Message fromthe President & CEO

Sustainability Management

Environment

SocialGovernance

Disclosure Based on the TCFD Recommendations
Support for the TCFD Recommendations
With the issue of climate change growing increasingly
serious, the Financial Stability Board established theTargets
l 7.2
l 7.3

Governancea. Board’s oversight of climate-related risks andopportunities

Task Force on Climate-related Financial Disclosures

We recognize “responding to climate change and en-(TCFD), which in 2017 announced its recommenda-

ergy issues” as an important management issue andtions. These recommendations encourage companies

have accordingly identified it as one of our materiality

to disclose information related to climate change so

issues. The Board of Directors makes decisions on im-that investors can appropriately assess climate-relat-

portant matters related to environmental initiatives,

ed risks and opportunities.

including those related to climate change, and over-

Recognizing the potential of climate change tosees their execution. The Board of Directors approved

present medium- to long-term risks and opportu-

the “Environmental Vision 2050” and “Environmental

nities that affect its business domains, in July 2021

Targets 2030,” which were revised in FY2022, andMITSUBISHI MOTORS expressed its support for thethese measures were announced.

TCFD Recommendations. Accordingly, we are analyzing the impact of climate change on our businesses
and finances (scenario analysis). We will reflect theresults of scenario analysis in our management strategies to enhance the resilience of our strategies andimprove information disclosure in accordance with
the TCFD Recommendations.

Disclosure
Disclosure Based
Based ononthethe TCFD
TCFD Recommendations
Recommendations

Examples of climate change-related issues discussed or reported by the Board of Directors• Endorsement of TCFD recommendations

ESG Data

Targetl 9.4

Targetsl 13.1l 13.2l 13.3b. M
 anagement’s role in assessing and managing
climate-related risks and opportunities
To address climate change and energy issues, wehave established the Sustainability Committee,
chaired by the executive officer, president & CEO, who
also holds top responsibility for initiatives related toclimate change. The committee evaluates climate-related risks and opportunities, discusses response
measures, and reviews progress and achievements
in line with the Environmental Targets 2030. We haveestablished the Carbon Neutrality Council under the
Sustainability Committee. This council is chaired by
the Executive Officer, Executive Vice President andconsists of executives responsible for management
strategy, products, manufacturing, procurement andlogistics. This organization formulates medium- tolong-term policies and goals based on the assessment of climate-related risks and opportunities,
considering specific response measures in each area.

• Disclosure in line with TCFD recommendations

These policies, goals, and their progresses are report-• Declaration of intent to achieve carbon neutrality
by 2050 and revision of Environmental Vision 2050

ed by the respective heads of each area at the Sus-

• Revision of Environmental Targets 2030

organization generally meets three times per year,

tainability Committee for review and deliberation. The
and particularly important matters are deliberated
and decided by the Board of Directors.
Please see P30 for details on the structure of promoting
carbon neutrality.

MITSUBISHI MOTORS CORPORATION Sustainability Report 2024

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Message fromthe President & CEO

Sustainability Management

Environment

SocialGovernance

Disclosure
Disclosure Based
Based ononthethe TCFD
TCFD Recommendations
Recommendations

ESG Data

Targets
l 7.2
l 7.3

Strategya. Short-, medium- and long-term climate-related risks
and opportunities the organization has identified
MITSUBISHI MOTORS considers climate-related risks
and opportunities to be an important perspectivein the formulation of our business strategy. We are

identifying and evaluating short-, medium-, and longterm risks and opportunities, as well as analyzing theimpact on our business based on multiple climate
scenarios. We are also considering countermeasuresin response to these risks and opportunities. As particularly high-impact migration risks, we identified the“strengthening of regulations for fuel economy/CO2

Item

Targetsl 13.1l 13.2l 13.3and zero-emission vehicles” and the “introduction andexpansion of carbon pricing.” We identified “increasing
frequency and intensity of meteorological disasters” asa physical risk. While these risks may affect our business in various ways, we recognize that responding
appropriately to these risks will lead to greater sales ofelectrified vehicles and new business opportunities.

Identified climate-related risks and opportunities
Type

Targetl 9.4

Assumed Impact on MITSUBISHI MOTOR’S Business Activities

Timing of the Degree of
Impact*impact• Increased development/procurement/production costs to comply with stricter regulations
Medium/long• Increase in fines, credit purchase costs, and stakeholder litigation expenses due to non-fulfillment of
Large
term
regulations
Policy andlegal• An increasing tax burden on our emissions due to the introduction and expansion of carbon taxes andIntroduction and expansion ofMedium/longother sorts of carbon pricing, as well as higher prices on carbon, and higher costs due to a price shiftLargecarbon pricing
term
toward the procurement, production and logistics stages
Investment in• Decline in the Company’s competitiveness and market share due to delays in investment in electrificaMedium/long
Technology
Mediumnew technologies
tion and other new technologies
termTransition• Higher energy costs due to a rise in electricity prices resulting from the increased introduction of renew- Medium/longrisks
Changes in the energy mix
Mediumable energy and carbon-neutral sources of electricity, such as hydrogenterm
Tight supply and demand for • Rise in the cost of raw materials (such as rare metals) and components due to growing demand for
Medium/longMarketMediumraw materials (rare metals)
storage batteries
term
Changes in user awareness• Decrease in sales volume due to the development of public transportation infrastructure and the prolifMedium/long
Mediumand behavior
eration of sharing in urban areas
term
Increasingly stringent assessShort/medium
Reputation ment by ESG rating institu• Decline in our social image and share priceMediumterm
tions and stakeholders
Increasing frequency and• Damage to buildings, facilities, and vehicles in inventory caused by typhoons and torrential rains, and the
Short/medium/Acuteintensity of meteorologicalsuspension of operations at production facilities due to supply chain disruptions (delays in the supply of
Large
long term
disasters
parts stemming from damage to suppliers and the disruption of transportation routes)
Physical• Rising (energy) cost of air conditioning to maintain the work environment and employee health
Short/medium/risks
Rise in average temperatures
Small• Difficulty in securing the water needed to manufacture automobiles due to depletion of water resources
long term
Chronic• Increased flooding and surge in the instance of storms due to rising sea levels, resulting in operational
Short/medium/
Rise in ocean levels
Mediumshutdowns at manufacturing facilities and increased investment in disaster countermeasureslong term• Expand sales of electrified vehicles by improving product capabilities and taking advantage of government and municipal measures to promote electrified vehicles
Products
Growing demand for• Increase sales of electrified vehicles and V2X-related equipment/services in line with the growing value
Medium/long
and
Large
electrified vehicles
of electrified vehicles as energy infrastructure
term
Opportuservices• Boost sales of electrified vehicles that can help supply power in response to growing demand to securnities
ing sources of emergency power in times of disaster
EnergyAdvancement in energy
Medium/long• Reduce energy costs by promoting energy conservation activities and the introduction of renewable energy
Mediumsourcetechnologies
termStrengthening of regulations
for fuel economy/CO2 andzero-emission vehicles* Timing of the impact
Short term: Up to three years; medium term: three to 10 years; long-term: more than 10 years. Some issues impacts have already occurred as a result of the recent international situation.
MITSUBISHI MOTORS CORPORATION Sustainability Report 2024

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Message fromthe President & CEO

Sustainability Management

Environment

SocialGovernance

Disclosure
Disclosure Based
Based ononthethe TCFD
TCFD Recommendations
Recommendations

Targets
l 7.2
l 7.3

ESG Data

Targetl 9.4

Targetsl 13.1l 13.2l 13.3b. Impact of climate-related risks and opportunities on the organization’s business, strategy, and financial planningWith the vision of “creating a vibrant society by realizing the potential of mobility,” MITSUBISHI MOTORS aims to enhance our corporate value over the long term by providing
products with value that is unique to MITSUBISHI MOTORS through contributions to carbon neutrality and other efforts. As society-wide efforts to achieve carbon neutrality
accelerate, we recognize that climate-related matters may affect our business, strategies, and financial plans, so we periodically review our strategies and plans as appropriate based on climate change risks and opportunities.
Impact on strategies and plans
Business area
Products andservices

Recognized impact
Incorporation into strategies and plans
To realize a carbon-neutral society, various countries and regions are strengthen- In 2020, we formulated the Environmental Targets 2030, which set the target ofing regulations for fuel economy/CO2 and zero-emission vehicles. These will affect achieving a 40% reduction in CO2 emissions from new vehicles (compared with
our product development, production and procurement strategies.
FY2010 levels) and a target ratio of electrified vehicle sales of 50% by FY2030. In
February 2023, we set a new target, raising our target ratio of electrified vehicle
sales to 100% by FY2035.
Meanwhile, in our mid-term business plan, “Challenge 2025” we set a target of
introducing nine electrified vehicle models by FY2028.
Supply chain,
In the automobile manufacturing and sales business, greenhouse gases such as We revised our Environmental Targets 2030 in February 2023, adding the provalue chain
CO2 are emitted not only during the manufacture of products, but throughout the curement target of “promoting CO2 reduction activities with major business
entire value chain.
partners,” and the logistics target of “promoting CO2 reduction activities in coopAs climate change advances, the worldwide risk of increasingly frequent anderation with transportation companies.”
severe occurrences, such as typhoons and floods, is mounting. If our supply chain
or value chain is affected by such events, our plants’ operations and sales could
be affected.
Investment in R&D
We are promoting investment in R&D to address increasingly stringent and new In our mid-term business plan, “Challenge 2025,” we are budgeting ¥70.0 billion in
regulations for fuel economy/CO2 and zero-emission vehicles in the countries and R&D expenses related to electrification in FY2025. We have also earmarked ¥55.0
billion in capital expenditures related to electrification.
regions where we operate. These moves will affect our R&D costs for electrified
vehicles and other products.
Adaptation andOur business could be affected by countries and regions introducing or expanding In 2020, we formulated the Environmental Targets 2030 and set the goal of remitigation measures carbon taxes and emissions trading systems, as well as by rising energy costs.
ducing CO2 emissions from our business activities “by 40% compared to FY2014.”
In February 2023, we raised this figure to “a reduction of 50% compared to
FY2018,” the SBT* target equivalent to a 1.5°C level.
*3 SBT: Short for Science Based Targets, which are greenhouse gas emission reduction targets set by companies consistent with the Paris Agreement levels

MITSUBISHI MOTORS CORPORATION Sustainability Report 2024

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Message fromthe President & CEO

Sustainability Management

Environment

SocialGovernance

Disclosure
Disclosure Based
Based ononthethe TCFD
TCFD Recommendations
Recommendations

Targets
l 7.2
l 7.3

ESG Data

Targetl 9.4

Targetsl 13.1l 13.2l 13.3c. Resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario
Based on climate scenarios and future information from organizations such as the International Energy Agency (IEA), the Intergovernmental Panel on Climate Change (IPCC),
and the Network for Greening the Financial System (NGFS), MITSUBISHI MOTORS considered the “less than 2°C scenario*1,” which assumes actions by society to avoid climatechange as of 2030 and 2050. We also looked at a “growth scenario*2,” which assumes national policies continue to grow more stringent. Under these scenarios, we examined
the risks and opportunities, focusing on areas with significant impact on our business activities.
In FY2023, we conducted an analysis of not only the risks, but also the impact on our opportunities to expand our sales as a result of increased demand for electrified vehicles. We have expanded the scope of analysis to include overseas suppliers, and country- and region-specific scenario analysis is underway. The results of analysis related
to the impact on our business of the associated risks and opportunities are as described below.
*1 Referenced the IEA’s Announced Pledges Scenario (APS), the IPCC’s “RCP4.5,” the NGFS’ “Net Zero 2050,” etc.
*2 Referenced the IEA’s Stated Policies Scenario (STEPS), the IPCC’s “RCP8.5,” the NGFS’ “Current Policies,” etc.

Impact of Risks and Opportunities on MITSUBISHI MOTORS’ Business Activities
Scenario
Item

Less
than
2°C

Risks/Opportunities

Impact on MITSUBISHI MOTORS’ business•N eed for both developed countries and emerging
Risks
markets to comply with stricter regulations
Strengthening of• Increasing likelihood of noncomplianceregulations forfuel economy/
CO2 and zero-emission
Opportunities • Growing demand for electrified vehicles
vehicles• Introduction and expansion of carbon taxes, causing
Risks
Introduction andcarbon prices to rise
expansion of•Promotion of energy-saving technologies
carbon pricing
Opportunities• Increasing use of renewable energy
Risks• Increased possibility of factory damage and supply
chain disruptions due to frequent and severe heavy
rain and flooding

Increasing
frequency andintensity of
Growthmeteorologicaldisasters (flood• Greater demand for electrified vehicles, owing toing, inundation) Opportunities growing need to secure emergency power sources

MITSUBISHI MOTORS CORPORATION Sustainability Report 2024

Key countermeasures•H igher development/procurement/production costs• Reduce costs by taking advantage of the•F ines and credit purchase costs increase if regulations are alliance, such as by standardizing componot met
nents• Promote electrification, including PHEV andEV• Increased sales of electrified vehicles and expansion of• Promote new mobility businesses such as
the value chain related to electrified vehicles
energy management using electrified
vehicles and used batteries• Increased direct and indirect tax burdens and higher costs • Promote energy conservation activities andat the procurement, production and logistics stages
introduce renewable energy• Promote CO2 reduction efforts in coopera• Lower energy costs
tion with suppliers• Review BCP, assuming such factors as heavy•D amage to production and development facilities
rain and flooding•L ower earnings due to operational shutdowns due to• Promote risk mitigation initiatives in collabodamage to our own factories and suppliers
ration with suppliers• Reduce costs by taking advantage of thealliance, such as by standardizing components• Increased use of electrified vehicles that can help supply• Promote electrification of PHEV/EV
emergency power• Promote new mobility businesses such asenergy management using electrified
vehicles and used batteries

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Message fromthe President & CEO

Sustainability Management

Environment

SocialGovernance

Disclosure
Disclosure Based
Based ononthethe TCFD
TCFD Recommendations
Recommendations

Targets
l 7.2
l 7.3

ESG Data

Targetl 9.4

Targetsl 13.1l 13.2l 13.3

MITSUBISHI MOTORS’ Response Measures
Based on Risks and Opportunities

tions, and governments and municipalities to reduce

We have incorporated goals and action plans for ad-

CO2 emissions at the production stage (through raw

dressing climate-related risks and opportunities that

MITSUBISHI MOTORS will incorporate measures to ad-materials and parts) and in logistics (including prod-

have a particularly significant impact, and are moni-

dress climate-related risks and opportunities into ouructs). We will also promote renewable energy andtoring progress through the Sustainability Committee.

Environmental Plan Package* and business strategies,

charging infrastructure, utilize carbon-neutral fuelwhich set forth the direction and goals of our environ-and promote V2X*3.

1

mental initiatives. In this way, we are promoting initia-b. O rganization’s processes for managing climate-re-

We believe the spread of electrified vehicles rep-lated risks

tives to reduce future risks, ensure sustainable busi-

resents a chance to do new business in the form of

The climate-related risks, opportunities, and corre-ness growth and enhance our resilience as a company.

reuse of used batteries, energy management, andsponding measures identified by the Sustainability

On the product front, we will take our own plug-in

data business using vehicle driving and battery data,

Committee have been assigned to responsible ex-hybrid electric vehicles (PHEV) and commercial electricand in collaboration with our partners and municipal-

ecutives at the executive officer level. We have set

vehicles in the Kei-car segment as a starting point,

ities we will grow a mobility business that contributes

KPI and are implementing a PDCA cycle. Additionally,and leveraging the Allian’s technologies. We will de-toward the realization of a carbon-neutral society,reports on critical risks and opportunities requiring

velop electrified vehicles* and promote fuel-efficientwhich represents a unique opportunity for us as anprompt action are provided to the Board of Directors,

internal combustion vehicles, proactively introducing

automotive maker, into a fourth pillar of revenue after

which decides on appropriate responses.

electrified vehicles that optimally meet customers’

vehicle sales, financing (leasing), and after sales*4.

needs, taking into consideration the energy situation*1 Please see page 23 for details on the Environmental Plan Package.
*2 Electrified vehicles: Battery-powered electric vehicles, plug-in
hybrid electric vehicles (PHEV), and hybrid electric vehicles (HEV)*3 V2X: A general term encompassing vehicle to home (V2H) andvehicle to grid (V2G), among others*4 Please see page 34 for details on the mobility business.

2

and infrastructure development status in each country and region. Working toward carbon neutrality is
one of the key challenges stated in “Challenge 2025,”
our mid-term business plan. We will develop electri-

inforce electrified vehicles (FY2026–2028). By FY2028,
we plan to introduce nine electrified vehicle models.
To date, we have introduced three: the “ASX PHEV/
HEV models,” the “COLT HEV model,” and the “XPANDER/XPANDER CROSS HEV model.”In our business activities, we will seek to minimize
energy use and transition to renewable sources ofenergy to reduce CO2 emissions.
Across the supply chain, we will collaborate withbusiness partners, related companies and organizaMITSUBISHI MOTORS CORPORATION Sustainability Report 2024

should address, involving various problems related tofields of the environment, society, and governance.
We have positioned “responding to climate change
and energy issues” as one of the most critical material issues, and we are stepping up our efforts in thisregard across the Group.

fied vehicles and step up our efforts in the Alliance as
we work toward the second phase of our plan to re-

In FY2018, we identified material issues that we

Risk Managementa. Organization’s processes for identifying and assessing climate-related risks
We have established a cross-functional team under
the Sustainability Committee to conduct scenario
analysis based on the recommendations of the Task
Force on Climate-related Financial Disclosures (TCFD).
We have identified and assessed climate-related risks
and opportunities that could affect our business, considering their potential occurrence and impact levels.
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116▶ Nextc. H
 ow process of identifying, assessing, and managing climate-related risks are integrated into theorganization’s overall risk management
Risks affecting our business are managed throughout
the Group and include risks related to the effects ofclimate change. In addition, the Internal Control Committee manages operational hazard risk, based on theannual “Companywide Risk Survey.”
Please see P105 for our Group’s risk management
framework, including the Internal Control Committee.
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Message fromthe President & CEO

Sustainability Management

Environment

SocialGovernance

Disclosure
Disclosure Based
Based ononthethe TCFD
TCFD Recommendations
Recommendations

Targets
l 7.2
l 7.3

Metrics and Targets
a. Metrics used by the organization to assess climate- related risks and opportunities in line with
its strategy and risk management process
MITSUBISHI MOTORS formulated the Environmental
Plan Package in 2020. Through electrified vehicles
and the increased use of renewable energy, we aim
to become carbon neutral by 2050 and contributeto the realization of a society that is resilient to climate change. We also formulated the “Environmental
Targets 2030,” which clarifies specific initiatives to beachieved by 2030 in accordance with this vision. As
major indices to be monitored and evaluated under“Action to Climate Change,” we set a target for Scope
1 and 2*1 in the category of “CO2 emissions from ourbusiness activities.” We also set a target of reducing
emissions under Scope 3*1, Category 11 (use of soldproducts), which accounts for around 70% of total
emissions throughout our supply chain, as well as “reduction in CO2 emissions from new vehicles” and “ratioof electrified vehicles sales.”In an effort to reinforce sustainable management,
aimed at ensuring the Group’s sustainable growth,
in FY2022 we added ESG-related items to an index
used to determine the medium- to long-term performance-linked compensation for executive officers. In
relation to the environment, we introduced “CO2 emissions from business activities” as an indicator to measure progress in addressing the escalating climate.
To move forward on efforts to reduce CO2 emissions, we will introduce internal carbon pricing(¥18,000 per ton of CO2) for domestic sites fromFY2024, taking into account IEA and other international carbon prices. We will use this as one of the
MITSUBISHI MOTORS CORPORATION Sustainability Report 2024

factors for consideration when making decisions on
capital investment.
*1 Scope 1: A company’s direct emissions (such as from burning fuel)Scope 2: Indirect emissions, resulting from electricity, heat or
steam provided by another company
Scope 3: Indirect emissions other than Scope 1 and Scope 2(Such as emissions due to the use of sold products)

b. Scope 1, 2 and 3 GHG emissions and related risks
MITSUBISHI MOTORS calculates CO2 emissions basedon a GHG protocol. The table below shows actual CO2
emissions in Scope 1, 2, and 3 for the period from
FY2019 to FY2023.
To ensure our information is reliable and transparent, we have obtained independent third-party certification for our Scope 1 and 2 emissions. Please see
P138 for details.
<Scope 1, 2 and 3 Emissions >Scope1
Scope2
Scope3Total

Unit
FY2019 FY2020 FY2021 FY2022 FY2023
x103 t-CO2
110
80
92
95
96
x103 t-CO2
416
285
319
271
264
x103 t-CO2 eq 35,429 20,286 28,294 28,710 31,914
x103 t-CO2 eq 35,955 20,651 28,705 29,076 32,274

c. Targets used by the organization to manage climate-related risks and opportunities and performance against targets.
We are promoting a host of measures based on theEnvironmental Plan Package, which we formulated in2020. We are developing electrified vehicles and technologies to improve fuel efficiency, introducing energy-saving equipment in production processes and using
renewable energy in factories, offices and dealerships.
The Environmental Plan Package comprises theEnvironmental Policy, which incorporates our meBack ◀

117▶ NextESG Data

Targetl 9.4

Targetsl 13.1l 13.2l 13.3dium- to long-term perspective, the Environmental
Vision 2050, which sets out our vision for society to
be achieved by 2050 and directions for our initiatives,
and the Environmental Targets 2030, which clarifies
specific initiatives to be achieved by FY2030 in accordance with this vision. We have positioned the actions
for climate change, resource circulation and pollution
prevention as three environmental issues that wewill directly address and have set specific targets forthese themes.
As we position “action to climate change” as a
topmost priority, in September 2022 we stated ouraim of achieving carbon neutrality throughout the
supply chain by 2050, and we revised the Environmental Vision 2050 accordingly. In March 2023, weannounced revised Environmental Targets 2030 toserve as a milestone along the path to achieving carbon neutrality by 2050.
Major FY2030 Targets and Progress
Indicators
Average CO2 emissions
from new vehicles(Tank to Wheel,
Compared to FY2010)
Ratio of electrified
vehicles sales
CO2 emissions frombusiness activities(Total Scope1 and 2,
compared to FY2018)

FY2030Target

FY2035
Target–40%

50%–50%*2

FY2023Result
–17%

100%

15%
–34%

*2 F
 Y2018 emissions of 588 thousand t-CO2 include emissions of 43
thousand t-CO2 from certain equity-method associates.
In March 2023, we reviewed our targets in line with the latest perspectives on selecting companies subject to environmental management. After subtracting emissions from these equity-method
associates, we revised our base figure to 545 thousand t-CO2.

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