AISIN Group’s Environmental
Initiatives
AISIN CORPORATION
Toshiyuki Mizushima
Executive Vice President
Chief Carbon Neutral Officer
2021.11.18
ESG Conference 2021 / Nov. 18th, 2021 / © AISIN CORPORATION All Rights Reserved.

AISIN Group’s "Four Initiatives for the Environment"

Establishment of azero-carbon society

Establishment ofa recycling-orientedsociety

Aim to achieve net-zero CO2emissions throughout life cycle ofproducts toward the realization ofcarbon neutrality

Aim to minimize
environmental impact bymaximizing resource
efficiency

Establishment of asociety in which people
coexist with nature

Fundamentalactivities

Aim to achieve harmony
with nature and local
ecosystems

Aim to create moreadvanced environmental
management systems

Aisin will contribute to building a sustainable society through the four initiatives.
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Examples of Global Environmental Activities
Energy saving/renewable energy(each site)

Tree planting (Japan, Inner
Mongolia Autonomous Region)

Wastewater recycling(each site)

Biotope creation/wildlife
protection (Japan)

Environmental assessment(each site)

Carrying out various environmental activities globally
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Toward Realization of Carbon Neutrality

Refining

Resource
miningPowergeneration

Materials/parts

Product production

Logistics

Scope 1, 2 (Production)
・Achieve carbon neutrality
in production
・Material recycling• Materials with low CO2 footprint• Recycling• Carbon neutral technology

Deployment

Achieve carbon
neutrality inmaterial/parts
production

Deployment

Scope 3 (Suppliers)

Logistics

Use

DisposalScope 3 (OEM/users)
Provide environmentally friendlyproducts• Electricity economy (compact/lightweight)• Power/thermal management• CO2-free products

Achieving a carbon neutral society through initiatives in terms of both products and production
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AISIN Group’s Life Cycle CO2 Emissions
AISIN Group’s approach to reduction of life cycle CO2 emissions

Countries that have declared carbon neutrality targets
and Aisin's global bases

Energy saving/renewableenergy Power source/heatsource/waste reduction
 Power generation/combustion
 Improved efficiency of electricunits

100% zero-emission vehicles by2035
40% new energy
vehicles by 2035

JapanCalifornia: 100% zeroemission vehicles by 2035

ChinaIntroduction and disseminationof innovative technologies

 50% reduction of production processes CO2 reuse/carbon neutral fuel/hydrogen CO2-free products（10,000 t）

North America

2000

Latin America
EuropeAISIN Group

India/ASEAN
AfricaThe map has been produced by Aisin based on materials from the Ministryof Economy, Trade and Industry. The countries colored in blue are thosethat have declared their carbon neutrality targets (as of January 2021).

Global CO2
emissions in FY2019

Scope1,2
Scope3

Life cycle CO2 emissions

100% electric vehicles
by 2030

Life cycle
CO2 emissions target

Scope3（Electric power）

Energysaving1000

Scope3（Non-electric power）

RenewableenergyScope1,2（Production）

Carbon-neutral fuelCO2 recovery andutilization

2.8 million tons-CO2
14.5 million tons-CO2

2013

2020

2030

2040

2050

（year）

Achieve carbon neutrality for the entire life cycle by 2050
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Carbon Neutrality Initiatives in Manufacturing
1. The Path to Achieving Carbon Neutrality•

Overview of Aisin’s Efforts towards Carbon Neutrality (Energy/Resource Recycling)•Zero-emission plants that are kind to the global environment and people•

Global production CO2 reduction scenario

２. Environmental Technology Initiatives (in Manufacturing)•

Reducing production lines by 1/2 (half)•

Activities to reduce CO2 emissions from melting furnaces•

Development of carbon-neutral technology by using hydrogen•

Lightweight solar power generation technology•

Practical use of CO2 immobilization technology•

Development of biogas power generation system•Material recycling technology•CO2 reduction in logistics•Visualization of CO2

3. Toward Expansion and Dissemination of Carbon Neutrality Activities

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The Path to Achieving Carbon
Neutrality

1

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Overview of Aisin’s Efforts towards Carbon Neutrality (Energy/Resource Recycling)
Electricpower

Material recycling

Mining/refining

Suppliers

Disposal

Material recycling

OEM/users
Lightweight solar power
generation systems(On-/Off-site)

Inter-manufacturing baseenergy management

Carbon-neutral
fuel production

Compact/lightweight

Methanation(On-/Off-site)

Eco-materials
Energy saving/renewable energy

CO2 recovery and utilization
CO2
recovery

Carbon-neutral
power generation

Homes/stores

Biofuel power
generation

Hydrogen/NH3 cogeneration
Utilization of electricity storageand low-temperature waste heat

Hydrogen/NH3 supply
and storage(On-/Off-site)

Suppliers(Scope 3)

Technology licensing /emission credit acquisition

CO2
recovery

Carbon-neutral
gas equipment

Smart factory
Carbon-neutral
power generation

Hydrogen/carbon-neutral fuelRecycling(immobilization)

Aisin Group (Scopes1, 2)

Farmers/
dairy farmers

Social infrastructure /buildings

To carbonneutralfuelproduction

OEM/users (Scope 3)

We contribute to the circulation and dissemination of energy and resourcesin local communities through carbon-neutral activities.
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Zero-emission plants that are kind to the global environment and people
Plant basis
Energymanagement

Block chain cooperation

Nearby basecooperation

・ Visualization of energy, automatic control
・ Air conditioning and airflow control

・ Energy use minimization
between bases

Practical application and expansionof carbon neutral technology

CO2 reuse

・Regional energy use minimization

・ CO2 recovery
・ Immobilization and methanation

Power generation/ ・ Hydrogen combustion,combustion
power generation, andstorage (On-/Off-site)

Next-generation solar
power generation

Production reform<Miniaturization/machine connection>

・ Minimum processes(Reducing the number of processes byhalf, mixed production)

Power source / heat source /elimination of waste
・ Lines that do not stop

Smart factory<AI equipment abnormality prediction>(Reducing frequent stoppage/failure to zero)• Digital twin

<Robotization, real-time control,
remote control>
Plant: Workers ⇒AGVs, Robots(Automatic monitoring and feedback control)

Up to '23

• Link and combine people, goods,
and equipment data in real time.

Up to '30

Up to '35

Working toward carbon neutrality with four themes as keys
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Global production CO2 reduction scenario[2030 target](Compared to 2013)(10,000 t-CO2/year)

300▲50％200[2050 target](Compared to 2013)

Daily improvement+Innovative productionengineering technology

Scope2Moving forward(Non-renewable power)
100

Energysaving▲100％

Renewable energy(Non-electric power)

02013

2018

Renewableenergy(Including certificates and credits)

Scope1

Carbon-neutral fuel/CO2 recovery and utilization

2021

2025

2030

2035

2040

2045

▲60%

2050

carbon-neutral fuelCO2 recovery
and utilization

Endeavoring to reduce CO2 emissions to achieve carbon neutrality in production as early as possible (by theend of the 2030s).
Commencing the supply of production CO2-free products in FY2021, starting with eAxle.
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Environmental Technology
Initiatives (in Manufacturing)2

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Reducing production lines by 1/2 (half)

Aprx. 13m

In andafter2026• Machine connection / synchronization control• Higher accuracy of rough materials(expansion of areas not requiring processing)• 24-hr operation• Karakuri integration(Reduction of power source)

Power source/ heat source / elimination ofwastePowergeneration/combustion

CO2 reuse[Super eco-equipment]
Reducing power sources/heat sources by 1/2,downsizing, and high-speed synchronization■Number of equipment power sources (index)

Aprx. 20m

2020

▲65%

• Making equipment compact• High-speed conveyance• One-shot processing• Reduction of non-processing time
(Reducing operation waste and loss to zero)• Eliminating hydraulic/electrification

2010
Aprx. 20m

2020

In and after 2026

■Energy consumption per pc (index)

▲60%

2010

Production lines

20102020

In amd after 2026

Significant reduction of CO2 by developing and introducing super eco-equipment
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Activities to reduce CO2 emissions frommelting furnaces(1) Synchronous control of material charge rate
/ exhaust gas temperature and LNG output(2) High-speed temperature rise by IH preheating (electric)

Melting furnace
Equipment

CO2LNG

BurnerMaterial charge

AHydrogen
outputControl device

Required amount ofmolten metal

Al material charge

Facility

IH preheating

IH preheating

FacilityHydrogen

BurnerMelting furnace

Holding furnaceBurner

BurnerMelting/holding furnace

Melting/holding furnaceGood

LNG basic unit(index)① LNG output control② High-speed temperature rise

200w/ocontrol
制御無150withcontrol
制御有Basic unit
Improvement

10050100

IH heating
600

Approx. 15 times

400

Hydrogen burnerdemonstration started in2021(2.2⇒30.6℃/s)

200

Heating by LNG

00
0.0

0.5

1.0
1.5
2.0Soluble amount(t/h)

Introduction started in 2021

CO2 emissions(Index)Required amount ofmolten metal

Al material charge

LNG

CO2 reuse

Utilization of hydrogen /carbon-neutral fuelExhaust gastemperature

LNG output
Controldevice

Material charge

CO2CO2LNG

Exhaust gas temperature

Temperature(℃)

CO2Powergeneration/combustion

2030 and beyond

In and after 2025

Current situation (up to 2020)

Aluminum material charge

Power source/ heat source / elimination ofwaste

63

0100200Time(s)IH preheating demonstration
starts in 2022

20

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Development of carbon-neutral technology
by using hydrogen

Power source/ heat source / elimination ofwastePowergeneration/combustion

CO2 reuse

Melting furnace/heat treatment

Hydrogen cogeneration / hydrogen SOFC

Methanation【Hydrogen burner】【Mixed firing of hydrogen / dedicated firing】【Recovery of low-concentration CO2 for recycling】

Burner installation
position

Exhaust gas
Analyticalequipment

To exhaust gas
collection device

Inside the plant
To the dustcollector

Dust collector(Dehydrator)

Exhaust gas duct
Exhaust gas

Hydrogen
supplyControl panel

Hydrogen
CylinderGas engine
Cogeneration(COREMO)

Fuel supply(Hydrogen mixing ratio)

Safety(Flame detector)

Hydrogen burner:
under demonstration since 2020

Hydrogen cogeneration:
under demonstration since 2020

CO2H2Meltingfurnace

Fuel flow measurement

Exhaust heat recovery
temperature sensor

Electricity

Hydrogenproduction

Heatexchange

Hydrogen burner
Exhaust gas sampling
tube

Solar power generation

City gas

Regenerated
methaneHeat
Methanegeneration

Melting furnace methanation:
Scheduled to be demonstrated in 2022

We work toward power generation/combustion technology and methanation by using hydrogen.
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Lightweight solar power generation
technologyAround 2014: Development of
perovskite solar cells

Powergeneration/combustion

Power source/ heat source / elimination ofwaste

CO2 reuseCan be installed in various existing buildings(expansion of installation areas)(Green Innovation Fund: application for NEDO approval in pending)Solar cells

Renewable energy rate by solar power generation (global)(On-site, PPA)

7.1%

Development target value (in 2025)• Conversion efficiency: 20% or more (30 cm x 30 cm)• Mass: 1/5 (compared to general solar cells)

3.3%
0.3%

20202025

2030

Responding to various installation needs by lightweight solar cell technology,
making renewable energy more accessible
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Practical use of CO2 immobilization
technology

Power source/ heat source / elimination ofwaste

Powergeneration/combustion

CO2 reuse

Power generation

Steel making/cement industry

Exhaust gas (containing CO2)
CO2 immobilization plant

Calcium carbonate

Alkaline earth metal source(Steel slag / waste concrete
and waste cement)

Technology licensing
Exhaust gas

Patent/coretechnology area

Gas-liquid mixer

Extraction

Solution circulation

Precipitation
Special solution treatment

Aisin’s core technology contributes to the reuse and circulation of "carbon" and "industrial by-products".
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Development of biogas power generation
systemEco-cycle
CO2 reduction
Agriculture

Utilization of fertilizer

Food waste

Inside of the container

Bio-cogeneration system
Methanefermentation

Powergeneration/combustion

CO2 reuse

Under Demonstration since 2021

(organic agriculture)

Dining rooms / homes /food factories

Foodresidue

Power source/ heat source / elimination ofwaste

Appearance of the demonstration machine

Mixer

Fertilizer

Gas holder

Producing Biogas

Digestive tankGas electric powergeneration

Desulfurization

HeatElectricity

COREMO

Factories
Living life

Fermenter

Control panel

COREMO
Digestive tank
(For disposal)

Digestive tank(Backup)

Amount of power generation: 15.2 kWh/day
CO2 reduction effect: 1.9 t-CO2/year
Supply surplus gas
to the neighborhood

Gas engine Cogeneration

Cowdung(Use of chicken
and beef manure)

Desulfurizer

Gas

Dehydration

Electricity

Indian dairy

Under Demonstration since 2018(COREMO)ElectricityHeatDry
fertilizer

Digester

Slurry pit
Organic feed

High value-added milk

Gas generation tankAmount of power generation: 31 kWh/day
CO2 reduction effect: 8.2 t-CO2/year

Slurry pit

Local site in India

Digester（Gas generation tank）

Recycling waste by utilizing household cogeneration technology
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Material recycling technology

Aisin’s Recycled Material Usage Rate (2020)%Index100100100

Aisin's Raw Material CO2 Emissions
Iron and steel
Aluminum

75Resin80
50602540200

Other

DC materials(Recycled ingots)

02019

Cast iron material(Scrap material)

Iron and steel

Aluminum

Recycled material

TargetIron andsteel
Aluminum

Resource
miningMaterial
productionParts
manufacturing

Automobile
manufacturing

2050

TargetTargetRecycling technology

Resin

New material

2030

Users

DisposalResin• Increased use of low-grade scrap materials(impurity removal technology)• Increased use of open market scrap(impurity removal technology)• Reduced energy consumption during material production(increased recycling rate of extruded materials)• Increased recycling rate by utilizing the same type ofmaterials• From thermal recycling to chemical recycling

Aiming to reduce CO2 emissions by recycling waste using various material recycling technologies
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CO2 reduction in logistics

Voice/image navigation
on route change
Real-time
information sharing
with stores

Parking lot
full/spaces available
information

Aisin's logistics solution
A wide variety of next-generation
business vehicles (FCV, EV, etc.)
Trafficcongestion/roadinformation

Energy management

Operation management
systemStore charts(launched in 2021)
Optimization of delivery operations(vehicle/delivery route/time) Linking logistics and commercial
distribution data
・Production and sales forecasts
・Matching with available vehicles
 Quick development of an
optimal delivery plan

On-site logistics
Automatic transferrobots

Route planning system(delivery analysis system)
Joint/consolidated
transportation matching

Delivery staff
management system

・Safe and efficient route・Improved loading rate Smooth operation based onreal-time data on traffic
conditions and congestion
・Zero standby/adjustment
time

Aisin's logistics solution：BRIDGES@ny

Contributing to CO2 reduction by optimizing and streamlining the entire logistics value chain
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Visualization of CO2 （Compliant with a global third-party certification）

CO2 basic unit/kg

Parts material/information

 eAxle◆ ◆◆made parts>＜外注部品＞＜外注部品＞◆<Outsourced<Partsmanufacturing>

・・・DB＜内製部品＞<In-house◆ ◆ ＜内製部品＞<Processing> CopperComponent listDB• Carbon-neutral
technology development

 eAxle<Materialproduction>

 Aluminum Ironparts>

CO2 basic unitDBFactory
CO2DBＡ〇〇 Plant△△ plant

Pro
cess

Process

Ｂ

Process

ProcessＣProcess

Process

Process

Process• Carbon-neutral
manufacturing development

Supplier
CO2

Incorporating CO2 in theplant IoT traceability system
Coarsematerial

Technology development

Parts manufacturing CO2 emissions

Utilizing measurement data fortechnology development
CO2 reduction, quality, productivity,and cost improvement

Finishedproducts

CO2 emissions aremeasured on aprocess/equipment
basis.

EnergyDB

Productionsystem
DB

QualitysystemDB…

Plant IoT platform

Pro
cess

Visualization of CO2 is promoted to respond to the demands of local communities andcustomers with respect to both products and production.
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Toward Expansion andDissemination of Carbon
Neutrality Activities

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Toward Expansion and Dissemination of Carbon Neutrality Activities

In order to increase international competitiveness, it is essential to establish a recyclingoriented social system at a low cost and socially implement it.
Global deployment
 Apply technologies according to the administrative measures andpower source composition of each country or region

Large scale Hydrogen/carbon neutral fuel recycling system (compliment torenewable energy, energy storage, distributed power supply)
Produce, transport, use, store and recycle

CO2 emission reduction activities in collaboration
with suppliers

Toward achieving carbon
neutrality

Solve issues byparticipating incollaboration beyond theborders ofcoutries/regions andindustries.

 Understand the amount of global CO2 emissions (international LCArules) Deploy low-cost carbon neutral technologies and promote material
recycling.
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We will deliver beauty
to our future earth.

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