GLOBAL SUZUKI

<Special Topics> Suzuki announces the Suzuki Environmental Vision 2050

<Special Topics> Suzuki announces the Suzuki Environmental Vision 2050

Suzuki Environmental Vision 2050
- Smaller, Fewer, Lighter, Shorter, Neater –

“Smaller, fewer, lighter, shorter, and neater”: these are the words which Suzuki has been holding since the early 1990s to express the base of manufacturing. While maximizing the value offered to customers, these words are meant to make things smaller with fewer resources, with lighter weight, in shorter time and distance, and neater as much as possible.
We believe that this “smaller, fewer, lighter, shorter, and neater” concept applies to the initiatives toward tackling global environmental issues including climate change, water shortage, and resource depletion. For example, our specialized small cars, with their small and lightweight bodies, not only do they emit less CO2 but also minimize resources needed to produce them, and thus they have contributed in conserving resources as well.
Under the Suzuki Global Environment Charter, which sets Suzuki’s philosophy and basic policy toward the environment, we have made the Suzuki Environmental Plan 2020, and the Suzuki Group has been working for environmental conservation, aiming to contribute to the society and become a company loved and trusted throughout the world. As the requests for long-term initiatives toward the environment such as the climate change is increasing, and on the occasion of the Company’s 100th anniversary, we have set the Suzuki Environmental Vision 2050 as a compass toward 2050, in order to become a sustainable company that would continue contributing to the society for the next 100 years.
Based on the “smaller, fewer, lighter, shorter, and neater” concept, Suzuki will aim to realize our ideal future which makes environmental impact from our business activities smaller and fewer, makes environmental load lighter, shortens the time to tackle various environmental issues, and keeps the earth bountiful and beautiful.

Environmental Vision 2050 and Milestone 2030

With regard to four significant environmental themes (Mitigation of climate change, Air conservation, Water resource conservation, and Resource circulation), the Group set the Environmental Vision 2050 as a challenging goal to be tackled toward 2050, and Milestone 2030 as a milestone toward realizing the goal.

Mitigation of climate change

In the recent years, abnormal climates are frequently occurring, which are considered to be caused by global warming. In order to suppress such impact of climate change, the Paris Agreement was adopted. The Paris Agreement aims for net zero emission of greenhouse gas in the second half of this century, in order to suppress increase in global average temperature to less than 2°C compared to pre-industrial revolution.
In line with the philosophy of “Smaller, fewer, lighter, shorter, and neater”, Suzuki has been continuously making products that emit less CO2 while also emitting less CO2 upon making them. Going forward, Suzuki will be conscious of a challenge that we must reduce CO2 in a higher level and promote our efforts toward achieving the 2°C target by setting climate science based reduction targets.

Targets for mitigating climate change

<CO2 emitted from products>

[Environmental Vision 2050]
Reduce CO2 emitted from new automobiles by 90% in Well-to-Wheel base compared to FY2010 by 2050

[Milestone 2030]
Reduce CO2 emitted from new automobiles by 40% in Well-to-Wheel base compared to FY2010 by 2030

*Well-to-Wheel: A method in considering CO2 emitted from excavating and refining fuel as well as in generating electricity, in addition to CO2 directly emitted from the tailpipe of vehicles upon driving.

<CO2 emitted from business activities>

[Environmental Vision 2050]
Reduce CO2 from business activities by 80% in base unit per sales unit compared to FY2016 by 2050

[Milestone 2030]
Reduce CO2 from business activities by 45% in base unit per sales unit compared to FY2016 by 2030

Air conservation

Suzuki has been promoting efforts for air conservation such as by introducing low emission cars to meet the requests of each country. Because Suzuki has its main markets in emerging countries including India and Southeast Asia, we would like to contribute more in air conservation. For example, by promoting our efforts for in-house generation and procurement of electricity that derive from renewable energies, we will contribute not only in global reduction of CO2 emission, but also in conserving air environment of areas that Suzuki expands it business*. Also, with regard to products, in addition to introducing powertrain that suit the situation of energy infrastructure in each market, we will promote reduction of volatile organic compounds (VOC) that are emitted during the production process, etc.

Targets for conserving air environment

[Environmental Vision 2050]
Minimize air-polluting substances emitted from business activities and products by 2050

[Milestone 2030]
By 2030:
- Reduce use of fossil fuel in business activities and expand use of renewable energies
- Contribute in improving air-pollution in each country/region by promoting development of clean products
- Reduce volatile organic compounds (VOC) from manufacturing and products

*Sulfur oxide and nitrogen oxide emitted upon burning fossil fuel are considered to be one of the causes of air pollution. Electricity made through burning fossil fuel emit air-polluting substances during the generation stage. Under such background, air pollution in emerging countries that are highly dependent on thermal generation are becoming serious.

Water resource conservation

Water resource is the root of all lives while at the same time, it is the base of economic activities for the humanity. However, fresh water that can be used by the humanity is limited to only 0.01% of water on earth. Also, due to the recent climate changes and the population growth, it is forecasted that supply and demand of water resource will run out in the future. Especially in Suzuki’s main markets of India and Southeast Asia, due to rapid industrialization, overuse and contamination of water are appearing.
Taking such regionality into concern, Suzuki will evaluate water risks of each base and supplier, and promote management of water resources depending on the level of risks. We will also promote thorough reduction of water usage and purification of water discharge toward sustainable use of limited water resources.

Targets for efficient use of water resource

[Environmental Vision 2050]
Realize use of sustainable water resources through minimizing load on water environment by 2050

[Milestone 2030]
By 2030:
- Implement reduction of water withdrawal and purification of discharged water at all manufacturing sites through specifying water risks surrounding Suzuki

Resource circulation

Along with rising global population and economic growth in emerging countries, consumption of natural resources is increasing globally. If such situation continues, there is a possibility that resource depletion and environmental contamination due to increased wastes from heavy consumption might become serious. Especially, there are strong worries for future resource depletion of useful resources including rare metals used on secondary (rechargeable) batteries for propulsion of electric vehicles. Circulation use of such resources is requested. Also, in regions with insufficient establishment of structures for treatment of end-of-life vehicles, they may lead to illegal dumping and improper treatment of vehicles and parts. Therefore, there are worries for various issues including environmental contamination and health damage due to leakage of hazardous materials.
Taking such situation into concern, Suzuki will not only make efforts to make systems for its own vehicles, but for all vehicles for safe collection and treatment of renewable resources from end-of-life vehicles without putting load on the environment.

Targets for realizing circulatory society

[Environmental Vision 2050]
Promote reduction, recycle, and proper treatment of wastes from manufacturing activities and products through globally expanding recycling technologies and systems developed in Japan by 2050

[Milestone 2030]
By 2030:
- Globally expand automobile recycling system
- Promote recycling, rebuilding, and reusing of secondary (rechargeable) batteries used for propulsion of electric vehicles
- Mitigate waste discharge amount at global manufacturing sites
- Reduce plastic packaging materials

Upon establishing the Suzuki Environmental Vision 2050

Establishment process

①Assessment of Suzuki’s current environmental efforts (specifying materiality)

  • - Under the Suzuki Global Environment Charter, which sets Suzuki’s philosophy and basic policy toward the environment, Suzuki aims to contribute to the society and become a company loved and trusted throughout the world, and established the Suzuki Environmental Plan 2020. The Group is tackling together for environmental conservation.
  • - In 2019, in order to enhance our contribution to the society, we specified the key issues (materiality) of these initiatives from two aspects: significance for the stakeholders such as customers and investors (social impact) and significance for the Suzuki Group.
  • - Upon specifying the key issues, we reported to the management and exchanged opinions, thereby confirming the issues to be tackled by throughout the Group.

②Establishment of the Suzuki Environmental Vision 2050

  • - The specified key issues (materiality) were discussed many times at the Environmental Committee participated by the management, taking into concern the impact on our business, trends in environmental policies worldwide, and mid- to long-term requests from the stakeholders. Consequently, environmental issues that should be tackled by Suzuki toward 2050 were focused into four areas: mitigation of climate change, air conservation, water resource conservation, and resource circulation.
  • - Finally, the details of these four areas were approved by the management and then put together in the Suzuki Environmental Vision 2050.

Overall image of Suzuki’s environmental strategy

The Group placed Milestone 2030 by back casting from the Environmental Vision 2050, which was established as our ideal appearance in the future.
The path toward the Milestone 2030 will be established every 5 years as the Suzuki Environmental Plan. The plans will include detailed action plans, which the Company will promote.

Announcement of support for TCFD

In April 2020, we announced our support for the final report disclosed by the Task Force on Climate-related Financial Disclosures (TCFD) which was established by the Financial Stability Board. In line with the recommendations of TCFD, we will work to enhance disclosure regarding climate change.