved 14% reduction (compared to FY2010).

■ Trends in reduction of global average CO₂ emissions of new models

● Major fuel efficiency improvement technology

Technologies and efforts for fuel efficiency improvement			Outline	Main models on sale in FY2023
(1)	Powertrain	SEP-α engine	The engine is a further evolution of the SEP engine that realized low fuel consumption without reducing power through high fuel efficiency and reducing friction loss. An idling stop system that automatically stops the engine when the vehicle comes to a halt, and a silent starter system that quietly starts the engine are incorporated, contributing to excellent environmental performance and quiet starting.	BURGMAN STREET 125 EX*
(2)		Dual-spark technology	Mechanism equipped with 2 spark plugs per cylinder that contributes to smooth output characteristics, high fuel-efficiency performance, and reduction of exhaust gas emissions by high combustion efficiency.	BURGMAN 400ABS*
(3)		Injection system	Injection system equipped with 6 sensors* and designed to realize optimum control under various conditions and realize both powerful performance and high fuel efficiency. * O2 sensor, water-temperature sensor, intake airtemperature sensor, throttle position sensor, intake air-pressure sensor, and crank position sensor	GSX-S1000GX
(4)	Open-type rectifier		Realized high fuel efficiency with reduced mechanical losses by generating the minimum necessary amount of electricity with magneto.	V-STROM 1050DE*
(5)	Eco-driving assistance system		Equipped with eco-drive indicator allows the rider to check fuel-efficiency indicator and fuel-efficient driving at a glance.	BURGMAN STREET 125 EX*
(6)	LED headlight LED tail lamp		Aimed to reduce power consumption and increase service life.	GSX-S1000GX

* Domestic specifications ** Overseas specifications

Outboard motors

● Major fuel efficiency improvement technology

DF350AMD

● Engine technology

• (1) Lean burn control system

  

• (2) Higher compression ratio
• (3) Auto trim

	Technologies and efforts for fuel efficiency improvement		Outline	Main models on sale in FY2023
(1)	Lean burn control system		System to improve fuel efficiency by automatically producing lean air-fuel mixture in accordance with the engine output so that high-efficiency combustion can be achieved.	DF140B
(2)	Higher compression ratio		Efforts for improving the cooling of the combustion chamber, reducing the temperature of air flow into the combustion chamber, increasing the compression ratio, and improving thermal efficiency.	DF350AMD
(3)	Auto trim		The trim angle is automatically adjusted according to engine revolutions, contributing to a faster top speed and better fuel efficiency.	DF300AP

● Global CO₂ emissions per unit output

■ Trends in reduction of global CO₂ emissions per unit output

● Improved fuel efficiency of new models

The new DF140B, which went on sale in December 2021, achieves up to 10% better fuel efficiency than the previous model through such measures as the adoption of a lean burn control system and higher engine compression ratio.

Fuel efficiency improvement ratio
(when previous model is set at 100)

• Note: The graph shows a comparison based on Suzuki’s internal measurement data. There could be differences depending on conditions (weather, sea conditions, type of boat on which mounted, personnel, etc.).

Other efforts

● Introduction of CNG^*1 vehicles

In recent years, concerns about global warming and urban air pollution have been raised in India. Natural gas, which fuels CNG vehicles, is mainly composed of methane (CH4) that emits less CO₂ and NOx during combustion compared to oil and coal^*2, so Maruti Suzuki India promotes production and sales of CNG vehicles.

• *1 CNG (Compressed Natural Gas)
• *2 Reference: FY 2014 Petroleum Industry Structure Study on the Expansion of Natural Gas Utilization in Light of Recent International Situation, etc. (March 2015), Institute of Energy Economics, Japan. (Translation)

● Converting to refrigerant with low global warming potential

Under the Act on Rational Use and Appropriate Management of Fluorocarbons (Fluorocarbon Emissions Control Act), refrigerants in passenger car air conditioners shipped to Japan are required to convert to a refrigerant with a lower global warming potential from FY2023 onward.
Suzuki has until now used HFC-134a as a passenger car air conditioning refrigerant, but as this has larger global warming potential, we developed HFO-1234yf, a refrigerant that has an extremely low global warming potential, and completed conversion of use to HFO-1234yf in all passenger cars to be shipped to Japan by the end of FY2022.

TopicsSuzuki competes in Suzuka 8 Hours Endurance Race 2024 using sustainable fuel

TopicsExamination conducted on public roadways for the foldable electrified moped e-PO, a Suzuki type-1 scooter

TopicsSuzuki begins trial introduction of sustainable marine fuel in the United States
—Participating in project aimed at widespread adoption of sustainable fuel—

Efforts in business activities

Efforts in manufacturing

Reduction of CO₂ emissions

The Paris Agreement, which is an international framework aimed at reducing greenhouse gas to limit global warming, has been enacted, and governments of various nations and companies worldwide are promoting actions to reduce the emission of greenhouse gases in order to realize the target of limiting the rise of the global average temperature to less than 2°C.
We consider that it is important to globally promote a reduction of CO₂ emissions from plants in order to reduce the effects of greenhouse gas emissions, and make efforts to reduce the amount of CO₂ emissions per production unit (automobile production units) of Suzuki’s global manufacturing units by 25% (compared to FY2016) by FY2025 in accordance with the Suzuki Environmental Plan 2025.
The total amount of CO₂ emissions from manufacturing activities in FY2023 was 835,000 t-CO₂/year at Suzuki overall on a global scale, 176,000 t-CO₂/year in Japan, and 660,000 t-CO₂/year overseas. The amount of CO₂ emissions per manufacturing unit was 0.256 t-CO₂/unit.
As reduction initiatives, aside from activities for saving energy and eliminating waste, Suzuki is working to expand solar power generation both in Japan and overseas. In addition, CO₂-free electricity was gradually introduced starting in July 2023 at all production sites in Japan.
We will continue to further promote the effective use of energy and work to reduce intensity.

■ CO₂ emission performance at global manufacturing bases

[Scope of aggregation]

Suzuki (Iwata Plant, Kosai Plant, Osuka Plant, Sagara Plant, Hamamatsu Plant), 4 domestic manufacturing subsidiaries, and 15 overseas manufacturing subsidiaries

[CO₂ conversion factor]

For fuel (except city gas), IPCC 2006 Guidelines, and for city gas, the Greenhouse Gas Emissions Accounting and Reporting Manual issued by the Ministry of the Environment
Electric power conforms to the Act on Promotion of Global Warming Countermeasures (adjusted emission factors among the values published by power companies) in Japan and varies depending on the values of each year from 2019 to 2023 of IEA overseas.

● Energy-saving activities at plants

All employees participate in daily activities such as reducing air leaks, turning off lights during breaks, and switching off power when plants are not in operation. These efforts are steadily producing results each year.
Also, when upgrading the deteriorated production equipment or introducing new equipment for production of new models, we work on building more effective energy-saving plants than ever before by utilizing gravity, downsizing and reducing the weight of equipment, and adopting highefficiency devices such as LED lights and top-runner devices (motors, transformers).
Furthermore, as one of Suzuki’s efforts to reduce CO₂, we are reconfiguring our supply of energy, such as by converting fuels from LPG to city gas at the Osuka Plant and Iwata Plant. We will also extend this conversion to the Sagara Plant.
The amount of CO₂ reduction at domestic and overseas plants and reduction according to activities are shown on the right.

■ Amount of CO₂ reduction according to activities globally

[Scope of aggregation]

Suzuki (Iwata Plant, Kosai Plant, Osuka Plant, Sagara Plant, Hamamatsu Plant), and 15 overseas manufacturing subsidiaries

TopicsUtilizing air conditioning that uses groundwater and radiators

● Promoting the use of renewable energy

Suzuki promotes the use of renewable energy as an integral part of its global warming countermeasures.
Suzuki is proceeding with the installation of solar power facilities at its domestic plants, which it has been working on from before, and has introduced these facilities on land adjacent to the Sagara Plant (Makinohara) as well as at the Hamamatsu Maisaka-Nishi Solar Power Plant, and Hamamatsu Plant. We also partially began solar power generation at the Iwata Plant in 2021 and the Kosai Plant in 2022, and intend to continue installing solar power facilities at other plants in the future.
Suzuki has also installed two wind power generation facilities at the Kosai Plant and one at its training center.
At overseas plants, Maruti Suzuki India Limited, Suzuki Motor Gujarat Private Limited, and Suzuki Motorcycle India Private Limited have introduced and are further expanding solar power generation facilities.
We will actively promote the use of renewable energy, both in Japan and overseas.

Efforts in office activities, etc.

Efforts at data centers

We promote energy savings by expanding use of IT technologies for analysis and calculations and work to reduce energy consumption by efficiently operating IT devices, which are increasing.

● Improving coolant efficiency and converting to high environmental performance facilities

In July 2023, we zoned off server waste heat from intake side cool air and installed a containment system that keeps them separated at server rooms with heavy loads. Electricity consumption by air conditioning facilities was reduced by 114,000 kWh per year compared to FY2022. In addition, by steadily changing to high-efficiency-type air conditioning units, the ratio of IT device electricity consumption and air conditioning electricity consumption has been improved from 2:1 in FY2019 to 3:1 in FY2023.
What’s more, in January 2024, we updated uninterruptible power supplies to those with low electricity loss and reduced monthly electricity by 8,500 kWh (100,000 kWh yearly).

Efforts at offices

We determined the guidelines for energy saving action in FY2008, and promote energy saving at offices and the reduction of CO₂ emissions through a group effort involving all employees.

● Guidelines for energy saving action

We have established a guideline for energy saving action as a part of In-house Cost Cutting Activities, which covers a wide range of activities, for the purpose of promoting energy saving (CO₂ reduction) by individual employees.

● Introduction of energy-saving facilities

We have been promoting the introduction of LED lighting since FY2012 to promote energy saving at offices. So far, we have changed up to approximately 80% of the lights in offices to LED.

Other efforts

● Reduction of traveling by providing a remote work environment

By providing an IT environment that makes possible remote work by enabling remote access to internal resources and offering an online conferencing system, etc., we are working to reduce energy consumption from traveling. Use of remote work is increasing at partner companies as well, as an environment has been established that allows employees to engage in their duties from a remote location without the need to come into the office.

Remote work usage status at partner companies
(figures in parentheses are from the previous year)

Monthly users:

6,450 (4,779)

Average users per work day:

307 (208)

* Based on results for March 2024

● Promotion of eco-driving

We started eco-driving education in FY2007 as part of our environmental education programs, and since FY2009, we have held seminars focusing on eco-driving at the head office and each plant/office on an as-needed basis. By March 2024, a total of 17,710 people have participated in the seminar.

Efforts at non-manufacturing subsidiaries and sales distributors

Our 4 non-manufacturing subsidiaries and 56 sales distributors* in Japan work to save energy in business activities under a common energy-saving goal to “Aggressively promote energy-saving activities toward suppressing global warming by introducing electricity savings and energy-saving facilities.” With this as the goal, we are reducing energy usage in business activities, designing environmentally friendly stores and otherwise engaging in activities that address climate change.

• * 4 non-manufacturing subsidiaries: Suzuki Transportation & Packing Co., Ltd., Suzuki PDC, Suzuki Business Co., Ltd., and Suzuki Engineering Co., Ltd.
  56 sales distributors: 54 affiliate automobile sales distributors in Japan including Suzuki Motor Sales Tokyo Inc., as well as Suzuki Motorcycle Sales Inc. and Suzuki Marine Co., Ltd.

JapanDomestic sales distributors

● Promoting energy savings

We maintain an active awareness of energy savings on a daily basis, such as by efficiently using the air conditioners, lighting and information equipment within stores, and by promoting eco-driving through travel between store locations or to business partners using company-owned cars and commercial vehicles.

● Efforts using IT

We use IT such as the internet as a tool in business discussions with customers and communication among employees. We make effective use of customers’ and employees’ time and reduce the burden of travel, while working to reduce energy consumption and CO₂.

● Environmentally friendly store designs

Efforts in the supply chain, etc.

Efforts in procurement

Efforts in the supply chain toward carbon neutrality

To achieve carbon neutrality (net zero CO₂ emissions) by 2050, it is essential to reduce CO₂ emissions in the supply chain, which accounts for approximately 90% of the CO₂ emissions from manufacturing.
Suzuki has been working toward carbon neutrality in its supply chain since 2021. In 2022, we established a dedicated department and began to calculate the CO₂ emissions of each business partner by fiscal year and by component in order to gain a detailed understanding of their CO₂ emissions.
In addition, to achieve carbon neutrality by 2050, we have asked our business partners to set CO₂ emission reduction targets and roadmaps for 2030 and have begun reduction activities, such as checking the feasibility of reduction items. We cooperate with our business partners to reduce CO₂ emissions by visiting their manufacturing sites to confirm on-site examples of improvement initiatives, identify issues in carbon neutrality efforts, and listen to their concerns.
Also, since FY2022 we have worked to promote carbon neutrality activities by designating small and medium-sized business partners taking exceptional initiatives for carbon neutrality as “CN Contributors” and honoring them with letters of appreciation.
We will continue cooperating with our business partners to achieve carbon neutrality.

Efforts in domestic transportation

● CO₂ reduction activities in domestic transportation
(FY2023 initiative results)

● Modal shift of a portion of truck transportation to rail transportation

● Establishing a transportation base and a modal shift to ship for some transportation to the base