GLOBAL SUZUKI

Sustainability Policy

Basic policy regarding sustainability

Suzuki has up to now contributed to the social and economic development of many countries through the development and popularization of various types of products, including the environmentally friendly, compact automobiles that are our specialty.

Origin

In 1908, founder Michio Suzuki made a loom by hand in order to make his mother’s work easier, which led to the founding of Suzuki Loom Works. A desire to solve the problems of its customers is where Suzuki started. It began as a loom business and expanded into multiple businesses.

Michio Suzuki, founder, and the first loom, gifted to his mother

Mobility business

In 1952, the history of Suzuki motorcycles began with the launch of the Power Free motorized bicycle, which delighted customers by enabling them to travel longer distances with ease.
Three years later, Suzuki entered the automobile sector with the launch of Suzulight, the first mass-produced mini vehicle in Japan, and ultimately expanded into its current business with the later addition of outboard motors and motorized wheelchairs.

Power Free

Global development

Suzuki, which has characteristically handled both motorcycles and automobiles for a long time, leveraged the convenience and economical performance offered by motorcycles to quickly seize opportunities for motorization around the world. We have increased our contact points with customers this way, traveling a path of popularization and expansion from motorcycles to automobiles while growing together with the economies of countries and regions.
A particularly significant turning point in our global development came in 1979 with the birth of the Alto. The Alto, which went on sale at a price so low that it defied common sense, became a massive hit, and we could build the Japanese mini vehicle market.
This led to a great leap forward in Suzuki’s overseas expansion with the formation of a business alliance with General Motors. Moreover, we were able to establish a joint venture company because we were chosen as a partner for India’s national car development initiative. Subsequently, Suzuki’s reputation in India spread to Hungary, resulting in the expansion of plants into Europe.

Alto

For people’s prosperous life

In order to grow together with the countries and regions in which we operate, we have been contributing to economic development by expanding markets through local production overseas and by providing products and services that meet local needs.
In India, we started operating our first local automobile production plant in 1983 and currently have expanded annual production capacity to 2.25 million vehicles. Our history of factory expansion is also the history of our relationship with business partners, and we move forward on the same path while growing together, building a strong procurement network with a high local procurement ratio exceeding 90%. Furthermore, we have worked to expand our sales and service networks, and the network, which extends to rural areas, is our greatest strength. In recent years, we have been accelerating local R&D and actively recruiting talented engineers.
In this way, we are contributing to India’s economic growth while creating many local jobs through production, procurement, sales and development in the automobile industry that affects many areas. In January 2023, we passed 25 million cumulative domestic sales in India.

Suzuki Motor Gujarat Private Limited

Supporting communities by staying close to people’s lives

Products we make based on “Sho-Sho-Kei-Tan-Bi (Smaller, Fewer, Lighter, Shorter, Beauty),” the root of Suzuki’s manufacturing, are compact while being user-friendly, high performance and offered at affordable prices. By providing many people with freedom of movement, we support lifestyles in communities throughout the world.
In Japan, mini vehicles that are easy to use and economical have become an indispensable part of life as a means to get around, particularly in rural areas where public transport is not easily accessible. Moreover, mini-truck markets are held annually in regional cities, gathering mini-trucks in shopping areas and using the flatbeds of their vehicles to sell products such as foods, local specialties or sundries. These markets attract many customers at little expense, contributing to revitalizing local economies.
Meanwhile, in emerging countries, the affordable, highly functional compact cars in which Suzuki excels match the needs of customers making their first car purchase, enabling many customers to enjoy a comfortable and prosperous lifestyle through an automobile.

A scene from the 7th National Mini-Truck Market in Nagano Prefecture

Solutions unique to Suzuki

A feature of the world’s first Micro-Plastic Collecting Device for outboard motors, in which mass-production started in July 2022, is that it has an extremely simple structure that also keeps down component costs, rather than being a complicated and expensive device. The device could probably have been thought up by anyone and came about from a chat about cleaning up waterside areas. But it was an idea for a device that nobody else had made, and we approached it proactively by taking on the challenge of just giving it a try, then through repeated trial and error, managed to commercialize it in a very short time. We wanted as many people as possible to use it, so kept the outboard motor performance untouched and thought about how simply and how affordable we could make it. We want to solve social issues together with our customers while having them enjoy products made with Suzuki’s unique ingenuity and thoughtfulness backed by “Sho-Sho-Kei-Tan-Bi (Smaller, Fewer, Lighter, Shorter, Beauty).”

A DF115B outboard motor equipped with a Micro-Plastic Collecting Device

Continuing to be an irreplaceable presence

Among the issues confronting the automobile industry, we place particular importance on electrification toward achieving carbon neutrality. In compact cars, an area in which Suzuki excels, we have gained great support from many people because of their affordability, but making them into EV would raise the price, thus reducing the benefits of these compact cars. To continue to be an irreplaceable presence in people’s lives, we need to leverage the philosophy behind “Sho-Sho-Kei-Tan-Bi (Smaller, Fewer, Lighter, Shorter, Beauty),” achieve a balance between cost and driving range and equipment, respond to customer needs and usage styles, and have a policy of developing the right EVs for the right place to launch onto the market.
Moreover, as an initiative unique to Suzuki, we will tackle the challenge of producing and supplying carbon neutral biogas derived from cow dung, a waste product from dairy farming common in rural India. This biogas fuel can be used in Suzuki’s CNG vehicles, which account for a share of approx. 70% of India’s CNG vehicle market, and if we are able to make this materialize, it will enable us to continue providing automobiles at affordable prices. This technology can be developed not just for India, but for emerging countries in Africa and ASEAN, as well as for farming areas in Japan.

We will continue to develop our mobility business, centered on automobiles and including motorcycles, outboard motors and motorized wheelchairs, and through providing products and services that support customers’ lives aim to be a company that continues to be needed by people and society by both solving social issues and achieving corporate growth.

Structure for promoting sustainability

Structure for promoting sustainability

At the Executive Committee and Corporate Governance Committee meetings attended by Representative Directors and related officers, issues, policies and measures concerning sustainability (environmental, social, governance) are discussed. Issues of particular importance are brought up and reported to the Board of Directors. Along with the management, the Company as a whole aims to promote viable sustainable activities.
The dedicated department established within the Corporate Planning Office to promote sustainability takes the lead in cooperation among each internal department and Group companies in promoting cross-organizational initiatives to solve social issues.

Main agenda items for the Board of Directors (FY2022)

  • Establishment of Suzuki Group Human Rights Policy
  • Addressing human rights in the supply chain
  • Efforts related to personnel strategy and human capital
  • Intellectual property governance, other matters

Defining materiality (key issues)

Following the formulation of the mid-term management plan announced in February 2021, we performed a review of the materiality (key issues) specified in 2015 by giving consideration to changes in the environment surrounding our business.

Steps in defining materiality

Step 1 Identify issues by using as reference various indices specified in the ESG guidelines, such as the GRI Standards and SASB Materiality Map.
Step 2 Check their alignment with the issues specified in the midterm management plan at the Corporate Planning Office and other sustainability-related departments.
Step 3 Check their adequacy and completeness by examining their significance from the perspective of stakeholders through engagement with ESG investors, environmental NGOs, and ESG rating agencies.
Step 4 Specify materiality by discussing the adequacy and completeness of the identified issues at the Executive Committee, verify the significance of these issues depending on the nature of each, and confirm the appropriate method of disclosure.
Step 5 Discuss and approve the materiality at the Board of Directors.

Materiality matrix

While “focusing on the customer” as stated in our Mission Statement and remaining mindful of how to contribute to society and customers by solving issues, we have divided the identified materiality (key issues) broadly into two groups: Issues to be solved through business and Issues for strengthening the business base.
We will promote our future initiatives by using the newly identified and verified materiality as the basis of Suzuki’s sustainability policy. We will also review each topic periodically in accordance with changes in the surrounding business environment.

Efforts for SDGs

The Suzuki Group supports the SDGs* and will actively fulfill its responsibility to address issues where it can help to achieve goals through its business activities.
Suzuki has contributed to developing and popularizing environmentally friendly compact cars and creating jobs in emerging countries. Through business activities that take advantage of Suzuki’s strengths, Suzuki will help to solve social issues in tandem with generating profits. Suzuki aims to contribute to a sustainable society and achieve profit growth in a well-balanced manner.

* SDGs (Sustainable Development Goals): adopted by the United Nations in 2015.

Through our business

For the natural environment

  • Reduction in the amount of CO2 emitted
  • Air conservation
  • Water resources
  • Resource circulation
  • Biodiversity
  • Suzuki Clean Ocean Project

For a better life for people

  • Promotion through products
  • Product quality
  • Efforts for safety technologies
  • Initiatives to solve community issues
  • Alliance with Toyota Motor Corporation, CJPT collaboration
  • Co-creation with various business partners

Through strengthening the business base

Issues related to systems and mechanisms

  • Corporate governance
  • Compliance

Human related issues

  • Respect for human rights
  • Occupational health and safety
  • Health management
  • Nurturing of human resources
  • Diversity of human resources

Through our community contribution activities

  • Forest conservation activities
  • Traffic safety activities
  • Educational support activities
  • Disaster relief activities

Policy for stakeholders

Target stakeholders Policy Ways of dialogue and communication
Customers

For customer satisfaction

While keeping in step with the times and taking the opinions of the public into full consideration, use our technologies and sincerity to create useful products of real value that satisfy the customer. Do our best to provide quick, reliable, and stress-free sales and after-sales services in order to enhance customer satisfaction.

  • Marketing activity (sales and after-sales services)
  • Customer Relations Office
  • Customer events
  • Safety driving lectures, etc.
Business partners

For prosperous coexistence

Cooperate with business partners on an equal footing, maintain trusting relationships, and strive to create truly valuable products. We will also practice legal compliance, respect for human rights, and environmental protection.

  • Presentation of procurement policy
  • Procurement activity
  • Co-development
  • Trading of opinions between the management or persons in charge, etc.
Employees

For comfortable and worthwhile workplaces

Create a workplace based on the following points that allows for employee self-improvement and advancement.

  • 1. Create a safe and healthy workplace for employees.
  • 2. Create a system that fairly evaluates and supports those who want to take the initiative in advancing their careers.
  • 3. Create a good and stable employer-employee relationship.
  • Safety and Health Committee
  • Consultation desk
  • Goal Challenge System
  • Self-actualization system
  • In-house education and training program
  • Worksite discussions (The President visits all divisions.)
  • Labor-management discussions, etc.
Shareholders and investors

For improvement of corporate value

Disclose information promptly, appropriately, and fairly while seeking communication with shareholders and investors, and strive to reinforce the management base and improve our corporate value.

  • Annual General Meeting of Shareholders
  • Presentation meetings with institutional investors
  • IR events for individual investors
  • Publication of various reports, etc.
Local community

For a community-friendly company

Contribute to the development of local communities through positive communications with local communities and social action programs, and act as a responsible member of society.

  • Local contribution activities in each domestic and overseas office
  • Educational support activity
  • Suzuki Plaza, etc.
Environment

For global environmental conservation

Acknowledge that activities in environmental conservation are the most important part of business management. Promote environmental conservation in accordance with our Suzuki Global Environment Charter through our business activities and products in order to achieve a society with sustainable development.

  • Establishment, promotion, and reporting of Suzuki Environmental Plan 2025
  • Holding of and participation in various environment events
  • Environment education and lectures, etc.

Stakeholder engagement and examples of communication initiatives

Target stakeholders Examples of initiatives
Customers

Customer opinions, suggestions and other feedback received by the Customer Relations Office are communicated to the relevant departments in order to develop better products and improve manufacturing, quality, sales and after-sales services. We have established a system enabling such information to be promptly fed back to the relevant departments in charge depending on the criticality of the information. Also, we fully examine the collected information, and in some cases, we identify and summarize potential customer needs and inform the relevant divisions.

Business partners

We make efforts to promote mutual understanding by holding a Procurement Policy Presentation once a year for our business partners. The goal of this presentation is to share Suzuki’s policy and product/production plans, as well as to convey our procurement policy.

Employees

Beginning with the annual Shunto labor-management wage negotiations in 2022, we have changed the format of these negotiations to a style of discussion in which labor and management directly debate their respective opinions in order to find common ground for the development of the Company. Every month, information exchange meetings are held between the labor union leaders and the President and Executive Vice Presidents, and the minutes of those meetings are distributed to all employees.
We also hold worksite discussions in which the President personally visits all divisions, plants and sites of Suzuki Motor Corporation and exchanges views with employees on legal compliance and new operational measures.

Shareholders and investors

Financial briefings for analysts are held every quarter of the year. In addition, investors’ conferences and other presentation meetings and domestic/international IR meetings are held. We also invite analysts to events such as new model announcements, plant tours, and technology presentations whenever possible. The COVID-19 pandemic has made it difficult to hold face-to-face meetings. In response, we have worked to maintain communication with investors by utilizing online tools.
We also periodically hold presentation meetings for individual investors. Since the Annual General Meeting of Shareholders held in 2008, we have been inviting shareholders to the Suzuki Plaza for tours, after the meeting. (We canceled the event for 2020–2022 due to COVID-19.)

Local community

At domestic automobile assembly plants, we accept students from local schools as part of their field trips for social studies. We also hold social events with the local community to exchange information, and an Autumn Festival to promote friendship among employees, their families and local residents. Through these events, we strive to promote a deeper mutual understanding with the local community.

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