Message fromthe President & CEO

Sustainability Management

Environment

SocialGovernance

Disclosure Based on
the TCFD Recommendations

ESG Data

Environmental Plan Package
Structure of the Environmental Plan Package

Environmental Policy

Anticipating a time 30 years in the future, in October
2020 MITSUBISHI MOTORS formulated the Environmental Plan Package, which defines the directions
and targets of its environmental initiatives. This package establishes the foundation for our directions onenvironment-related management strategy, outlining
our objectives for realizing a sustainable society, including one that is carbon-neutral, as we conduct ourbusiness activities. The Environmental Plan Package
comprises the Environmental Policy, which we haverevised to incorporate our medium- to long-term
perspective; the Environmental Vision 2050, whichsets out our vision for society to be achieved by 2050
and directions for our initiatives; and the Environmental Targets 2030, which clarifies specific initiatives tobe achieved by 2030 in accordance with this vision.

We have been acting in accordance with its Environmental Policy, which was formulated in 1999. However, in the 20 years that have passed since that time
the operating environment has changed, prompting
us to revise the policy in 2020 to reflect current social
trends. We recognize that responding to environmental issues in our business activities is essential, andso have newly incorporated a medium- to long-term
outlook into our policy.
Focusing specifically on climate change, resource
depletion and environmental pollution, we aim tocontribute to the preservation of water resources andbiodiversity through initiatives in these areas.

Environmental Policy

Mitsubishi Motors recognizes that responding to environmental issues through its business activities is essential. Accordingly, we will engage proactively in specific and effective measures from a medium- to long-term perspective.
(Directions of initiatives)
1. We will face three specific environmental issues headon: climate change, resource depletion and environmental pollution.
2. Given that 2050 is an important landmark for climatechange on a global scale, we have clarified levels tobe achieved, in 10-year increments, and are pursuing
initiatives to this end.
3. We will respond to environmental issues through thefollowing activities:• Unique environmental contributions through our products• Initiatives at each stage of automobile production, saleand use• Collaboration with business partners, affiliated institutions, governments and local authorities• Initiatives targeting environmental issues rooted in thelocal community• Initiatives to determine and reduce environmental
impact of all related business activities
MITSUBISHI MOTORS CORPORATION Sustainability Report 2024

established initiatives to pursue from a long-term
perspective, leading up to 2050. In 2018, the Intergovernmental Panel on Climate Change (IPCC) publishedthe Special Report on Global Warming of 1.5°C, whichcalls for society as a whole to achieve a net-zerobalance between human-caused greenhouse gas
emissions and absorption.
As these measures illustrate, awareness of climatechange and other environmental issues is rising eachyear. Companies are also being called upon to undertake more ambitious initiatives.
Against this backdrop, we formulated the Environmental Vision 2050, which sets out our vision forsociety to be achieved by 2050, as well as directions
for our initiatives, with regard to climate change,
resource circulation and pollution prevention.

Working to Become Carbon Neutral by 2050

Environmental Vision 2050
Members of the Paris Agreement, adopted in 2015,
agreed to limit the rise in average global temperatures to substantially less than 2°C above levels before the Industrial Revolution From this basis, we

Regarding “action to climate change,” we have statedour commitment toward helping to shape a society
resilient to the impact of climate change by achieving
net-zero CO2 emissions. In September 2022, we revised Environmental Vision 2050, incorporating thegoal of achieving carbon neutrality.

Environmental Vision 2050
In December 2015, the Paris Agreement was adopted at COP21. Members of this accord agreed to curtail the rise in average global temperatures to 2°C above levels before the Industrial Revolution and to work to keep the rise to 1.5°C. Givensuch social demands, MITSUBISHI MOTORS believes it can contribute toward the realization of a sustainable society,achieving a balance between the progress of humankind and the global environment, through the proliferation of electrified vehicles and the promotion of their use in society.

Action to Climate Change

Resource Circulation

Pollution Prevention

Through electrified vehicles andthe increased use of renewableenergy, we aim to become carbon neutral and contribute to
the realization of a society that isresilient to climate change.

We will contribute to a resourcerecycling-oriented society byminimizing input resources andmaximizing resource efficiency.

We will contribute toward asociety free of environmental
pollution affecting human healthand the ecosystem by reducing
the environmental impact of our
products and the pollution resulting from our business activities.

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Message fromthe President & CEO

Sustainability Management

Environmental Targets 2030
MITSUBISHI MOTORS has formulated Environmental
Targets 2030, which are items to be addressed overthe next 10 years in line with the direction of society
and initiatives to be pursued 30 years into the future, as set forth in our Environmental Vision 2050. In
setting targets, we referred to scenarios published by
the IEA*1 and the IPCC, as well as international frameworks such as the SDGs and the Paris Agreement.
We revised the Environmental Targets 2030 in
February 2023, setting even higher targets in our“action to climate change” to demonstrate our commitment to achieving carbon neutrality. For Scope 1*2
and Scope 2*3, we raised our target for reducing CO2
emissions from business activities to the SBT* target
4

equivalent to a 1.5°C level. For Scope 3*5, in addition toan electrified vehicles sales ratio of “50% by FY2030,”
we added “100% by FY2035.” We also added qualitative
targets related to procurement and distribution. These
revisions were approved by the Board of Directors.
*1 IEA: Internal Energy Agency*2 Scope 1: A company’s direct emissions (such as from burning fuel)*3 Scope 2: Indirect emissions, resulting from electricity, heat or
steam provided by another company*4 SBT: Short for Science Based Targets, which are greenhousegas emission reduction targets set by companies consistent
with the Paris Agreement levels*5 Scope 3: Indirect emissions other than Scope 1 and Scope 2(emissions from other companies and other sources related tothe company’s activities)

MITSUBISHI MOTORS CORPORATION Sustainability Report 2024

Environment

SocialEnvironmental Targets 2030
IssuesClimateChangeTargets 2030

-40%
(compared with
FY2010)Electrified vehicles*7
50%sales ratio
FY2035 100%-50%
CO2 emissions from(compared with8
business activities*
FY2018)Promoting CO2 reduction activities withmajor suppliers
Promoting CO2 reduction activities in cooperation with logistics companies
Providing energy management services utilizing electrified vehicles and used batteries
Implementing measures to adapt toclimate change
Resource Expanding adoption of non-fossil-based plastic
Circula- Achievement of zero direct landfill wastetion(less than 0.5%)
Reuse of batteries used in electrified vehicles
Pollution
Conformance to regulations on use ofPrevensubstances of concern in productstion
 romotion of LCA*9
Environ- • P
mental• Promotion of environmental management
Manage- within the Group and at dealersment• Enhancing disclosure of environmental
information• Promotion of employee education andawareness activities• Collaboration with suppliers• Promotion of grass-roots community
environmental preservation activities
Average CO2 emissions
from new vehicles*6*6 CO2 emissions per new vehicle while driving. Tank to Wheel*7 Battery Electric vehicles, plug-in hybrid electric vehicles (PHEV),and hybrid electric vehicles*8 Total of Scope 1 Scope 2*9 LCA stands for life cycle assessment, which is a technique forcalculating and evaluating the environmental impact of a product from manufacturing to disposal.

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24

Disclosure Based on
the TCFD Recommendations

Governance▶ NextESG Data

Principal Results for FY2023
Average CO2 emissions from new vehicles
100%
80%

-17%

Target-40%

2023

2030 (FY)

60%
40%
20%
0%

2010

2019

Benchmark year

2020

2021

2022

Ratio of electrified vehicles sold*9

Target 50%

50%
40%
30%
20%
10%
0%

7%

8%

7%

2019

2020

2021

12%

2022

15%

2023

2030 (FY)*9 Based on number of wholesale units sold. MITSUBISHI MOTORS
brand products only.

CO2 emissions from business activities*10
100%
80%

-34%

Target-50%

2023

2030 (FY)

60%
40%
20%
0%

2018

2019

Benchmark year*11

2020

2021

2022

*10 S
 cope 1 and Scope 2*11 T
 he officially reported emission volume of FY2018 (the benchmarkyear), was 588 thousand t-CO2. This volume includes 43 thousand
t-CO2 emissions from some equity-method associates.
For the purposes of target setting, we have revised our base figure
to 545 thousand t-CO2, as our current method of selecting environmental management target companies excludes these equity-method associates.

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Message fromthe President & CEO

Sustainability Management

Environment

SocialSustainability Committee(Chair: CEO*; members: Division general managers of relevant divisions)

Environmental Working Group
Leader:Technical advisor to the chairman*
Subleader: Division general manager of the Development
Management Division*
Secretariat: Sustainability Promotion Department
Members: Corporate departments• Strategy management• Human resources• Public and investor relations• Asset management• Finance• Technology strategy• Production• EV business• Development management• Materials technology• Logistics• Procurement• Overseas sales• Domestic sales• After-sales service

Product and business activities departments<January–October 2020>

Board of Directors
Executive Committee
Members:

Small Circle• Division general manager of the• CEO*Development Management Division• Co-COO (in charge of engineering) • Division general manager of the• Director in charge of production
Product Strategy Division• Director in charge of sustainability • Division general manager of the• Head of corporate strategy
Production Engineering Division* Positions as of March 2020
MITSUBISHI MOTORS CORPORATION Sustainability Report 2024

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25▶ Next Social and economic conditions
Such as economic growth and population increases
 Status of environmental issues
	Climate change, resource depletion, environmental pollution, loss of biodiversity andshortage of water resources	Trends in key regions (Japan, ASEAN, Oceania,
others)GDP, changes in the population, government
environmental policies, etc.
	Data related to automobile production and
MITSUBISHI MOTORS<Business>
Unit sales and number of vehicles owned, globallyand by region
<Results of Environmental Initiatives>
CO2 emissions (Scope 1, 2, 3), amount of waste
generated, etc.

	Verify relationships between environmental
issues and us
Identify environmental issues to face head-on	Consider long-term outlook for environmental issues
Gather external scenarios on CO2 emissions,
run our own simulations
	Arrange initiatives to be taken, given our business characteristics (markets and products)	Clearly spell out the Environmental Policy andEnvironmental Vision 2050
	Consider and formulate initiatives in theEnvironmental Targets 2030, as well as numerical targets

Review

The Environmental Working Group we set up in
FY2018 gathered data related to global social changes, such as economic growth and population increase,
as well as environmental issues. In particular, thegroup looked for information on regions of importance to our business, ascertaining the status of local
communities and government environmental policies.
We also looked at unit sales and the number of vehicles owned in each country, arranging this data tomatch our business characteristics by looking at ourbusiness data and results of environmental initiatives.
The group also summarized our efforts to date.
Using this data, we then verified each of the environmental issues and our relationship to them. We
identified three environmental issues to face head-on:
action to climate change, resource circulation and pollution prevention. We considered the long-term outlook
for these environmental issues by studying external
scenarios from the IEA and IPCC, as well as by runningour own simulations. We then arranged the issues tobe addressed by thinking about how to contribute in amanner tailored to local communities while maximizing
our strengths, looking at each market from a regional perspective and considering plug-in hybrid electricvehicles (PHEV) and other business characteristics.
Based on this analysis, we clearly spelled out thedirections for initiatives indicated in the Environmental Policy and Environmental Vision 2050 and set
numerical targets for the items in the Environmental
Targets 2030. In this way, we formulated the New Environmental Plan Package, which provides an overallsummary of our environmental strategies.
In the final process of formulation, we incorporate
the perspectives of our stakeholders by conducting
reviews by external experts.

Formulation

To clarify MITSUBISHI MOTORS’ policies and plans in
the environmental area and strengthen a series of
initiatives, in 2018 we established a cross-company
environmental working group to develop an environmental planning package.
After certain directions had been determined, a small
circle chaired by the then-CEO moved forward to specifics. These were approved by the Board of Directors.

ESG Data

Going forward, we will continue to accumulate andanalyze information on social trends and confirm theappropriateness of our Environmental Plan Package.

Analysis

Steps to Formulation

Gathering of Information

Structure for Consideration in Formulation<Structure for Consideration from July 2018 to December 2019>

Disclosure Based on
the TCFD Recommendations

Governance Conduct review via outside experts

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