SUSTAINABILITY REPORT 2023

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Contents
Editorial Policy�����������������������������������������������������������������������������������������������������������������������������������������������������������������������03

Governance����������������������������������������������������������������������������������������������������������������������������������������������������������������������������104

Corporate Overview����������������������������������������������������������������������������������������������������������������������������������������������������������04

Corporate Governance�����������������������������������������������������������������������������������������������������������������������������������������������105

Commitment of Top Management����������������������������������������������������������������������������������������������������������������������06

Executive Remuneration������������������������������������������������������������������������������������������������������������������������������������������109

Corporate Philosophy and Policy���������������������������������������������������������������������������������������������������������������������������08

Internal Control���������������������������������������������������������������������������������������������������������������������������������������������������������������110

Sustainability Management���������������������������������������������������������������������������������������������������������������������������������������09

Risk Management���������������������������������������������������������������������������������������������������������������������������������������������������������111

Corporate Strategy and Sustainability�������������������������������������������������������������������������������������������������������������12

Compliance������������������������������������������������������������������������������������������������������������������������������������������������������������������������112

MITSUBISHI MOTORS’ Materiality���������������������������������������������������������������������������������������������������������������������������15

Members of the Board�����������������������������������������������������������������������������������������������������������������������������������������������117

Stakeholder Engagement��������������������������������������������������������������������������������������������������������������������������������������������22
Feature: MITSUBISHI MOTORS’ Taking on the Challenge of Becoming Carbon Neutral����25

ESG Data�����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������118
Environmental Data Related to Products and Business Activities�����������������������������������������������118

ESG Performance Report

Human Resource-Related Data���������������������������������������������������������������������������������������������������������������������������122

Environment����������������������������������������������������������������������������������������������������������������������������������������������������������������������������29

Governance-Related Data���������������������������������������������������������������������������������������������������������������������������������������125

Environmental Plan Package������������������������������������������������������������������������������������������������������������������������������������30
Environmental Management������������������������������������������������������������������������������������������������������������������������������������33

GRI Standards Reference Chart���������������������������������������������������������������������������������������������������������������������������126

Responding to Climate Change and Energy Issues������������������������������������������������������������������������������������36

Third-Party Assurance�������������������������������������������������������������������������������������������������������������������������������������������������136

Resource Recycling Initiatives���������������������������������������������������������������������������������������������������������������������������������54

Third-Party Opinion�������������������������������������������������������������������������������������������������������������������������������������������������������137

Prevention of Pollution�������������������������������������������������������������������������������������������������������������������������������������������������57
Conservation of Water Resources�������������������������������������������������������������������������������������������������������������������������61
Preservation of Biodiversity��������������������������������������������������������������������������������������������������������������������������������������63

Social����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������65
Delivering Products Which Help Prevent Traffic Accidents������������������������������������������������������������������66
Improvement of Product, Sales, and Service Quality�������������������������������������������������������������������������������70
Contribution to Local Economy through Business Activities��������������������������������������������������������������76
Human Resources Management����������������������������������������������������������������������������������������������������������������������������79
Promotion of Work Style Reforms in Response to the New Normal(Diversity, Work-Life Balance)����������������������������������������������������������������������������������������������������������������������������������81
Stepping up Human Resource Development�������������������������������������������������������������������������������������������������85
Promoting Occupational Health and Safety���������������������������������������������������������������������������������������������������88
Respect for Human Rights�����������������������������������������������������������������������������������������������������������������������������������������91
Achieving a Sustainable Supply Chain����������������������������������������������������������������������������������������������������������������95
Promoting Social Contribution Activities����������������������������������������������������������������������������������������������������������99
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

Governance

Editorial Policy
System for Disclosing Information on Sustainability

Purpose of Publication
MITSUBISHI MOTORS publishes the Sustainability Report to comprehensively and continuously
inform stakeholders and promote an understanding of the MITSUBISHI MOTORS Group’s sustain-

Integrated andconciseinformation

ability approach and initiatives.

Scope of This Report
MITSUBISHI MOTORS CORPORATION and its Group companies in Japan and overseas

 Integrated Report• Financial and non-financial
information with a directconnection to theCompany’s management
strategy• Focus on information thatis integral and concise

Period Covered and Reporting Frequency
Period covered: FY2022 (April 1, 2022 to March 31, 2023)
When appropriate, the Report also includes some historical and recent data

This Report
Specialized andComprehensive
informationfrom outside the reporting period.
Reporting frequency: Once each year

Date of Publication
October 31, 2023

Non-financial information

Reference Guidelines• GRI Standards (Global Reporting Initiative) Sustainability Report• Sustainability (ESG)
infomation• Focus on information thatis comprehensive andcontinuous
Financial informationl Global Website: “Sustainability”• Task Force on Climate-related Financial Disclosures (TCFD)

https://www.mitsubishi-motors.com/en/
sustainability/• Environmental Reporting Guidelines (2018 edition) issued by the Ministry of the Environment

INTEGRATED REPORT2023

For the year ended March 31, 2023

of Japanl Integrated Report

Inquiries

https://www.mitsubishi-motors.com/en/investors/library/anual.html

MITSUBISHI MOTORS CORPORATIONl Corporate Governance Report

Sustainability Promotion Department

https://www.mitsubishi-motors.com/en/sustainability/pdf/governance.pdf

1-21, Shibaura 3chome, Minato-ku, Tokyo, 108-8410
TEL. +81-3-3456-1111

Disclaimer
MITSUBISHI MOTORS’ current plans, strategies, assurances, business forecasts, and other nonhistorical matters indicated in this Sustainability Report include future predictions as of the timeof publication.
Please note that these expectations, predictions, and forecasts include risk and volatility factors
and hypotheses, and may significantly diverge from actual future results.
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

GovernanceCorporate Overview (As of March 31, 2023)
Global Sales and Production Volumes

Company NameMITSUBISHI MOTORS CORPORATION

Established

April 22, 1970

Head Office

1-21, Shibaura 3 chome, Minato-ku, Tokyo, 108-8410

Business Description

MITSUBISHI MOTORS Group carries out development,
production and sales of vehicles and vehicle parts andengages in the financial businesses.

Others 2%

Brand NameMITSUBISHI MOTORSCapital Stock¥284,382 million

Number of Shares
Issued and Outstanding(Common Stocks)

1,490,282,496 (including treasury stock)

Group Companies

Consolidated Subsidiaries: 35
Equity-Method Affiliates: 17

Number of Employees

Consolidated: 28,428 Non-consolidated: 13,671

Oceania 11%

Others24%
FY2022
Production
Results(Thousandsof units)
Asia
53%
Overseas
55%

Asia
31%
Overseas
89%

Production Volume by Region

(Thousands of units)

FY2018https://www.mitsubishi-motors.com/en/products/

Net Sales(million yen)

FY2018FY2019FY2020

FY2021

FY20222,514,594

2,270,276

1,455,476

2,038,909

2,458,141

420

457

Overseas

780

717

447

604

562

Asia

752

697

434

579

542

Others

28

20

13

25

20

1,441

1,337

814

1,024

1,019

Sales Volume by Region

(95,321)87,331

190,495

Ordinary Income

119,850(3,843)(105,203)

100,969

182,022

Overseas

74,037

North America

168,73004

FY202073

FY202175

FY2022

104

95

92

1,140

1,032

728

862

742

173

160

113

156

133

Europe

236

215

144

131

61

481

433

294

331

310

Oceania

102

88

72

97

88

OthersBack ◀

FY2019

Asia

Total

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

(Thousands of units)

FY201812,788(312,317)

FY2022367

111,815(25,779)

FY2021

620

Operating Income

132,871

FY2020661

Japan

Net income
attributable toowners of the parent

FY2019

Japan

Total

Performance Highlights

North
America
FY2022
Sales Results 16%(Thousandsof units)
Europe
834
7%

Japan
45%

1,019

Please see our global website for details on product information.

Japan
11%

▶ Next

148

136

105

147

150

1,244

1,127

801

937

834

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Principal Facilities

Worldwide

Head Office
Vehicle Production Facilities
Power Train/Part Production Facilities
Development/Design Facilities

GAC Mitsubishi Motors Co., Ltd. (GMMC)
Mitsubishi Motors (China) Co., Ltd.
(MMCh)PCMA Rus

Mitsubishi Motors R&D of America, Inc.
(MRDA)

Japan
Mitsubishi Motors
Vietnam Co., Ltd. (MMV)
Mitsubishi Motors Philippines
Corporation (MMPC)

Mitsubishi Motor R&D Europe GmbH(MRDE)

Asian Transmission
Corporation (ATC)Mitsubishi Motors (Thailand)Co., Ltd. (MMTh)

Japan

MMTh Engine Co., Ltd. (MEC)

Growth Drivers

Leverage Regions

Advanced Technology
Promotion Regions

ASEAN, Oceania

Latin America,
Middle East / Africa

Japan, North America,
Europe, China

Second pillar of businessdevelopment maximizing use of
ASEAN products

Move to advanced
technologies by leveraging
the Alliance / partners

Concentrate management resources into these core businessregions, and aim to grow sales
volume, market share and revenue

Production
Facilities

Mitsubishi Motors Krama Yudha
Indonesia (MMKI)

VehiclesJapan, China, Thailand, Indonesia, the Philippines, Vietnam and Russia

Power Train/Parts

Japan, China, Thailand and the Philippines

Development/Design Facilities

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Japan, United States, Germany, China and Thailand

Back ◀

05▶ NextKyoto Plant - Shiga

Tokachi Research &Development Center

Kyoto Plant - Kyoto
Kyoto Research &Development Center
Mizushima Plant
Head Office
Tokyo Design

Okazaki Plant
Research & Development Center
EV Research & Development Center
Design Center

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

GovernanceCommitment of Top Management

Thoroughly refining the “Mitsubishi Motors-ness,”
for further growth and taking on challenges
in the next era.

Takao Kato
Member of the Board
Representative Executive Officer,
President & CEO
MITSUBISHI MOTORS CORPORATIONIn recent years, issues concerning sustainability, suchas responding to climate change and respecting humanrights, have become increasingly important to corporate management. Additionally, the development oftechnologies such as AI and IoT is drastically transforming the concept of automobiles traditionally a means oftransportation for people and goods, and the automotive industry is heading into a major transition era.
While the future outlook remains uncertain due tofactors such as rising raw material and labor costs, aswell as volatile exchange rates, MITSUBISHI MOTORS will
strive to address global challenges such as achievingcarbon neutrality, building a sustainable mobility business, and establish a workplace where respects humanrights and enables diverse human resources to thrive.
We will continue to tackle the challenge of “transforming ourselves” and the challenge of “strengthening ourmanagement foundation to adapt to the new era.”
Furthermore, we will thoroughly refine Mitsubishi
Motors-ness, which is “The provision to customers ofa fulfilling mobility life that awakens their adventurous
spirit on the basis of reliability backed up by technology that achieves “Eco-friendly x Safety Technology,
Peace of Mind and Comfort,” and aim to achieve a sustainable society and sustainable growth of our Group.
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Taking on the Challenge of Achieving Carbon
Neutrality by 2050
We recognize that responding to the global challengeof achieving carbon neutrality by 2050 is critical todetermine the future of our company.
Positioning climate change countermeasures as
one of the key issues in the development of our business strategy, and by reflecting measures to respondto climate change risks and opportunities in the “Environmental Plan Package” that defines the direction
and targets of environmental initiatives and businessstrategies, we will take on the challenge of enhancing
our resilience as a company by ensuring sustainablebusiness growth and mitigating future risks.
Specifically, we have identified and evaluatedlong-term, medium-term, and short-term risks andopportunities, and have specified “tightening of fuelefficiency/CO2 and ZEV regulations,” “introduction andexpansion of carbon pricing,” and “growing demandfor electrified vehicles” as items with particularly
large impact. For these items, we are analyzing theimpact on our business and considering countermeasures based on multiple scenarios published byinternational organizations.
Back ◀

06▶ NextLast year, we declared our commitment to achievecarbon neutrality by 2050 for the entire supply chain,
and also launched the realization as part of Environmental Vision 2050. Furthermore, this year, we haverevised certain of our Environmental Targets 2030
and set milestones toward achieving carbon neutrality by 2050.
We aim to achieve a ratio of 50% electrified vehicle sales by FY2030, reaching 100% by FY2035. Inorder to meet the various needs of the global market,
we will leverage the technologies of the Alliance andintroduce optimal electrified vehicles (electric vehicles, plug-in hybrid vehicles, and hybrid vehicles) inaccordance with the energy situation and infrastructure development in each country and region at theappropriate time. Based on the new mid-term business plan “Challenge 2025” announced in March 2023,
we plan to introduce a total of nine electrified vehicle
models over the next five years.
In terms of business operations, we have set a target to reduce CO2 emissions by 50% compared to the
FY2018 level by FY2030. To achieve this goal, we will
promote energy-saving activities and the introduction and expansion of renewable energy. Additionally,
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Commitment of
Top Management

Sustainability Strategy

we will collaborate with major suppliers and logistics
companies to reduce CO2 emissions across the supply
chain, promoting reductions in CO2 emissions at thephases of production and procurement of raw materials and parts, as well as in the logistics area, including transportation of products.

Pursuing the Potential of Mobility
In order to survive in this era of dramatic change,
MITSUBISHI MOTORS will take on the challenge ofdigital transformation and explore new businessinitiatives. For example, we are conducting pilot experiments utilizing used electrified vehicle batteries
as storage batteries to adjust power supply anddemand, as well as utilizing in vehicle batteries as
emergency power sources during power outages
caused by disasters. By exploring the potential of
business opportunities such as energy management
and battery utilization that are unique to an automobile manufacturer, we will build a foundation for afull-scale deployment.

Creating a Rewarding Work Environment andPromoting the Development of Human Resources
In order to achieve and enhance corporate value amid
the rapidly changing business environment, it is crucial for us to hire and develop talented individuals, aswell as focusing on employee retention. It is important to create an environment where each individual
can work with a sense of fulfillment, fully utilize theirabilities, and thrive both physically and mentally. Recognizing that our employees are our greatest assets,
we have identified “Promoting diversity and inclusion,and enhancement of employee engagement” as new
materiality. In the process of identifying this materiMITSUBISHI MOTORS CORPORATION Sustainability Report 2023

FeatureEnvironment

Socialality item, our management team engaged in discussions to ensure that it should be easily understandable and shared by all employees.
In order to support the new mid-term businessplan, “Challenge 2025,” and further promote the active participation of our employees in future growth,
we have set directions for our talent strategy: “build
a better place to work,” “enhance learning opportunities/reskilling programs,” and “secure/cultivate adiverse workforce.” We will promote human resource
development on these priority items.

Continuing to Strengthen Human Rights Initiatives
In order to achieve sustainable growth and expand ourbusiness globally, respect for human rights is essential. The Group has established a Human Rights Policythat prohibits discrimination and aims to eliminate
unfair labor practices. Following the implementationof human rights assessments at our headquarters andthree factories in Japan in FY2021, in FY2022 we conducted our first human rights assessment overseas
at Mitsubishi Motors (Thailand) Co., Ltd. (MMTh), a key
production base in the ASEAN region. Through a human rights due diligence framework, we identify thenegative impacts of our business activities on humanrights and work to prevent such impacts.
With regard to respect for human rights in thecomplex supply chain of the automotive industry, we
strive to ensure awareness through measures suchas obtaining agreement from our business partners
on our Supplier CSR Procurement Guidelines. We also
conduct CSR assessments of our suppliers, using
third-party agencies. In terms of sourcing raw materials and producing parts, we collaborate with relevantbusiness partners to address serious human rights viBack ◀

07▶ NextGovernance

ESG Data

olations such as child labor and forced labor and work
to eliminate them. We will continue to strengthen ourefforts, including those involving the supply chain.

Reinforcing Sustainability Management
Considering our belief that responding to sustainability is a crucial priority for the Group’s management,
we have appointed executive officers and department
heads as responsible individuals for each materiality.
As chairman, I oversee the progress of these efforts
through the Sustainability Committee, and key issues
such as climate change measures are deliberated andreported to the Board of Directors.
In addition, to heighten awareness among our
executives, in FY2022 we added “CO2 emissions frombusiness activities” and “employee engagement” asindicators for determining medium- to long-term
performance-linked compensation.
Based on our Vision and Mission, and prioritizing compliance and continuously strengthening andenhancing our corporate governance are key management priorities. By meeting the expectations of
our shareholders, customers, and all stakeholders, we
aim to achieve sustainable growth and enhance ourcorporate value.
We will continue to be highly transparent andstrengthen sustainable management throughout
the company.

Takao Kato
Member of the Board
Representative Executive Officer, President & CEO
MITSUBISHI MOTORS CORPORATION
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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

GovernanceCorporate Philosophy and Policy
Mitsubishi Group Three Principles
The “Three Principles,” which is the spirit of Mitsubishi’s founding, is positioned as a fundamental philosophy common to the Mitsubishi Group.

Shoki Hoko
= Corporate Responsibility to Society
Strive to enrich society, both materially and spiritually, while contributing towards the preservation of the
global environment.

Shoji Komei= Integrity and Fairness
Maintain principles of transparency and openness, conducting business with integrity and fairness.

Ritsugyo Boeki= Global Understanding through Business
Expand business, based on an all-encompassing
global perspective.

ize the Vision) specify how we become more proactive

MITSUBISHI MOTORS’ Philosophy System

to exert a positive influence on society.

Our company’s corporate activities are based on the“Three Principles,” which are positioned as the basic
principles common to the Mitsubishi Group. For each

VISION
Create vibrant society by realizing the potential of mobility

out the “Mission” by practicing the “MMC WAY*1” thatMISSION
1. Provide new experiences for our customers with creative products and service excellence.
2. M ake positive contributions to the sustainable development of our society.
3. Act sincerely as a trusted company.
4. Enhance stakeholder value by leveraging the Alliance.

In the automobile industry, technological inno-

vision and mission to serve as common guiding principles for the employees of the MITSUBISHI MOTORSGroup as we look toward the future. The automo-and employees must comply with.
We contribute to the realization of a sustainable society while deepening mutual understanding
through dialogue with various stakeholders throughtered on familiar products such as cars.

diversification of power trains, the intelligence ofcars, and the shift to IoT, and the role of automobiles
has changed from “cars” as hardware to “mobility”
as a whole transportation system. Under such amajor transition, we are committed to research andwherever they want, to see whatever they want, andmeet whomever they want, at any time. The “Vision”
includes our desire to promote new challenges andeconomic activities of individuals and contribute to
the revitalization of society as a whole by streamlining and optimizing the movement of people.

bile industry is in a period of major change, and ourbusiness environment is also undergoing substantial

VISIONThe society
we want
to create

MISSION

How to realize the vision

MMC WAY

The attitudes and actions
that each and every employee need topractice to fulfill our mission.

Global Code of Conduct

Standards that all executives andemployees must comply with

*1: Please see page 79 for details on the “MMC WAY.”*2: Please see page 112 for details on the “Global Code of Conduct.”changes. Under these circumstances, the Vision (thesociety we want to create) and Mission (how to realMITSUBISHI MOTORS CORPORATION Sustainability Report 2023

and the “Global Code of Conduct*2” that all executives

vations are being born one after another due to theprovide all people with possible opportunities to go

MITSUBISHI MOTORS has formulated our corporateshows the minimum necessary attitude and behavior

business activities in each country and region cen-develop the potentialities of mobility broadly and to

Vision & Mission

employee, aim to realize the “Vision” through carry

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

Governance

Sustainability Management
Approach to Sustainability

Framework for Promoting Sustainability

Interest toward realizing a sustainable environment,
society and economy has been growing, as is illustrated by such initiatives as the Sustainable Development Goals (SDGs) adopted by the United Nations, theParis Agreement going into effect and growing ESG
investment. In recent years, corporate initiatives havealso placed a growing emphasis on these areas.
In particular, on the environmental front, climatechange and energy problems are becoming more serious worldwide, and the automotive industry is seeing changes on a scale said to occur only once in 100
years. These changes include new technologies, suchas connectedness and autonomous driving, as well as
car sharing and other new business models.
MITSUBISHI MOTORS recognizes that various challenges in the environmental, social, and governancefields pose risks to the Company’s sustainable growth.
At the same time, the Company views tackling societal issues as an opportunity for new business andstrives to mitigate risks such as reducing greenhousegases from its business activities.

We have established the Sustainability Committee,
which is chaired by the executive officer, president &CEO, to promote sustainability initiatives throughout
the MITSUBISHI MOTORS Group. MITSUBISHI MOTORS
has identified material issues as important issues
that we should wrestle from various problems in theenvironmental, social, and governance fields. The
Sustainability Committee confirms the risks and opportunities identified from a long-term perspectiveby those responsible for each materiality initiative.
At the same time, the Sustainability Committee
deliberates and decides on initiative targets basedon the external environment and stakeholder needs
and expectations from a medium-term perspective,
and uses the PDCA cycle by checking progress.
We have a structure in which important matterssuch as reviewing material issues and the overall
status of sustainability activities are deliberated andreported by the Board of Directors.

On the environmental front, the Sustainability Committee discusses our efforts to achieve carbon neutrality, which is a global issue, and to enhance disclosure in line with the Task Force on Climate-related
Financial Disclosures (TCFD) Recommendations. On
the social front, we discuss initiatives involving humanrights, which are an area companies are increasingly
being called upon to address.
We provide timely disclosure of the Sustainability
Committee’s proceedings on our website. Please referto the following.
WEB https://www.mitsubishi-motors.com/en/sustainability/
management/susc-summary/

Overview of Sustainability Committee
Sustainability Committee

Product strategy,
engineering, andTCS division

Plan
Summary of the previous fiscal year ➡
Formulation of plans forthe current fiscal year

Sales division

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09▶ NextActionCheck
Progress of the plan for the fiscal year /Revision of the plan

Do

Deliberation
and Reporting

Production andprocurement divisions

Board of Directors(Administrative office: Sustainability Promotion Department)

Executive Committee

Corporate division

Deliberation
and Reporting

Related internal divisions

Group companies

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Proceedings

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Commitment of
Top Management

Sustainability Strategy

FY2022 Achievements of
the Sustainability Committee<Meetings convened> 3 times<Principal matters for deliberation and reporting>• Review of material issues• Review of FY2021 initiatives on the material
issues and activity plans for FY2022• Initiatives to achieve carbon neutrality• Response to the TCFD recommendations• Human rights initiatives• FY2022 disclosure policy• Initiatives to foster a sustainability mindset, etc.

FeatureEnvironment

SocialGovernance

ESG Data

Sustainability Committee members (As of July 2023)
Category

Chair
Vice-chair
Committee
members

Position or Scope of Authority

Executive Officer, President & CEO
Executive Officer (responsible for Internal Control Promotion/General Administration/Corporate Affairs)
Executive Officer, Executive Vice President (responsible for Engineering/Product Strategy/TCS*1/Design)
Executive Officer, Executive Vice President (responsible for Sales)
Executive Officer, Executive Vice President (CFO)
Senior Executive Officer (responsible for Corporate Governance)
Senior Executive Officer (responsible for Production/Procurement)
Corporate Officer, Division General Manager, Corporate Strategy Management Division
Division General Manager, PD*2 Office
Person in Charge of Materiality Initiatives

Observers

Material Issue Targeted*Indicates leaders of initiatives from multiple divisions

Executive Officer (responsible for Product Strategy), Responding to Climate Change and Energy Issues
Division General Manager, Product Strategy DivisionCorporate Officer, Division General Manager, Human “Promoting diversity and inclusion, and enhancement of
Resources Divisionemployee engagement”
Stepping up Human Resource Development
Promoting Occupational Health and Safety
Corporate Officer, Division General Manager, Mobility Responding to Climate Change and Energy Issues
Business DivisionCorporate Officer, Division General Manager, EV
Responding to Climate Change and Energy Issues
Powertrain Engineering Development Division 1
Resource Recycling Initiatives
Corporate Officer, (responsible for ASEAN & Oceania) Contribution to Local Economy through Business Activities*
Division General Manager, General Administration,
Responding to Climate Change and Energy Issues*
Sustainability Division
Resource Recycling Initiatives*
Promoting Social Contribution Activities*
Division General Manager, Vehicle Engineering DeDelivering Products which Help Prevent Traffic Accidents
velopment Division 1
Resource Recycling Initiatives
Prevention of Pollution
Division General Manager, Production Engineering Division Contribution to Local Economy through Business Activities
Division General Manager, SCM*3 Division
Responding to Climate Change and Energy Issues
Division General Manager, Internal Control Promotion Office Strengthening Governance and Ensuring Compliance
Division General Manager, TCS*1 Division
Improvement of Product, Sales, and Service Quality*
Division General Manager, Production Strategy Plan- Responding to Climate Change and Energy Issues
ning Division
Resource Recycling Initiatives
Division General Manager,
Responding to Climate Change and Energy Issues
Procurement Management Division
Achieving a Sustainable Supply Chain
Division General Manager, Global Sales Development Division Improvement of Product, Sales, and Service Quality
Division General Manager, Global After Sales Division Improvement of Product, Sales, and Service Quality
Division General Manager, Domestic Sales Division
Improvement of Product, Sales, and Service Quality
Promoting Social Contribution Activities
Members of the Board and the Audit Committee
Corporate Officer Division General Manager, Legal & Corporate Governance Division
Audit Committee Office, Assistant to Full-Time Members of the Audit Committee
General Manager, IR Office of Corporate Strategy Management Division
General Manager, Public Relations Department
General Manager, Financial Planning Office*1 Total Customer Satisfaction *2 Program Director *3 Supply Chain Management
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialInstilling Sustainability Awarenesswithin the Company

Participation in the United Nations
Global Compact

MITSUBISHI MOTORS conducts penetration activities

In May 2019, MITSUBISHI MOTORS announced its sup-throughout the year so that executives and employ-

port for the United Nations Global Compact (UNGC),ees can deepen their understanding of sustainability

the universal principle regarding human rights, labor,

and practice sustainability initiatives through their

the environment and anti-corruption advocated bydaily work. At the end of each fiscal year, we conduct

the United Nations. The UNGC are voluntary behav-

an employee awareness survey to confirm the degree

ioral principles for companies and organizations thatof penetration. We use the survey results to strength-were proposed by then-Secretary-General Kofi Annanen and improve each measure and reflect them inat the World Economic Forum (Davos Conference) inactivities in the following fiscal year.

1999. As a global company, we believe that respect<Examples of Activities in FY2022>

for human rights and anti-corruption initiatives are• Online training related to sustainability in generalvery important. Accordingly, that same year we par-6,927 participants

tially revised the MITSUBISHI MOTORS Global Code• Training on overall sustainability tailored to eachof Conduct, clarifying our efforts related to respect

job rank

for human rights and anti-corruption. In addition, we

Conducted 19 times

have established a Human Rights Policy that commits(Entry-level employees, mid-career employees,

us to promoting business activities that emphasize

manufacturing staff candidates, newly appointed M2

human rights.

employees <Managers>, newly appointed M1 em-

Governance

ESG Data

Participation in External Organizations
 Japan Business Federation (Keidanren) Japan Automobile Manufacturers Association, Inc.
 Society of Automotive Engineers of Japan, Inc.
 Global Compact Network Japan (GCNJ)

External Initiatives Supported or Referred to United Nations’ Sustainable Development Goals (SDGs)
 United Nations Global Compact (UNGC) Core Labor Standards of the International Labour
Organization (ILO) Organization for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises
 ISO 26000 Guidance to Social Responsibility
 Keidanren Charter of Corporate Behavior

Based on the 10 principles of the UNGC, as a goodployees <General Managers>)

corporate citizen we will continue our activities toward• Distribution of messages from management related

the realization of the sustainable growth of society.

to sustainability
Distributed three times

Please see the following for specific activities in• Distribution of a newsletter related to sustainability

the four areas stipulated in the Global Compact.

Distributed six times

Human rights: P91-94

Labor: P88-90

The environment : P29-64
Anti-corruption : P115

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

GovernanceCorporate Strategy and Sustainability
who are digital natives and prioritize experience andempathy, will be the core automotive purchasinggroup and user group in future, and we believe that
this will greatly change marketing and sales activities
going forward.
The third is the diverse and ever-evolving digitaltechnologies. We recognize that incorporating theseevolutions is essential for enhancing our competitiveness in areas such as autonomous driving, connected
car service, and the mobility business.

Formulating a Long-Term Road Map
In developing MITSUBISHI MOTORS’ mid-term business plan, through internal activities called "15-YearPlan” with a global view of the world 15 years fromnow in mind, we established a road map in the threeareas of technology, regional communities, and themobility business.
We believe that there are three major societal
changes that will bring about significant transition in
the environment surrounding the automotive industry
over the next 15 years.
The first is the global challenge of climate change.
In the automotive industry, we see advances in batteries and biofuels as supporting the achievement ofa carbon-neutral.
The second is the customer image. Generation Z,

Revising Environmental Targets 2030
In our previous mid-term business plan, “Small but
Beautiful,” we emphasized strengthening environmental technologies with a focus on plug-in hybrid electricvehicles (PHEV). In November 2020, we announced theEnvironmental Plan Package (Environmental Policy,

Long-Term Road Map
2020

2025

Increased awareness of CN
Societal
Changes

2035

2030

Environmental Vision 2050, and Environmental Targets2030) that sets our direction and targets for environmental initiatives looking ahead to the next 30 years.
In response to the increasing interest in carbon
neutrality, in September 2022, we declared our commitment to achieving carbon neutrality throughout
our supply chain and revised our Environmental Vision
2050 accordingly. Furthermore, in February 2023, werevised our Environmental Targets 2030, specificallyraised our FY2030 business activities CO2 emissions
reduction target by “- 50% compared with the FY2018
level,” maintaining our current targets of “ - 40%compared with the FY2010 level” for average CO2
emissions from new vehicles and “50% for FY 2030 “for the electrified vehicles sales ratio, we have alsoestablished a lofty target of “100% in FY2035” for theelectrified vehicles sales ratio. In order to solve theglobal issue of climate change, We will continue tomake steady progress in these initiatives.
Please see page 31 for details on “Environmental Targets 2030.”

Initiatives to achieve CN / Battery evolution

Generation Z (prioritize Experience, Empathy, and Time Performance)

Revised Targets

To Generation α...

Digital Technology Evolution (Comms(5G/6G), DX, AI, Robotics, and Metaverse)

CO2 emissions from business activities(Total Emissions of Scope 1 and 2)

Mid-Term
Business Plan “Small but Beautiful” “Challenge 2025”-40% → -50%

(Compared to FY2014)

VehicleElectrification

Mainly ICEDX/
New Business

Use of digital techin business

System upgradeDX

Business
Form

Vehicle sales
After sales

Value chain expansion
New business challenges

Regional
Strategy

Global rollout

ICE / HEV / PHEV / BEV mixed

Mainly HEV / PHEV / BEV

Added Targets

Fully fledged rollout of new business using digital tech

 Ratio of electrified vehicles sales 100% by FY2035

Vehicle sales + securing profit in new business areas
Deeper collaboration with partners(energy management, etc.) Promoting CO2 emission reduction activities throughcollaborations with suppliers/transporters in thefields of procurement and logistics

Focus area selection
and role clarification Clarifying regional roles and securing profit for each region

Please see page 7 of the presentation on our website for details of the Long-Term Road Map.
WEB https://www.mitsubishi-motors.com/content/dam/com/ir_en/pdf/financial/2023/230310-2.pdf?20230808
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

(compared to FY2018)

Mainly BEV

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12▶ NextP rovision of energy management services utilizing
electrified vehicles and used batteries
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Commitment of
Top Management

Sustainability Strategy

Overview of Our New Mid-TermBusiness plan, “Challenge 2025”
We developed the new mid-term business plan,“Challenge 2025,” announced in March 2023, performing backcasting the road map for the technology,
regional communities, and mobility business sectors
outlined in our “15-Year Plan.”
In “Challenge 2025,” we have set three major challenges to achieve the sustainable growth of MITSUBISHI MOTORS amid the significant environmental
changes that surround us.
Firstly, it is a regional strategy to establish a stablerevenue base. We set the global market into three
categories* and after clarifying the role of each region, we work to establish and strengthen the absolutely stable revenue base.

FeatureEnvironment

Particularly in the ASEAN, which we have categorized as a growth driver, from FY2023, we will roll out
a series of new products that encapsulate “Mitsubishi
Motors-ness.” We will work to improve the brand value ofMitsubishi Motors by closely linking those products andopportunities for customers to experience them. And in
ASEAN countries we will grow the number of sales outlets, increase area coverage, improve store facilities andcustomer interaction methods, improve convenience forcustomers through digitalization, and take other actions
to achieve quality improvement in both sales and services.
* We categorize our core business regions, the ASEAN and Oceania
regions, as “GROWTH DRIVERS”; Latin America, the Middle East,
and Africa, where we horizontally roll out our ASEAN products,
as “LEVERAGE REGIONS”; and Japan, North America, and Europe,
which need environmental technologies such as electrification,
ADAS and other safety technologies, as well as the utilization ofvehicle data among other things, as “ADVANCED TECHNOLOGYPROMOTION REGIONS.”
Please see page 5 for details on “Principal Facilities.”

The 3 major Challenges in “Challenge 2025”
Establishment/
Strengthening of Absolutely
Stable Revenue Base

Enhance profitability
in ASEAN / Oceania

Working toward
Carbon Neutrality

Strengthening electrification
development and Alliance for the
2nd phase of xEV lineup
enhancement (FY2026-2028)

Enhance profitability in otherregions with ASEAN products(Latin America, Middle East/Africa)
Business improvement inAdvanced Technology
Promotion Regions(Japan / North America / Europe)

Boosting action for
Scope1-3 of CO2 reductions(Production/Procurement)

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

SocialDigitalization / Expansion
into New Business Areas

In-house IT infrastructure
renewal / Digital Human Resources
development

Energy Management

Data Sales

13

ESG Data<Related materiality>
Please see page 70 for details on “Improvement of
Product, Sales, and Service Quality.”
Please see page 76 for details on “Contribution to
Local Economy through Business Activities.”
Secondly, it is “working towards carbon neutrality.” As the automotive maker that was the first in
the world to achieve mass production of BEV and
SUV PHEV models, we will bolster our development ofelectrification technology, while collaborating within
the Alliance. Over the next five years, we will roll out
nine electrified vehicles in the market. Our numericaltargets for the environment are set on a Tank-toWheel basis. By combining the quietness and pleasantacceleration performance that are the attractive features of electrified vehicles with durability and reliability in technology and four-wheel control that forms
our DNA, we will introduce to the market electrified
vehicles that embody “Mitsubishi Motors-ness.” We
will continue to work on car manufacturing that combines ever-evolving IT and digital technologies with
comfortable and advanced interior spaces, aiming tocreate a more attractive and fulfilling mobility life thatawakens their adventurous spirit. Additionally, we will
strengthen our efforts in further electrification, notonly by reducing battery costs but also by minimizing
cost of ownership for our customers through energy
management and the reuse of used batteries.
We will also aim to reduce emissions of greenhouse gas that originate from our business activities.
For details, please see the following• ”Environmental Plan Package”: P30• ”Environmental Targets 2030”: P31•M ateriality “Responding to Climate Change and Energy Issues”: P36

Battery Reuse

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Commitment of
Top Management

Sustainability Strategy

Thirdly, it is “digitalization/expansion into new
business areas.” Based on the assumption that thedigital natives who are Generation Z will become thecore automotive purchaser and user group, we will
renew our IT infrastructure in operations and go forward with digital transformation.
Furthermore, we believe that electrification andthe evolution of digital technology will provide opportunities for new business such as energy management and the data business. During the period of
the new mid-term business plan, we will explore thepossibilities of new business, and work to build an infrastructure for a subsequent full-scale undertaking.
As the business environment changes rapidly, thekey for us to grow sustainably and achieve improved
corporate value is “employees.” In FY2022, we hadmany discussions of the ideal standards for Mitsubishi Motors. We updated our action guideline “MMC
WAY,” by taking on ever more challenges that eachand every one of our employees faces in uncharted
areas with the aim of meeting the expectations of our
stakeholders and contributing to the realization of asustainable society. In order to establish a fulfilling
workplace, foster talent, and ensure a diverse workforce as the basis for implementing the “MMC WAY,”
we will promote the following initiatives which arealigned with our management strategy.
<Strategic Human Resources Priorities > Build a better workplace
 Enhance learning opportunities/reskilling programs
 Secure/cultivate a diverse workforce<Related materiality>
Please see page 79 for details on “Human Resources
Management.”

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

FeatureEnvironment

Social“Mitsubishi Motors-ness”

In order to encourage customers to choose our products, we have redefined “Mitsubishi Motors-ness” inour new mid-term business plan, “Challenge 2025.”“Mitsubishi Motors-ness” means providing customers with a fulfilling mobility life that awakens theiradventurous spirit on the basis of reliability backed
up by technology that achieves “Eco-friendly x Safety
Technology, Peace of Mind and Comfort.”

ESG Data

GovernanceWe aim to bring joy to the lives of our customers
by providing them with something new, not to mention those who drive uncharted path, but also those
simply want to expand their world a little even if they
are anxious about driving.
We will thoroughly refine our unique value, of “Mitsubishi Motors-ness,” and convey to it to our customers to gain their understanding and empathy. In thisway, we will strengthen our brand and promote thepenetration of value-oriented businesses.

Pursuing “Mitsubishi Motors-ness”

What is Mitsubishi Motors-ness?
The provision to customers of a fulfilling mobility life that awakens theiradventurous spirit on the basis of reliability backed up by technology that
achieves “Eco-friendly x Safety Technology, Peace of Mind and Comfort”

Environmentally friendly
and enable activities close
to nature

Help contribute to carbon
neutrality with
Commercial EV

Durability
andReliability

Electrification
The world’s first mass-produced
BEV and globally recognized PHEV
at the core

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14

Enable our customers toexperience an exciting
adventure with confidence

Reliable even in adverse conditions
thanks to a design philosophy nurtured
on almost all road surfaces and in almost
all environments around the world▶ NextReturning home with peaceof mind from safety
technology for just about
every adventure

Four-wheel
control(S-AWC)
Provide innovative driving
performance and reliability on
almost any road surface

Reliable and useful whenneeded in natural disasters,
power cuts, etc.

Comfortability
Excite drivers and passengers witha comfortable and advanced
interior with ever-advancing IT

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

MITSUBISHI MOTORS’ Materiality
Identifying and Reviewing Materiality
MITSUBISHI MOTORS, with recognition of importanceof the United Nations Sustainable Development Goals(SDGs), identified material issues as the important issue
that we should wrestle from various challenges in thefields of environment, social and governance in FY2018.
During the identification process, we conducted repeated examinations from the perspective of
stakeholders’ concern and impact on the Company,and held hearings with experts. After that, we repeated discussions about our material issues at the Sustainability Committee, and the decision was made atthe Executive Committee.
In recent years, social trends related to sustainability have changed substantially and rapidly. After carefully considering the most salient impacts our Company has on the economy, environment and humanrights, we are flexibly reviewing material issues andenacting measures as necessary. We aim to respond to
stakeholders’ needs and expectations as a result.

Flexibly Reviewing Materiality Based onSocial Conditions and Awareness of Issues
In FY2020, in light of changes in social conditions dueto the aggravation of environmental problems and the
COVID-19 pandemic, MITSUBISHI MOTORS’ material issues were reviewed after discussions at the Sustainability Committee and resolved by the Board of Directors.
1. Materiality on “Environment”
The Environmental Plan Package, which we formulated in FY2020, positioned “Pollution prevention” as apriority environmental issue along with “Action to climate change” and “Resource circulation.” Accordingly,
in terms of MITSUBISHI MOTORS’ materiality, we have
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

raised the impact on our company of “Prevention ofpollution” (on the horizontal axis of the figure) from“very high” to “extremely high.”
2. Materiality on “People”
In FY2020, considering our responses to the new normal triggered by the COVID-19 pandemic, we have reviewed the material issues of “Work style reform” and“Diversity” and merged them into “Promoting work
style reform in response to new normal conditions(Diversity, Work-life balance).” Through the review, wehave presented the directions to enhance organizational capabilities and corporate value by creating anenvironment where diverse employees can maximize
their individual abilities and play an active role.
In FY2022, given the need to enhance humancapital investment toward our sustainable growthand higher corporate value, after discussions in the
Sustainability Committee, we reviewed our material issues and made the following resolutions in the
Executive Committee.
The response to the material issues we set in
FY2020, “Promotion of work style reforms in responseto the new normal (diversity, work-life balance),”achieved certain results during the period of COVID-19
pandemic by expanding flexible work styles based onremote work. As economic activity around the world
has gradually returned to normal, we recognize thatthe need for employee engagement is more important than ever before. Understanding that “employees
are capital that support the Company’s growth, we
acknowledge the importance of recruiting and promoting diverse talent, recognizing each individual'sdifferences, and providing a workplace environment
and equal opportunities where they can thrive.
Based on this understanding, we have revised “Promotion of work style reforms in response to the new
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15▶ Nextnormal (diversity, work-life balance)” to “Promoting
diversity and inclusion, and enhancement of employee
engagement” and have indicated a direction to further
strengthen initiatives related to human resources.

Identification Process
STEP

1

STEP

2

STEP

3

STEP

4

Sorting through Issues and Setting Evaluation Standards
We selected candidates, taking into consideration
the SDGs, the GRI standards and external assessments of the Company’s sustainability activities.
Furthermore, we have set evaluation criteria todetermine priorities based on the scope of impact of our activities (boundary) and consistency
with business risks.

Internal investigation
Relevant individuals involved in practical-level
operations within the company met multiple
times to exchange opinions and confirm thepriorities of measures from the perspective of
impact on the company’s business.

Interviews with outside experts
Interviews were conducted with five experts who
are familiar with social issues. We reviewed important issues that the Company should addressfrom the perspective of its impact on society(economy, environment and people).

Deciding the Materiality and Setting KPIs
The Sustainability Committee verified the materiality matrix that reflects internal and external
opinions, and Executive Committee gave its final
approval. We also set KPIs for each material issues and assigned people to oversee them.
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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

Governance

The Materiality Identified

E
Extremely highConservation of water
resources (P61)

Targetl 3.9

Targets
l 8.7
l 8.8

Targetsl 12.4l 12.5

Targetl 6.4

E Responding to climate change and energy
issues (P36)

Targets
l 7.2
l 7.3

Targetl 9.4

Targetsl 13.1l 13.2l 13.3

S Delivering products which help prevent traffic
accidents (P66)

Targetl 3.6

Targetl 4.4

Targets
l 9.2
l 9.4

Targetl 10.2

Targetl 11.5

Targetl 13.1

Targetl 17.7

S Promoting diversity and inclusion,and enhancement of employee engagement*

Targets
l 5.4
l 5.5

Targetl 8.5

G Strengthening governance and ensuring
compliance (P104)

Targetl 8.7

Targetl 16.5

S Improvement of product, sales, and service
quality (P70)
S Contribution to local economy throughbusiness activities (P76)

E Preservation of biodiversity (P63)

Very highImpact of the Company on society (economy, environment and people)

E S Achieving sustainablesupply chain (P95)

Targetl 15.5

S Promoting occupational healthand safety (P88)

Targetl 8.8

S Promoting social contribution
activities (P99)

Targetl 10.2

Targetsl 12.2l 12.5E Resource recycling initiative (P54)

Targetl 3.9

E Prevention of pollution (P57)

Targetl 11.5

Targetl 13.1

Targetl 15.4S Strengthening human resource development (P85)

Targetl 6.3

Targetsl 12.4l 12.5

Target
l 4.4

High
High

Very highExtremely highImpact on the Company’ s business
E : Environment

S : Social

G : Governance* Please see page 81 for details on “Promoting work style reform in response to new normal conditions (Diversity, Work-life balance)”

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

Governance

Reflecting Medium- to Long-term Perspectives when Setting Annual Targets Related to Materiality
MITSUBISHI MOTORS needs to reinforce its management base in order to respond to the various changes

ting
Backcastaking place in the automotive industry, look at theLong Termbusiness environment from a long-term perspective,
and respond to medium- to long-term risks and opportunities. To achieve these goals, we recognize theimportance of setting annual targets on materiality
initiatives from a medium- to long-term perspective.
In FY2021, we took the following steps to set annual targets for individual materiality initiatives.
First, we took a long-term perspective, using 30

Policies and directions in responding
to long-term risks and opportunities

Medium Term (Next Three Years)

We consider stakeholders’ needs,
expectations, and the direction of ourinitiatives in light of the external
environment over the medium term,
taking into account our mid-term businessplan or looking forward three years.

years as our time horizon (the period used when formulating Environmental Vision 2050) for responding
to environmental issues we consider essential in order
to conduct business activities. In the Environmental

Annual Targets

Policy, we particularly focused on climate change, re-

KPIs and targets formaterial issues
in FY2023

source circulation and pollution prevention. For othermaterial issues, we looked ahead to 2030, which is thetarget year for the United Nations’ Sustainable Development Goals (SDGs). We clarified the social issues(risks) the Company recognizes from a long-term

2022

2023

2024

2025

2026

2030

2040

2050

perspective, as well as the effects (opportunities) that
could be obtained by addressing these issues. After
deliberating with the division general managers incharge of implementing the material issues, we clarified the direction of response.
Looking from the medium-term perspective, orthen set medium-term action targets. The Sustain-

Starting FY2022, we have been reviewing thethree years into the future, we worked with the divi-

ability Committee deliberated the medium- to long-

medium to long-term aspects of each material issue

sion general managers responsible for implementing

term aspects of respective material issues, including

and setting annual targets and indicators. We are

the material issues to identify the external environ-risks and opportunities, as well as the appropriate-progressing with our initiatives based on this review.

ment and stakeholders’ needs and expectations. We

ness of the annual targets and indicators.

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Materiality (Risks/Opportunities/Impacts)
Materiality

Risks
Opportunities
Impacts As regulations on fuel economy, CO2 and ZEVs* are strengthened,
failure to comply could make the Company susceptible to fines, credit
costs or increasing costs for technology development to achieve We could increase sales by enhancing our lineup We will contribute to the realization of aregulatory compliance.
of electrified vehicles and other products that help
society more resilient to climate change as
Responding to
reduce CO2 emissions.
we move toward net-zero CO2 emissions
Climate Change and  The Company could incur higher procurement costs, such as for electricity and raw materials, due to the introduction of carbon taxes orEnergy Issues
through the growing proliferation of elec We could meet new demand for emergency powerother carbon pricing.
trified vehicles and renewable energy.
sources for use during meteorological disasters.
 More frequent and intense meteorological disasters that damage production facilities or supply chain interruptions could halt production.
 We could stabilize procurement costs by reducing
our dependence on depleted resources.
 The cost of procuring raw materials could increase due to resource It might be possible to reduce costs by using reconstraints, such as the depletion of precious metals or other natural
sources more efficiently and reusing waste.
resources.
 We will contribute to a resource-recy We could heighten competitiveness through 3R decling- oriented society by minimizing input
Resource Recycling  The Company could face increasingly stringent regulations, such assign and more advanced recycling technologies.
resources and maximizing resource effion the use of recycled materials and recycling, and rising costs toInitiatives
 We could find more opportunities to make use ofciency.
respond to them.
used batteries.
 The corporate image could suffer from a delayed response to re The corporate image could be enhanced by appealsource recycling.
ing to our efforts to contribute toward a recycling-oriented society.
 The cost of managing hazardous substances could rise if regulations  We could reduce costs through more efficientare become more stringent in response to increased damage to humanagement, including of the supply chain.
Eman health and the loss of ecosystems.
 By reinforcing management, including of the sup-  We will contribute toward a society free of The company could become subject to lawsuits, fines or sanctions inenvironmental pollution by reducing theply chain, we could supply products that deliver
Prevention of
the event of a serious leak into the air or water.
environmental impact of our products andreassurance and safety, as well as maintaining
Pollution
the pollution resulting from our businesscompetitiveness.
 Environmental problems at a supplier could disrupt the supplier’s
activities.
operation and halt our parts procurement.
 Managing in accordance with standards more
rigorous than those imposed by regulations could The Company’s image could suffer in the event of a delayed responseenhance the corporate image.
to initiatives.
 Water shortages and water pollution could raise the uncertainty and Based on the impact climate change, recost of securing water resources.
 We could lessen the impact of water stress by
source extraction and pollution have on wareducing our dependence on water resources.
ter resources (concentrated rainfall, droughts,
 Flooding and other damage arising from climate change could halt
Conservation ofwater pollution and water shortages), we will
operations and reduce earnings.
Water Resources We could reduce costs by reducing water use andaddress these issues, helping to reduce water
increasing the water reuse rate.
 We could face higher costs in response to increasingly stringent regurisk and preserve water resources.
lations on water withdrawal and discharge.
 Based on the impact climate change,
resource extraction and pollution have Avoid the loss of ecosystems that could lead toon the ecosystem (species extinction andenvironmental changes that raise the uncertainty
 The loss of ecosystems could lead to environmental changes thatchange, reductions and disappearance
and
cost
of
procuring
resources.
raise
the
uncertainty
and
cost
of
procuring
resources.
Preservation ofof habitat and migratory regions), we will
Biodiversity Prevent a decline in the corporate image by allevi Land use for business operations could cause ecosystem losses, readdress these issues to help reduce ecoating and recovering from the impact on ecosysducing our corporate image.
system losses.
tems due to land use for business operations
 Enact measures that are in harmony withlocal biodiversity.
* Zero emission vehicles (ZEVs) are electric vehicles (EV) and fuel cell vehicles that emit no exhaust gases. Automotive regulations in the US state of California state that for manufacturers that sell more than acertain number of units in the state, a certain percentage of those units must be ZEVs.
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
Top Management

Sustainability Strategy

Materiality

FeatureEnvironment

Risks

SocialGovernance

ESG Data

Opportunities

ImpactsContributetotherealization of a moDelivering Products  An increase in serious accidents as drivers age
bility society with zero traffic accidents Maintain the brand and expand sales by introducwhich Help Prevent  A rise in accidents due to a surge in automobile ownership in emergthrough penetration and expansion of
ing advanced technologies
Traffic Accidents
ing markets
safety technologies Increase customer satisfaction by providing
Improvement of Enhance loyalty and win new customers by providproduct quality and sales and service quality
Product, Sales, and  Quality

problems that originate in product or service quality
ing high-quality products and services
that exceeds customer expectations
Service Quality Strengthen management base by developing hu Investingin the ASEAN from around the world, leading to concerns
Contribution to
man resources.
about labor shortages and rising personnel costs.
 Develop and address issues in the regions
Local Economy
where we do businessthrough Business Ongoing capital expenditure could improve the workE conomic development could lead to increasing income disparities
Activities
ing environment and raise productivity and efficiency.
within the region.
 Enhance corporate value by building an
Promoting diversity The potential to secure excellent human resources,
organization in which diverse human re
resources gathering at companies that offer diversity and a
and inclusion, and  Human
creating value from a diverse perspective
sources can play an active role
comfortable working environment.
enhancement of

H

igher
productivity
through
improved
qualityofemployee engage-  The Deliver value through the creation of a
impact on business due to a decrease in communication
remotework
ment
more productive work environment Enhance corporate value by strengtheningA decrease in productivity and organizational weakening due to re
H

igher
productivity,amoreresilientorganization
Stepping up
managers’ management skills
mote working.
Human Resource Enhanced competitiveness due to an increase inProvide value by improving ability to respondA
delayedresponse
tosocialorenvironmental
changes
could
reducehighly specialized personnel
S Development
flexibly to changes in the environment
competitiveness.
 Increase engagement by providing anW orkplace accidents, increases in the number of people with lifestyleenvironment where each employee can Ensure business stability by creating safe andPromotingdiseases or mental health disorders, or damage to the physical andwork and play an active role in a rewarding,secure workplaces and promoting physical andOccupational
mental health of employees could adversely affect our corporate
healthy and energetic manner, both physimental health
Health and Safety
image and obstruct our business continuity.
cally and mentally Enhance business continuity by strengthening the BCP* system in cooperation with
 By establishing a stable supply chain, ensure aP roduction delays and stoppages and increased costs due to supply
industry associations and government
system to conduct procurement in the event of
chain
disruptions
causedbyexternalfactors
Achieving aemergencies
Reduce impact on human rights and theSustainable Inability to source raw materials and damage to corporate value due
environment by raising the level of CSR
 Maintain social credibility through responsible beSupply Chain
to delays in addressing social and environmental issues, including
throughout the supply chain (addressing
havior throughout the supply chain, by respecting
human rights violations in the supply chain.
human rights issues at suppliers, such as
human rights and ensuring complianceconflict minerals) Provide reassurance and support safety through Ensure the safety and security of commufurther expansion of disaster cooperation agreenity life
Promoting Social
ments and by quickly putting support systems in An increase in large-scale disasters due to climate change
ContributionFoster local communities by utilizing inplace in times of disaster Disparities in economic development and inequality
Activities
dividual employees’ skills, know-how, and Contribute to communities’ social development
our products
through ongoing activities that meet regional needs Ensure business continuity and confidence
in the Company by further strengthening Corporate malfeasance becoming an increasing social problem
governance, such as by ensuring compliance Ensure soundness and transparency by establishStrengthening
with laws and regulations, and the appropriing a robust governance system, and earn society’s Increasing number of cyberattacks and other issues related to inforGovernance andateness and efficiency of business execution
trust
mation leaks, as well as their increasing severity
G
Ensuring Business interruptions due to natural disasters or outbreaks of infec-  Ensure safety and sustainability of corporate busi-  Ensure business continuity and confidence
Compliancein the Company by properly identifying risks,ness through enhanced risk management
tious diseases
preventing them from materializing, and minimizing their impact when they do materialize* BCP: Business continuity plan
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Materiality (External Environment/Stakeholders’ Needs and Expectations/Medium-Term Targets)
Materiality

Medium-Term Targets
FY2030 targets: Average CO2 emissions from new vehicles:-40%(Tank to Wheel, compared with FY2010) More than 140 countries and regions pledging to be carbon neutral by Ratio of electrified vehicle sales: 50%
2050.
(100% by FY2035)
 COP26, held in 2022 (United Kingdom) provided an opportunity for CO2 emissions from business activities: As interest in environmental considerations
major countries to announce increases in the targets for 2030.
-50%
mounts, growing expectation for carbon neutrality
Responding to(Scope 1 and 2 total emissions, compared2
V
ariousnational
governments
consideringorannouncing
lower
COacross the supply chain.
Climate Change andwith FY2018)and higher fuel economy standards, making electrified vehicles manEnergy Issues Growing ESG investment (investors promoting Work with major suppliers to promote
datory, banning the sale of vehicles with internal combustion engines,changes in corporate activities)
activities for reducing CO2
strengthening regulations on life cycle assessments (LCA).
 Acceleration of global efforts to reduce CO2 emissions with the release Cooperate with logistics companies onof the Sixth Assessment Report of the IPCC*1 in March 2023
activities for reducing CO2
 Provide energy management services utilizing electrified vehicles and used batteries Implementation of climate change adaptation measures An increasing shift toward a circular economy Expanding adoption of non-fossil-based
plastic
 Mounting demands for environmental consider The manifestation of waste-related issues in Japan and overseas
ation(such as emerging markets limiting imports)
E Resource Recycling Achievement of zero direct landfill waste(less than 0.5%)
Initiatives
 The increasingly strict EU Batteries Regulation (calls for disclosure of  Growing ESG investment (investors promotingchanges in corporate activities)
amounts of reused materials, among other items) Reuse of batteries used in electrified
vehicles Plastics causing the marine pollution problem
 Increasingly stringent regulations on emissions in various countries
and regions Mounting demands for environmental consideration
 Conformance to regulations on use of hazPrevention of Pol-  Increasingly stringent regulations on chemical substances in various
ardous substances in products
countries and regions
lution Growing ESG investment (investors promotingchanges in corporate activities) Increasingly stringent regulations on the export and import of hazardous waste (plastic waste) Promote climate change countermeasures Climate change resulting in extreme weather events, resulting in enviand initiatives targeting resource recycling Mounting demands for environmental considerronmental changes and increasingly severe water shortages
and pollution prevention
ation
Conservation of Growing populations and urban development in emerging markets
Water ResourcesManage the amount of water used basedG
rowing
ESG
investment(investors
promotingexacerbating water pollution
on water risks at each production facility,changes in corporate activities) Plastics causing marine pollution
and monitor the quality of discharged water
Preservation of
Biodiversity

External Environment

Stakeholders’ Needs and Expectations

 Enhanced international conservation in accordance with an assessment report published in May 2019 by IPBES*2
 Adoption of the Kunming-Montreal Global Biodiversity Frameworkat the 15th Conference of the Parties to the Convention on Biological
Diversity in December 2022

 Mounting demands for environmental consideration Growing ESG investment (investors promotingchanges in corporate activities) Promote climate change countermeasuresand initiatives targeting resource recycling
and the prevention of pollution Promote community-based initiatives toaddress environmental issues*1 IPCC: Intergovernmental Panel on Climate Change*2 IPBES: Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Materiality

S

External Environment
Stakeholders’ Needs and Expectations
Medium-Term Targets
 Laws and regulations related to traffic accidents, heightened govern-  Customers: Growing expectations for active safety Provide customers with safe, secure andDelivering Products
technologies
ment safety targets
comfortable means of mobility with thewhich Help Prevent

L

ocal
communities:
Providing
a
safe
means
of
mo
I

ncreasingly
stringent
standards
forinformation
disclosure
testingenvironment at the core
Traffic Accidents
bility for all people
and assessment, such as NCAP Customer perspective: Sense of satisfaction in relation to quality through various contact points with  Earn top-level customer evaluations in five Increasingly diverse customer needs as vehicles become more adcountries in our core ASEAN market (ThaiImprovement of
products and MITSUBISHI MOTORS
vanced (electrification, intelligence)
land, Indonesia, the Philippines, Vietnam,
Product, Sales, and
B
usiness
perspective:
Ensurecompliance,and
Increaseinvehicleoff-boardfunctions(connected,
link
with
smartand Malaysia), as well as in Australia andService Quality
maintain and enhance management to ensurephones)our home market of Japanagainst losing trust on the quality front In the ASEAN
 Regional development through employment, hu-  Conducting business with an emphasis on
Contribution tocontributing to all stakeholders and society
man resource development, investment, technol- Promoting initiatives toward a carbon-neutral society
Local Economy
ogy transfer, exports, the environment and social  Concentration of management resources
through Business- Multiple free trade agreement networks are being expanded, facilitatcontribution
Activities
with a business focus on the ASEAN
ing exports and imports.
Promoting diversity Provide a fair working environment tailored to indiand inclusion, andvidual circumstances Create a comfortable work environment inR equests to provide a comfortable working environment for diverse
enhancement of
which a diverse workforce can thrive
human resources Grow the business by securing excellent human
employee engageresources
ment
Stepping up
Human Resource
Development
PromotingOccupational
Health and Safety
Achieving a
Sustainable
Supply Chain
Promoting Social
Contribution
Activities

Strengthening
Governance andG
Ensuring
Compliance Secure personnel who have strong management
R emote working leading to a lack of communication and growing Improve skills in management and training
capabilities
sense of isolation
 Formulate education policies tailored toA rapidly changing environment surrounding the auto industry (CASE,  Provide training that matches the environment andthe environment and the times
the times
MaaS) Prevent mental health disorders stemmingfrom environmental changes, and maintain Help employees respond to environmental, age andemployees’ physical and mental healthA growing number of people with mental health disorders and lifelifestyle changes
style diseases Promote health and safety management Calls for business continuity
systems and ensure compliance with safety-related laws and regulations Achieve stable and sustainable procureG rowing awareness of human rights and the environment in interna-  Expectations of business continuity and enhanced
ment through collaboration and coordinational society
trusttion with suppliers Provide assistance and solve social issues
based on disaster cooperation agreements Around the world, subsequent disasters stemming from extreme Expectations of disaster support in emergencies
weather, such as heat waves, droughts and flooding due to heavy rains Contribute to a sustainable society by eachand reconstruction support
employee utilizing technologies, expertise, Increasing disparity and inequality in economic development due to Expectations of humanitarian assistanceand products to meet the challenges of an
conflicts, natural disasters, pandemics, etc.
increasingly diverse society Maintain a robust governance structure byachieving effective and efficient operationof the internal control system Revision of business-related laws and regulations
 Enact thorough compliance to prevent Business interruptions due to natural disasters or outbreaks ofserious incidents
infectious diseases Expectations of business continuity andMount an emergency response when Frequent information leaks and business interruptions due toenhanced trust
risks emerge, strengthen internal informacyberattacks and other issues
tion sharing War, terrorism, political instability, deterioration of public safety and Gather and analyze information on cyberother factors in our key markets
attacks, and enhance technical countermeasures and employee training

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Stakeholder Engagement
Basic Approach
MITSUBISHI MOTORS believes that its stakeholder
relationships is important to its achievement of sustainable corporate growth, through dialogue and other forms of engagement, the Mitsubishi Motors Groupclarifies its responsibilities and issues, and strives on adaily basis to improve its operations.
By further deepening dialogue with our diverse
stakeholders, we will continue to sincerely address
society’s expectations and challenges and incorporate
our understanding of them into our business activities.

Positive Impact Finance Agreement
Concluded with MUFG BankIn March 2022, MITSUBISHI MOTORS signed a loan agreement
for Positive Impact Finance (a type of financing for corporates
with unspecified use of funds) with MUFG Bank, Ltd.
In 2018, MITSUBISHI MOTORS identified material issues itshould prioritize in the fields of the environment, society andgovernance. In 2020, the Company reviewed and revised its
material issues, taking into account worsening environmental problems, as well as changing social conditions caused by
the spread of COVID-19. We announced the Environmental
Plan Package, which outlines the direction of the Company’senvironmental efforts for the next 30 years. We are implementing initiatives throughout the organization on this basis.
Thus acknowledging our responsibility as a company that
produces and sells automobiles, we will work toward specifictargets in activities that reduce the environmental impact.
At the same time, we will reinforce our environmental technologies, hinging on Kei-car segment commercial electricvehicles and plug-in hybrid electric vehicles (PHEV), and encourage the spread of effective products and technologies.
In this way, we will contribute toward the development of avibrant and sustainable society.
In selecting the themes for this contract, we chose activities that contribute to achieving the Sustainable Development Goals (SDGs) and align with MITSUBISHI MOTORS’material issues. Mitsubishi UFJ Research & Consulting Co.,
Ltd. conducted qualitative and quantitative evaluations, anda third-party opinion was obtained from Japan Credit Rating
Agency, Ltd. regarding the compliance of the evaluation procedures with the Principles for Positive Impact Finance andthe rationality of the evaluation indicators used.
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Stakeholder Identification
Through business, MITSUBISHI MOTORS and the our Group are involved with a host of individuals and organizations. From the standpoint of realizing a sustainable society and enhancing our corporate value, we have identified our most important stakeholders as consumers and our customers, business partners, shareholders andinvestors, employees and local communities.
Dialogue with Stakeholders
Stakeholders(For details on stakeholder initiatives, refer to the pages enclosed in < >.)Policies on Dialogue
Promote activities that
better reflect customer
input in our products
and services.

Opportunities for Dialogue

Frequency

Reflecting Input in
Our Business
Promoting customer
satisfaction activities

Customer Contact Center <p. 73>, sales comOngoing
panies <p. 72>, after-sales services <p. 72>
Website, social networks
Ongoing
Customer satisfaction surveys <p. 71>
As necessary Improving products
Events, TV/newspaper/magazine advertising, As necessary and services
email magazine
BusinessEngage in communica- Contact for inquiries, Business Partner
Ongoing
Building relationpartners
tion aimed at coexisHelpline <p. 96>
ships aimed attence and coprosperity Suppliers Meeting, presentations, events,
As necessary coexistence andbased on mutual trust. specialized websites
coprosperity based
Participation in industry organizations
As necessary on mutual trust
Shareholders Disclose business and fi- IR inquiry contacts
Ongoing
Promoting initiatives
and investors nancial information and Interviews
As necessary Targeting sustainresults in an appropriate Financial results briefings
Four times per year able growth andmanner and time.
Mid-term business plan briefings
As necessary enhanced corporate
value
Individual initiative briefings
As necessary
Conduct construcShareholders’ Meeting
Once per year
tive dialogue aimed at
Ongoingsustainable growth and IR websites
Events, email magazines
As necessaryenhanced corporate
value.
Integrated report
Once per year
Employees
Two-way communiLabor management discussions <p. 90>
As necessary Creating a safe andcation for fostering
rewarding working
Consultation offices (Employee Consultation
Ongoing
teamwork and a sense Office, Outside attorney consultation (Helpenvironmentof unity based on theline), MITSUBISHI MOTORS Global Hotline)
principle of mutual trust <p. 113>
and mutual responsibil- Town hall meetings with Executives
As necessary
ity between labor andInternal websites
Ongoingmanagement.
Engagement survey <p. 80>
Once per year
Local
Build good relations
Promoting initiatives
Local community consultation desks, websites
Ongoingcommunities with local communities.
to resolve social andCollaborations with municipalities <p. 27>
As necessary environmental issues
As necessary
Engage in dialogue with Social contributions <p. 99>
diverse stakeholders to Community events
As necessary
resolve social and enviPlant tours
Ongoingronmental issues.
Consumersandcustomers

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Examples of Stakeholder Dialogues
Consumers and customers

Shareholders and investors

Local communities

If a customer points out issues related to quality or

We proactively disclose information to shareholders

We contribute to the realization of resilient com-

defects, we seek to resolve this customer issue inand investors, and strive to ensure transparency andmunities through activities that meet local needs.

collaboration with sales companies and drive further

credibility through constructive dialogue.

As examples of activities that take advantage ofSpecifically, to enhance understanding of MIT-

our products’ distinctive characteristics, we support

ions about product functionality, or opinions about

SUBISHI MOTORS, we disclose various information

municipalities by entering into disaster cooperation

specifications, are shared with relevant divisions andthrough our website, issue publications, and holdagreements and loaning roving COVID-19 vaccine ve-

used to improve product capabilities even further. We

briefings on our mid-term business plan and financial

hicles etc., by utilizing “Mitsubishi’s PHEV,” which canalso distribute videos of this feedback with images

results. In addition, we exchange views with investors

store and supply electricity. We will support the safe-and explanations of relevant points on the intranet soon non-financial information, including environmen-

ty and security of the lives of local people with “thethat employees can access to firsthand customer’s

tal information. In FY2022, we engaged in dialogue

Power of PHEV Driving and the Power of Electricity.”

opinions. Noteworthy comments and opinions includ-and exchanges of opinions with numerous domestic

ing those that are particularly important are periodi-

and international institutional investors and others

cally reported to management.

regarding the new Environmental Targets 2030 an-

quality enhancements. In addition, feedback and opin-

For details, please see the feature on page 27, as
well as our website.

nounced in our new mid-term business plan, “Challenge 2025,” which starts in FY2023.

Conclusion of a disaster cooperation agreement
WEB https://www.mitsubishi-motors.co.jp/
carlife/phev/dcsp/ (only in Japanese)

Responding to customers at Customer
Contact Center
Website: “Investors”
WEB https://www.mitsubishi-motors.com/
en/investors/

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

External Evaluation
To contribute to the realization of a sustainable society, the MITSUBISHI MOTORS Group is working to resolve social issues through its business activities in each country
and region where it operates.
These efforts have earned recognition from external organizations and resulted in our inclusion in various ESG index constituents.

Inclusion in ESG Indices

ESG-Related Assessment

FTSE4GOOD Index Series/FTSE Blossom Japan Index
MITSUBISHI MOTORS CORPORATION has been consecutively
selected as a constituent of the “FTSE4Good Index Series” andthe “FTSE Blossom Japan Index,” which were designed by FTSE
Russell for ESG investment, for the four consecutive years since
FY2020. (June 2023)
In addition, MITSUBISHI MOTORS CORPORATION has been continuously selected as a constituent of the “FTSE Blossom Japan
Sector Relative Index,” which was newly designed by FTSE Russel,
for the two consecutive years since FY2022. (June 2023)

DBJ Environmentally Rated Loan Program
In the Development Bank of Japan, Inc.’s DBJ Environmentally Rated Loan Program, we have been ranked as a company
with excellent advanced environmental initiatives. We received financing on this basis. (June 2022).

CE R TIFICATE

認定証

T his Cer tifi es

三菱自動車工業株式会社 殿

貴社は『ＤＢＪ環境格付』調査の結果
環境への配慮に対する取り組みが特に先進的であると認められました

株式会社日本政策投資銀行
代表取締役社長
D a t e2022 年 5 月 27 日

Si gnat ur e

殿

CDP
CDP requests thousands of companies, cities, states andregions to disclose environmental impacts, and assesses
their progress through independent scoring methodology.
The CDP score is disclosed to institutional investors. In 2022,
MMC’s scores are as follows. (December 2022)• Climate change: B (Management)• Water security: B- (Management)

Morningstar Japan ex-REIT Gender Diversity Tilt Index
MITSUBISHI MOTORS CORPORATION was selected as a constituent of “Morningstar Japan ex-REIT Gender Diversity Tilt Index,”
which was designed for ESG investment. (April 2023)

PRIDE Index
In the PRIDE Index, which was designed by “Work with Pride”
as a criteria for evaluating initiatives related to LGBTQ andother sexual minorities in the workplace, we have been consecutively awarded Gold certification since FY2018. (November 2022)

S&P/JPX Carbon Efficient Index
MITSUBISHI MOTORS CORPORATION is included “S&P/JPX Carbon Efficient Index” for environmental stock index, which was
designed by S&P Dow Jones Indices LLC and the Tokyo Stock
Exchange, Inc. (March 2022)

The Certified Health & Productivity Management Outstanding Organizations Recognition Program
We were certified as a “2023 Certified Health &Productivity Management Outstanding Organizations” in thelarge corporation category of the certification system organized by the Ministry of Economy, Trade and Industry and
the Nippon Kenko Kaigi. (March 2023)
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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

MITSUBISHI MOTORS’ Taking on
Featurethe Challenge of Becoming Carbon Neutral

Milestones on the Road to Achieve Carbon
Neutrality

Amid growing calls for companies to curb climatechange, in September 2022, MITSUBISHI MOTORS
announced its intention of achieving carbon neutrality by 2050. Accordingly, we envisioned a scenario forachieving carbon neutrality by 2050, and examined
the necessary responses to be taken as well as the
directions we should pursue. Based on our consideration, as a milestone on the road toward achievingcarbon neutrality by 2050, we revised the “Environmental Targets 2030” in February 2023, raising theCO2 emissions reduction target of our business activities from the previous -40% compared with FY2014
to -50% compared with FY2018, setting a new targetof 100% electrified vehicle sales ratio by FY2035*1.
Furthermore, in the new mid-term business plan
“Challenge 2025” unveiled in March 2023, also includes“Working toward Carbon Neutrality” as one of the 3
major challenges, and we position it as a theme to be
pursued by the entire company.
*1 Please see page 31 for details about Environmental Targets 2030.

Approaches toward Achieving Carbon Neutrality

As for products, starting with our original plug-in
hybrid electric vehicles (PHEV) and Kei-car segmentcommercial electric vehicles, we will promote electrification while leveraging the technologies of Alliance toproactively introduce the electrified vehicles that best
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

meet the energy situation, infrastructure development status, and customer needs of each country andregion. In parallel with our electrification efforts, wewill work to improve our fuel efficiency technologies
for vehicles powered by internal combustion engines.
In our business activities, in addition to reinforcing
energy saving measures as well as pursuing productivity-enhancing technologies, we will promote fuelconversion and the development and introduction of
next-generation production technologies.
Furthermore, we will expand the use of renewableenergy, centering on the introduction and expansionof solar power generation facilities at all major plants.
To achieve carbon neutrality throughout the supply chain, it is essential for us to reduce CO2 emissions

in the production phase of raw materials and parts,
as well as in the transportation of products. We will
promote activities to visualize and reduce CO2 emissions in cooperation with our suppliers. At the productdisposal stage, we will promote recycling of products
and materials through the adaptation of low-CO2 materials and recycling-conscious design.
We will also explore various carbon offset options
for CO2 emissions that cannot be ultimately reduced
through these efforts.
In addition, beyond our supply chain, we will promote new mobility businesses that will contributeto achieve carbon neutrality across society, such asenergy management and utilize electrified vehicles aswell as used batteries.

CO2 reduction image throughout supply chain

FY2030 targets

CO2 emissions

Toward Achieving Carbon Neutrality

Products(vehicle emissions)*2<Products (vehicle emissions)>• Electrification of products (electric vehicles, PHEV, etc.)• Improvement of electricity/fuel consumption

Baseline CO2 emissions<Fuel and Electricity Production>
Collaboration with governments and related companies• Decarbonization of electricity/energy• Promotion of carbon-neutral fuels• Energy management utilizing used batteries• CO2 emissions from business activities: -50%
(compared with FY2018)• Average CO2 emissions from new vehicles: -40%
(compared with FY2010)• Electrified vehicles sales ratio: 50% (100% by FY2035)<Production, Procurement, Logistics, etc.>• Enhancement of energy conservation measures• Expanding the use of renewable energy• Improvement of production/logistics efficiency• Development and introduction of next-generation
technologies• Adoption of low-CO2 materials• Promotion of product/material recycling

Products(fuel, electricity
production)*2
Production, procurement,
logistics, etc.
Now

2030

2050

<Carbon Offsets>*2 Including new and stock vehicles
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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Feature MITSUBISHI MOTORS Taking up the Challenge of Becoming Carbon Neutral

Pursuing the Possibilities Offered byElectrified Vehicles
MITSUBISHI MOTORS has positioned the mobility business as a potential fourth revenue pillar to complement its existing businesses in vehicle sales, financing (leasing) and after-market sales. We are working
on new businesses utilizing vehicle data throughconnected functions and developing new businesses that contribute to carbon neutrality by utilizing
connected functions to control vehicles remotely,such as charging electrified vehicle batteries at theutilizing used batteries. Building on these experiences,

Toward the Practical Application of Autonomous

we will expand our efforts to include many partners.

Street Lighting That Does Not Require External Power

Furthermore, in partnership with Kaluza Ltd.

We have begun working with MIRAI-LABO Co., Ltd.,of the United Kingdom we have developed a sys-on the development of autonomous street lighting

tem that uses batteries and connected technologythat uses battery modules. We installed the first unit

from our electrified vehicles to remotely control theat our Okazaki Plant in March 2023. Our autonomous

charging of vehicles. This system allows vehicles tostreet lighting systems store solar power generated

be charged at the optimal time without relying on

during the day in used electrified vehicle batteries,

expensive smart chargers. We will begin a demon-using that power to illuminate LED lights at night.

stration project from FY2023. By charging vehicles

The aim is to for the lights to operate continuously

during times when electricity rates are lower, we aim

without external power supplies, and a demonstra-

to reduce charging costs and reduce CO2 emissions.

tion project is underway on the first unit at the Okazaki Plant. Depending

optimal timing even when not in use. In addition, we
have begun a demonstration project utilizing usedbatteries from secondhand vehicles. This can help
reduce CO2 emissions generated during the manufacture of products that use lithium-ion batteries, suchon test results, weRemote charging system using batteries andconnected technology
User

as streetlights. The Company conducts all activities ofPreferredconditions

this nature under its “With Partners” policy of collaborating with other companies and local governments.

Contributing to Carbon Neutrality through Energy Management

App registeredwhat time
to charge

We are working with the Japan Post Group to use

Aggregator(Kaluza Ltd., United Kingdom)
Optimal charging schedules
are calculated by combining
the charging information ofmany users with informationfrom the grid side.
Vehicledata

Driving record,
battery level, etc.

electrified vehicles in energy management, by using
the batteries in vehicles and by utilizing used batteries to supply power during power outages causedby disasters, utilizing the Green Innovation Fund onthese initiatives. Additionally, we are working with thecity of Okazaki, in Aichi Prefecture, which has been
designated as a leading region for decarbonization.
We are promoting various initiatives that focus on
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Electrified vehicle

Charging instructions

Link schedules

MITSUBISHI
MOTORS’
cloud

hope to commence
sales in FY2024,
contributing toward
carbon neutrality.
We plan to introduce
this system to local
governments andfactories that want to
reduce the significant
maintenance costs
associated with tradi-Autonomous street lighting at nighttional streetlights.

In FY2022, we began two demonstration projects
at the Okazaki Plant employing used batteries fromelectrified vehicles.

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Commitment of
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Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Feature MITSUBISHI MOTORS Taking up the Challenge of Becoming Carbon Neutral

Electrified Vehicles and the Realizationof a Resilient Society(DENDO Community Support Program)

Proposing Two Concepts for Utilizing Energy Storage

technical details of these concepts through demon-

Linked to Electrified Vehicle Chargers

stration tests. We aim to collaborate with manufac-

As part of our efforts to develop applications forturers of energy storage equipment to introduce

used batteries, we have installed equipment for the

products at MITSUBISHI MOTORS Group sales outlets

demonstration of two concepts employing used bat-in the future.

We are promoting the DENDO Community Support

teries in conjunction with quick chargers and bidirec-*1 M-Tech Lab: Test equipment for a smart grid demonstration, ourfirst initiative utilizing used batteries, began operating in April 2012.
*2 CHAdeMO: A quick-charging system for electric vehicles, a global
standard that Japan led the way in standardizing in 2010
*3 Short for “vehicle to home,” V2H is a system that enables electricity
stored in a car’s battery to be supplied to the home.

Program, which uses the Company’s plug-in electrictional chargers at the Okazaki Plant’s M-Tech Lab*1,
which started the demonstration in January 2023.
Both systems utilize used battery modules. One isa storage system that connects to the power line of avehicles (PHEV) to support local governments. Afterconcluding disaster cooperation agreements withlocal governments, we provide support by delivering PHEV that can tap power they have generated

quick charger and discharges stored power to reducethemselves for use in emergencies. By combining thepower peaks when fast-charging electrified vehicles.

“power of PHEV to provide transportation” and the

The other is a storage unit that connects to a bidirec-“power of electricity,” we are making people’s lives

tional charger using the CHAdeMO*2 standard, whichsafer and more reliable.

can be used for V2H*3 and other purposes. The unit

Examples of Activities

can be charged even when the electrified vehicle isabsent, facilitating efficient energy management.

M-Tech Lab (conceptual diagram)Moving forward, we will verify the effectiveness and1. Disaster Cooperation Agreements with Municipalities
In response to requests from local governments thathave experienced power outages due to disasters,
the Company, together with its affiliated dealers, isPower storage
system forquick chargers

promoting efforts to conclude disaster cooperationagreements with local governments throughout Japan so that “OUTLANDER PHEV” and other electrified
vehicles that can be used to supply electricity can beprovided to disaster areas and evacuation centers as
Quickchargerquickly as possible.
As of March 2023, we had cooperation agreeBidirectionalchargerPowerstorageunit

ments in 47 prefectures around Japan. We will continue to work with local governments to contributeto the peace of mind of local residents through theuse of electrified vehicles.

Demonstration facility for utilizing used batteries
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
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Sustainability Strategy

FeatureEnvironment

SocialESG Data

GovernanceFeature MITSUBISHI MOTORS Taking up the Challenge of Becoming Carbon Neutral
2. Participation in the City of Kawasaki’s “Verifi-

Tottori Prefecture(September 2022)

Naha, Okinawa Prefecture(March 2023)

Agreements in Place with Municipalities around
Japan (As of August 4, 2023)

Municipalities withagreements in place:

250

*1

Hokkaido

8

Tohoku48

Koshinetsu andHokuriku

Chugoku

18

25

Kyushu andOkinawa

14

Shikoku

8

Kinki

33

Tokai

20

Kanto

76

u Recent agreement status (only in Japanese)
WEB https://www.mitsubishi-motors.co.jp/carlife/phev/dcsp/*1 Excluding two-party agreements between affiliated dealers andmunicipalities

3. Signing Comprehensive Collaboration Agreements

cation of Using Electric Vehicles (EVs) to Supply

toward the Realization of a Carbon Neutral Society

External Batteries for Artificial Respirators in the

We have signed comprehensive collaboration agree-

Event of Disaster”

ments with the cities of Kurashiki, in Okayama Pre-MITSUBISHI MOTORS participated in a demonstra-

fecture, and Okazaki, in Aichi Prefecture, with a viewtion project in Kawasaki City, Kanagawa Prefecture,

toward realizing a carbon neutral society. As part ofinvolving to dispatch electrified vehicles to the Ka-

this effort, in March 2023 we signed a forest pres-wasaki Comprehensive Rehabilitation Promotion

ervation activities collaboration agreement with theCenter where serves as a charging spot for medical

city of Okazaki. Such activities help preserve forests,

equipment batteries, to prepare for long-term power

which perform such functions as absorbing CO2 andoutages in the event of a disaster. Project participants

curtailing landslides.

included medically vulnerable children who require

Through these collaboration agreements, we will

daily care, such as those using artificial respirators,

work together to build a decarbonized society cen-and their families. Participants had the opportunity totered on the spread of our electrified vehicles.

operate PHEV themselves to provide power*2 to bat-

Key points of the collaborationteries used in the actual artificial respirators, confirm-(1) W orking toward the realization of a carbon neutral
society in the region(2) Promoting the spread of electrified vehicles(3) Fostering an understanding of how electrified vehicles
are useful in decarbonization and disaster preparedness(4) In addition to the items mentioned above, contributing to objectives that are mutually agreed upon byboth parties

ing emergency response measures.
*2 In this verification, dedicated batteries were removed from the
medical devices for charging; they were not connected directly tothe medical devices. This verification should not be construed assuggesting any change in interpretation of the warning statementin user manuals for the “OUTLANDER PHEV” and “ECLIPSE CROSSPHEV model,” that the “100V AC Power Supply (1500W) (Cabin Equipment Section)” should “never be used for medical equipment.”
No checks have been made except for the external batteries for thetwo types of artificial respirators used in the verification. External
batteries of all artificial respirators have not been validated for use.

Okazaki, Aichi Prefecture(June 2022)

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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28▶ NextLaunch of a demonstration
project for autonomous street
lighting in cooperation with thecity of Okazaki, Aichi Prefecture(April 2023)

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

Environment

SocialGovernance

ESG Data

Environment

Environmental Plan Package���������������������������������������������������������������������������������������������������������������������������� 30

Resource Recycling Initiatives������������������������������������������������������������������������������������������������������������������������������� 54

Structure of the Environmental Plan Package��������������������������������������������������������������������������������������� 30

Basic Approach���������������������������������������������������������������������������������������������������������������������������������������������������������� 54

Environmental Policy��������������������������������������������������������������������������������������������������������������������������������������������� 30

Recycling-Based Design and Development��������������������������������������������������������������������������������������������� 54

Environmental Vision 2050�������������������������������������������������������������������������������������������������������������������������������� 30

Promote recycling of end-of-life vehicles������������������������������������������������������������������������������������������������� 55

Environmental Targets 2030���������������������������������������������������������������������������������������������������������������������������� 31

Initiatives to Reduce Waste Generation and Reuse Resources in Production Activities������ 56

Structure for Consideration in Formulation, Steps to Formulation������������������������������������������ 32
Prevention of Pollution���������������������������������������������������������������������������������������������������������������������������������������������� 57
Environmental Management���������������������������������������������������������������������������������������������������������������������������������� 33

Basic Approach���������������������������������������������������������������������������������������������������������������������������������������������������������� 57

Basic Approach, Management Structure�������������������������������������������������������������������������������������������������� 33

Purifying Exhaust Gas while Driving������������������������������������������������������������������������������������������������������������� 57

Environmental Management System���������������������������������������������������������������������������������������������������������� 34

Reduction of Hazardous Substances����������������������������������������������������������������������������������������������������������� 59

Promoting Life Cycle Assessment (LCA)���������������������������������������������������������������������������������������������������� 34

Reduction of In-Cabin VOCs������������������������������������������������������������������������������������������������������������������������������� 59

Enhancing Disclosure of Environmental Information������������������������������������������������������������������������ 34

Preventing Air Pollution��������������������������������������������������������������������������������������������������������������������������������������� 60

Promoting Employee Education and Awareness Activities����������������������������������������������������������� 35

Management of Chemical Substances������������������������������������������������������������������������������������������������������� 60

Collaborating with Suppliers����������������������������������������������������������������������������������������������������������������������������� 35
Promoting Environmental Preservation Activities Rooted in the Local Community������ 35

Conservation of Water Resources����������������������������������������������������������������������������������������������������������������������� 61

Environmental Risk Management������������������������������������������������������������������������������������������������������������������ 35

Basic Approach���������������������������������������������������������������������������������������������������������������������������������������������������������� 61

Participation in External Associations and Initiatives������������������������������������������������������������������������ 35

Reduction of Water Withdrawal Volume��������������������������������������������������������������������������������������������������� 61
Reuse of Discharged Water������������������������������������������������������������������������������������������������������������������������������� 62
Prevention of Water Pollution�������������������������������������������������������������������������������������������������������������������������� 62

Responding to Climate Change and Energy Issues����������������������������������������������������������������������������������� 36
Basic Approach���������������������������������������������������������������������������������������������������������������������������������������������������������� 36
Disclosure Based on the TCFD Recommendations������������������������������������������������������������������������������ 37

Preservation of Biodiversity����������������������������������������������������������������������������������������������������������������������������������� 63

Reducing CO2 Emissions across the Supply Chain�������������������������������������������������������������������������������� 42

Basic Approach���������������������������������������������������������������������������������������������������������������������������������������������������������� 63

Development and Spread of Electrified Vehicles���������������������������������������������������������������������������������� 43

Promoting Preservation Activities����������������������������������������������������������������������������������������������������������������� 64

Promoting the Use of Electrified Vehicles as a Way of Adopting to Climate Change���� 46

Forest Preservation Activities in Japan and Overseas���������������������������������������������������������������������� 64

Development of Improving Fuel Economy Technologies���������������������������������������������������������������� 47
Taking the Initiative in Business Activities Toward Carbon Neutrality�������������������������������������� 49
Introduction of Renewable Energy��������������������������������������������������������������������������������������������������������������� 50
Initiatives at Manufacturing Plants��������������������������������������������������������������������������������������������������������������� 50
Office Initiatives�������������������������������������������������������������������������������������������������������������������������������������������������������� 51
Dealer Initiatives������������������������������������������������������������������������������������������������������������������������������������������������������� 52
Physical Distribution���������������������������������������������������������������������������������������������������������������������������������������������� 53

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

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 2023

this basis, we established initiatives to pursue from along-term perspective, leading up to 2050. In 2018,
the Intergovernmental Panel on Climate Change (IPCC)
published the Special Report on Global Warming of
1.5°C, which calls for society as a whole to achieve a
net-zero balance 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.

Aiming 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 2°C above levels before the Industrial Revolution and endeavor to keep the increase to 1.5°C. FromRegarding “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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Commitment of
Top Management

Sustainability Strategy

Environmental Targets 2030
In 2020, Environmental Vision 2050 set out our vision
for society in 30 years’ time, as well as the directions
for our initiatives. In line with this vision, MITSUBISHI
MOTORS formulated Environmental Targets 2030,
which sets forth items to be addressed in the next 10
years. When setting these targets, we referred to various external scenarios and international frameworks.
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*1
and Scope 2* , we raised our target for reducing CO2
2

emissions from business activities to the SBT*3 target
equivalent to a 1.5°C level. For Scope 3* , in addition of4

an 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 Scope 1: A company’s direct emissions (such as from burning fuel)*2 Scope 2: Indirect emissions, resulting from electricity, heat or
steam provided by another company*3 SBT: Short for Science Based Targets, which are greenhousegas emission reduction targets set by companies consistent
with the Paris Agreement levels*4 Scope 3: Indirect emissions other than Scope 1 and Scope 2(emissions from other companies and other sources related tothe company’s activities)

FeatureEnvironment

SocialEnvironmental Targets 2030

Underlines indicate revised items.

Targets 2030
(before revision)
Climate Average CO2
-40%
-40%
Change emissions from (compared with (compared
new vehicles*5
FY2010)with FY2010)
Electrified vehi50%50%
cles*6 sales ratio FY2035 100%
-50%
-40%
CO2 emissions
from business (compared with (compared
activities*7
FY2018)with FY2014)
Promoting CO2 reduction activi—
ties with major suppliers
Promoting CO2 reduction
activities in cooperation with—logistics companies
Providing energy management
services utilizing electrified—
vehicles and used batteries
Implementing measures to adapt to climate 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 of subPrevention stances of concern in products
Environ- • Promotion of LCA*8
mental• Promotion of environmental management
Manage- within the Group and at sales outlets
ment• Enhancing disclosure of environmental information• Promotion of employee education and awareness activities• Collaboration with suppliers• Promotion of grass-roots community environmental preservation activities
IssuesTargets 2030 (after revision)*5 CO2 emissions per new vehicle while driving. Tank to Wheel*6 Battery Electric vehicles, plug-in hybrid electric vehicles (PHEV),and hybrid electric vehicles*7 Total of Scope 1 Scope 2*8 LCA stands for life cycle assessment, which is a technique forcalculating and evaluating the environmental impact of a product from manufacturing to disposal.
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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31▶ NextESG Data

GovernanceOur principal targets and results for FY2022 are outlined below.
The decrease in CO2 emissions from businessactivities is attributable to the reduction effects ofenergy conservation activities and the installation of asolar power system, as well as to the decrease in production volume due to the spread of COVID-19, which
continued on from FY2020.
Average CO2 emissions from new vehicles
100%
80%

-18%

Target-40%

2022

2030 (FY)

60%
40%
20%
0%

2010

Benchmark year

2019

2020

2021

Ratio of electrified vehicles sold*9

Target 50%

50%
40%
30%
20%

7%

8%

7%

11%

2019

2020

2021

2022

10%
0%

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

CO2 emissions from business activities*10
100%
80%

-33%

Target-50%

2022

2030 (FY)

60%
40%
20%
0%

2018

2019

Benchmark year*11

2020

2021

*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.

Back to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

Social<July 2018 to December 2019>

Sustainability Committee(Chair: CEO*1; members: Division general managers of relevant divisions)

Environmental Working Group
Leader:Technical advisor to the chairman*1
Subleader: Division general manager of the Development
Management Division*1
Secretariat: Sustainability Promotion Department
Members: Corporate departments• Strategy management• Human resources• Public and investor relations• Asset management• Finance• Technology strategy• Manufacturing• 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*1
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*1 Positions as of March 2020
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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32▶ Next*2 International Energy Agency

 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.
	Automobile production and data related to
the Company<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 the Company
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, suchas economic growth and population increase, as
well as environmental issues. In particular, the group
looked for information on regions of importance toour business, ascertaining the status of local communities and government environmental policies. We also
looked at unit sales and the number of vehicles ownedin each country, arranging this data to match theCompany’s 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*2 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 and set numericaltargets for the items in the Environmental Targets. In
this way, we formulated the New Environmental Plan
Package, which provides an overall summary of ourenvironmental strategies.
In addition, we had outside experts review thedraft package we had formulated, looking at it from astakeholder perspective.

Formulation

MITSUBISHI MOTORS established the Environmental
Working Group, made up of members from across theCompany, and proceeded with considerations toward
the formulation of the Environmental Plan Package.
After certain directions had been determined, asmall circle chaired by the then-CEO moved forward
to specifics. These were proposed to the Executive
Committee and Board of Directors and approved.

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

Governance Conduct review via outside experts

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Environmental Management
Group initiatives, including education and awareness

Basic Approachactivities for employees, and the acquisition of cer-

Minimizing environmental impact is an essential
element of MITSUBISHI MOTORS’ sustainable growth.
To this end, we recognize the importance of reinforcing our environmental management. We also believethat the costs of promoting related initiatives are an
important investment from a long-term perspective.
In order to promote environmental initiatives reliably and efficiently, we have constructed a frameworktifications for environment management systems
among affiliated companies.
We also share information about initiatives on our
website and through our sustainability report. We
value opportunities to receive various feedback fromour stakeholders.

Management Structure
Since 1993, we have been holding an Environmental
Council, which is attended by the Executive Officer,
President & CEO and officers from each division. The
Sustainability Committee, chaired by the Executive
Officer, President & CEO, has met since FY2017, andenvironmental initiatives have been positioned as key

Please see page 121 for details on environmental accounting

for environmental management. We are promoting

material issues for us. The committee discusses ourenvironmental policies and targets and confirms the
progress and results from the Environmental Targets
2030. Items of particular importance are reported to
the Board of Directors.
For the management of target companies, weManagement Target Companies (20 Companies)CountryJapan

Company NameMITSUBISHI MOTORS CORPORATION

Production Affiliates
CountryJapan
Thailandthe scope of environmental targets and the collection

As of March 31, 2023

and publication of environmental data, and we review
these criteria on a regular basis.
Non-Production Affiliates
CountryJapan

Company Name

Indonesia

Suiryo Plastics Co., Ltd.
Mitsubishi Motors (Thailand) Co., Ltd. (MMTh)
MMTh Engine Co., Ltd. (MEC)
Mitsubishi Motors Philippines Corporation (MMPC)
Asian Transmission Corporation (ATC)Mitsubishi Motors Krama Yudha Indonesia (MMKI)

Vietnam
Malaysia

Mitsubishi Motors Vietnam Co., Ltd. (MMV)
MMC Manufacturing Malaysia Sdn. Bhd, (MMCMM)

Philippines

have established selection criteria as a framework for

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

United States
Netherlands
UAE
Australia
New Zealand
CanadaMexicoBack ◀

33▶ NextCompany Name
Mitsubishi Automotive Engineering Co., Ltd.
Mitsubishi Automotive Logistics Technology Co., Ltd.
Higashi Nihon Mitsubishi Motor Sales Co., Ltd.
Nishi Nihon Mitsubishi Motor Sales Co., Ltd.
Mitsubishi Motors North America, Inc. (MMNA)
Mitsubishi Motors Europe B.V. (MME)
Mitsubishi Motors Middle East and Africa FZE (MMMEA)
Mitsubishi Motors Australia, Ltd. (MMAL)
Mitsubishi Motors New Zealand Ltd. (MMNZ)
Mitsubishi Motor Sales of Canada, Inc. (MMSCAN)
Mitsubishi Motors de México S.A. de C.V. (MMDM)

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Commitment of
Top Management

Sustainability Strategy

Environmental Management System
In FY2010, MITSUBISHI MOTORS acquired companywide integrated ISO 14001 certification. (Previously,sites in Japan had acquired this certification individually.) We are leveraging the ISO 14001 framework andengaging in ongoing initiatives to improve businessactivities. The ISO 14001 framework is proving helpful
in the companywide promotion of the Environmental
Plan Package we formulated in FY2020.
Affiliates in Japan and overseas are also being
encouraged to acquire ISO 14001 and Eco-Action 21*1
certification, and they are engaging in environmental management.
*1 Eco-Action 21 is a certification and registration system basedon the Environmental Management Systems guidelines formulated by the Japanese Ministry of the Environment for medium-sized companies.

Status of ISO 14001 Certification (As of May 31, 2023)

Development Companies
Mitsubishi Automotive Engineering Co., Ltd.
Production Companies
Suiryo Plastics Co., Ltd.
Mitsubishi Motors Philippines Corporation (MMPC)
Asian Transmission Corporation (ATC)Mitsubishi Motors (Thailand) Co., Ltd. (MMTh)
MMTh Engine Co., Ltd. (MEC)
Mitsubishi Motors Krama Yudha Indonesia (MMKI)
Distribution and After-Sales Service Companies
Mitsubishi Automotive Logistics Technology Co., Ltd.
(Maintenance Service & Logistics Business Division,
Powertrain Department, Osaka Special Purpose Vehicle &Engineering Section of the Vehicle Business Department,
Mizushima Maintenance Service Section of the Vehicle
Business Department)

Please see page 52 for a list of the dealers that have received
Eco-Action 21 certification.
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

FeatureEnvironment

SocialPromoting Life Cycle Assessment (LCA)

Governance

ESG Data

systems and build the foundations to ensure we remain abreast of developments related to regulations
and incentives.

We perform LCA to determine the environmental
impact across a product’s life cycle. We evaluate total
emissions, mainly of CO2, from such processes as
extracting the resources used in parts and materials,
producing materials, manufacturing parts, assembling vehicles, producing fuel, driving and disposing of
disused automobiles.
We use LCA to develop advanced parts, electrified
vehicles and new-model vehicles that help address
the issues related to climate change and energy. We
compare life cycle CO2 emissions with those of previous parts and vehicles.

Enhancing Disclosure of Environmental Information
We disclose information about our environmental
initiatives through our website and sustainability
report. We will continue to take leverage these initiatives to engage in dialogue with institutional investors and experts about environmental and othernon-financial information.

Release of Environmental Information on
Website and in the Sustainability Report

Examples of LCA Implementation in FY2022

Model
Objective
eK X EV • Assessing the effect of reductions from thegasoline model• Assessing the ratios for production, use
and disposal• Assessing the impact of components

We release information on the concepts and details of
its environmental initiatives on our website and in thesustainability report in order to make its environmental initiatives more widely known.
For details, see the “Environment” section of our website.
WEB https://www.mitsubishi-motors.com/en/sustainability/
environment/

LCA Results for the eK X EV (CO2 emissions ratio)
Disposal 2%*2
Maintenance 3%
Production 49%
0%20%

Production of electricity 46%
40%

60%

80%

Communication with Investors
We engage in dialogue with investors, exchanging
opinions about environmental and other non-finan-100%*2 Excluding items that have been removed prior to disposal:
bumpers, tires, lead batteries, lithium-ion batteries, etc.

In light of growing interest in the environmental
impact across the entire life cycle in individual coun-cial information.
In FY2022, we announced our new mid-term business plan from FY2023, “Challenge 2025.” For the newEnvironmental Targets 2030 included in this plan, we
held dialogues and exchanged opinions with many domestic and foreign institutional investors and others.

tries and regions, we will continue to strengthen our
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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialPromoting Employee Education andAwareness Activities

Promoting Environmental Preservation
Activities Rooted in the Local Community

MITSUBISHI MOTORS conducts sustainability-related awareness activities throughout the year as partof its aims of deepening the understanding of sustainability among all executives and employees andcontributing toward the realization of a sustainable
society through routine business activities. Environmental education and awareness are one aspect ofthese activities.
In FY2022, we conducted rank-based training anddistributed videos to employees. In these ways, wesought to promote an understanding of our social
responsibility for realizing a sustainable society, therelationship between sustainability and the environment, and the relationship between environmental
issues and our business activities.

Recognizing the rich characteristics of life on land
and the importance of our connection to this life, we
promote environmental preservation activities thatare rooted in the local community. Realizing thatfactory construction and other types of land use havea direct or indirect impact on biodiversity, we strive topreserve surrounding ecosystems. We do so by carefully maintaining connections between factories andthe natural environments that surround them and by
maintaining green spaces within factory sites. By participating in forest preservation projects in Japan andoverseas, we strive to select species that are suitableto specific regions. In addition, employees work withlocal residents to plant and cultivate trees, engaging
in activities connected to local communities.

Please see page 11 for details on our activities to promote anawareness of sustainability.

Please see page 63 for details on our preservation of biodiversity.

Collaborating with Suppliers
Our suppliers cooperate with us in various initiatives,
including meeting the requirements of our Green
Procurement Guidelines. We believe that ongoing
communication is an important part of the steady
implementation of initiatives by suppliers. We explain
the importance of environmental initiatives at our
Suppliers Meetings, for example, which are attended
by our suppliers, and strive to engage in communications to reduce the environmental impact of ourentire supply chain.
Please see page 97 for details on the Green Procurement Guidelines.
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Environmental Risk Management
Having learned from past cases of failing to comply
with environmental regulations such as those aimed
at preventing pollution, we make every effort to comply with relevant regulations.
We sincerely respond to complaints from neighborhood residents after investigating the situation.
In the event that environmental laws and regulations are violated or an environmental accident
occurs (such as if regulatory values are exceeded), or
if we receive a complaint, the corresponding divisionmust submit a Legal Non-Conformity Report to theCompliance Department and take necessary measures against the cause. The report clarifies the deBack ◀

35▶ NextGovernance

ESG Data

tails of the case, measures and more, and appropriate
countermeasures are taken. Furthermore, in order toprevent recurrence, initiatives are in place to improve
work processes, enhance the supervision system, andincrease employee awareness.
In FY2022, we were subject to no fines or administrative orders stemming from violations of environmental laws and regulations*1. However, in two
instances they exceeded statutory values provided
under the Air Pollution Control Act.
Other than those cases mentioned above, voluntary internal checks and monitoring activities uncovered seven cases of legal non-compliance (including
delays in notification).
We responded to these incidents by swiftly taking
corrective action, introducing measures to prevent
recurrence and sharing information with other related
divisions about the incidents and countermeasures tostop the occurrence of similar cases.
*1 R efers to 31 environment-related laws and regulations identified by us, including the Water Pollution Prevention Act and the
Air Pollution Control Act.

Participation in External Associations
and Initiatives
We are working with external organizations and initiatives to achieve carbon neutrality in 2050.
In April 2023, we joined the GX*2 League, basedon the GX League Basic Concept, announced by the
Ministry of Economy, Trade and Industry in FY2021.
In addition, in May 2023 we joined the Japan Climate Initiative (JCI), a network to disseminate information and strengthen collaboration among companies and others working to combat climate change
toward the realization of a decarbonized society.
*2 GX: Green transformation
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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialResponding to Climate Change and Energy Issues

Average CO2 emissions from new vehicles(Tank to Wheel, compared with FY2010)[FY2021: -14%]
Ratio of electrified vehicle sales[FY2021: 7%]
CO2 emissions from business activities(Scope 1 and 2 total emissions,compared with FY2018)[FY2021: -25%]
Scope 3 emissions[FY2021: 28,294 thousand t-CO2eq]
DENDO DRIVE STATIONs(As of end-March 2023)

Targets
l 7.2
l 7.3

Basic Approach

Progress in FY2022-18%

In recent years, extreme weather, such as heat waves,

11%

sasters one after another around the world. The larg-

-33%*

1

droughts and floods due to heavy rain, has caused diest cause of these extreme-weather events is climatechange, and global warming caused by increases in
CO2 and other greenhouse gases is a major factor.
International frameworks for realizing a sustain-

28,710able society, such as the Paris Agreement adopted in

93 branches

lar, the Paris Agreement has set targets on climate

thousand t-CO2eq

 Established the Carbon Neutral Council as a
MITSUBISHI MOTORS structure for realizing carbon
neutrality by 2050
 Expanded our lineup of Kei-car passenger electricvehicles: Launched the “eK X EV” and resumed general sales of the “MINICAB MiEV,” a Kei-car segmentcommercial electric vehicle Installed solar power generation equipment at apaint plant of P.T. Mitsubishi Motors Krama Yudha
Indonesia (MMKI) (1.75MW)*1 Until FY2020, we included some equity-method associates
in our environmental management target companies. However, these equity-method associates have been excluded
since FY2021.
We set the base value 545 thousand t-CO2, which is calculated by subtracting 43 thousand t-CO2, the emission
amount made by the equity-method associates, from 588
thousand t-CO2, the officially reported volume of FY2018(the benchmark year).

<Related pages>
P15 MITSUBISHI MOTORS’ Materiality
P20 Materiality
P25 Feature: MITSUBISHI MOTORS Taking up the Challenge of Becoming Carbon Neutral
P30 Environmental Plan Package
P33 Environmental Management
P118 Environmental Data Related to Products andBusiness Activities
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

ESG Data

Governance2015 and the United Nations Sustainable Development
Goals (SDGs) are making major progress. In particuchange and fostered increased awareness toward
corporate responsibility. Furthermore, following theUnited Nations Climate Change Conference (COP26),
held in the United Kingdom from October to November 2021, over 140 countries, including Japan, declared
their intent to reach “carbon neutrality” by 2050. As
a result, countries like Japan and the United States
have raised their greenhouse gas reduction targets
for 2030. Momentum is now growing rapidly towardachieving a decarbonized society. The Sixth Assessment Report of the IPCC*2, released in March 2023,
highlights the need to reduce global CO2 emissions,
including other greenhouse gases, by at least 60%(CO2 by 65%) compared to 2019 levels by 2035 in order
to limit the temperature rise to 1.5°C from pre-industrial levels. This suggests that global efforts to reduce
CO2 emissions will likely accelerate in the future.

Targetl 9.4

Targetsl 13.1l 13.2l 13.3

reason, MITSUBISHI MOTORS has identified “responding to climate change and energy issues” as a material issue, taking into account its impact on the economy, environment and people. Furthermore, in theEnvironmental Plan Package, we position this as oneof the important challenges to address directly, andare working to achieve carbon neutrality throughout
its supply chain by 2050. We have set specific targets,and efforts are underway to achieve this goal.
To reduce energy consumption and CO2 emissions
in all business activities, including development, production and distribution, as well as offices, we arepromoting various initiatives, such as electrification
technologies, the development of fuel-economy-improving technologies, the introduction of low-energy
equipment in production processes and the use ofrenewable energy in offices and dealers. In particular,
we which count electrification technologies as one ofits strengths should be able to work simultaneously
to realize a sustainable society and achieve sustainable growth for us.
Our electrified vehicles have large-capacity batteries that can be used in energy management andas emergency power sources in times of disaster.
Through these measures, we are also engaging inmeasures to adapt to climate change.
Going forward, we will strengthen our efforts tofurther reduce CO2 emissions with the aim of becoming
carbon neutral throughout the supply chain by 2050.
*2 Intergovernmental Panel on Climate Change

Automobiles generate CO2 throughout the life
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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

GovernanceTargets
l 7.2
l 7.3

Disclosure Based on
the TCFD Recommendations

FY2022, we also went through the process of deliberation and reporting at Board of Directors meetings.

With the issue of climate change growing increasingly
serious, the Financial Stability Board established theTask Force on Climate-related Financial Disclosures(TCFD), which in 2017 announced its recommendations. These recommendations encourage companies
to disclose information related to climate change sothat investors can appropriately assess climate-related risks and opportunities.
Recognizing the potential of climate change topresent medium- to long-term risks and opportunities
that affect its business domains, in July 2021 MITSUBISHI MOTORS expressed its support for the TCFD Recommendations. Accordingly, we are analyzing the impact of climate change on our businesses and finances(scenario analysis). We will reflect the results of scenario
analysis in our management strategies to enhance theresilience of our strategies and improve information disclosure in accordance with the TCFD Recommendations.

Examples of climate change-related issues discussed or reported by the Board of Directors

Governancea. Board’s oversight of climate-related risks andopportunities
We recognize “responding to climate change and energy issues” as an important management issue andidentified this as one of our material issues. The Boardof Directors serves as a forum for the deliberation andoversight of strategies, business plans and approaches. When important matters related to environmental
initiatives arise, such as climate change, these matters
are supervised through deliberation and reporting at
the Board of Directors. When we revised our Environmental Vision 2050 and Environmental Targets 2030 in
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

• Endorsement of TCFD recommendations• Disclosure in line with TCFD recommendations• Declaration of intent to achieve carbon neutrality
by 2050 and revision of Environmental Vision 2050
• Revision of Environmental Targets 2030
b. Management’s role in assessing and managing
climate-related risks and opportunities
To address climate change and energy issues, we
Structure of Promoting Carbon Neutrality
Board of Directors
Deliberation
and reporting

Supervision

Executive Committee
Deliberation
and reporting

Sustainability Committee
Deliberation
andreporting

Carbon Neutral
Council
Subcommittee for
Promote theReduction of CO2
from Business
Activities
TCFD Consideration
Team
Back ◀

37▶ NextChair

Targetl 9.4

Targetsl 13.1l 13.2l 13.3have 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 inline with the Environmental Targets 2030. Under the
Sustainability Committee, we have established a bodyconsisting 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.
These policies, goals, and their progress are reportedby the respective heads of each area at the Sustainability Committee for review and deliberation. The
organization generally meets three times per year,
Members

Roles

Meeting
frequency

Executive Officer,
Executive Vice
Executive
Monitoring ProgressThree
President/senior
Officer,
toward the Environmental times a
executive officer/
President & CEO
Targets 2030
year
general managers
of relevant divisions

Executive Officer,
Formulate medium- andExecutive Vicelong-term policies andRelevant executive
Four times a
President
targets based on the asofficers/generalyear (Newly(responsible forsessment of climate-relatmanagers of releestablishedEngineering/ed risks and opportunities
vant divisions
in FY2023)
Product Stratetoward the realization ofgy/TCS/Design)
carbon neutrality by 2050
General managers ofSenior Executive relevant divisions/
Draft action plans for reOfficer responplant managers/
ducing CO2 in areas of busiTwice a year
sible for Produc- representatives ofness activity, promotion oftion/Procureaffiliated companies/
specific measures, etc.
ment
Sustainability Promotion Department
People in the
Identify and assess cliMeets as
general manager
mate-related risks andnecessaryclass at relevant
opportunities, consider sce- (Five times
divisionsnario analysis, etc.
in FY2022)
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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

GovernanceTargets
l 7.2
l 7.3

and particularly important matters are deliberated
and decided by the Board of Directors.
In recognition that addressing sustainability is ahigh priority management issue, in FY2022, the MITSUBISHI MOTORS Group added ESG-related items as
an indicator for determining medium- to long-term
performance-linked compensation for Executive Officers. Specifically, in relation to the environment, we
introduced “CO2 emissions from business activities” as
an indicator to measure progress in addressing theescalating climate change issue.

Strategiesa. Short-, medium- and long-term climate-related risks
and opportunities the organization has identified
We consider climate-related risks and opportunities tobe an important perspective in the formulation of ourbusiness strategy. We are identifying and evaluating
short-term, medium-term, and long-term risks andopportunities, as well as analyzing the impact on ourbusiness based on multiple climate scenarios. We arealso considering countermeasures in response to these

Item

Targetsl 13.1l 13.2l 13.3risks and opportunities. As particularly high-impact
migration risks, we identified the “strengthening of
regulations for fuel economy/CO2 and zero-emission
vehicles” and the “introduction and expansion of carbon pricing.” We identified “increasing frequency andintensity of meteorological disasters” as a physical risk.
While these risks may affect our business in various
ways, we recognize that responding appropriately tothese risks will lead to greater sales of electrified vehicles and new business opportunities.

Recognized climate-related risks and opportunities
Category

Targetl 9.4

Assumed Impact on MITSUBISHI MOTOR’S Business Activities

Timing of the Degree of
impactImpact*Strengthening of regulations for fuel• Increased development/procurement/production costs to comply with stricter regulations
Medium/long
economy/CO2 and zero-emission
Large• Increase in fines and credit purchase costs due to non-fulfillment of regulations
term
Policies and vehicles
regulations•A n increasing tax burden on our emissions due to the introduction and expansion of carbon taxes and otherMedium/long
Introduction and expansion ofLarge
sorts of carbon pricing, as well as higher prices on carbon, and higher costs due to a price shift toward thetermcarbon pricing
procurement, production and logistics stages• Higher energy costs due to a rise in electricity prices resulting from the increased introduction of renewable
Medium/long
Transition
Changes in the energy mix
Mediumenergy and carbon-neutral sources of electricity, such as hydrogen
term
risks
Tight supply and demand for raw•R ise in the cost of raw materials (such as rare metals) and components due to growing demand for storage
Medium/long
MediumMarkets
materials (rare metals)
batteries
term
Changes in user awareness and•D ecrease in sales volume due to the development of public transportation infrastructure and the proliferation Medium/long
Mediumbehaviorof sharing in urban areas
term
Increasingly stringent assessment
Short/mediReputation• Decline in our social image and share priceMediumum termby ESG institutions and stakeholders•D amage to buildings and facilities caused by typhoons and torrential rains, and the suspension of operations
Short/mediIncreasing frequency and intensity ofLarge
at production facilities due to supply chain disruptions (delays in the supply of parts stemming from damage
Acuteum/long term
meteorological disasters
to suppliers and the disruption of transportation routes)
Physical
Short/mediRise in average temperatures• Rising (energy) cost of air conditioning to maintain the work environment and employee health
Small
risks
um/long term
Chronic• Increased flooding and surge in the instance of storms due to rising sea levels, resulting in operational shutdowns at Short/mediRise in ocean levels
Mediummanufacturing facilities and increased investment in disaster countermeasures
um/long term
• Expand sales of electrified vehicles by improving product capabilities and taking advantage of government andmunicipal measures to promote electrified vehicles
Products
Medium/long• Increase sales of electrified vehicles and V2X-related equipment/services in line with the growing value ofGrowing demand for electrified
Large
and
term
electrified vehicles as energy infrastructure
vehiclesOpportunities services• Boost sales of electrified vehicles that can help supply power in response to growing demand to securing
sources of emergency power in times of disaster
EnergyMedium/long
Advancement in energy technologies • R educe energy costs by promoting energy conservation activities and the introduction of renewable energy
Mediumsourcesterm* 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 2023

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Commitment of
Top Management

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l 7.3

Targetl 9.4

Targetsl 13.1l 13.2l 13.3b. Impact of climate-related risks and opportunities on the organization's business, strategic, and financial plans
MITSUBISHI MOTORS recognizes that climate-related issues may affect its business, strategies, and financial plans, and reviews its strategies and plans from time to time inlight of climate-related risks and opportunities.
Impact on strategies and plans
Business area
Products andservices

Recognized impact
To realize a carbon-neutral society, various countries and regions are strengthening
regulations for fuel economy/CO2 and zero-emission vehicles. These will affect our
product development, production and procurement strategies.

Supply chain, value
chain

In the automobile manufacturing and sales business, greenhouse gases such as CO2
are emitted not only during the manufacture of products, but throughout the entire
value chain.
As climate change advances, the worldwide risk of increasingly frequent and severe
occurrences, such as typhoons and floods, is mounting. If our supply chain or value
chain is affected by such events, our plants’ operations could be affected.
We are promoting investment in R&D to address increasingly stringent and new regulations for fuel economy/CO2 and zero-emission vehicles in the countries and regions
where we operate. These moves will affect our R&D costs for electrified vehicles andother products.

Investment in R&D

Adaptation and mitigation measures

Incorporation into strategies and plans
Our Environmental Targets 2030 set the goals of “a 40% reduction in CO2 emissions
from new vehicles (compared to FY2010)” and an “electrified vehicle sales ratio of 50%(100% by FY2035).” In line with these objectives, looking to 2030 we are promoting
efforts to develop electrified vehicles and improve the fuel efficiency of internal combustion engine vehicles. In the five years to 2027, we plan to introduce nine electrified
vehicle models.
The Environmental Targets 2030 call for us to cooperate with major suppliers andlogistics companies to promote efforts to reduce CO2 throughout the supply chain. In
response to the risk of supply chain disruption, we are working with key parts suppliers
to formulate BCPs* so suppliers can quickly restore operations in the event of a disaster.

The Environmental Targets 2030 set a target of an “electrified vehicle sales ratio of50% (100% by FY2035).” To meet this objective, looking to 2030 we will promote R&D
to develop electrified vehicles and improve the fuel efficiency of internal combustion
engine vehicles. We are budgeting ¥70 billion in R&D expenses related to electrification
in FY2025. We have also earmarked ¥55 billion in capital expenditures related to electrification in FY2025.
Our business could be affected by countries and regions introducing or expanding car- The Environmental Targets 2030 set the goal of “reducing CO2 emissions from ourbusiness activities by 50% (compared to FY2018).” To reach this objective by 2030, we
bon taxes and emissions trading systems, as well as by rising energy costs.
will promote energy conservation activities and the introduction and expansion ofrenewable energy.

* BCP: Business continuity plan

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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) and the Network for Greening the Financial System(NGFS), we considered the “less than 2°C scenario*1,” which assumes actions by society to avoid climate change 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 MITSUBISHI MOTORS’ business activities.
In FY2022, we conducted an analysis that expanded the scope beyond our own operations and the product usage stage to include the procurement stage. The results ofanalysis related to the impact on our business of the associated risks and opportunities are as described below.
*1 Set with reference to the IEA’s “Announced Pledges Scenario (APS)” and the NGFS’s “Net Zero 2050”*2 Set with reference to the IEA’s “Stated Policies Scenario (STEPS)” and the NGFS’s “Current Policies”

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

Less
than
2°C

Risks/Opportunities

Impact on MITSUBISHI MOTOR’S 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• Promotion 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 2023

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 reduction efforts in cooperation• Lower energy costswith 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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MITSUBISHI MOTORS’ Response Measures Based on
Risks and Opportunities
MITSUBISHI MOTORS will incorporate measures to address climate-related risks and opportunities into ourEnvironmental Plan Package*1 and business strategies,
which set forth the direction and goals of our environmental initiatives. In this way, we are promoting initiatives to reduce future risks, ensure sustainable business growth and enhance our resilience as a company.
In September 2022, we stated our aim of achieving carbon neutrality throughout our supply chain by
2050. In February 2023, we revised the Environmental
Targets 2030 to serve as a milestone along the pathto achieving carbon neutrality by 2050.
On the product front, we will take our own plugin hybrid electric vehicles (PHEV) and commercial
electric vehicle in the Kei-car segment as a starting
point. To meet various needs in the global market, we
will leverage the Alliance’s technology and introduce
optimal electrified vehicles*2 at the appropriate timing, taking into consideration the energy situation andinfrastructure development status in each country
and region. Working toward carbon neutrality is oneof the key challenges stated in Challenge 2025, the
new mid-term business plan we announced in March
2023. We will develop electrified vehicles and step up
our efforts in the Alliance as we work toward the second phase of our plan to reinforce electrified vehicles(FY2026–2028). Over the next five years, we plan to
introduce nine electrified vehicle models.
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 with business partners, reMITSUBISHI MOTORS CORPORATION Sustainability Report 2023

lated companies and organizations, and governments
and municipalities to reduce CO2 emissions at the production stage (through raw materials and parts) andin logistics (including products). We will also promoterenewable energy and charging infrastructure, utilize
carbon-neutral fuel and promote V2X*3.
We believe the spread of electrified vehicles represents a chance to do new business in the form ofreuse of used batteries, energy management, and databusiness using vehicle driving and battery data, and incollaboration with our partners and municipalities wewill grow a mobility business that contributes to carbon
neutrality, which represents a unique opportunity for us
as an automotive maker, into a fourth pillar of revenue
after vehicle sales, financing (leasing), and after sales*4.
*1 Please see page 30 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 26 for details on the mobility business.

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.
We have incorporated goals and action plans for addressing climate-related risks and opportunities thathave a particularly significant impact, and are monitoring progress through the Sustainability Committee.
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41▶ NextTargetl 9.4

Targetsl 13.1l 13.2l 13.3b. O
 rganization’s processes for managing climate-related risks
The climate-related risks, opportunities, and corresponding measures identified by the Sustainability
Committee have been assigned to responsible executives at the executive officer level. We have set
KPIs and are implementing a PDCA cycle. Additionally,
reports on critical risks and opportunities requiring
prompt action are provided to the Board of Directors,
which decides on appropriate responses.
In FY2018, MITSUBISHI MOTORS identified material issues*5 as the important issue that we should
wrestle from various challenges in the environmental,social, and governance fields. “Responding to climatechange and energy issues” is recognized as one of themost critical issues. During the identification process,we conducted repeated examinations from the perspective of stakeholders’ concern and the impact on
us and conducted hearings with experts. Based on
this, we had extensive discussions within the Sustainability Committee and made the final decision in the
Executive Committee.
*5 Please see page 15 for details on materiality.

Metrics and Targets
a. M
 etrics used by the organization to assess climate-related risks and opportunities in line with its
strategies and risk management processes
We formulated the Environmental Plan Package in2020. Through electrified vehicles and the increased
use of renewable energy, we aim to become carbon
neutral by 2050 and contribute to the realization ofa society that is resilient to climate change. We also
formulated the Environmental Targets 2030, which
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clarifies specific initiatives to be achieved by 2030 inaccordance with this vision. As major indices to bemonitored and evaluated under “Action to Climate
Change,” which MITSUBIHI MOTORS positioned as a
topmost issue, we set a target for Scope 1 and 2*1
in the category of “CO2 emissions from our businessactivities.” We also set a target of reducing emissions
under Scope 3*1, Category 11 (Use of sold products),
which accounts for around 70% of total emissions
throughout our supply chain, as well as “reduction in
CO2 emissions from new vehicles” and “ratio of electrified vehicles sales.”*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
FY2018 to FY2022.
To ensure our information is reliable and transparent, we have obtained independent third-party certification for our Scope 1 and 2 emissions.
<Scope 1, 2 and 3 Emissions >Unit
FY2018 FY2019 FY2020 FY2021 FY2022
Scope 1 x103 t-CO2
119
110
80
92
95
Scope 2 x103 t-CO2
469
416
285
319
271
Scope 3 x103 t-CO2 eq 42,580 35,429 20,286 28,294 28,710
Total
x103 t-CO2 eq 43,168 35,955 20,651 28,705 29,076

c. Targets used to manage climate-related risks
and opportunities, and performance against
those targets
We are promoting a host of measures based on theEnvironmental Plan Package, which we formulated
in 2020. We are developing electrified vehicles andtechnologies 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 the Environmental Policy, which incorporates our medium- tolong-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 Envi-

Targetl 9.4

Targetsl 13.1l 13.2l 13.3Major 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
TargetFY2022
Result

–40%
50%

–18%
100%

11%

–50%

–33%*2*2 U ntil FY2020, we included some equity-method associates inour environmental management target companies. However,these equity-method associates have been excluded since
FY2021, as we organized a method of selecting environmental
management target companies.
We set the base value 545 thousand t-CO2, which is calculated
by subtracting 43 thousand t-CO2, the emission amount madeby the equity-method associates, from 588 thousand t-CO2,
the officially reported volume of FY2018 (the benchmark year).

ronmental Targets 2030, which clarifies specific initiatives to be achieved by FY2030 in accordance withthis vision. We have positioned the actions for climatechange, resource circulation and pollution prevention
as three environmental issues that we will directly address and have set specific targets for these 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.

Reducing CO2 Emissions acrossthe Supply Chain
In its Environmental Targets 2030, we have set targets for reducing CO2 emissions from new vehicles
and business activities. We are also working to decrease CO2 emissions across the supply chain in relation to corporate activities.
To calculate CO2 emissions across the supply chain,in addition to emissions resulting from our own business activities (such as from our fuel use and from thegeneration of electricity we use), we determined emissions from the procurement and transport of raw materials, vehicle during driving, and at the disposal stage.
In FY2022, across the supply chain our CO2 emissions
were 29,076 thousand tons of CO2 equivalent.

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42▶ NextData (pp. 118–119): CO2 emissions, Scope 3 breakdown, energy
input (primary, secondary energy)

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Development and Spread ofElectrified Vehicles
In our Environmental Targets 2030, MITSUBISHI
MOTORS set the target of achieving a 40% reduction
in average CO2 emissions from new vehicles by 2030
(compared with FY2010 levels). To meet this target,
we have raised our target ratio of electrified vehicle
sales to 50% by 2030 and to 100% by FY2035. Thischange focuses our core technologies on responding
to climate change and energy issues through electrified vehicles, which emit low CO2 while driving, andconcentrates on their development. Centering on ourstrength in plug-in hybrid electric vehicles (PHEV),we will expand our lineup of electrified vehicles,
thereby promoting their popularization and use insociety and contributing toward the realization of asustainable society.

Electric Vehicles (EV)Electric vehicles (EV) are driven by electricity in battery,so they emit no exhaust gases such as CO2 while driving.

We released the “i-MiEV” as the world’s firstmass-produced Electric Vehicle (EV) in 2009. In addition to its environmental performance, the “i-MiEV”
performed better than conventional gasoline engine
vehicles on acceleration starting from maximum
torque. In 2011, we launched the “MINICAB-MiEV,” aKei-car segment commercial electric vehicle (EV). In
2012, we began offering the “MINICAB-MiEV TRUCK,”
also an electric vehicle (EV) in the Kei-car segment.
These technologies are the foundation of next-generation electrified vehicles, such as PHEV.
We believe that expanding the lineup of Kei-car
EV, which are expected to be used in more everyday
situations, will be the key to the spread of electrified
vehicles. Accordingly, in June 2022 we launched the“eK X EV,” a new EV in the Kei-car segment, and in
November 2022 we have reopened general sales of
the “MINICAB-MiEV,” a commercial battery-powered
vehicle in the Kei-car segment. We will continue tofocus on the development of EV to contribute toward
the realization of a carbon neutral society.

Our History of Developing Electrified Vehicles

EV

i-MiEVMINICAB-MiEV

eK X EVWorld’s first mass-produced EV

2009

1964
Start of R&D onelectric vehicles (EV)OUTLANDER PHEV

2011

2013

2020 2021 2022
ECLIPSE CROSSPHEV model

OUTLANDERPHEV model

PHEV

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Targetsl 13.1l 13.2l 13.3

TOPICS

Reopened General Sales of the “MINICAB-MiEV,” a
Kei-Car Segment Commercial Electric Vehicle (EV).

The “MINICAB-MiEV” is a one-box-type vehicle that incorporates the EV systems of the “i-MiEV,” which has aproven track record in the world's first mass-produced
electric vehicle. This system includes a drive battery
and a small, lightweight and highly efficient motor.
We have paid careful attention to the layout of the EV
components, such as the drive battery, resulting in a
spacious cargo area, as well as excellent driving stability and comfort thanks to a low center of gravity.
Sales of the only domestically produced commercial
Kei-car segment electric vehicle, the “MINICAB-MiEV,”
began in December 2011, primarily targeting the domestic delivery industry. After temporarily ceasing
production at the end of March 2021, we continued
offering the model to some corporate customers. However, with the increasing focus on carbon neutrality andthe acceleration of decarbonization efforts in various
sectors, such as logistics and local governments, demand for Kei-car segment commercial EV has grown. In
response, in November 2022 we resumed general sales
to meet the demand for sustainable business activities
and carbon reduction initiatives.
In 2024, we plan to begin producing the “MINICAB-MiEV” overseas for the first time, at PT. Mitsubishi
Motors Krama Yudha Indonesia (MMKI).
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Plug-in Hybrid Electric Vehicles (PHEV)
PHEV are powered by electricity stored in batteries
and by the motor, using the engine to generate electric power when the battery level is low. Concern overTargetl 9.4

Targetsl 13.1l 13.2l 13.3

TOPICSTOPICS

Launching the New “OUTLANDER PHEV model” in“OUTLANDER PHEV” Tops Vehicle Sales in the PHEV

Australia and North America

Category in Japan in FY2022

the driving range is no longer an issue as it offers theadvantages of electric vehicles (EV): powerful driving,superb quietness and high stability.
Our journey in PHEV began with the “OUTLANDER PHEV” in 2013, followed by the “ECLIPSE CROSSPHEV model” in 2020 and the launch of the All-New

OUTLANDER PHEV“OUTLANDER PHEV model” in 2021. At low to medium speeds, the PHEV system uses electric powerfrom the battery, but when the battery level is low, it
generates electric power during operation using theengine while also supplying power to the motor andbattery. Furthermore, during high-speed driving, thevehicle is driven by the engine and simultaneously
assisted by the battery-powered motor. In this way,
the drive mode is automatically selected according
to the situation. CO2 emissions are substantially lower
than conventional gasoline engine vehicles, delivering
outstanding environmental performance.

Following its initial launch in Japan in December 2021,
we launched the new “OUTLANDER PHEV model” inAugust 2022 in Australia, in Canada and the UnitedStates in November, and in Puerto Rico in December.
The All-New “OUTLANDER PHEV model” is a flagshipmodel that brings together the essence of our electrification and four-wheel control technologies Based on
the “majestic” concept, the body, chassis, power train,
etc. have all been redesigned and evolved. As a result,both the attractive features of a SUV such as power-

ECLIPSE CROSS PHEV model

Sales in Japan of the “OUTLANDER PHEV,” our crossover SUV, reached 17,059 units* in FY2022, topping the
PHEV category for the second straight year.
Another crossover SUV model, the “ECLIPSE CROSSPHEV model,” came second in this category, with salesof 4,485 units. Together totaling 21,544 units, thesesales put us at the top of Japan’s PHEV category forthe second consecutive year, with a market share of
approximately 54%.
* Including previous models

ful driving performance on roads and all manner ofterrain, comfort and livability, and versatile usability,
as well as attractive features of an electrified vehicle,
such as powerful and smooth acceleration and safe
and secure driving in all driving situations, have been
greatly enhanced.

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Targetl 9.4

Targetsl 13.1l 13.2l 13.3The Values Plug-in Hybrid Electric Vehicles (PHEV) Provide:

CO2 Reduction

Production

Driving Range

Disposal
CO2 emissions
Production/disposal

Powered 100% by electricity
for short trips

Driving

Power Supply Capability

Supply electricity for up to

12 days(Based on general household consumption)

PHEV

HEV*1
High level of CO2 emitted
during driving

PHEV
Relatively less CO2 emitted
during production and driving*3

On longer trips, powered by electricity
and sometimes gasoline
PHEV

EV*2

＋

Higher level of CO2 emitted during production*3

PHEV

Note: B ased on MITSUBISHI MOTORS’ estimate of actual CO2 emissions in 2025. LCA values vary depending on such factors as
CO2 emissions during power generation and lifetime mileage.

Using the LCA*4 concept, which is based on
calculations of total environmental impact fromproduction to disposal, MITSUBISHI MOTORS believes PHEV system is the most environmentallyfriendly electrical drive systems.
*1 Hybrid electric vehicle*2 Electric vehicle*3 CO2 emissions during driving include CO2 emissions generated when electricity to charge the battery is generated.
*4 LCA stands for life cycle assessment, which is a techniquefor calculating the environmental impact of a product frommanufacturing to disposal.
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

It is possible to use only the electric motor
without consuming gasoline for short trips, suchas for everyday commuting and shopping. The
motor and engine can also be used in combination to extend the driving range, using theengine to generate the electricity when battery
levels run low.

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45▶ NextVia a bi directional (V2H*5) charger, the electricity
in the battery and the engine’s generating capabilities can be used in combination to supply electricity for up to 12 days*6. It can also be used as an
emergency power source in times of disaster.
*5 Short for “vehicle to home,” V2H is a system that enables
electricity stored in a car’s battery to be supplied to the home.
*6 For the All-New “OUTLANDER PHEV model” Potential supply
capacity is calculated by MITSUBISHI MOTORS (calculations
assume approximately 10 kWh per day for general household
power consumption and do not include the conversion efficiency of the V2H equipment and/or similar device).

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Promoting the Use of Electrified Vehicles
as a Way of Adopting to Climate Change
By leveraging the large-capacity batteries on its
electric vehicles (EV) and PHEV to supply electricity,
MITSUBISHI MOTORS is contributing to measures invarious countries and industries to adapt to climatechange and energy issues. We are applying these tosuch areas as areas as energy management, V2X* anduse as emergency power sources in times of disaster.
* A general term encompassing vehicle to home (V2H) and vehicle
to grid (V2G), among others

Targetl 9.4

Targetsl 13.1l 13.2l 13.3

TOPICSWe are implementing a joint demonstration project involving DeNA, Ricoh Japan, and Kei-car electricvehicles to achieve efficient operations and energy management in our respective companies.
MITSUBISHI MOTORS, along with DeNA Co., Ltd. and Ricoh
Japan Co., Ltd., conducted a joint demonstration projectfrom September 2022 to the end of January 2023 topromote the adoption of electric vehicles by businesses.
The project aimed to achieve efficient operation of Keicar electric vehicles and energy management.
To achieve carbon neutrality by 2050, companies inJapan face the pressing need to convert their fleets ofbusiness vehicles to Kei-car electric vehicles and othersimilar options. Kei-car electric vehicles, both for passenger and commercial use, offer cost advantages overlarger vehicles, but they have smaller battery capac-

ities. To meet the diverse operational needs of businesses, vehicles need to incorporate efficient charging
strategies and operational plans that take into accountcharging timing, among other factors. In this demonstration project, three “MINICAB-MiEV”s, which are theonly Kei-car segment commercial electric vehicle inJapan, were used as sales vehicles at Ricoh’s Saitama
branch. We collected vehicle information such as operational and charging data, as well as power usage
data at the office, in order to analyze the operation ofelectric vehicles at the branch. Based on this analysis,
we proposed an appropriate number of vehicles for the
branch and developed an optimal operational plan that
<Flow of the joint demonstration project >incorporates smart charging andshifts charging to off-peak times,
Energy management system (EMS)
to achieve efficient utilization of
Kei-car electric vehicles and reducethe branch’s peak power conMost energyPower-receiving
sumption (energy management).
Battery charger
efficient
Facility
facility

Operating results/operation planequipment

Electricity results/charging plan

Platform to link EV data
Analysis of vehicle operation

Charging and power analysis

Operating days,
operating hours,
distance traveled,travel speed, remaining
battery capacity, CO2
emissions/reduction,
etc.

Charging time,number of units
charged, amount ofcharging, facility
electricity demand
curve, etc.

Verification of energy
management effectivenessPeak shift, smart charging

EV data (IoT device)“MINICAB-MiEV” used in the demonstration project

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Development of Improving Fuel
Economy Technologies
MITSUBISHI MOTORS is continuously promoting thedevelopment of powertrain technologies to reduce
fuel consumption and improve energy efficiency.

stops and starts the engine. This has a major effect on improving the fuel economy because nofuel is consumed when at a stop. When fitted witha coasting stop function, AS&G stops the engine
while decelerating.

Targetsl 13.1l 13.2l 13.3ing in a torquey, fuel-efficient ride and smooth en-

Gasoline Direct-Injection Turbo Engine

gine stopping and starting.

The “ECLIPS CROSS” adopts a 1.5L downsized directinjection turbo engine (4B40). By precisely controlling* Short for “belt-driven starter generator,” the BSG adds motor
functionality to the generator, using a belt drive to assist engine
startup and providing power assistance.

in-cylinder injection and intake port injection basedon driving circumstances, this engine delivers superiorfuel economy and a clean exhaust gas. By combining an exhaust manifold integrated with the cylinder
head, intake and exhaust MIVEC, and a compact tur-

Idle-Stop “AS&G”
AS&G is an idling stop function that automaticallyTarget
l 9.4

Motor

bocharger with an electric wastegate actuator, theEngineLithium-ion
battery

engine optimizes supercharging pressure control
to respond as the driver demands, thus delivering a
comfortable and powerful driving.

Hybrid system on the “eK X”

The “OUTLANDER” for the Chinese market is
equipped with a next-generation 1.5L downsized di-

Variable Valve Timing Mechanism
Mitsubishi Innovative Value timing Electronic Control
System (MIVEC)

rect injection turbocharged gasoline engine, which isan improved version of the 4B40 engine. Additionally,
it is combined with a hybrid system that incorporates
a 48V BSG. This system assists during start-up andExhaust side
Variable lift
sensoracceleration with the motor, achieving a high level of
performance and fuel efficiency.

Continuously variable
valve lift system
Intake sideHybrid System
The new “OUTLANDER” model for China employs a
new 48V BSG hybrid system, which is also employedin the eK series (excluding the “eK WAGON”) with
12V system. The power generated from deceleration
efficiently charges the lithium-ion battery, and the
motor assists the engine during acceleration, result-

Variable camphase system

Variable lift
electric actuator
MIVEC engine

The MIVEC is a variable valve timing mechanism forminimizing fuel consumption. The intake valve lift iscontinuously varied according to the operating condition to minimize air intake energy loss, resulting in

Direct injection turbocharged
gasoline engine (4B40)

improved fuel efficiency.

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

GovernanceTargets
l 7.2
l 7.3

Diesel Turbo Engines
The new “TRITON” model we unveiled in Thailand in
July 2023 is equipped with a new 2.4L diesel turbo engine. The weight and friction losses of the engine are
reduced due to the optimally designed key components such as the cylinder block, piston and connecting rods. Additionally, the fuel injection system has
been upgraded to the next generation, providing highperformance while achieving excellent fuel efficiency
and clean exhaust gas characteristics.
Deceleration Energy Recovery(Power Generation Control)
By using the energy generated during deceleration
to centrally charge the battery, we aim to reduce theengine's power generation during driving conditions
such as idling, acceleration and cruising, resulting in
improved fuel efficiency.

Targetsl 13.1l 13.2l 13.3

TOPICS

Employing a 1.5L Downsized Gasoline Direct Injection Turbo Engine
The new “OUTLANDER” we launched for the Chinese
market in November 2022 is equipped with an improved 1.5L downsized gasoline direct injection turbo
engine and a 48V BSG hybrid system.
		 The enhanced engine uses the following items tomeet the b class (National6b) of China’s National
6 emission standards
and improve output andfuel efficiency, achieving
torquey yet fuel-efficientdriving performance.
1. 48V belt-driven starter generator (BSG) hybrid system	The 48V BSG (generator with motor functionality)
offers excellent power generation efficiency, utilizing energy from deceleration to generate electricity
and charge a dedicated battery. During acceleration,
it assists the engine with the power generated,
helping to reduce gasoline consumption and improve fuel efficiency. Additionally, this motor can
restart the engine quickly and quietly.
2.	Low-pressure exhaust gas recirculation (EGR)
system with water-cooled intercooler	To address the issues of falling fuel efficiency while
climbing and when accelerated powerfully common
to downsized turbo engines, we have adopted alow-pressure EGR system. This system recirculates
EGR gases, which have passed through a catalyst,
back to the air intake in front of the intercooler.
After passing through the intercooler, the cooled
EGR gases flow into the combustion chamber. This
improves combustion efficiency and helps to improve fuel efficiency during high power output.
	 In low-pressure EGR systems, the intake path be-

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Targetl 9.4

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48▶ Nextcomes longer as EGR gas passes through the intercooler, which can lead to a delayed engine response.
To address this issue, we used a water-cooledintercooler to significantly shorten the distance the
EGR travels to reach the combustion chamber. Thisenhances the engine’s responsiveness, avoiding
unnecessary accelerator operation and helping to
improve fuel efficiency.
3. High-pressure fuel injection system	We use newly developed high-pressure fuel pumps
and injectors to improve combustion by better mixing fuel and air, lowering emissions and contributing
to fuel efficiency.
4. Gasoline particulate filter system (GPF)	We have developed a system that uses a filter to capture particulate matter from the exhaust gas of gasoline engines. Once a certain amount has built up, thesystem combusts the particulate matter to remove it.
This system helps to purify exhaust emissions.
5.	Switching valve to control the flow route of coolingwater (multi control valve)	To enhance engine heat management, we haveintroduced an electromagnetic valve that controls
the coolant flow flexibly, thereby optimizing watertemperature. This helps the engine warm up quickly,
reduces friction losses, and improves fuel efficiency.
6. Variable capacity oil pump	By continuously adjusting the oil discharge rate to
the required volume and maintaining an optimal hydraulic pressure, we minimize the oil pump’s workload, improving fuel efficiency.

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

GovernanceTargets
l 7.2
l 7.3

Targetl 9.4

Targetsl 13.1l 13.2l 13.3

Taking the Initiative in Business
Activities Toward Carbon Neutrality

we have formulated a medium- to long-term road-ity Committee. The subcommittee, which has mem-

map toward carbon neutrality. Following this plan, we

bers from production, development and sales com-are working to develop future technologies, improve

panies in Japan and overseas, aims to help the entire

To become carbon neutral, MITSUBISHI MOTORS willproduction processes and expand the introduction of

MITSUBISHI MOTORS Group achieve carbon neutrality

renewable energy.

in its business activities. The subcommittee shares

approach the issue from both the “demand side”

We have established the CO2 Reduction Promotion(energy consumption) and the “supply side” (energy

Subcommittee as an infrastructure of the Sustainabil-

generation and procurement). To clarify our activities,

CO2 emissions, and other pertinent data. It also drafts
reduction measures, considers future technologies,
and deliberates the future energy mix.

“Seven Approaches” to Become Carbon Neutral
Supply side: Transition to low-cost, stable renewable energy(5) Introducing renewable energy(such as solar power generation)(6) Promoting the procurementof renewable energy

Supply side

Subcommittee to Promote the Reduction of CO2(Chair: Senior Executive Officer in charge of Production/Procurement)

Person in charge of the initiative: Division General Manager,
Production Strategy Planning Division
In charge of promoting overall activities(Business Activity Carbon Neutral Promotion Office)Energy storage(reutilizing used batteries)

Electricity

Demand side(1) Making manufacturing
processes more efficient(3) Promoting the electrificationof motive power

Dealers(7) Offsetting/recovering carbon

Plants(4) Developing new-generation
technologies
Painting process

Press process

Promotion structure and responsible parties

Gas

CO2

(2) Promoting energy-saving
activities

Production management

CarbonneutralProduction of plastic parts
Body assembly

Welding process

Production of battery packs

Engine machining and assembly process
Customers

information on the progress of action plans, actual

Testing process

Casting and forging processes

Production Engineering:
Division General Manager,
Production Engineering Division
Domestic plants: Plant managers
Overseas plants:
People in charge of production companies overseas
Development (business sites):
Division General Manager,
Development Management Division
Sales companies: Presidents of sales companies
Electricity procurement:
Division General Manager,
Procurement Communication Division
Gathering/sharing of information:
General Manager,
Sustainability Promotion Department

Demand side: Work to minimize energy consumption
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
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Sustainability Strategy

FeatureEnvironment

SocialESG Data

GovernanceTargets
l 7.2
l 7.3

TOPICS

Introduction of Renewable Energy
MITSUBISHI MOTORS is actively seeking to use renewable energy in its operations, taking into consideration
the energy situation at each site. To do so, we are introducing in-house renewable energy generation andpurchasing renewable energy from energy suppliers.
We believe solar power offers us an important way
to achieve carbon neutrality, and we are proactively
introducing solar power generation at our locations. In
FY2022, we installed 1.75MW of solar panels at Mitsubishi Motors Krama Yudha Indonesia (MMKI) andTargetl 9.4

Targetsl 13.1l 13.2l 13.3

Initiatives at Manufacturing Plants

Starting to Use Solar Power Generation Equipment(Rooftop of the Paint Plant) (MMKI)
We set up a 1.75MW solar power system on the roofof a paint plant at Mitsubishi Motors Krama Yudha
Indonesia (MMKI), and the system began generating
electricity in February 2023. The system is expected togenerate 2,400MWh of power per year, reducing annual
CO2 emissions by 1,800t.
Following the paint plant, MMKI is planning togradually install solar panels at its vehicle assembly andwelding plants, as well.

To reduce CO2 emissions from production activities,
we have established a medium- to long-term roadmap to achieve carbon neutrality in each area of
production technology—pressing, welding, painting,assembly and powertrain—and we are developing
future technologies and improving production processes to this end.
We are incorporating a variety of plans into our annual capital investment plans and implementing them.
We are improving the efficiency of production equip-

began generating power there. We also added 0.3MW

ment, using electric equipment instead of the use ofof panels at the Okazaki Plant. In total, these panels

fuels, steam or compressed air, and upgrading general

should reduce emissions by 1,900t of CO2 annually.

equipment to more energy-saving models.

Furthermore, we are preparing to install solar power

In energy-saving activities involving participants

generation capacity at Asian Transmission Corpora-from production sites and production technology

tion (ATC), Mitsubishi Motors Philippines Corporationand motive power departments, we are working to(MMPC), and the Mizushima Plant. We also have plans

improve the operation of energy-intensive processes

to expand the installation areas at sites where solar
power generation is already utilized.

Solar power generation equipment on MMKI’s paint plantsuch as painting and casting. We also review the operation and management of power supply equipment
such as boilers and compressors, and strive to prevent air leaks and other losses. These activities focus
on operational improvements following the introduction of new facilities.

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Commitment of
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Sustainability Strategy

FeatureEnvironment

SocialESG Data

GovernanceTargets
l 7.2
l 7.3

TOPICSTOPICS

Reducing the Use of Compressed Air by Introduc-

Equipment (MMTh)ing a Rotary Drainage System (Kyoto Plant)

Mitsubishi Motors (Thailand) Co., Ltd. (MMTh) has imple-

The compressors used to produce compressed air ac-

mented various measures at its new paint plant to op-

count for about 20% of the energy used by the Kyoto

timize the thermal balance in the painting process. One

Plant. Accordingly, decreasing the plant’s consumption of

measure involves a heat exchanger that utilizes wastecompressed air is a priority for reducing CO2 emissions.

heat from RTO exhaust gas, which began operating in

In FY2022, we introduced a centrifugal device toJanuary 2023, resulting in significant energy savings.

drain water in the process of cleaning engine cylinder
heads, instead of the compressed air we had usedfrom RTO exhaust gas from the drying process in apreviously. This change significantly reduced the use ofgas-to-gas heat exchange. Now, we have also installed acompressed air. We expect to eventually achieve 95%

gas-to-liquid heat exchanger in the process following the

reduction in energy consumption, lowering annual CO2

drying process to utilize the heat from the exhaust gas

emissions by 40 tons. We plan to gradually roll out thisat around 100°C to reheat the water used in the painting

improved process to other lines and facilities.

facility from 50°C to 70°C. As a result, we expect to reduce

Outlet: 70°C

Warm water
for heating
Inlet: 50°C

facturing, such as at R&D and head office locations.
Part of the electric power used at the Researchand Development Building (Okazaki, Aichi Prefecture)and head office (Minato-ku, Tokyo) is supplied byrenewable energy, thanks to the erection of rooftop
solar power system and making use of the Tradable Green Certificates System*2. Also, CO2 emissions
are being reduced by using energy-saving electricalequipment and air conditioners.
In July 2020, we began tracking electricity use andpower generation per capita at our Research and De-

to increase employee awareness about saving energy.
Removing moistureby blowing compressed air<Beforeintroduction>

Workpiece rotated toremove water withcentrifugal force<Afterintroduction>

Overview of rotarydrainage system

Jig for fixing cylinder heads

Digital signage at Research and Development
Building (Okazaki)*2 T his system is used to trade environmental added value of
renewable energy generated from natural energy sources using
renewable energy certificates issued by a certificate issuer andconfirmed by a third-party organization.

Overview of heat exchangers and equipment actually installed

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

energy-saving equipment in areas other than manu-

comparisons by month. In these ways, we are working*1 RTO: regenerative thermal oxidizer

Outlet: 80°C

renewable energy and introducing various types ofoffices, and using digital signage to show year-on-year

lowering annual CO2 emissions by 550 tons.

RTO exhaustgas Inlet: 100°C

MITSUBISHI MOTORS is also promoting the use ofvelopment Building, comparing these figures with otherthe amount of gas used to heat water by more than 30%,

Heat exchanger(Gas to liquid)

Targetsl 13.1l 13.2l 13.3

Office Initiatives

Reusing Waste Heat from the Exhaust of (RTO*1)

In the painting process, we had been using the heat

Targetl 9.4

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Commitment of
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SocialESG Data

GovernanceTargets
l 7.2
l 7.3

Dealer Initiatives
MITSUBISHI MOTORS encourages our dealers in Japanto acquire Eco-Action 21 certification and carry out
activities such as reducing the amount of energy andwater they use, lowering the amount of waste they
produce, and promoting the widespread use of electrified vehicles.
Eco-Action 21 is an environmental management

ment. Eco-Action 21 has the following three features.
• The environmental management framework is easy
for small and medium-sized businesses to configureand operate.
• The system enables organizations to track and manage their CO2 emissions, working toward zero CO2.
• The system facilitates thorough management ofcompliance with environmental laws and regulations.
For details on Eco-Action 21, see the website of the system’s central secretariat (only in Japanese).
WEB https://www.ea21.jp/

Targetsl 13.1l 13.2l 13.3Dealers That Have Acquired “Eco-Action 21” Certification (As of July 1, 2023)
Company
Aomori Mitsubishi Motor Sales Co., Ltd.
Toyama Mitsubishi Motor Sales Co., Ltd.
Higashi Nihon Mitsubishi Motor Sales Co., Ltd. Toyama Diamond Motors Co., Ltd.
Ibaraki Mitsubishi Motor Sales Co., Ltd.
Fukui Mitsubishi Motor Sales Co., Ltd.
Sobu Mitsubishi Motor Sales Co., Ltd.
Kyoto Mitsubishi Motor Sales Co., Ltd.
Tokai Mitsubishi Motor Sales Co., Ltd.
Nishi Nihon Mitsubishi Motor Sales Co., Ltd.
Sunen Mitsubishi Motor Sales Co., Ltd.
Shiga Mitsubishi Motor Sales Co., Ltd.*1
Nishiowari Mitsubishi Motor Sales Co., Ltd.
Fukuyama Mitsubishi Motor Sales Co., Ltd.

Kyushu Mitsubishi Motor Sales Co., Ltd.
Oita Mitsubishi Motor Sales Co., Ltd.
Kumamoto Mitsubishi Motor Sales Co., Ltd.
Nagasaki Mitsubishi Motor Sales Co., Ltd.
Ishikawa Chuo Mitsubishi Motor Sales Co., Ltd.
Mie Mitsubishi Motor Sales Co., Ltd.
Gunma Mitsubishi Motor Sales Co., Ltd.

*1 Certification received for the Kyoto Mitsubishi Motor Sales Co., Ltd. Group

TOPICS

certification and registration system based on guidelines recommended by Japan’s Ministry of the Environ-

Targetl 9.4

Rolling out the DENDO DRIVE STATION across Japan’s Prefectures

Nationwide map of DENDO DRIVE STATIONs

MITSUBISHI MOTORS seeks to put DENDO DRIVE STATIONs into operation in prefectures across Japan. DENDO DRIVE STATIONs are next-generation dealerships
where visitors can experience the appeal of electrified vehicles, including their use
as power sources in times of disaster and their contribution to the environment.
In FY2022, we opened up a location—Ageo (Saitama Prefecture)—bringing thenumber of locations in Japan to 93.
By deploying DENDO DRIVE STATION branches across Japan, we will increase
the significance of electrified vehicles by diversifying their energy sources andcommunicating their value as sources of electric power in times of disaster.
See our website for details on our next-generation dealerships, called DENDO DRIVE STATIONs. (only in Japanese)
WEB https://www.mitsubishi-motors.co.jp/carlife/phev/dendo/index.html

Ageo Branch/Clean Car Ageo Ageo Mitsubishi Motor Sales Co., Ltd.

Exterior

Lifestyle Corner
In a corner designed to look like a typical household dining area, we conduct
a “1500W experience demonstration” toshow how daily life can go one, even during
disasters, by using just a 100V AC power
supply (1500W) from an electrified vehicle.

Electrified Vehicle Charging Facilities
Electricity generated by the solar powersystem is used to charge electrified
vehicles through V2H*2 equipment.

*2 V2H: Vehicle to home, V2H is a system that enables electricity stored in a car’s battery to be supplied to the home.
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Commitment of
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Sustainability Strategy

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GovernanceTargets
l 7.2
l 7.3

Physical Distribution
Working to Reduce CO2 Emissions from
Logistics in Japan
MITSUBISHI MOTORS is actively promoting initiatives
to reduce CO2 emissions of production parts, accessories and transportation of vehicles. Key activities for
improvement of logistics efficiency include packaging
improvements, increasing of truck filling ratio, andconsolidating cargoes to reduce weight and distance(ton-kilometers*). In addition to these in-house ef-

Capturing CO2 Emissions from Overseas Affiliates

promote eco-driving, transportation equipment up-

We understand the importance of collecting andgrades and modal shifts. We are also working with ourdisclosing CO2 emissions volumes from distribution

alliance partners to shorten travel distances throughthroughout the supply chain, including overseas, andjoint transportation and sharing the use of logistics

we are promoting initiatives in this regard.

facilities. In addition to these proactive and compre-

We have already begun collecting data from ourhensive measures, we are considering collaborating

main overseas plants, Mitsubishi Motors (Thailand)

more closely with logistics partners to encourage theCo., Ltd. (MMTh), Mitsubishi Motors Krama Yudha

introduction of vehicles that do not run on fossil fuels.

Indonesia (MMKI) and Mitsubishi Motors Vietnam* Ton-kilometer (t-km) is a measurement corresponding to thetransport of one ton of cargo over a distance of one kilometer.

Co., Ltd. (MMV), to make their CO2 emissions fromdata collected. In addition to expanding the scope to

Train

MITSUBISHI
MOTORS
Plant

Train

Truck

a result, we hope to expand our understanding of CO2

Trailer

Distribution
Base(IncludingPorts andStations)

Train

Vehicle dealers

Vehicle dealers
Parts dealers
MITSUBISHI
MOTORS
Plant

Complete
Build-up
Vehicles

Truck
Parts
Engines andtransmissions

Truck

Port

Truck

Waste disposal
contractors

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

emissions from distribution.

Port

Trailer

Supplier

include other overseas plants, we will start visualization efforts targeting overseas sales subsidiaries. As

Trailer

Boat

distribution visible. Going forward, we will continue
working to confirm and improve the accuracy of theComplete Build-up Vehicles Distribution, etc.

Truck

Targetsl 13.1l 13.2l 13.3forts, we are collaborating with logistics partners to

Focused Distribution Routes for Reducing CO2 Emissions
Supply Route

Targetl 9.4

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53▶ NextVehicle transport in Thailand

Knock-down
parts
Waste

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Commitment of
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FeatureEnvironment

SocialGovernance

ESG Data

Resource Recycling Initiatives
Basic Approach

Progress in FY2022
Direct landfill waste(Management Target
Companies: 20)[FY2021: less than 0.5%]

Targetsl 12.2l 12.5Less than0.5% Promoted strengthening adoption of non-fossilbased plastic
 Began development of autonomous street lighting
by reusing batteries from electrified vehicles
 Installed energy storage facilities for the demonstration of two concepts employing used batteries
in conjunction with quick chargers and bidirectionalchargers at the Okazaki Plant’s M-Tech Lab, whichstarted the demonstration in January 2023

<Related pages>
P15 MITSUBISHI MOTORS’ Materiality
P20 Materiality
P30 Environmental Plan Package
P33 Environmental Management
P118 Environmental Data Related to Products andBusiness Activities

Recycling-Based Design and Development

The rise in populations and economic growth inUnder vehicle recycling legislation in Japan, Europe

emerging markets is leading to a rise in the consump-

and China, automobile manufacturers are obligated totion of minerals, fossil fuels and other resources.

consider recycling when developing products.

MITSUBISHI MOTORS is working to use fewer re-

We conduct design and development that actively

sources and use them more effectively. We believe

incorporates not just recycling, but all aspects of thewe can add more value to vehicles in manufacturing

3Rs including reduction and reuse. We have imple-

process. This believe underpins our belief that effec-

mented the 3Rs in the stage starting with concep-

tive resource use is an important priority. The Envi-tual design in accordance with our unique “Recycling

ronmental Plan Package positions resource recycling

Plan Guidelines.”

as an environmental issue to engage in directly, andWith regard to wires and harnesses, and motors,

we are contributing to a resource-recycling-oriented

we have improved detachability and ease of recycling

society by minimizing input resources and maximizingin accordance with the “Harness Design Guidelines.”

resource efficiency.

At dealers, bumpers recovered or replaced during

Countries and industry groups are formulating

repairs are recycled for battery trays and other exte-

various initiatives in order to promote automobilerior parts. We are also promoting the increased use

recycling and correct processing. In response, thein other parts of recycled materials and non-fos-

Company set targets to improve the ease of recy-sil-based plastic used in vehicles, such as biomasscling, reduce the use of lead, and introduce recycledplastics. Recycled materials such as clothing are usedparts for new vehicles when the “MITSUBISHI MOTORS

for silencer parts such as dashboards, and biomass

Recycling Initiative” was established in 1998. We haveplastics are used for interior parts such as steeringcontinued to engage in this initiative.

wheel garnishes.

With regard to waste generated by our businessactivities, to achieve the goal set in Environmental
Targets 2030 of “zero direct landfill waste (less than0.5%),” we are working to reduce waste generated
outside the company and reuse resources. In FY2022,
our management target companies achieved zero
direct landfill waste (less than 0.5%).
Data (pp. 120): Generated waste, generated waste and externallydisposed waste (MITSUBISHI MOTORS along), raw material inputs

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
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ESG Data

Targetsl 12.2l 12.5

TOPICS

Using Thermoplastic Resin
The “XPANDER CROSS,” which was launched in 2019,uses easily recyclable thermoplastic resin for exterior
and interior parts.
Main parts (indicated in green)that use thermoplastic resin

Promote recycling of end-of-life vehicles
MITSUBISHI MOTORS encourages the recycling of endof-life vehicles to reduce the environmental impact
of waste from these vehicles. In Japan, the European Union and other regions, we promote recyclingin accordance with the automobile recycling laws ofeach country. We comply carefully with the evolving
automobile recycling laws that are being introducedin emerging countries in Asia.
The Environmental Targets 2030 identify thereuse of batteries used in electrified vehicles as one
item to be addressed. From the perspective of conserving resources, we are undertaking initiatives toutilize used batteries.

Reuse of Batteries Used in Electrified Vehicles

Exterior

Interior

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Used electrified vehicle batteries retain sufficientstorage capacity to make them useful for other applications, so from the perspective of conserving resources we are working to effectively reuse electrified
vehicle batteries. To ensure these batteries can beeffectively used for storage, we are conducting verification using a large-scale rooftop solar power systemat the Okazaki Plant and built a power storage systemthat employs used batteries from the “OUTLANDER
PHEV” (previous model).
In January 2023, we installed demonstration equipment for electrified vehicle quick chargers and bidirectional chargers at the Okazaki Plant, and the demonstration has begun. We intend to conduct effectivenessof the concept and technical verification, with the aimof introducing the system at our dealers and otherlocations in the future. (Please see page 27 for details.)
In addition, with MIRAI-LABO Co., Ltd., we have beBack ◀

55▶ Nextgun the development of autonomous street lighting
by reusing batteries from electrified vehicles. In April
2023, autonomous street lighting was installed in the
Okazaki Plant and we began a demonstration experiment. These lights require no external power supplies,
but use solar power, used batteries from electrified
vehicles and recycled steel. In the event of disaster or
power failure, such street lights continue to function
and without having to be turned off. With the aim ofcommencing sales by in FY2024, the FY2023 demonstration experiment will obtain data on batteries andother items during use, and verify the practicality ofthe system, considering factors such as the numberof days when the sun does not shine.
In Japan, Europe and North America, we havebegun creating a system for collecting used batteries.
The aim is to develop recycling technologies for andproperly dispose of batteries for electric vehicles andplug-in hybrid electric vehicles.

Response to Automobile Recycling Laws in Japan
Since the End-of-Life Vehicle Recycling Law was enacted in Japan in 2005, we have been accepting usedautomobile shredder residue (ASR*1), airbags, andfluorocarbons for recycling.
Regarding ASR recycling, we participate in ART*2 inorder to jointly process ASR. As a result of the creation of new processing facilities and other measures,
the ASR recycling rate in FY2022 was 96.8%, substantially above the statutory standard of 70% in effectsince 2015. We will continue to develop new recycling
facilities to ensure the stable processing of ASR.
*1 Automobile shredder residue*2 A utomobile Shredder Residue Recycling Promotion Teamestablished by 13 companies, including Nissan Motor Co., Ltd.,
Mazda Motor Corporation and MITSUBISHI MOTORS.
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Commitment of
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SocialESG Data

GovernanceTargetsl 12.2l 12.5*2 “Directive of the European Parliament and of the Council on
End-of- Life Vehicles”*3 End-of-Life Vehicles

Provision of Dismantling Information
In the EU, automobile manufacturers must provide
dismantling information for new model vehicles totreatment operators. The company provides such information on a timely basis by using the International
Dismantling Information System (IDIS) jointly developed by automobile manufacturers.

Initiatives to Reduce Waste Generation andReuse Resources in Production Activities
We are working to reduce the amount of waste generated through manufacturing by improving its production processes. As for the generated waste, we
reduce treatment costs and continue to improve thesorting and treating methods to utilize it as resources.
Effective Use of Resources and Recycling

Low

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Response to the EU’s Directive on the Recycling ofEnd-of-Life Vehicles
In the EU, in accordance with the End-of-Life Vehicles Directive*2 established in 2000, automobile
manufacturers or importers must accept and recycle
end-of-life vehicles. Also, in 2003, the ELV Directive*3
was enacted, specifying ease of recycling as a certification requirement.
We built a system of acceptance and recycling inline with the actual situation of EU member countries
centering on our European subsidiary Mitsubishi Motors Europe B.V. (MME).

Rate of Effective Use*1 Polypropylene resin, a general-purpose polymer composed ofcarbon and hydrogen

Recycling Promotion in the EU

High

MITSUBISHI MOTORS outsources the treatment of
airbags and fluorocarbons to the Japan Auto Recycling Partnership (JARP).
In addition, for the effective use of recycling fees
deposited from customers, we proactively work on
increasing the recycling rate by conducting efficient
recycling and proper processing of these three items.
We accept for recycling three items identified
by Japan’s End-of-Life Vehicle Recycling Laws (ASR,
airbags and fluorocarbons). As part of a project tosupport the advancement of automobile recycling,
we engaged in the following two R&D projects from
August 2021 to March 2023.
1) Research to restore the physical properties of PP
resin*1 recovered from ASR and expand the use ofnon-fossil-based plastic.
2) In the aim of realizing a low-carbon society, research to verify the applicability of technology todiagnose battery degradation, quickly and to a highdegree of accuracy, that can facilitate the reuseand closed-loop utilization of drive batteries
We have joined the “LiB Joint Recovery System”
established by the Japan Automobile Manufacturers
Association and work to efficiency recovery lithium-ion
batteries (LiBs). The system started operating in October 2018 to properly dispose of used LiBs with theJapan Auto Recycling Partnership as a contact point.

Reuse within
the process
Reuse within
the company
Valuable sale
Material recycling
Thermal recycling
Simple incineration
Direct to landfill

Valuablematerials
Waste

Response to the EU’s Directives on Approval for Vehicle Models for Recyclability
In the EU, satisfying the minimum 95% recyclability rate is a requirement for type approval of vehicle
models, and the company established a system thatsatisfies the requirements of this directive. Our vehicles sold in the EU meet the requirements of thedirective under this system.
Going forward, we will continue to acquire recyclability approval for all new models sold in the EU.
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Commitment of
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Sustainability Strategy

FeatureEnvironment

SocialPrevention of Pollution
Progress in FY2022
 Eliminated the use of kerosene by electrifying air
conditioners (Mizushima Plant) Obtained information on GADSL*1 regulated substances, upgraded our management system, andswitched parts and made design changes in accordance with the ELV*2 directive in order to properly
manage hazardous substances in products.
*1 Global Automotive Declarable Substance List, a list to
facilitate the exchange of information on environmentallyhazardous substances, created by consensus of a group of
automotive manufacturers in various countries*2 End-of-life vehicles

Targetl 3.9

Basic Approach
Vehicles are products that can affect human healthand biodiversity through the emission of environmental pollutants and chemical substances during business activities or product use.
MITSUBISHI MOTORS aims to contribute to therealization of a pollution-free society and has positioned it as one of the key challenges in its Environmental Plan Package. We are working to reduce theenvironmental impact of our products and the pollution resulting from our business activities.

<Related pages>
P15 MITSUBISHI MOTORS’ Materiality
P20 Materiality
P33 Environmental Management
P118 Environmental Data Related to Products andBusiness Activities
WEB Atmosphere/Wastewater Quality/PRTR-designatedPollutants Data (FY2022 Results)
https://www.mitsubishi-motors.com/en/sustainability/esg/
factory_archive2023.html

ESG Data

GovernanceIn the stage of product development, along with
reducing noxious components of exhaust gases andpromoting the development of fuel economy improving technologies and electrification technologies, we
strive to manage hazardous substances. In production
processes, we are endeavoring to reduce air pollutants emitted from out plants by voluntarily enacting
activity standards that are stricter than legal requirements. In order to reduce the impact on the environment from air pollutants and chemical substances,
we engage in the prevention of pollution throughout
all our business activities.

Targetl 6.3

Targetsl 12.4l 12.5

Improving Gasoline Engine Vehicles
In the 1960s, emissions of carbon monoxide (CO),hydrocarbons (HC) and nitrogen oxides (NOx) wererestricted by regulations, and those restrictions have
gradually been tightened since.
We have taken various measures since such regulations were first introduced. Currently, our products
are compliant with stricted emission regulations,
thanks to the advanced technologies such as electronically controlled fuel injectors for combustion
control, gasoline particulate filter (GPF) systems, andimproved catalyst technologies.

Improving Diesel Engine Vehicles
For diesel engine vehicles, emissions of CO, HC, NOx,and particulate matter have been regulated in somecountries and regions, such as Japan, United Statesand European countries, since the 1970s.
Since such regulations were first introduced, we
have taken measures including improving the combustion technology. To comply with these regulations,
we have developed and produced clean diesel engines
by systemizing combustion control technologies suchas variable geometry turbocharger and high pressure
fuel injection system, as well as after-treatment technologies such as NOx trap catalyst, diesel particulate

Purifying Exhaust Gas while Driving

filter, and urea selective catalytic reduction system.

In addition to developing and popularizing electrified
vehicles, which emit little exhaust while driving, weare endeavoring to develop and improve gasoline anddiesel vehicles that emit fewer hazardous substances.
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

GovernanceTargetl 3.9

Clean Diesel Engine Systems

Diesel Particulate Filter (DPF)

VG* Turbocharger

A DPF, a filter that removes particulate matter by col-Continuously controlling the variable nozzle oflecting and burning it, substantially reduces emissions

the turbine optimally boosts power to the engineof particulate matter.

1

Targetl 6.3

Targetsl 12.4l 12.5throughout its full operating range, improving fuelefficiency and reducing PM emissions.
*1 Variable geometry

Urea Selective Catalyst Reduction (SCR) System
Nitrous oxides (NOx) from diesel engines’ emissions
are reduced and purified using an aqueous urea soluCommon Rail Fuel Injection Systemtion (AdBlue®*2), breaking them down into non-pollut-

Particulate matter and NOx can be generated due toing nitrogen and water.

incomplete combustion. In our vehicles, this is sup-*2 Registered trademark of the Verband der Automobilindustrie (VDA)pressed using a high-pressure fuel pump, common
rail accumulator that stores highly pressurized fuel,and electronically controlled fuel injectors.

[CleanDiesel Engine(4N14 Engine)][The 4N14
EngineSystem
System]Intercooler

Turbocharger

IntakeUrea SCR catalyst
Injection of AdBlue®
NOx
reduction

EngineExhaustgas

NH3 reduces NOx
into H2O and N2.

Urea SCR system
Fuel pump
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Oxidation
Common rail catalyst DPF catalyst Aqueous urea tank
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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

GovernanceTargetl 3.9

Reduction of Hazardous Substances
In accordance with the reduction targets of the Japan
Automobile Manufacturers Association, Inc. (JAMA)
and the EU’s end-of-life vehicles directive (a recyclinglaw), MITSUBISHI MOTORS is working to reduce theuse of four substances (lead, mercury, cadmium, andhexavalent chromium). We are also taking measures
to comply with regulations on the use of hazardous
substances in each country in compliance with the
REACH regulation*1 concerning substances and theConvention on POPs* .
2

At present, in addition to four substances andother heavy metals, the use of VOCs*3, bromine-based
flame retardants and various other substances isregulated. Regulations similar to European ones arebeing enforced in developing countries in Asia as well.
We are working to voluntarily reduce hazardous
substances by setting internal technical standards.
*1 REACH stands for “Registration, Evaluation, Authorisation andRestriction of Chemicals.” Enacted on June 1, 2007, the REACH
regulation is a general system to register, evaluate, authorize
and restrict the use of substances*2 Persistent Organic Pollutants*3 Volatile Organic Compounds
Data (p. 119): Emissions of Sulfur Oxide, Nitrogen Oxide, VOC (Volatile Organic Compounds) and Ozone-Depleting Substances

Management of Material Data by IMDSIMDS*4, an international system for collecting suchdata. Together with overseas, we utilize the collected
data under a globally centralized internal system forreducing hazardous substances.
In cooperation with suppliers, we are complying
with the REACH regulation, a general system for theregistration, evaluation, authorization, and restrictionof substances used in the EU.
In FY2022, we renovated our internal management
system to properly manage hazardous substances in
products by incorporating information on GADSL-regulated substances. We collect IMDS data inputted by

To provide customers with a healthy and safe cabin
space, we work to reduce VOCs inside the cabin.
VOCs are organic compounds that are easily volatilized at room temperature such as formaldehyde
and toluene. These compounds are thought to cause
sick building syndrome, and may irritate the eyes,
nose, and throat. In an automobile cabin, they aremainly generated by adhesives and paint used in interior parts.
Please see the JAMA website for details regarding
the Voluntary Guidelines.
WEB https://www.jama.or.jp/english/news/past/release/2005/
050214.html

suppliers and utilize the system to automatically determine the compliance status with regulations if any

Progress

newly regulated substances are found in components,

We are working to develop materials with low VOC

based on the content and materials used. We also

emissions to reduce in-cabin VOCs.

implemented component replacement and designchanges in accordance with the ELV Directive.

Example of Measures to Reduce VOCs

*4 International Material Data System

CarpetSeat

Reduced aldehydes in pile adhesives
Reduced organic solvents in fabric adhesives
Reduced VOCs by using spun-dyed highOrnaments
gloss interior parts

Flow of Data Collection through IMDSMITSUBISHI MOTORS
Hazardous
Substance
control

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Targetsl 12.4l 12.5

Reduction of In-Cabin VOCs

Data on the hazardous substances contained in vehicle parts delivered by suppliers are collected by theTargetl 6.3

Data input
requestInternal
systemBack ◀

Data
download59▶ NextSuppliers
Data input

IMDS

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

GovernanceTargetl 3.9

Preventing Air Pollution
Reduction of VOC Emissions from Production
Processes
MITSUBISHI MOTORS is applying the waterborne 3WET
paint method*1 to the painting process to reduce
VOC emissions. In Japan, we use this method at theMizushima Plant and the Okazaki Plant. Overseas, thesystem is used on the No. 3 paint line at Mitsubishi

chemical properties and the details of usage plans, as

We follow laws and regulations to manage the con-well as legal requirements, conduct risk assessments.

centrations and amounts of such air pollutants as

Finally, we judge whether they can be introduced andnitrogen oxides (NOx), sulfur oxides (SOx) and sooteducate workers well. We also use this system toemitted in production processes.

conduct centralized management of the most recent

In addition, we are promoting the replacement of

Safety Data Sheet (SDS) information. In addition, we

equipment that uses fossil fuels such as kerosene withuse data from this system to ascertain the quantity

electric devices, including electric heat pumps, to si-of PRTR*2 substances used and report on their usage

multaneously reduce air pollutants and CO2 emissions.

and emissions to Ministry of Economy, Trade and Industry, as well as other aspects of legal compliance.

thinner. Through these moves, we are reducing VOC
emissions from vehicle production.
*1 With this method, water-soluble paints are used for the
middle and top coats. Solvent-based paint is used only for theclear overcoat.
Data (p. 119): VOCs

*2 P
 RTR: Pollutant Release and Transfer Register

TOPICSWe are also upgrading our robotic and otherby adjusting production lots and collecting more used

Targetsl 12.4l 12.5

Management of Air Pollutants

Motors (Thailand) Co., Ltd. (MMTh).
painting systems, reducing the amount of paint used

Targetl 6.3

Eliminating the Use of Kerosene through Electrification (Mizushima Plant)

Appropriate Management of Hazardous Waste

At the Mizushima Plant, in FY2022 we replaced the
air conditioners in the main building and PR Centerwith electric air conditioners, transitioning from kerosene-powered absorption chiller-heaters to fully electrified systems.
This move reduced kerosene use within the plant tozero, lowering atmospheric pollutants such as NOx andparticulate matter, as well as achieving an annual reduction of 50 tons of CO2 emissions due to energy-saving effects.

exporting hazardous waste that is restricted by the

We manage hazardous waste to avoid importing orBasel Convention on the Control of Transboundary
Movements of Hazardous and Their Disposal*3.
We also transport and treat waste produced in Japan appropriately, based on various legal requirements.
*3 T his convention stipulates international frameworks andprocedures related to restrictions on international transfer of acertain types of waste.

Appropriate Management of Waste Containing
PCBs
Harmful polychlorinated biphenyls (PCBs) are con-Management of Chemical Substances
New paint plant (MMTh)

Appropriate Management of Chemical Substances
We have introduced a chemical substance management system for using chemical substances. Before

tained as insulation oil in transformers and condensers that were manufactured a long time ago.
We process waste containing PCBs appropriately, in
accordance with the Act on Special Measures concerning Promotion of Proper Treatment of PCB Waste.

deploying substances, we examine their physical and

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

GovernanceConservation of Water Resources

Targetl 6.4

 Put in operation and improve of operation at a discharged water recycling plant at Mitsubishi Motors(Thailand) Co., Ltd. (MMTh) Completed an effluent treatment facility and associated sludge dewatering equipment to treat emissions from the Mizushima Plant’s paint plant, sheet
metal plant, and in other production processes.

technologies based on the status of water resource

Basic Approach

Progress in FY2022

management in individual countries and regions.

Due to the increasing population and changes in thenatural environment caused by climate change, water supply and demand are becoming tighter in more

WEB Atmosphere/Wastewater Quality/PRTR-designatedPollutants Data (FY2022 Results)
https://www.mitsubishi-motors.com/en/sustainability/esg/
factory_archive2023.html

water resources are increasing.
MITSUBISHI MOTORS requires a large amount of
the automobile production process and discharge ofwater into sewage lines and rivers, etc. In regions wherewater risk is high, it is essential to consider the impactthat water withdrawal and discharge from our businessactivities have on the surrounding environment.
At each plant , we comply with various legal requirements, such as the one on the quality of discharged water. In addition, we work to reduce water
withdrawal amounts and introduce water recycling
Water Withdrawal Source and Drainage of Each Plant
Plant
Okazaki Plant(Okazaki, Aichi Pref.)Water Withdrawal
Drainage
SourceYahagi River
Kanda River
Tributary →Kanori River
Lake Biwa
Sewage line

Kyoto Plant –Kyoto(Kyoto, Kyoto Pref.)Kyoto Plant –Shiga
Lake Biwa(Konan, Shiga Pref.)Mizushima Plant
Takahashi River(Kurashiki, Okayama Pref.)Mitsubishi Motors
Nong Pla Lai(Thailand) Co., Ltd. (MMTh) Reservoir, etc.
Mitsubishi Motors Krama Lake Jatiluhur
Yudha Indonesia (MMKI)
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

risk management throughout the entire value chain.

regions, and social concern for the preservation ofindustrial water, city water, and groundwater, etc., for<Related pages>
P15 MITSUBISHI MOTORS’ Materiality
P20 Materiality
P33 Environmental Management
P118 Environmental Data Related to Products andBusiness Activities

Water is required for the operations of our business
partners. We are aware of the importance of water

Back ◀

61▶ NextReduction of Water Withdrawal Volume
We are striving to reduce water withdrawal volumes
by reusing washing water used in production processes for pre-washing and by circulating coolingwater and temperature control water.
At the Okazaki Plant and at PT. Mitsubishi Motors
Krama Yudha Indonesia (MMKI), we have set up rainwater storage tanks in order to reuse rainwater.
At the Okazaki Plant, we have also set up equipment to filter groundwater so that it can be used tosupply drinking water to employees and those wholive nearby, in case any disasters occur.
Data (p. 120): Withdrawn water volume

Sewage line
HakkenRiver →
Mizushima
Port
Sewage line

Rainwater storage tanks(Okazaki Plant)

Groundwater membrane
filtration equipment(Okazaki Plant)

Sewage line
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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

GovernanceTargetl 6.4

Reuse of Discharged Water

Prevention of Water Pollution

The MITSUBISHI MOTORS Group has introduced

To prevent water pollution in areas surrounding

wastewater recycling technologies, taking into con-plants, we measure and manage the quality of dis-sideration the situation regarding water resource

charged water based on legal requirements. We also

management at each facility location. Currently, dis-conduct surveys and confirmations regarding thecharged water recycling plants are operational at PT.

quality of groundwater and soil pollution. In this way,

Mitsubishi Motors Krama Yudha Indonesia (MMKI) and

we confirm that no toxic substances are being dis-

Mitsubishi Motors (Thailand) Co., Ltd. (MMTh).

charged to the outside area. In order to quickly detect

MMKI has been utilizing a water recycling plant

abnormalities in discharge water quality due to suchsince its establishment in 2017. In FY2022, its waste-

factors as rainfall, we set up a surface oil detector* inwater recycling rate reached 67%.

front of outlets leading from the plant to public water

In addition, in January 2022 MMTh began operat-

and continuously monitor discharge water conditions.

ing its first discharged water recycling plant, in con-

We carry out continuous monitoring so that water

junction with the start of operations of a new paintdischarged from the plant does not affect the envi-

plant. By starting and improving operations in FY2022,

ronment outside the site. In the event of an accident,

in January–March 2023 the wastewater recycling rate

we respond quickly to prevent pollution from spread-rose to 83%.

ing, report to the local authorities and disclose infor-

Data (p. 120): Withdrawn water volume

mation to the community.
* Detects the presence of oil by capturing changes in reflectanceas the reflectance of oil is greater than that of water.

TOPICS

Upgrading Industrial Wastewater Treatment
Facilities and Sludge Dewatering Equipment(Mizushima Plant)
At the Mizushima Plant, we are gradually upgrading
waste water treatment facilities that have deteriorated
over time. After upgrading urine and domestic wastewater treatment facilities in FY2021, in FY2022 we updated wastewater treatment facilities, including thosefor the paint plant and sheet metal factory, along withthe accompanying sludge dewatering equipment. The
upgraded facilities began operating in March 2023.
We have installed a high-speed coagulation andsedimentation device in our wastewater treatment
facility, allowing us to reduce processing time, optimize
space utilization, and stabilize the quality of treatedwater. Additionally, by utilizing natural gradients forwater transfer and reducing the number of pumps, wehave increased energy efficiency, reducing annual CO2
emissions by an estimated 50 tons.
By updating the filter press dewatering equipment to improve the dewatering performance of oursludge dewatering equipment, we expect to reduce theamount of sludge treated as industrial waste by approximately 15%, or 70 tons per year.

Wastewater recycling plant (MMTh)
Observation well (Okazaki Plant)

Surface oil detector(Okazaki Plant)
Industrial wastewater treatment facilities and the green site of
the former treatment plant (Mizushima Plant)

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Commitment of
Top Management

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FeatureEnvironment

SocialPreservation of Biodiversity* A biotope is a space where organisms can live in natural
surroundings.

Basic Approach
All living things are intricately connected in various
relationships and live in balance. We benefit from thisbiodiversity in our lives.
MITSUBISHI MOTORS both directly and indirectly
impacts on biodiversity due to land use (including theconstruction of plants), the release of chemical substances from plants, and the greenhouse gas emitted
from the use of our products and business activities.
Meanwhile, climate change is transforming regional
environments, which has a major direct impact on
ecosystems. We believe it is a priority to enact climatechange countermeasures, protecting biodiversity sothat we can continue to enjoy its blessings.
We formulated the “MITSUBISHI MOTORS Group
Guidelines for the Preservation of Biodiversity” in Au-<Related pages>
P15 MITSUBISHI MOTORS’ Materiality
P20 Materiality
P33 Environmental Management
WEB Biodiversity Data
https://www.mitsubishi-motors.com/en/sustainability/esg/
biodiversity-related_data/

gust 2010 and promote conservation activities.
Our business sites in Japan are not located in or
adjacent to protected areas according to the Nature
Conservation Act and prefectural codes. However,
we conducted surveys on ecosystems in order tounderstand the impact our business activities haveon biodiversity.
To protect water sources and fostering environmental awareness among our employees, we conduct forest preservation and interact with the local
community through volunteer employee activities inJapan and overseas.

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

ESG Data

Targetl 15.5Progress in FY2022
 Promoted preservation activities that leverage theresults of ecosystem surveys at locations in Japan• At the Kyoto Plant, continued to manage a biotope*and cultivated rare aquatic plants•A t Kyoto Plant-Shiga, engaged in wetland conservation and cultivation of rare white egret flower Conducted tree-planting and cultivation activities inJapan and overseas•P lanted and cultivated trees at Pajero Forest(Yamanashi Prefecture)• In FY2023, signed a forest preservation activities
collaboration agreement with the city of Okazaki,
Aichi Prefecture, ahead of the start of operationsof the Okazaki Outlander Forest•C onducted tree-planting projects in the Philippines
and Thailand

Governance

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63▶ NextMITSUBISHI MOTORS Group
Guidelines for the Preservation of Biodiversity
The MITSUBISHI MOTORS Group will continue to track andreduce its impact on biodiversity, recognizing that theactivities of humankind can both benefit from and affectthe diversity of living organisms. To this end, the entire
Group will take on initiatives for preventing global warming and environmental contamination, and promote therecycling and efficient use of resources, while engaging
in activities that pay consideration to biodiversity.
1. Consideration to biodiversity in business activities
	We will track and reduce the impact of business activities on biodiversity by conserving energy, reducing
the generation of waste, and curtailing the release ofchemicals. At the same time, we will also pay consideration to neighboring communities when making useof land for factory construction and other purposes.
2. Consideration to biodiversity in products	We will promote fuel efficiency, exhaust gas
countermeasures and recycling-friendly design ofour products, while striving to select and use materials that pay consideration to the environment.
3. Education, understanding and self-awareness	We will continue to educate the entire Group frommanagement to employees on the front lines toshare a common understanding and develop a
self-awareness of the relationship between businessactivity and biodiversity.
4. Cooperation and collaboration with society	These activities will be promoted in cooperation
with all stakeholders including the supply chain,stockholders, local governments, local communities,
non-profit organizations (NPOs) and non-governmental organizations (NGOs).
5. Information disclosure	We will strive to disclose and disseminate the content and results of these activities to customers andlocal communities.

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Targetl 15.5

Promoting Preservation Activities
Ecosystem Surveys at Business Sites in Japan

Production of vehicles requires large-scale plants.
MITSUBISHI MOTORS believes that assessing theimpact that the use of land in company business has
on local biosystems is important to our biodiversity
protection initiatives. Based on this concept, we conducted ecosystem surveys at our domestic businesssites with largescale land, such as our factories withsupport from consultancies related to biodiversity.
Ascertaining biosystems not only in domestic business sites but also in the surrounding environmentby means of field surveys and documentary researchleads to maintenance measures that are in harmony
with local biodiversity.
Locations Where Ecosystem Surveys Were ConductedFiscal Year
2013
2015
2017
2018
2019
2021/2022

Location
Kyoto Plant-Shiga
Okazaki Plant
Mizushima Plant/Kyoto Plant-Shiga*
Tokachi Research & Development Center
Kyoto Plant-Kyoto
Kyoto Plant-Kyoto** A monitoring survey was conducted to confirm the preservation
effects of the measures.

the “Relaxation Plaza,” a green space on the campus,
and rare aquatic plants such as Pricky water-lilies andwater hollyhock are being cultivated in a pond within
the plaza.
The seedlings of the rare aquatic plants were separated out by “SUSTAINA KYOTO,” an environmental
education center within the Kyoto City Southern Clean
Center. Seeds of pricky water-lilies and water hollyhock that grew well in the pond were collected, andsome of them were returned to “SUSTAINA KYOTO” in
November 2022.

Relaxation Plaza

Pricky water-lilies 45cm
in diameter

Kyoto Plant-Shiga
Preservation of Wetlands Where White Egret
Flowers Bloom

We are working to protect the rare white egret flower by preserving wetlands located within the plant.
Employees regularly remove invasive herbaceous
plants such as broomsedge bluestem and maintainthe wetland environment, which gives the white egret
flower room to bloom every summer.

Kyoto Plant-Kyoto
Cultivating Rare Plants in Cooperation with the
Local Community

Based on an ecosystem survey conducted, we learned
that the Kyoto Plant serves as a refuge where certain
plants and insects can survive locally, and we foundthat this area was an important environment in terms
of preserving regional diversity. To create a habitatfor dragonflies and other insects, we built a biotope in
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Employees clearing away
invasive herbaceous plants
Back ◀

White egret flower blooming64▶ NextForest Preservation Activities in Japan and Overseas
Since 2006, the Company has been conducting forest
preservation activities in the “Pajero Forest” (approximately 7.23 hectares) located in Hayakawa-cho, Yamanashi Prefecture, in collaboration with the town of
Hayakawa and OISCA. In March 2023, we also signed aforest preservation activity collaboration agreementwith the city of Okazaki, Aichi Prefecture, where ourmanufacturing plant is located. We have named theforests in the Nukata area of Okazaki (approximately
50.7 hectares) as the “Okazaki Outlander Forest” andwill engage in activities such as afforestation, undergrowth clearing, thinning, removal, pruning, and maintenance of walking trails and work paths.
In collaboration with the Philippines Department ofEnvironment and Natural Resources (DENR), Mitsubishi
Motors Philippines Corporation (MMPC) initiated a reforestation project in March 2018, with a plan to plant acumulative total of 100 hectares over a period of approximately five years. So far, MMPC has planted trees
on 62.2 hectares. In the final year, 2023, the we aim tocomplete the plan by planting mangroves and othertrees on 37.8 hectares in Infanta, Quezon Province.
Mitsubishi Motors (Thailand) Co., Ltd. (MMTh) anda non-profit organization, the Mitsubishi Motors
Thailand Foundation (MMTF), began a reforestation
project in FY2021. In 2022, as part of the “Root for
Sustainability” project, we planted trees on 40 rai (6.4
hectares) of land in Nakhon Ratchasima province.

Signboard unveiling ceremony
at “Okazaki Outlander Forest”(Okazaki, Aichi Prefecture)

Planting trees in Thailand
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Commitment of
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Sustainability Strategy

SocialFeatureEnvironment

SocialGovernance

ESG Data

SocialDelivering Products Which Help Prevent Traffic Accidents������������������������������������������������������ 66

Stepping up Human Resource Development���������������������������������������������������������������������������������������� 85

Basic Approach, Management Structure�������������������������������������������������������������������������������������������������� 66

Basic Approach���������������������������������������������������������������������������������������������������������������������������������������������������������� 85

Development of Safety Technology������������������������������������������������������������������������������������������������������������� 67

Training and Education���������������������������������������������������������������������������������������������������������������������������������������� 86

Traffic Safety Education and Promotion��������������������������������������������������������������������������������������������������� 69

Career formation and evaluation������������������������������������������������������������������������������������������������������������������� 87

Improvement of Product, Sales, and Service Quality�������������������������������������������������������������������� 70

Promoting Occupational Health and Safety����������������������������������������������������������������������������������������� 88

Basic Philosophy and Quality Policy�������������������������������������������������������������������������������������������������������������� 70

Basic Approach, Management Structure�������������������������������������������������������������������������������������������������� 88

Improving Product Quality, Vehicle Quality Evaluations and Guarantees Based on

Initiatives to Ensure Workplace Safety������������������������������������������������������������������������������������������������������� 89

a Customer Perspective, Improving Perceived Quality����������������������������������������������������������������� 71

Responses to COVID-19, Labor-Management Relations����������������������������������������������������������������� 90

Improving Sales Quality, Improving Service Quality, Use of Customer Voice���������������������� 72

Respect for Human Rights���������������������������������������������������������������������������������������������������������������������������������� 91

Management System��������������������������������������������������������������������������������������������������������������������������������������������� 74

Basic Approach, Human Rights Policy�������������������������������������������������������������������������������������������������������� 91

Contribution to Local Economy through Business Activities�������������������������������������������������� 76

Management Structure, Human Rights Due Diligence���������������������������������������������������������������������� 92

Basic Approach, Management Structure, Employment������������������������������������������������������������������� 76

Complying with the Human Rights Policy������������������������������������������������������������������������������������������������� 93

Human Resource Development, Investment, Technology Transfer����������������������������������������� 77

Access to Remedy��������������������������������������������������������������������������������������������������������������������������������������������������� 94

Export, Environmental and Social Contribution������������������������������������������������������������������������������������ 78

Achieving a Sustainable Supply Chain������������������������������������������������������������������������������������������������������� 95
Human Resources Management�������������������������������������������������������������������������������������������������������������������� 79

Basic Approach���������������������������������������������������������������������������������������������������������������������������������������������������������� 95
Management Structure, Supplier CSR Guidelines��������������������������������������������������������������������������������� 96

Human Resources Strategy, The Type of People We Look for (MMC WAY),

Efforts to Become Carbon Neutral throughout the Supply Chain,

Promotion Structure������������������������������������������������������������������������������������������������������������������������������������������ 79

Green Procurement Guidelines�������������������������������������������������������������������������������������������������������������������� 97

Conducting Engagement Surveys, Human Resource Evaluation,

Working with Suppliers to Improve Quality, Promotion of Localization

Fair Compensation System���������������������������������������������������������������������������������������������������������������������������� 80

Initiatives for Business Continuity Plans in the Supply Chain,

Promotion of Work Style Reforms in Response to the New Normal

Participating in Outside Initiatives������������������������������������������������������������������������������������������������������������ 98(Diversity, Work-Life Balance)��������������������������������������������������������������������������������������������������������������������� 81
Basic Approach, Initiatives toward a Flexible Working Style, Promoting Diversity��������� 81

Promoting Social Contribution Activities������������������������������������������������������������������������������������������������ 99

Promoting Women’s Participation and Advancement in the Workplace������������������������������� 82

Basic Approach and Policies������������������������������������������������������������������������������������������������������������������������������ 99

Promoting a Work-Life Balance, Increasing Employment of Senior Workers,

Society, Traffic safety���������������������������������������������������������������������������������������������������������������������������������������� 100

Promoting Employment of People with Disabilities����������������������������������������������������������������������� 83

Environment, People������������������������������������������������������������������������������������������������������������������������������������������ 101

Global Action, Promote LGBTQ Awareness, Participating in Initiatives Outside

MITSUBISHI MOTORS STEP Funds and Matching Gift Program������������������������������������������������� 102

the Company���������������������������������������������������������������������������������������������������������������������������������������������������������� 84

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Support for Disaster-Stricken Areas��������������������������������������������������������������������������������������������������������� 103

65▶ NextBack to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

Governance

Delivering Products Which Help Prevent Traffic Accidents
Basic Approach

Progress in FY2022
Safety Support Car S Wide
Models[FY2021: 17 vehicle models]Models Certified by the Ministry of Land, Infrastructure,
Transport and Tourism (MLIT)
as Having Forward Collision
Mitigation Braking[FY2021: 15 vehicle models]Models Certified by the MLIT
as having Pedal Misapplication
Prevention Devices[FY2021: 17 vehicle models]Models adopting the Collision
Safety Technology “RISE”(Excluding Vehicle Models
Provided by OEM)
[FY2021: 12 vehicle models]Targetl 3.6

Management Structure

16 vehicle models

MITSUBISHI MOTORS is aware of its responsibility

With regard to product development, the producttowards traffic safety as an automaker, and wesafety committee has established guidelines and ahave identified “Delivering products which help

strategy for safe development based on the MITSUB-

15 vehicle models

prevent traffic accidents” as a key part of our sus-

ISHI MOTORS’ safety philosophy. The committee also

tainability activities.

formulated an automobile safety framework as our

16 vehicle models

Approximately 1.35 million people are lost in traffic

initiatives based on three points:

increases in emerging countries in particular, traf-

1. T echnology to help prevent traffic accidents

fic accident fatalities are also on the rise. Reducing
the number of traffic accidents is an urgent matter
globally. A target was adopted for Target 3.6 of the

12 vehicle models

 The new “Delica Mini” (launched in May 2023) is certified as a Safety Support Car S Wide Models.
 Furthermore, its forward collision mitigation brakeand pedal misapplication prevention device are certified as achieving a certain degree of performance
under the MLIT’s Performance Certification System.

approach to safety technology. We are conducting

accidents worldwide every year.* As vehicle ownership

Sustainable Development Goals (SDGs) at the 74th UN(active safety)
2. T echnology to mitigate damage from traffic accidents (passive safety)
3. A
 voidance of dangers, both in hardware and soft-

General Assembly held in 2020. This target calls forware, assumed as industrial products (fundamental

halving the number of global deaths and injuries fromproduct safety)

road traffic accidents between 2021 and 2030.

We are also working to enhance the management

We are upholding the safety philosophy towards a

structure by educating R&D personnel, promoting

car society with zero traffic accidents. To this end, weawareness of the safety philosophy and automobile

are taking action from two perspectives: developing

safety framework.

and disseminating safety technologies and promoting
traffic safety education.

Automobile Safety Framework*2018 World Health Organization (WHO) surveyA
Pre ccivent
de tionn

Accide
Mit ntig

Realizing
zero
accidentsgema
Da ionat<Related pages>
P15 MITSUBISHI MOTORS’ Materiality
P21 Materiality

omobile SafetyAut
fic Safety
Traf

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66▶ Next

ft

e

So

me

n t a l P ro d u c t

fe

t

y

F

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

da

ar

w

rd

un

ar

e

Ha

w

Sa

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Targetl 3.6

Development of Safety Technology
By reflecting a variety of safety technologies in our
products, MITSUBISHI MOTORS aims to help our cus-

Examples of Preventive Safety Features

Scope of Support Cars Expanded

Function
Forward Collision
Mitigation Brake
SystemSafety support cars are vehicles equipped with ad-

tomers drive in safety, peace of mind and comfort.

Active Safety Technology to “Avoid Crashes”
We are working to develop and install various active

Forward Collision
Prediction Warning

safety technologies to help to eliminate traffic accidents preemptively.
MITSUBISHI MOTORS Safety Sensing [MMSS]
Using millimeter-wave radar and cameras, thesetechnologies help to detect the risk of accidents andLane Departure
Warning System andLane Departure
Prevention Function

help prevent, avoid or mitigate damage.

Adaptive Cruise
Control System

Ultrasonic
Misacceleration
Mitigation System
Automatic High Beam

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Description
Detects vehicles and pedestrians ahead. If there is a risk ofcollision, the system alerts thedriver or applies the brakes tohelp avoid a collision or mitigate
collision damage.
Monitors two vehicles in front of
the traveler. It detects a change
in the situation ahead which isdifficult to see from the driver,and alerts the driver with analarm and a display.
The warning system monitors
the lane markers ahead of thevehicle and provides alarms
and displays to alert the driver
if the vehicle appears likely todrive out of the lane. In addition,
the Lane Departure Prevention
Function takes control of thebrakes for a short period oftime, helping to keep the vehicle
in its lane.
This system automaticallyfollows the vehicle ahead byaccelerating, decelerating or
stopping. By helping to maintaina set distance between vehicles,
the system reduces the burden
on the driver.
When the driver drives forward
or in reverse, the system helps
to prevent acceleration causedby misoperation of the gear
shift or accelerator pedal.
Automatically switches between
low beams and high beams by
detecting whether there is anapproaching vehicle or vehicle
ahead, the ambient lighting conditions, and other factors, helping safer nighttime driving.

67▶ Nextvanced technologies that support safe driving. It is a
new automotive safety concept, as an effort to help
prevent traffic accidents among senior drivers, being
promoted in Japan through collaboration between
the government and private sectors. Vehicles areclassified into the following categories: “Safety Support Cars” or and “Safety Support Cars S” (Basic, Basic +,and Wide) depending on the features in each vehicle.
We are expanding our lineup of Safety Support Car S
Wide Models.
Safety Support Car Models (As of June 2023)
Safety Support Car S Wide Models
OUTLANDER PHEV model
ECLIPSE CROSS PHEV model
ECLIPSE CROSS gasoline model
RVR
DELICA D:5
DELICA D:5 URBAN GEAReK X EVeK X
eK WAGON
eK SPACE
Delica Mini
DELICA D:2
DELICA D:2 CUSTOMTOWN BOXMINICAB VAN*
MINICAB TRUCK*
Note: Some grades are excluded.

In addition, our forward collision mitigation braking
system and pedal misapplication prevention device
have been certified as achieving a certain degree of
performance under the Ministry of Land, Infrastructure, Transport and Tourism’s “Advanced Safety Technology Performance Evaluation Certification System.”
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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Targetl 3.6

Certified Models (As of June 2023)(Forward Vehicles) Forward Collision Mitigation Braking System(Pedestrians) Forward Collision Mitigation Braking System
OUTLANDER PHEV model
ECLIPES CROSS PHEV model*1
ECLIPES CROSS gasoline model*1
DELICA D:5*2
DELICA D:5 URBAN GEAR*2
eK X EVeK X
eK WAGON
eK SPACE
Delica Mini
DELICA D:2
DELICA D:2 CUSTOMTOWN BOXMINICAB VAN*3
MINICAB TRUCK*3*1 For some grades, forward vehicles only
*2 Forward vehicles only
*3 For some grades only

Vehicles which Pedal Misapplication Prevention
Device can be retrofitted
eK WAGON (2013–2019) eK CUSTOM (2013–2019)
eK SPACE (2014–2020)
eK SPACE CUSTOM (2014–2020)
MIRAGE (2012-2023)
DELICA D:5 (from 2007)

Body Structures that “Protect People”
In the event of a collision, it is crucial to have a vehicle body structure that mitigates the impact onpassengers and provides adequate space. MITSUBISHI
MOTORS has adopted the Reinforced Impact Safety
Evolution (RISE) body, and enhance collision safety
performance in all directions: front, rear, and sides.
For example, the “OUTLANDER gasoline model,”which launched in North America in April 2021 and thePedal Misapplication Prevention Device“OUTLANDER PHEV model,” which also launched in

OUTLANDER PHEV model
ECLIPES CROSS PHEV model
ECLIPES CROSS gasoline model
RVR*4
DELICA D:5*4
DELICA D:5 URBAN GEAR*4
eK X EVeK X
eK WAGON
eK SPACE
Delica Mini
DELICA D:2
DELICA D:2 CUSTOMTOWN BOXMINICAB VAN*5
MINICAB TRUCK*5

Japan in December 2021, use a front-to-rear straight*4 Forward only
*5 For some grades only

hood, cowl top, windshield wipers and other parts toframe structure that can efficiently absorb collisionenergy. The vehicle interior (cabin) uses high-tensile-strength steel, as in the past. In addition, hotstamped ultrahigh-tensile-strength steel is used toachieve enhanced passenger safety while reducing
weight.
We are also pursuing safety with regard to pedestrians, as well as drivers and passengers. For example,
we have adopted energy-absorbing structures in the

RISE Body used in the “OUTLANDER PHEV model”

Models Adopting(As of June 2023: Excluding Models Provided by OEM)
Reinforced Impact Safety Evolution (RISE)OUTLANDER PHEV model
ECLIPES CROSS PHEV model
ECLIPES CROSS gasoline model
RVR
DELICA D:5
DELICA D:5 URBAN GEAReK X EVeK X
eK WAGON
eK SPACE
Delica Mini
MINICAB-MiEV

mitigate injury to pedestrians’ heads. Energy-absorbing structures that help to protect pedestrians’ legs
are used in bumper faces and headlights, for example.

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Targetl 3.6

Results of Major Third-Party Safety Assessment (As of June 2023)

RegionThird-Party Evaluation

RatingJapan

JNCAP*1

5☆

Australia

ANCAP*1

5☆

United States

IIHS*2Latin America
ASEAN

Latin NCAP*1
ASEAN NCAP*1

2022 Top Safety Pick+2023 Top Safety Pick
5☆
5☆

Model
OUTLANDER PHEV model
ECLIPES CROSS gasoline modeleK X EVOUTLANDER PHEV model
OUTLANDER gasoline model
ECLIPES CROSS PHEV model
ECLIPES CROSS gasoline model
OUTLANDER gasoline model
OUTLANDER PHEV model*3
OUTLANDER gasoline model
ECLIPES CROSS gasoline model*1 Abbreviation of New Car Assessment Program. An automobile safety testing and assessment program implemented by a third-party
organization in each country or region.
*2 Abbreviation of Insurance Institute for Highway Safety.
*3 Vehicles produced after May 2023

Traffic Safety Education and Promotion
We seek to reduce the number of traffic accidents byconducting traffic safety education and promoting
awareness. In these ways, we are working to raisesafety awareness throughout society.

Dissemination of Traffic Safety Information
Automobile Safety Facts Guide Website
We disseminate information on website on the properuse of equipment and other topics that require drivers’ special attention so that drivers will use automobiles more safely.

Avoidance of Dangers Assumed as
Industrial Products
On the hardware (physical) side, MITSUBISHI MOTORS
uses flame-retardant materials, employ isolation
structures on high-voltage components and use other technologies to enhance safety and security.
On the software side, we use firewalls on vehicle
networks and employ encrypted communications toAutomobile Safety Facts Guide
WEB https://www.mitsubishi-motors.co.jp/support/safety/
popup/index.html(only in Japanese)

reduce the risk of cyber threats via electrical equipment mounted in vehicles.

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

GovernanceImprovement of Product, Sales, and Service Quality
Progress in FY2022
 Product quality: Achieved objective for warranty
claim rate of three months in service for new vehicles
 Sales quality: In the FY2022 Sales Satisfaction Index(SSI) survey, achieved targets in four*1 countries outof five*2 in the ASEAN region
S ervice quality: In the FY2022 Customer Service Index (CS) survey, achieved targets*1 in four countries
out of five*2 in the ASEAN region*1 Target: Achieve top three ranking in industry surveys, or inhouse survey target adjusted to equivalent level.
*2 Five focus ASEAN countries: Thailand, Indonesia, the Philippines, Vietnam, Malaysia

Improving Product Quality• Quickly and accurately analyze voices/opinions/complaints/issues from customers regarding troubles and product quality, and work on product quality improvement.
• Strengthened connected, electrification, and othernew technologies.
Improving sales quality• To achieve industry-leading sales quality, worked to improve the hospitality of sales staff, digitalize the negotiation process, and reinforce strengthen store facilities.
• Ranked No. 1 in Vietnam in industry survey for the
first time
• In Thailand, Indonesia, and Malaysia, set and achieved
targets through in-house surveys.
Improving service quality• Working with new car sales department to improve
the quality of customer service provided by dealer
service staff, including booking service appointments, customer reception, and detailed explanations of maintenance, in order to improve CSI andretain customers until their next vehicle purchase.
• Ranked No. 1 in Vietnam in industry survey for the
first time, and also achieved in-house survey target.
• In Thailand, Indonesia, and Malaysia, achieved inhouse survey targets.
• Ranked No. 1 mass-market brand in the U.S. in J.D.
Power’s CSI survey. Improved customer satisfaction
through local distributor’s continuous effort to improve dealer operations, as well as prompt response
to defects and recalls. Also succeeded to increase thenumber of service customers from the previous year.
<Related pages>
P15 MITSUBISHI MOTORS’ Materiality
P21 Materiality
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Basic Philosophy and Quality Policy
Based on the Quality Policy revised in April 2019, MITSUBISHI MOTORS adopted compliance as a fundamental
requirement, and have been working on quality improvement in four categories: product quality, perceived
quality, sales quality and service quality, to enhancequality at every touch point from the time to consider
purchasing a product to the time to own the vehicle.
Product quality includes the initial quality that
customers experience immediately after purchasing a
new vehicle, and durability quality that customers experience through their ownership period. We sincerely
listen to the opinions of customers and deal with any
issues from the field, and are strengthening our system to make improvements quickly.
In addition, we are working on improvement inperceived quality such as the usability, comfort, andappearance that customers perceive when they see,feel, and use our products.

Quality Policy

Regarding sales quality and service quality at
dealers, we are continuously making improvements
by listening closely to customers, making proposals
and responding to their needs to achieve high levelsof customer satisfaction. We aim for top-level quality
from the customers perspective to ensure customer
satisfaction at every touchpoint.
The Four Quality Pillars Supporting Brand Value
MMC Quality House
Brand Value
Attractive Quality
Product
Quality

Perceived
Quality

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70▶ NextSales
Quality

Service
Quality

Purchase
Perceived
Quality

RejectRetention

1. Commit to excellence in Product, Sales, and Service
Quality exceeding customer expectations

3. Comply with laws and global regulations to gain truston MMC quality.

Sales
Quality

Quality Mindset(Human Resources/Scheme)
Risk Management from a Compliance Perspective

Quality is the fundamental requirement to support ourbusiness.

2. F ocus on Quality of Management to continuously
improve overall company performance.

Perceived
Quality(Initial/
Durability)

Ownership Cycle
Customer Feedback

InitialQuality

Outflow
Durability
Quality

Service
Quality

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Commitment of
Top Management

Sustainability Strategy

Improving Product Quality
Dealing appropriately not only with issues related
to safety but also with opinions and complaints
about merchantability is essential to improve customer satisfaction.
Regarding sold vehicles, MITSUBISHI MOTORS focus
on troubles that occur within 3 and 12 months ofsales, and are working on reducing initial issues. The
quality division collaborates with R&D and production
divisions to speed up resolution and reduce complaints from customers.
Regarding new models, to secure the initial quality, we hold a cross-functional activity called “Oobeya
activities,” where employees from various divisions
including R&D, Production, Service, Quality, and Procurement divisions gather from when shipment starts
to consider and implement countermeasures for any
problems that may occur. This approach enable us to
improve initial quality more quickly.
In addition, we are working or improving processes in the development stage to address issues thatare not troubles, but that have caused customer dissatisfaction, so that they can be improved in future
new models.

FeatureEnvironment

SocialVehicle Quality Evaluations and Guarantees
Based on Customer Perspective
We evaluate quality using customer perspective
quality evaluation system called AVES* on prototype
vehicles under development, vehicles undergoing
quality verification and production vehicles to be soldto customers.
The evaluation consists of a static evaluation, in
which confirm the appearance of the interior andexterior, and a dynamic evaluation, in which the vehicle is actually driven and confirm noise, vibration,
steering stability, and the operation of various in-vehicle functions. Evaluations are conducted from thecustomer's perspective by internal qualified experts
called AVES evaluators, who confirm whether thetargeted quality standards have been achieved.
AVES plays an important role in “Start of production
judgment” and “Delivery judgement” of new models, aswell as in maintaining constant quality guarantees on
production vehicles. Accordingly, these evaluations are
performed thoroughly from the customers’ perspective.
* AVES: Alliance Vehicle Evaluation Standard. Quality evaluation
system used across the Renault-Nissan- Mitsubishi Alliance, inwhich evaluators who have in-house qualification evaluate vehicles in order to check more than 300 quality assessment criteria
established from the customers’ perspective.

Improving Perceived Quality
We are working on quality improvement with anemphasis on customer perceptions from the development stage in order to achieve high levels of customer satisfaction not only at the time of consideringpurchase, but throughout their car life after purchase.
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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71▶ NextGovernance

ESG Data

Philosophy of Improving Product Quality

Attractive quality“Mitsubishi Motors-ness” lies in alevel of quality that surpasses othercompanies and leads customers
to make purchasing decisions.

Fundamental quality
is rising every year.

Fundamental quality
The level of quality normally
expected by the customer forthe product

Perceived quality consists of two qualities. The
fundamental is “fundamental quality” which customers typically expect from a product, and unless thislevel is achieved, customers will not purchase. In addition, the quality level that allows customers to recognize that our quality exceeds that of other companies
and gives them a sense of “MITSUBISHI MOTORS-ness”
will lead to customers making purchasing decisions.
This is the area of “attractive quality.”
By improving “attractive quality,” we create productsthat customers can sense and choose from our uniqueappeal. In addition, by improving “fundamental quality,”
we create products that can be used for a long time.
We will continue our efforts to improve the perceived quality to ensure that customers feel moresatisfied than expected when they touch or continue
to use our products in their daily lives, and that they
repurchase our products.
In addition, we are working on improving theperceived quality through efforts such as developing
colors and materials that are tailored to the specificneeds of customers and are environmentally friendly
in regional color design.
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Commitment of
Top Management

Sustainability Strategy

Improving Sales Quality
MITSUBISHI MOTORS aims for top level customer’ssatisfaction and act in concert with sales companies
to improve the quality of sales and become a brandthat customers support and identify with.

Cooperation with Domestic Sales Companies
Domestic sales companies are promoting IT-based
business negotiation styles as part of their efforts tooffer proposals that meet customer needs and provide a new business negotiation experience. For example, we have introduced tablet devices to provide
visually appealing product descriptions and to conduct service quality surveys to customers who visit
our stores. By promptly capturing customer feedback
through these surveys, we are able to make timely
improvements. Additionally, we share successful examples that have led to improved customer satisfaction with our nationwide sales companies, encouragethem to engage in improvement activities and further
enhance customer satisfaction.

Cooperation with Overseas Sales Companies
Cooperation with sales companies in each country
and region is essential for achieving high customer
satisfaction overseas. MITSUBISHI MOTORS provides
product information to sales companies on a daily basis. In addition, we hold periodic online meetings withsales companies in individual countries, and strives togather comments and opinions from local customers,such as market information and product requests
gathered through interviews. In these ways, we strive
to gather input from local customers.

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

FeatureEnvironment

SocialGovernance

ESG Data

Sales companies in each country and region are
working to digitalize the sales process. They aredevising ways to further satisfy customers in eachcountry and region, by conducting online negotiations
and sales, and by introducing smartphone apps. We
train salespeople both in person and online. In addition, we support sales companies’ efforts to improvecustomer satisfaction by sharing good practices of
their sales quality improvement activities in eachcountry and region.

veloped e-learning and online training. We will continue
striving to make further improvements in training.
Additionally, from FY2023 we will resume in-person education, aiming to provide an even more comprehensive training.
We have seven Technical Centers across Japanand organizes technical meet-ups, seminars andtechnical expert visits, supporting dealers for highly
technical advice and swift customer service.

Appropriate Product and Service Information
Disclosure

To ensure the same and high-quality customer services around the world, we have introduced global-common-standard training and certification program for automobile technicians aiming to advanced
customer services.
As in Japan, online training in other countries isalso available via internet. It delivers ceaseless opportunity for dealer staff to sophisticate their competence in spite of the impact of COVID-19 pandemic.
Supporting from our technical experts are, of course,
available at global dealers regarding such as highly
technical advice.

In compliance with the laws and regulations of eachcountry and region, we strive to provide product andservice information and labeling displays.

Improving Service Quality
At dealers, providing “Good quality service” from thecustomer’s perspective is important from the time ofvehicle purchase.
We are striving to improve our on-site customer
support (communication skills and technical capabilities) in collaboration with our Japanese and overseas
dealers, in order to ensure customer satisfaction andencourage repeat purchases.

Inheriting Service Skills in Japan
We have established unique service skill certification
program for dealer staff. We offer an appropriate
training for each certificated staff member to enhancetheir capabilities of actual customer services. To ensure
uninterrupted education even when affected by the
COVID-19 pandemic, we have been focusing on well-deBack ◀

72▶ NextInheriting Service Skills Overseas

Use of Customer VoiceOur mission is to provide customers with a rich experience and satisfy them with their car life throughattractive products and excellent after-sales services.
To this end, we collect and analyze valuable customer
feedback received from domestic and overseas sales
companies and customer service centers, and ourquality, development, production, sales, and service
division work together to earnestly improve quality.
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Commitment of
Top Management

Sustainability Strategy

FeatureImproving Quality through Customer Voice
Dealers conduct detailed interviews with customers regarding troubles and the conditions in which
they occurred.
This information provided to us by dealers isshared primarily by the quality department with related departments.
In addition, by using the system to analyze issues
occurring in specific models, customer complaintsof troubles (quality information), and repair records,
we can quickly grasp troubles information and takecountermeasures, which leads to quality improvement.
Contact

LiaiseCustomerContact Center
Contact
LiaiseLiaiseSales
companies

Customers

Service/
Quality Divisions

Development
division/
Production
division

Service/
Quality Divisions

Customer Service Center initiatives
To serve more customers, MITSUBISHI MOTORS' Customer Contact Center receives inquiries via phone,email, and chat, including on weekends and holidays.
The various comments and information from customers are managed in a database. Of the comments
and information, matters regarding quality and issues
are addressed in collaboration with dealers and areused for further quality improvements. In addition,
feedbacks and complaints about merchantability andspecifications, are shared with relevant divisions andused to improve product appeal even further. NoteMITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Environment

Socialworthy comments and opinions including those thatare particularly important are periodically reported tothe top management.
In addition, we do not outsource the work of ourcustomer Service center, instead our employees
communicate directly with customers, maintaininga high quality of response, while also ensuring that
customer feedback is accurately reflected in our
products through smooth cooperation with each
responsible department.
This leads to improvements in products and services.

Customer Support for Recalls andOther Field Campaigns
We have systems to provide information to customers timely in the case of implementing field
campaigns such as recalls for safety issues. We send
direct mail to affected customers and advise to havethe vehicle inspected and repaired (free of charge)at the dealer as soon as possible. We also post information on our website so that customers can check
whether their vehicles are subject to a recall and thestatus of repairs.
Refer to the site below for recall information.
WEB http://www.mitsubishi-motors.co.jp/support/recall/This site contains the Japanese market information(only in Japanese).

Number of Recalls/Service Campaigns and Affected
Vehicles in Japan
FY2018FY2019FY2020
FY2021
FY2022

No. of cases
13 cases
15 cases
19 cases
13 cases
13 cases
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73

No. of units
Approx. 298,000 units
Approx. 590,000 units
Approx. 655,000 units
Approx. 492,000 units
Approx. 142,000 units▶ NextESG Data

GovernanceContacts Received at the Customer Contact Center
in FY2022
Number of contacts: approx. 35,000b) Opinions andcomments 11%a) Inquiries 89%a) Breakdown of inquiries
Requests formaterials 2%
Service-related(recalls,
inspections,repairs, etc.)
20%

Other 5%
Vehicle body related(specifications,equipment, etc.)
50%

Electrified
VehiclesService-related
23%b) Breakdown of opinions and comments

Other
15%

VehicleService- bodyrelated related
51%
34%

Back to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialTo achieve “product quality and sales/service quali-

MITSUBISHI MOTORS analyzes quality information to realize “Being evaluated as top-level quality by customers,”
and set specific objectives, discuss and implement countermeasures, and regularly follow up with the statusof improvements.
Also, regarding information from customers about vehicle issues provided by dealers, we have establishedsystems for quick discussion, decision, and implementation, by collecting and sharing information with related
departments on a daily basis.

Quality Strategy
Committee(QSC)

Quality ofManagement
Committee(QMC)
Quality
Management
Meeting(QMM)

Monthlyty that exceeds customer expectations,” continuous
improvement of company-wide management quality is essential. Therefore, not only divisions directly
involved in product quality and sales/service quality,
but all divisions are working on management quality improvement throughout the company, and haveobtained ISO 9001 certification.

Meeting
Chair
Frequency
Quarterly The Executive Officer,
President & CEO or
directors in charge*1

Quarterly

ESG Data

QMS*3 ISO 9001 Initiatives

Management System

Meeting

GovernanceTop management of
QMS*2

Top management of
QMS*2

Members

Objectives

Deliberation and decision of strateExecutive Vice President
responsible for Engineering, gic topics in quality relating to sales,
service and products
Senior Executive Officer
responsible for Production,
division general managers
related to sales, service andproduct quality
Sharing of best practices related toDivision and plant generalmanagers, responsible per- enhancing companywide manageson of direct departments ment quality, responding to external
examinations, reporting on items
requiring correction and lateral
deployment
Division general managers Confirmation of progress towardand supervisors in special- product quality targets, considerist positions (section head ation and deliberation concerningor higher) of divisions relat- effectiveness of improvement
measures, provision of a forum fored to product quality
resolution in the event of troubles

To continuously improve management quality, we
are implementing the following.
1) Plan and implement annual plans with quantitative objectives2) Confirm progress at first-half and full-year management reviews3) S hare opportunities for improvement throughinternal audits4) Use certification bodies to conduct examinations(surveillance, recertification)
In addition, our overseas production plants have
similarly obtained ISO9001 certification, and continue ourinitiatives to ensure that our products, produced andsold around the world, have product quality and sales
and service quality that exceed customer expectations.
*3 Quality Management System*1 If delegated by the Executive Officer, President & CEO*2 The person responsible for quality management system implementation, designated by the Executive Officer, President & CEO or the
Executive Officer, President

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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74▶ NextBack to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

Governance

Developing Quality Mindset

Understanding Customer Needs

Developing Customer Orientation

Since FY 2014, MITSUBISHI MOTORS has been holding

We are conducting an educational activity called

We are supporting employees interested in acquiring

Quality Forums in all business locations in Japan as“Customer Voice Seminar” with the aim of giving each

Advisory specialist for consumers’ affairs qualifica-part of our initiatives to encourage each employ-

employee an opportunity to think about customer

tion, which is a business qualification from the Primeee to review and improve the quality of their work,needs by listening to actual “customer voices.”

Minister and Minister of Economy, Trade and Indus-

thereby leading to quality improvements in prod-

For new employees and Mid-career employees, wetry, with the objective of considering needs from theucts, human resource, and ultimately company's

incorporate it into the introductory training curriculum,

consumers’ perspective and improving the quality ofbrand power and reliability.

and also provide many opportunities to consolidate a

products and services.

Since FY2018, we have expanded the Quality Forum to our overseas locations, Mitsubishi Motors

customer-oriented mindset, such as training for pro-

As of April 1, 2023, we have 60 qualification holders,

moted employees and voluntary participation courses.

making us 12th among Japanese companies and 2nd

In addition, we have set up and regularly update

among Japanese automakers*3. In addition, approxi-

Motors Kurama Yudah Indonesia (MMKI), and it hasa “Customer Voice Course” video site on our intranet,mately 70% of our qualification holders work in depart-

become well established. We are planning to expand

which enables employees to watch them at any

ments related to manufacturing and quality, and utilize

this initiative to other locations in the future.

time while working from home or during their freetheir wide range of knowledge and sensibilities in man-time at work.

ufacturing vehicles from the customer’s perspective.

(Thailand) Company Limited (MMTh) and PT. Mitsubishi

Amid restrictions due to COVID-19, in FY2022, wehave resumed physical exhibitions in addition to on-*3 Research by Japan Industrial Associationline exhibitions on a dedicated website.

Advisory specialist for consumers’ affairs

Number of Participants
Domestic forums
FY2018FY2019FY2020
FY2021
FY20224,550
6,200
6,200*2
6,000*2
6,800*2

Others (procurement/
production) 8%

Overseas forums(Thailand, Indonesia)

Corporate
Affairs
9%

1,880
800*1
2,310*2
2,850*2
2,700*2Sales
12%
Quality
15%

Product
Strategy/
Development
56%*1 Due to COVID-19, held only in Indonesia*2 Due to COVID-19, held online

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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75▶ NextBack to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

Contribution to Local Economy throughBusiness Activities

Targetl 4.4

Basic Approach

Progress in FY2022
Annual creation of employment
Number of local employees(including non-full-time
employees)(Thailand, Indonesia,
the Philippines, Vietnam)

SocialMITSUBISHI MOTORS has been developing business11 thousand people

Annual vehicle exports

384 thousand units

Vehicle exports (Thailand)

291 thousand units

Vehicle exports (Indonesia)

93 thousand units Employment creation in the ASEAN: Continued
to create local employment at four consolidated
companies in Thailand, Indonesia, the Philippines,
and Vietnam
 Major human resource development and technology transfers in the ASEAN: provided scholarships tovocational training schools and technical universities, provided training vehicles, conducted education and training courses (Thailand, Indonesia, thePhilippines, Vietnam), established a new paint plantand commenced mass production (Thailand) Major exports to the ASEAN: Continued to export
vehicles from Thailand and Indonesia (exported vehicles: [Thailand]: TRITON, PAJERO SPORT, MIRAGE,
Attrage [Indonesia]: XPANDER)
 Started joint study of Kei-car segment commercial
electric vehicle in Thailand and Indonesia with logistics companies and state-owned postal service.
Also began projects to install solar power systems
at hospitals in Thailand, projects to install rooftop
solar power systems at factories in Indonesia andthe Philippines, and promoted other activities that
help reduce environmental impact.
<Related pages>
P15 MITSUBISHI MOTORS’ Materiality
P21 Materiality
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

in the ASEAN since prior to the rise of motorization,

ESG Data

GovernanceTargets
l 9.2
l 9.4

Targetl 10.2

Targetl 11.5

Targetl 13.1

Targetl 17.7age our technologies and services in the areas of theenvironment and social contribution, as well.*2*1 Please see page 15 for details on identifying material issues*2 Please see pages 76–78 for specific examples

and we have grown up alongside these countries
while developing close ties with the region based on
the idea that “regional development” is “MITSUBISHI
MOTORS development.”
In this region, where we have undertaken business activities for many years, we are working proactively to address local social issues. To promote joint
growth, we will invigorate the region, cultivate themarket, understand consumers’ needs and reinforce
our own brand. In these ways, we believe we can simultaneously achieve regional development and ourown development. “Challenge 2025,” the new midterm business plan we announced in March 2023,
calls for the concentration of management resourceson the ASEAN—a core area of business. In addition, in
the aim of achieving further growth MITSUBISHI MO-

Management Structure
Local subsidiaries take charge of planning and implementing activities in line with initiatives that target
material issues in the ASEAN, such as “contribution to
local economy through business activities.” Our sales
division, which maintains administrative and supervisory functions, is responsible for promoting these
initiatives. In the four countries where our production
bases are located (Thailand, Indonesia, the Philippines
and Vietnam), every six months we check with local
subsidiaries on the rate of progress and results ofinitiatives, reporting to the management team via the
Sustainability Committee.

TORS will conduct higher and stable spending on R&D
and capex, which will include increased expenditureon electrification, IT and new business as a proportion of total expenditure. One of our material issues
is “contribution to local economy through businessactivities.” In accordance with this aim, by developing
our business in the ASEAN, we will contribute to the
local economy through employment, human resource development, investment, technology transfer and exports.*1
In addition, by responding to social needs specificto the ASEAN, we will engage in initiatives that leverBack ◀

76▶ NextEmployment
Markets in the ASEAN have been affected by the
COVID-19 pandemic. To help reinvigorate the economy and facilitate growth, we believe it is our mission
to continue to create employment in the region. We
employ approximately 1 thousand people in FY2022,
in the four countries where we have production bases: Thailand, Indonesia, the Philippines and Vietnam.
In FY2023, we will use local human resources in linewith our business plans.
Back to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialTargetl 4.4

Human Resource Development

Investment

In the ASEAN, which is working to become more

We continue to make capital investments in plants,

industrially advanced, MITSUBISHI MOTORS helps bywhich support local economic growth.

providing experience in automobile manufacturing,

In FY2022, we decided to produce the Kei-car

sales and service. In addition to cultivating special-

segment commercial electric vehicle “MINICAB-MiEV”

ized expertise and skills, we cultivate people who are

locally in Indonesia and to expand export destinations

involved in manufacturing and foster local economic

for other models, and we are continuing to invest in

growth. In FY2022, each country conducted train-

this area. In addition, as we see substantial room foring and on-the-job training (OJT), combining face-

growth in the ASEAN and Oceania, our core businessto-face and online training depending on status ofregions, our new mid-term business plan, “Challenge

COVID-19 infections.

2025,” calls for stable or increased levels of R&D and• In Thailand, we conducted online sales and service

capital expenditure from 2026 onward to respond to

training for around 40 thousand employees andan upcoming era of major transformation.

dealer staff.
• In Indonesia, we conducted training to enhance
operational skills for around 250 local employees

Technology Transfer

according to their business level.
We continue to support the enhancement of manu-

training aimed at enhancing local employees’ oper-

facturing capabilities and strengthening of competi-

ational skills and productivity. Around 6,900 people

tiveness through local production in various countries,

took part in these efforts to enhance their levelwith a focus on the ASEAN, our driver of growth.
In FY2022, we promoted the overseas transfer of

In FY2023, we plan to continue providing training

manufacturing technologies, including electrified ve-

courses and OJT according to conditions in each country.

hicles developed in Japan, through the preparation for
production of new models such as the “TRITON” pickup
truck, compact SUVs, and the “MINICAB-MiEV,” which is
our first electric vehicle to be produced overseas.
To enhance manufacturing competitiveness, wehave introduced the Buddy system (sharing a com-

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Targets
l 9.2
l 9.4

Targetl 10.2

Targetl 11.5

Targetl 13.1

Targetl 17.7mon destiny), and we are forming Buddy partnerships between our overseas and domestic factories.
This allows for the implementation of various measures to enhance competitiveness and the transferof expertise, from the launch of new vehicle models
to mass production operations.
In addition, we are actively promoting the adoption of solar power generation in our efforts to create environmentally friendly factories. We have installed solar panels not only in our newly establishedpainting plant in Thailand, but also in our plants inIndonesia and the Philippines. By transferring thetechnology and know-how of solar power generationthat we have cultivated in Japan to our overseas
production facilities, we are working towards moreenvironmentally friendly factories.

• In the Philippines, we conducted education andof specialization.

ESG Data

Governance

Back ◀

77▶ NextFurthermore, we implemented vocational training
support and technical education activities for local
personnel from technical universities and vocational
training schools in Thailand, Indonesia, the Philippines, and Vietnam. This included providing scholarships, internship vehicles, conducting educational
workshops, organizing online seminars for teachers,
and offering education programs for the childrenof employees involved in the automotive industry. These initiatives aimed to facilitate technology
transfer and enhance the vocational training of local
talent in the region.
In FY2023, we will continue to support the advancement of the regional manufacturing industry.

Back to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialTargetl 4.4

ExportEnvironmental and Social Contribution

Exports generate foreign currency, which supports

In the ASEAN, there is an increasing focus on ad-

the continuous growth of the local economy. Mit-

dressing environmental regulations, prompted by asubishi Motors (Thailand) Co., Ltd. (MMTh) is our

growing demand to realize a carbon-neutral society.

largest overseas production base. Leveraging thisIn response, we are leveraging our expertise andstrategic location, we export key models (including

knowledge in EV technology to help resolve social

pickup trucks and SUVs) to ASEAN countries andchallenges in the region.

globally. FY2022 marked an easing of the restric-

ESG Data

GovernanceTargets
l 9.2
l 9.4

Targetl 10.2

Targetl 11.5

Targetl 13.1

Targetl 17.7

generation facilities at hospitals in Thailand. Furthermore, we are implementing projects in Indonesia
and the Philippines to install solar panels on factory
rooftops to generate power. In FY2023, we will continue to promote electrified vehicles in the ASEAN
and engage in activities that help reduce environmental impact.

In FY2022, we verified environmental develop-

tions on movement imposed as measures to combat

ments to promote EV adoption through demonstra-

COVID-19, as well as the lifting of border closures. Astion experiments using our Kei-car electric vehicle,

a result, exports improved year on year. Specifically,

the “MINICAB-MiEV,” in collaboration with national

we shipped 29 thousand units from Thailand and 93

postal services and logistics companies in Thailand

thousand units from Indonesia, reaching our annual

and Indonesia. Additionally, to reduce CO2 emissions

targets for both countries. In FY2023, we will contin-

we initiated the “Solar for Lives” environmental gov-

ue to enhance a mutually comprehensive structureernment-collaboration project, installing solar powerfor production within the ASEAN, as well as promote
exports to other ASEAN countries and the rest of
the world.

Charging of “MINICAB-MiEV,”
which are being used ina joint study

New “XPANDER CROSS”

Hospital with a rooftop solar power systeminstalled as part of the “Solar for Lives” environmental project
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Human Resources Management
Human Resources Strategy

The Type of People We Look for (MMC WAY)

MITSUBISHI MOTORS believes that “human resourc-

MITSUBISHI MOTORS has summarized the attitudeses” are the key to achieving sustainable growth andand actions that employees need to practice to fulfill

enhancing corporate value, especially amid a rapidly

our mission. We have encapsulated this information

changing business environment.

into five concrete and easy-to-understand keywords

In FY2022, our president and management teamengaged in discussions to determine the ideal pathand shared them with employees as the “MMC WAY.”
The first two items in the new “MMC WAY” em-for the Company, taking employee feedback into

phasize key values. They call on us to “think of our

account. As a result, we have updated our behavioral

customers first” as the foundation for earning “soci-guidelines, the “MMC WAY,” which outline the princi-

ety’s trust” and to “contribute to the advancement ofples that the Company values.

society” through our corporate activities. These items

As a company and as individuals, we will shareincorporate the message that every employee mustthe new “MMC WAY,” which embodies what is im-remember our raison d’être: satisfying customers andportant in our lives, and work together as one tocontributing to society through corporate activities.

take on challenges as we work toward our goals.

With the other three items, we have expressed

Furthermore, we will continue to create fulfilling
workplaces and invest in human resource development
as the basis for putting the “MMC WAY” into practice.

important elements in the previous “MMC WAY”
more specifically and clearly.
The “MMC WAY,” our behavioral guideline for
employees, is reflected in the personnel evaluation< Strategic Human Resources Priorities >system. It introduces a multi-faceted competencyl Build a better place to work

evaluation based on three pillars: the “MMC WAY,”l Enhance learning opportunities/reskilling programs“human resource development and organizationall Secure/cultivate a diverse workforce

management,” and “expertise.” This aims to promote
the dissemination of shared values and encourage
proactive employee growth.

MMC WAY
1.	Think of Our Customers, Strengthen Trust
2. Enrich Society
3.	Welcome All Facts, Share Difficult News First
4.	Conduct and Challenge Yourself Professionally5.	Respect All, Work as a Broader Team

Promotion Structure
MITSUBISHI MOTORS has established the Human
Resources Development Council, consisting of the
Executive Officer, President & CEO and other members of the management team to promote and implement human resources strategies that are linked
to management strategies. The council continues
to discuss and examine the development of humanresources at various levels, from securing excellent
personnel to nurturing individuals from young andmid-level professionals to management leaders.
We are formulating an optimal personnel planthat incorporates strengthening the expertise of eachfunction that supports our business to develop powertrain control system for electric vehicles, expanding
the scope of various elemental technologies, promoting carbon neutrality, driving digitalization, and exploring new business areas. We recognize that personnel
are the source of the Company’s competitiveness and

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
Top Management

Sustainability Strategy

treasure. Therefore, we are working to create a workplace where employees can work with peace of mind
and showcase their abilities, expanding opportunities
for development, including education and training
to encourage employee challenges and growth, andanalyzing the internal and external environment andmarket trends surrounding the Company to attract
talented individuals. Through open discussions at human resources development meetings, we review andevaluate existing measures and initiatives, as well as
consider and deliberate new initiatives.
For FY2023, we are making preparations to implement specific measures that will support the
mid-term business plan, “Challenge 2025,” with afocus on the following key areas of our human resource strategy: “Build a better place to work,” “Enhance learning opportunities/reskilling programs,”
and “Secure/cultivate a diverse workforce.”
In particular, we will organize specific operational policies for free location and work arrangementsthat take into consideration childcare and nursing
care, implement training programs to strengthen
next-generation leadership, promote personnel
exchange with overseas affiliates for the purposeof utilizing the Group’s human resources on a global
basis, and create an environment in which diverse
human resources, including women, elderly persons,and persons with disabilities, can play an active role.

Conducting Engagement Surveys
The Company has continued to conduct engagement
surveys (employee surveys) since FY2013. This survey
aims to visualize the state of the Company, the entire organization, and employees, and to address the
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

FeatureEnvironment

Socialchallenges revealed by the results, thereby reinvigorating individuals and organizations and promoting
an improvement in employee engagement.
Based on the analysis of the survey results, wehave conducted feedback sessions with executives,
department heads, and respective departments topromote actions for improving engagement. In particular, to enhance the organization and human resource
management, we organized workplace workshops
and internal seminars, such as “Drive your team,” fordepartment heads to improve the quality of management. The survey results are also used as reference
data during human resources development meetings
attended by senior executives to discuss the future
direction of human resources development. This helps
us take action as a company to continuously enhance
employee engagement.
Additionally, to improve employee engagement, we
believe that “proactive career development support” iscrucial. With this in mind, in FY2022 we established a
new open application framework for the Global Career Development Program (GCDP), an overseas work
training program for young employees, allowing any
employee who meets the requirements to apply.

Human Resource Evaluation
We have introduced multifaceted competency(behavioral) evaluation systems for general managers and section managers, as well as for generalemployees, based on a performance achievement
evaluation using a target management system, the“MMC WAY” (our action guidelines), human resource
development and organizational management, andexpertise, respectively.
Back ◀

80▶ NextGovernance

ESG Data

We have positioned these systems as management-enhancing tools aimed at general managers andsection managers with the objective of revitalizing theorganization. In doing so, we aim to: (1) Share organizational objectives and foster a sense of responsibility
for achieving these objectives, (2) Enhance incentives
for achieving objectives, (3) Enforce mindset and behavior expected from employees, and (4) Make appointments and promotions according to merit.
For non-management personnel, our aims are(1) Sharing organizational objectives and instilling a
sense of responsibility for achieving them, (2) Raisingtransparency and employee approval of evaluations
and employee treatment, and (3) Promoting the establishment of shared values.

Fair Compensation System
We introduced a remuneration system that allows
for appropriate compensation based on the degreeof contribution, and weight of the roles and responsibilities of each employee. We provide the system toenhance each employee’s career and motivation. In
conjunction with raises given annually based on individual performance, raises are also given according
to advances in career.
We comply with local laws and regulations regarding wage levels and set wage levels according tojob classifications, taking into consideration industry
levels. There are no discrepancies in wages based on
race, nationality, sex, or other such reasons.
Data (p. 125): Wage levels

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

Promotion of Work Style Reforms in Response to the New Normal(Diversity, Work-Life Balance)
Progress in FY2022
Percentage of female instructors intechnical fields*1[FY2021: 12.2%]

13.1%

Percentage of male employees taking
childcare leave*2[FY2021: 16%]

68.4%

Percentage of employees with disabilities[FY2021: 2.44%]

2.33%

 Conducted a survey on attitudes toward diversity
and work-life balance Implemented training on managers promoting malepaternity leave Introduced measures at the organizational level tostrengthen communication based on engagement
survey results*1 Percentage of assistant managers*2 For FY2022, the rate of people taking childcare leave andother leave for the purpose of childcare was calculated according to the Childcare and Family Care Leave Act. In FY2021,
only the rate of people taking childcare leave was calculated<Related pages>
P15 MITSUBISHI MOTORS’ Materiality
P21 Materiality
P79 Human Resources Management
P122 Human Resources-Related Data

Basic Approach
MITSUBISHI MOTORS views “people” as the key to creating “sustainable growth” and “improving corporate
value” in the significant-changing automobile industry. We therefore believe in the importance of realizing an environment where each and every person can
perform meaningful work and demonstrate his or her
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

abilities, and where people can work enthusiasticallyand in good health, both physically and mentally.
The COVID-19 pandemic has prompted us to challenge the conventional approach toward “going to theoffice” to work, instead encouraging more flexible work
styles that are less location- and time dependent. To
leverage diverse human resources to create value, weare creating a working environment that helps individuals maximize their capabilities. In this way, we aim toachieve increases both in work productivity and qualityof life, helping to realize a better work–life balance.

Initiatives toward a Flexible Working Style
To promote and implement flexible working styles
that enable diverse employees to fulfill their potential,
in FY2020 we established the “Flexible Working Styles
Consideration Committee,” which is chaired by the
Executive Officer, President & CEO. This committee
has been discussing matters to be addressed overthe medium to long term. Based on the direction of
its initiatives, in FY2021 relevant departments within
the Company took over the promotion items fromESG Data

Targets
l 5.4
l 5.5

Targetl 8.5

the committee and are continuing the initiatives. Key
initiatives are outlined below.
Area of work
(remote work)

IT domain
Provide IT support
tools
Increase in IT literacy

To provide a more comfortable working environment than
before, we eliminated the maximum number of hours and days
for remote work. In addition, weallow work to be conducted at
any location, even outside thehome, that meets requirements.
Improve IT infrastructure and significantly increase the maximum
number of VPN connections
Introduce communication tools
to enhance communication
between at-home working andremote locations
Share knowledge and usage examples at the departmental levelto promote the use of communication tools

Promoting Diversity
MITSUBISHI MOTORS aims to grow sustainably while
responding to the significant changes in the business

Diversity Promotion Policy
We aim to respond to change and heighten organizational capabilities by incorporating diverse viewpoints and approaches through the different abilities and characteristics of each employee. In this way, we will create vehicles offering new levels of attractiveness and value. We are promoting Di@MoND (Diversity @MITSUBISHI MOTORS New Drive)
activities to create an environment where employees can maximize their individual abilities and play an active role.

Diversity @ Mitsubishi Motors New Drive

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81▶ NextWe aim to respond to change and heighten organizational capabilities by incorporating diverse viewpoints and approaches through the different abilities andcharacteristics of each employee. In this way, we will create vehicles offering
new levels of attractiveness and value. We are promoting Di@MoND (Diversity@MITSUBISHI MOTORS New Drive) activities to create an environment where
employees can maximize their individual abilities and play an active role.
Back to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

GovernanceTargets
l 5.4
l 5.5

and market environment resulting from diversifying
customer needs and technological innovation. To thisend, it is important for employees with different values
and ideas to work together to create automobiles withnew appeal and value. With respect for employee diversity including race, nationality, ethnicity, gender, sexual
orientation, gender identity, age, ability or religion, weare making efforts to create environment where each
person can energetically work without difficulty.
To promote and achieve diversity, we are pursuing
Di@MoND activities by the Diversity Promotion Officebased on the “Diversity Promotion Policy” we establishedin July 2014. By embracing diversity, our aim is to leverage employees’ diverse characteristics in a manner thatwill contribute to the mutual growth of the Company
and each individual employee. Initially, Di@MoND activities prioritized women’s participation and advancementin the workplace. Now, we are also working to provide
working environments that are comfortable for all.
Data (p. 122-123): Number of employees, number of employees by region, number of locally hired managerial employees
at overseas subsidiaries, status of female managers, status offemale executives, employee makeup, number of new graduates
hired, number of mid-career employees

Promoting Women’s Participation andAdvancement in the Workplace
MITSUBISHI MOTORS promote “women’s participation
and advancement in the workplace” as a priority issue.
Since 2014, we have been selecting female managers
and manager candidates to join the Working Women’s
Empowerment Forum, led by the Japan Institute for
Women’s Empowerment & Diversity Management.
From 2017, we have also been sending manager
candidates to seminars hosted by the Aichi Gender
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Equality Foundation.
Based on the “Act on Promotion of Women’s Participation and Advancement in the Workplace,” in April
2021 we formulated an action plan to promote women’s advancement, setting 15% as our target ratio forfemale assistant managers, which we are working toachieve by March 2024.

Action Plan to Promote Women’s Advancement PDF [5MB](only in Japanese)
Data (p. 122): Status of Women Promoted to Management andExecutive Positions

Targetl 8.5

TOPICS

Inclusion in the “Morningstar Japan ex-REIT
Gender Diversity Tilt Index”
MITSUBISHI MOTORS has been selected as one of theconstituent stocks in the “Morningstar Japan ex-REIT
Gender Diversity Tilt Index,” which was designed by
Morningstar for environmental, social, and governance(ESG) investing.
We rated in “Group 1,” the highest rating on a
five-tier scale, in an index that focuses on companies
with a well-established gender diversity policy that is
ingrained in their corporate culture and that promise
equal opportunities for employees regardless of gender.

List of work-life balance assistance programs
Programs
Childcare Pregnancy leave

Overview
Can be taken for the designated period of time applied for in advance, between becoming pregnant andthe day prior to maternity leave (may be taken multiple times)
Maternity leave
Six weeks prior to birth and eight weeks after birth
Spousal maternity
When a spouse gives birth, the employee can take up to two days of leave between the day before andleave
14 days after the date of birth or expected date of birth.
Childcare leave
Can be taken up to the end of April of the following fiscal year after the child’s third birthday
Leave to care for
Up to four weeks of leave can be taken within eight weeks of the (expected) date of birth. Partial emnewborns
ployment during the leave period is also possible.
Child nursing leave
Can be taken until the end of the fiscal year of the child’s 12th birthday (one child: up to 5 days; two andover: up to 10 days; first five days are paid in both cases)
Reduced working hours Four-, five-, six-, or seven-hour work shifts can be chosen until the end of the fiscal year of the child’s
for childcare
12th birthday (combined use with the flextime system is also available)
Nursing Nursing care leave
Aggregate total of three years can be taken per person receiving nursing care
care
Short-term nursing
If one person receiving nursing care: up to 5 days; if two or more people receiving nursing care: up to 10
care leavedays (first five days are paid in both cases)
Reduced working
Available until the reason for the nursing care no longer exists. Employees can elect to work, four-, five-,hours for nursing care six-, or seven-hours per day, and are also eligible for flextime work.
Miscella- Life plan leave
Employees can take up to 10 days leave per year for various predefined purposes such as receiving
neous
treatment for non-work-related injury/illness, caring for family, childcare, infertility treatment, participating in volunteer activities, and language studies
Accumulation of
Employees can accumulate unused annual paid leave up to four days per year to a maximum of 40 days
unused paid leave
which can be used for predefined purposes. (E.g., receiving treatment for non-work-related injury/illness, caring for family, childcare, participating in volunteer activities, and infertility treatment)
Flextime system
System that lets employees set their own working hours with no core time under predefined conditions
on prescribed work days
Telecommuting
System that allows employees to work from a location other than their own or family home, as long as
systemcertain conditions are met, and to pay an allowance
Reemployment sysEligible for employees who resigned due to pregnancy, the birth of a child, childcare, nursing care,temmarriage, moving due to spouse work transfer, or other reasons recognized by the Company, with anapplicable period within five years after resignation
Accompanying leave
Temporary leave system for employees to accompany spouses who have been transferred in Japan oroverseas or are studying abroad, with an applicable period of from one month to five years
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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Targets
l 5.4
l 5.5

Promoting a Work-Life Balance
MITSUBISHI MOTORS is enhancing our work-life balance
assistance programs to accommodate the diverse
work styles of our employees. In FY2017, we introduced
the telecommuting and accompanying leave systems
to accommodate diverse work styles and life events. In
FY2018, we established the “Work-life Balance Support
Concierge” within the Company, from which employees can seek advice on the programs suitable for theirindividual childcare and nursing care needs. Following
feedback from employees who had sought advice, we
relaxed the criteria for child nursing leave, short-term
nursing care leave and the telecommuting system. In
August 2021, we revised the telecommuting system inan effort to create an environment that fosters moreproductive and highly flexible working styles.
Data (p. 123-124): Number of persons taking childcare leaveand retention of returnees, people utilizing major programs topromote work-life balance

our facilities. Dia•Kids Okazaki was opened at the Oka-

workers, engaged in handing down techniques andzaki site in April 2017, followed by Dia•Kids Tamachi at

training the next generation.

our head office building in February 2019.
On the working environment development front,
to further encourage male employees to take childcare leave in accordance with the enforcement of
the revised Childcare and Family Care Leave Act, in
FY2022 we conducted training for managers andseminars for expectant fathers and mothers.

Helping Employees to Balance Work andNursing Care
As society ages, we believe it is important to help
employees balance work and nursing care.
We have set up contact points where employees
can consult with nursing care specialists as required
via email or on the phone. Furthermore, we organize
regular nursing care seminars delivered by outside
instructors to provide basic information about how
they can balance their work and nursing care. In
FY2022, approximately 170 people attended the online

Helping Employees to Balance Work and Childcare

seminar, which was held simultaneously in all regions.

We actively support employees who seek to balance

As a new initiative, we also have made on-demand viewing available to suit the convenience ofwork and childcare.
We have established on-site daycare centers at

Targetl 8.5

each participant.

Promoting Employment of People with Disabilities
Aiming to achieve a workplace where everyone canwork, we actively hire people with disabilities in awide range of occupations. In FY2022, the percentage of employees with disabilities at the Company
was 2.33%, which exceeds the statutory level. We willcontinue to promote additional employment while
improving the work environment.
On a consolidated basis, the Company employs
174 people with disabilities, including physical, mental and intellectual abilities. At our head office, wehave installed wheelchair- and ostomate-compatible toilet facilities, creating a working environment
amenable to employees with disabilities.
We also promote the employment of people withdisabilities through MMC WING, a special-purpose
subsidiary established in April 2007. This company
employs 64 workers with intellectual disabilities at
the Okazaki and Mizushima plants. MMC Wing, now in
its 16th year since establishment, has received manyinquiries about employment from “Hello Work” Public

Dia•Kids Tamachi, a day-care
center for employees(within the head office building)

Dia•Kids Okazaki(within the Okazaki site)

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Increasing Employment of Senior Workers

Employment Security Offices, the prefectural em-

With the goal of handing down skills and technologies

and special needs schools, and has established aand securing a talented workforce that makes thehigh profile in the region. To help support the em-most of its knowledge and experience, we operate aployment of people with disabilities, we proactively

program to reemploy senior workers after their retire-

accept requests from employment support facilities

ment. As of June 2023, there were 850 reemployed

and special needs schools to try on-site training,

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83▶ Nextployment and support center for disabled persons,

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

GovernanceTargets
l 5.4
l 5.5

Targetl 8.5

teaching people with disabilities opportunities about

available to people of all religions and denominations.

course can receive “ally stickers” to make the promo-group activities and work processes.

These rooms are open to customers, suppliers andtion more visible.
* See our website for details of our human rights policy.
WEB https://www.mitsubishi-motors.com/en/sustainability/
society/human_rights/pdf/human_rights_policy.pdf

As the presence of supportive instructors isother stakeholders who visit our sites. A facility for

essential for promoting and providing stable em-cleansing parts of the body before worship has also

ployment for people with disabilities, in FY2021 webeen set up in the prayer room at the Okazaki site.

started to offer an internship program for university

Data (p. 122): Number of employees by region, number of locally
hired managerial employees at overseas subsidiaries

students preparing for employment to help themunderstand the work of instructors as an opportunity to come into contact with a diverse range of
people and occupations.
Data (p. 124): Number of hired people with disabilities

Promote LGBTQ AwarenessOur human rights policy* defines “respect for humanrights of our stakeholders” and states that we will not

Global Action
As part of the support offered to our workforce ofnon- Japanese employees, which is increasing year
by year, MITSUBISHI MOTORS has established prayer
rooms at our head office and Okazaki sites that aretolerate unfair discrimination or harassment based onsuch factors as gender, sexual orientation or gender
identity, and will respect diversity. Furthermore, theHand- and foot-washing facilities

Prayer room in our head office

Prayer room in the Okazaki area

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Awarded PRIDE Index Gold Rating
In the PRIDE Index, which was designed by “Work with
Pride” as a criteria for evaluating initiatives related to
LGBTQ and other sexual minorities in the workplace, we havebeen consecutively awarded
Gold certification since FY2018.
We will continue to create workplace environments that arefriendly for all employees.

MITSUBISHI MOTORS Global Code of Conduct, which all
employees and executives are bound to comply with,clearly states: “Respect Human Rights and Diversity,
Provide Equal Opportunity.”
Based on these ideas and policies, we are striving

indicting the directionof worship

TOPICS

Participating in Initiatives
Outside the Company

to improve the workplace environment and internal

We have pledged our support to the Business for

systems in order to create a comfortable working en-

Marriage Equality campaign, which invites compa-

vironment where LGBTQ people can play an active rolenies to join us in calling for equality in marriage.

in the Company. In our employee system, the defini-Business for Marriage Equality is a campaigntion of marriage includes same-sex relationships, andspearheaded by three Japanese non-profit orga-

employees in such relationships can take marriage

nizations in an effort to visualize companies thatand childcare leave and use Company housing. Since

support the legalization of same-sex marriage. MIT-FY2018, we have held seminars to help provide basic

SUBISHI MOTORS actively strives to fulfill its social

knowledge to aid in accurately understanding LGBTQ

responsibility and contribute to the achievement ofissues and increasing supporters known as “Allies.”

the United Nations Sustainable Development Goals

Approximately 240 people attended the seminar in(SDGs). By endorsing this campaign, we aim to fur-

FY2022. Some 11,440 employees took part in e-learn-

ther contribute to SDG numbers 5 (Gender Equality)

ing. Upon request, employees who have taken theand 10 (Reduced Inequalities).

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Stepping up Human Resource Development

Training time per employee*1[FY2021: 0.87 days]
Training cost per employee*1[FY2021: ¥6,171][FY2021: Degree of penetrationand practical implementation:
66%*2

Employees also discuss their personal vision for

Basic Approach

Progress in FY2022
Total training hours per year*1[FY2021: 96,770 hours]

Targetl 4.4

the future during annual interviews with their su-

117,845 hours
1.08 days¥9,414

MITSUBISHI MOTORS’ educational structure is sup-Degree ofpenetration*2

these principles or behavior into practice. We also

77%

periors. Sharing such visions between superiors andsubordinates leads to achievement of human re-ported by three pillars: the “Three Principles,” asource development with deeper understanding.

statement of the Mitsubishi Group’s management
principles; our Corporate Vision and Mission; andthe “MMC WAY,” guidelines for daily behavior. We
have clarified the abilities and skills necessary to put
specified the ideal model for each job classificationand introduced respective curricula based on both.

Level of practicalimplementation*2

68%

Education Pillars of MITSUBISHI MOTORS Company-wide, rolled out on-site workshops and other awareness measures in conjunction with the update to the employee behavior guideline (MMC WAY) Created an original e-learning program to improve
the skills of evaluators in accordance with changes
to the personnel system, and encouraged all evaluators to take part in the program Phased the introduction of DX-related courses intotraining programs by level

Three Principles

Corporate Vision and Mission

MMC WAY*1 Training led by the Human Resources Division (excluding
division-specific training)*2 MMC WAY penetration and practical implementation basedon employee engagement survey results<Related pages>
P15 MITSUBISHI MOTORS’ Materiality
P21 Materiality
P79 Human Resources Management
P122 Human Resources-Related Data

MMC Companywide Education(1) Ideal to be pursued(2) Training(off-the-job-training)(3) Human resource
development (HRD) systems(4) Practical training(on-the-job training)

Required human resource model

Introduction of selective
reinforcement training

Introduction of
PDCA cycle for HRD

Performance evaluation/
feedback interview

Ability requirements

Awareness-raising for
MMC WAY (some training)

Revitalization of
HRD communication

Check of preferred career/
stocktaking of skills

Criteria for ability development

Enhancement of objective
ability assessment

Promotion of awareness/development based on
results of assessment

Provision of development
experience/opportunities
based on results of assessment(dimensions)

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Targetl 4.4

Training and Education
MITSUBISHI MOTORS’ Education Program
Based on the education pillars, sections in charge ofeducation with the Human Resources Division have
put in place a training program for the systematicdevelopment of human resources, from entry-levelees utilizing e-learning, and selective training in which

employees to general managers.

employees voluntarily choose a program to attend.

We plan and implement a variety of employee
lum based on employee job classification, but also se-

Consideration for Training Methods in
Response to a Changing Environment

lective training for managers, training for all employ-

To respond to the changing environment and boost

training programs, including not only training curricu-

its organizational capabilities, we have put in placea training system that cultivates personnel in a

Job Classification(required humanresource model)(a key player in theexecution of work)

Training for M2
candidates

Training for
newly promoted Main Staff

Staff(a professional in
the operational
work)

Clerical Staff(efficiently carries
out operations)

Entry-level
employeetraining

Entry-level
employeetraining

general managers.
EnglishTraining forM2 candidates(assessment)

Training for
AssistantManagercandidates
Third year
training*1
Second year
training
Third year
training*1

Global mindset
training*2

Global mindset
training*2

Second year
training

Measures for improving TOEIC score (TOEIC score range from 300 to 695)

Main Staff

Training for
newly promoted AssistantManager

Mindset/SkillsEngineer training(a leader ofpractical work)

Selective reinforcement training (e-Learning)

Training forM1 candidates(assessment)

Training for mentors of new graduates

AssistantManagerTraining for
newly promoted M2

Training
across all job
ranks

Training for mid-career employees(management
professional)

Institutional
training

As in FY2021, in FY2022 we provided interactive
online training with a focus on group work, shifting
away from traditional lecture-based training. How-

Selective
reinforcement raining(e-Learning)
Leadershiptraining fororganizationaltransformation

Sectionmanagers (M2)

Training forcandidates
for promotion

Training for expats to be dispatched toforeign affiliates

Training for
newly Promoted M1

Reinforcement
training

systematic manner, from entry-level employees to

GlobalSelective training (GCDP*3 program, etc.)(innovation leader)Training
for newly
promoted
employees

Evaluator Training

Generalmanagers (M1)

Training for each job rank

ever, we also conducted some hierarchical training
programs, such as training for newly appointed division managers, in a face-to-face format as we lookto the post-COVID era, and worked to incorporate
both online and in-person training methods.
The ability of each individual is the key to corporate growth in a situation where the future is difficult to predict. Recognizing this, we will continue tostudy and implement mechanisms that help employees cope with changes in the environment and support their personal growth.
Data (p. P124): FY2022 training results*1 Mid-career employees undergo fundamental business skills follow-up training corresponding to third year training.
*2 To be conducted within third year training and entry-level employee training program, respectively.
*3 GCDP: Global Career Development Program
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Targetl 4.4

Fostering Global-Minded Human Resources

Supporting Lifelong Education

In line with increases in both overseas production

In accordance with the Revised Act for theand sales volumes, MITSUBISHI MOTORS is placing

Stabilization of Employment of Older Persons, whichemphasis on developing human resources who arewent into effect in April 2021, we are promoting

capable of adopting a transglobal perspective andthe reemployment of retirees aged 60 and over toperforming in the global business field.

steadily pass on the skills, knowledge and experience

English language skills are essential whenworking with stakeholders outside Japan, so weof our skilled workers.
We are also working to support the lifelong career

offer employees training designed to systematicallydevelopment of our employees. For instance, we

improve their English skills, including beginner andregularly hold Good Life Seminars, a joint undertaking

intermediate courses aimed at improving basicwith the labor union geared toward employees aged

skills. We also offer local language courses for

50 and over, where we give post-retirement life

employees who will be stationed in non-English-

planning advice.

in which younger employees are dispatched to nonEnglish-speaking emerging countries for three years

FY2022 Seminars for Future Good Life
Number of seminars
4 in total across the company
The number of participants
55(one year of language training + two years of work

Regarding career formation, we have put in place asystem which enables employees to proactively set
their own goals based on their achievements, capabilities, and life plans, while elevating their capacity
to achieve these goals.
As a specific career development method, employees participate in interviews with their superiors every year. The interviews are held based on
their Career Development Plans in which employees
and their medium- to long-term career design byreflecting on their past career. The aim of this interview is to have employees build an objective pictureof their challenges and then proceed along a career
path they have formed for themselves with convic-

experience at a local affiliate). Plans are also in placetion and a high degree of motivation.

for training programs at overseas subsidiaries.

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Personnel Systemdescribe a future career course they hope to takespeaking countries.
In addition to language training, we run a program

Career formation and evaluation

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

Promoting Occupational Health and Safety

ESG Data

Targetl 8.8

Basic Approach

Progress in FY2022

0.31

MITSUBISHI MOTORS believes ensuring the health and safety of employees is the foundation of corporate activ-

Accident rate with loss of
workdays*2[FY2021: 0.03]

0.06

ongoing basis, including through offices for on-site cooperation.

New mental health patient
incidence rate*3[FY2021: 0.62%]

0.76%

Overall accident rate*1[FY2021: 0.20]

Attendance at“safety training schools”(of which, 4,873 attended
remote safety training schools)[FY2021: 2,842]

7,228 people Operated “remote safety training schools,” which
enhance the ability to predict danger throughvisual experiences Assessed compliance with safety-related laws andregulations at each factory, as well as technicalcenters, parts centers and subsidiaries and affiliates in Japan Promoted an outside EAP*4, a type of “mental
health program”*1 Number of accidents with or without loss of workdays per
1 million working hours*2 Number of accidents with loss of workdays per 1 million
working hours*3 (Total number of new mental health patients ÷ total number of workers)×12*4 Short for Employee Assistance Program. This employee
support program seeks to improve individual and workplace health by implementing organizational mental healthmeasures, offering health consultations on individual
physical or mental health issues, and addressing compliance and other issues.

<Related pages>
P15 MITSUBISHI MOTORS’ Materiality
P21 Materiality
P79 Human Resources Management
P122 Human Resources-Related Data
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

ities. Accordingly, based on a Health and Safety Management Policy we are undertaking related measures on an

Basic Policy
1.	 We will undertake companywide activities with emphasis on each process of the PDCA cycle to eliminate workplacerisks and hazards with safety taking priority over all else. Within each activity, confirmation, follow-up, and improvement will be carried out successively and continuously.
2.	Workplace supervisors from senior management down will implement comprehensive health and safety management measures under their own responsibility with an awareness that ensuring health and safety is the foundationof management. They will strive to create a workplace culture of discipline with consideration for others and a strict
attitude of not engaging in, not allowing others to engage in, and not overlooking unsafe conduct. All workplace supervisors will also work to create a workplace culture that fosters open communication where subordinate personnel
feel that they can say anything through honest dialogue at any time and to raise awareness of health and safety.
3.	Each employee shall observe basic rules and conduct guidelines relating to safety to protect their own safety andendeavor to create healthy workplaces with no accidents by conducting on health and safety activities in cooperation
with all MITSUBISHI MOTORS personnel with a strong commitment to complying with decisions that they have madeand decisions that have been made by others.
4.	Companywide efforts shall be made to create clean and comfortable work environments, prevent disease, and promote the health and physical well-being of each employee.
5.	Health and safety management shall be implemented in accordance with the MITSUBISHI MOTORS Health and Safety
Management System.

Management Structure
At MITSUBISHI MOTORS, the “Central Production
Committee” comprises the lead officer, heads ofproduction sites, and labor union representatives.
The committee meets annually to assess the statusof measures taken over the year to address such
issues as occupational safety, traffic safety, natural
disaster preparedness and health management andBack ◀

88▶ Nextsets quantitative targets for health and safety in the
coming year, determines priority measures and takes
action to achieve the targets.
Each time a workplace accident occurs, the situation is reported to the Executive Officer, President &CEO and other members of senior management, andwe respond according to their instructions such as
ascertaining current conditions and introducing measures to prevent recurrence.
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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Targetl 8.8

Initiatives to Ensure Workplace Safety
MITSUBISHI MOTORS works to create safe and secure
workplaces where all employees can dedicate themselves to their work with a feeling of reassurance. In
particular, we strive to prevent accidents in production
sites, which account for most workplace accidents. In
order to prevent these, we identify unsafe conditions inall work situations and make improvements. Additionally,
we create safe workplaces by carrying out mutual safety
checks at production sites by senior officials and workplace supervisors to identify hazards. Other measures
include adopting improvement proposals and requests
raised by employees. We also established “safety training
schools” at each business site to raise hazard awarenessand conduct hands-on hazard training so that all employees can experience hazardous situations firsthand. In
FY2022, 2,355 people took part in this training.
In addition, “remote safety training schools,” which
enhances the ability to foresee danger through video
experience, was implemented at some business sites,with 4,873 people taking the course.
In FY2022, our accident rate was 0.32 (excluding
hospitalization), which is slightly lower than the average for the Japanese automobile industry, at 0.33,
but exceeds our target, of 0.26. By category, we experienced 11 accidents, five of which were a result of
unsafe conditions. In addition to having safety training schools at our production sites, in FY2023 we will
implement measures such as conducting experientialtraining utilizing external facilities. Through thesemeasures, we aim to increase awareness of the dangers that exist in daily life and enhance the ability toanticipate and prevent disasters.
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

As for assessing our compliance with safety-related laws and regulations, we use checklists to conduct
self-checks of each workplace and to conduct reciprocal
checks on other workplaces to ensure thorough compliance. We are increasing the thoroughness of our compliance. In FY2020, we checked technical centers andparts centers. In FY2021, we expanded the scope to include subsidiaries and affiliates in Japan, and by FY2024
we will complete physical checks at all relevant locations. At our overseas plants, compliance assessments
were performed at Mitsubishi Motors (Thailand) Co., Ltd.
(MMTh), Mitsubishi Motors Philippines Corp. (MMPC) and
P.T. Mitsubishi Motors Krama Yudha Indonesia (MMKI).
Data (p. 124): Accident rate

Mental and Physical Health Initiatives
The well-being of each and every employee is a driving force for enhancing corporate value and achieving
sustainable growth. We regard the preservation andenhancement of employee health as one of its important management challenges. We have set forth“The Health Declaration” below and established a system to work together as one company at domestic
locations, promoting health management. In March
2023, we were certified as a “2023 Certified Health &Productivity Management Outstanding Organizations”
in the large corporation category of the certification
system organized by the Ministry of Economy, Tradeand Industry and the Nippon Kenko Kaigi.
Given that mental health issues have accounted
for more than half of absences due to illness in recent
years, we have positioned mental health measures as
a company-wide priority issue and have introduced
an outside Employee Assistance Program (EAP), a
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89▶ Next“The Health Declaration” of MITSUBISHI MOTORSThe foundation for our employees having fulfilling workand personal lives is the mental and physical health of all
employees and their families as well as the creation ofan environment that allows them to work enthusiastically. MMC will actively promote each employee’s health.

type of “mental health program.” We also offer consultation on individual issues, provide mental healtheducation and offer support programs to improve theworkplace. To improve the workplace environment,
we have implemented training programs and workplace improvement initiatives with the aim of enhancing communication within the workplace. However,in FY2022 the number of new sick days taken due tomental illness rose 14% year on year, and work-related
concerns continued to account for around 80% of allcases. Accordingly, in FY2023 we will continue to prioritize prevention with the aim of encouraging care ofsubordinates by superiors and improving workplaceenvironments. Meanwhile, we arrange face-to-facesessions with industrial physicians or counselors for
employees determined to be experiencing high levelsof stress based on the results of annual stress checks.
To provide care for individuals, we have establishedexternal counseling services as a point of contact for
employees to easily consult with someone about theirconcerns. We also conduct interviews with industrial
doctors and counselors for employees who are estimated to have high levels of stress based on the
results of the annual stress checks. Additionally, we
conduct interviews for employees who are new to theCompany and may still be unfamiliar with their duties
and find it difficult to seek guidance.
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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Targetl 8.8

Responses to COVID-19
MITSUBISHI MOTORS has been affected by the
COVID-19 pandemic in a variety of ways. Recognizingthat business continuity and the health of our employees are topmost priorities, we have taken swift
measures while remaining abreast of government
trends and other developments in Japan and overseas.
In May 2023, the Japanese government recategorized COVID-19 as a Class 5 infectious disease underSpecific Initiatives• Daily disinfection of common areas• Installation of shielding curtains on production lines• Temperature checks of employees and visitors• Erection of shields in thecafeteria, spacing out
seating, encouraging silence whileeating, and other measures

Shields in the cafeteria(Mizushima Plant)

Seats in the dining area are numbered, making it easier tomaintain a seating record (Okazaki Plant).

the Infectious Diseases Act. Since then, we have beenreviewing and implementing appropriate responses tovarious infection control measures within each region
and department. At the same time, we continue tomaintain basic infection prevention measures to prevent the occurrence of clusters in the workplace andensure the safety and peace of mind of our employees.

Preventing and Containing Infection

To protect the health of our employees, we havenotified all employees about efforts to prevent andcontain infection.
l A call for attention to efforts to prevent and contain infection and instructions for how to respond
if feeling ill or if infected or in close contact withthose who arel Consistent rules to apply when working at all sites,such as social distancing at business sites and offices, temperature checks and cafeteria measuresl Employees are required to adhere to the guidelines
provided by the Ministry of Foreign Affairs regarding infection risk levels worldwide and any additional precautions implemented by the Ministry of
Health, Labour and Welfare for strengthened quarantine measures upon entry into Japan, both foroverseas business trips and for visits from overseas
to Japan.

Implementation of Telecommuting to Prevent
the Spread of Infection

We recommended teleworking for employees concerned about the high risk of infection from using
public transport, as well as employees with existingillnesses that placed them at increased risk from thedisease. We also monitor conditions at headquarters(Tokyo) and in other prefectures, maintaining the ratioof people telecommuting in each area at a certain
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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90▶ Nextlevel. (In May 2023, we halted the recommendation of
remote work as an infection-prevention measure.)

Labor-Management Relations
We support the basic principles of the Universal Declaration of Human Rights, the United Nations Global
Compact, the Core Labor Standards of the International Labour Organization and the OECD Guidelines
for Multinational Enterprises, and guarantees fundamental labor rights to employees.
Our labor agreement stipulates that the labor
union has the three rights of labor (the right to organize, the right to collective bargaining, and the rightto collective action).
As of April 2023, our labor union had 12,958 members, which accounts for all employees except officers
and managers.

Status of Labor-Management Communications
The labor-management council is regularly held alongwith collective bargaining as an opportunity for labor
management discussions. These discussions aim toshare information about issues such as working conditions and the working environment, and labor andmanagement then work together to solve these issues.
In FY2022, 59 discussions were held between ourheadquarters and union headquarters, and many
discussions were also held between offices and union
branches in each business site.
For important topics such as major changes inworking conditions, we organize a labor-management
expert committee and make decisions after carefulconsideration and discussions and management.
We are also working to build good relationships
with labor unions at overseas affiliates in accordancewith the labor laws and regulations of each country.

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Respect for Human Rights
Basic Approach
Based on the idea that respect for human rights isthe foundation of our business activities, MITSUBISHI
MOTORS supports the United Nations Global Compact(UNGC), in which the United Nations advocates the
10 principles in the four categories of human rights,
labor, environment, and anticorruption. As a participating company, we support and respect international

available on our website to all employees of Group[Compliance items]

companies in Japan and overseas.

1.	 Prohibition of Discrimination

In the MITSUBISHI MOTORS Global Code of Conduct,“Respect Human Rights and Diversity, Provide Equal
Opportunity,” specifies that discrimination, retaliation
any extent, and that the diversity of suppliers, custom-

5.	Community Involvement

ers, executives, employees and local communities shallbe respected in addition to respecting human rights.

es.” Based on the 10 principles of the UNGC, as a good
corporate citizen we will continue our activities toward
the realization of the sustainable growth of society.
We established our Human Rights Policy after consultation with experts and approval by the Executive
Committee, with the aim of conducting our businessactivities in a manner that respects the human rightsof our stakeholders. This policy outlines fundamental
matters such as support and respect for international
standards and norms regarding human rights, andmatters for compliance. The policy also stipulates
specific measures to prevent and reduce negative impacts on human rights, to provide remedial measures,and to provide education for officers and employees.
This policy has been translated into English and madeMITSUBISHI MOTORS CORPORATION Sustainability Report 2023

[Initiatives]
1.	 Human Rights Due Diligence

Human Rights Policy

on Business and Human Rights,” “the ILO’s Declaration

opment (OECD) Guidelines for Multinational Enterpris-

Dialogue
4.	Ensuring Access to “Decent Work”

Human Rights,” “the United Nations Guiding Principles“the Organization for Economic Cooperation and Devel-

3.	Freedom of Association, Labor and Management

and harassment are not permitted in any form or tostandards and norms such as “the International Bill ofon Fundamental Principles and Rights at Work,” and2.	Elimination of Unjustifiable Labor Practicesl MITSUBISHI MOTORS will identify, prevent, or
mitigate negative impacts on human rights which
may be caused by our business activities throughOur Human Rights Policy stipulates the following content, as well as items to be complied with and addressed.

the application and support of human rights due
diligence processes.
2.	Remediationl Recognition of initiatives on respect for humanl Where MITSUBISHI MOTORS identifies that it has

rights as essential factors in the fulfillment of ourcaused or contributed to a negative impact onsocial responsibility

human rights, we will provide for or cooperate inl Compliance with the Human Rights Policy by allof the executives and employees, and respect for
fundamental human rights throughout our business activities

remediation processes.
3.	Ensuring Transparency and Accountabilityl MITSUBISHI MOTORS will provide appropriate education or training to all executives and employees.

l Support and respect for international standards
and normslW
 e will ensure that our Group companies comply
with this policy, and we will request that our busi-l Compliance with the national laws and regulations
in each market where we operatel Where conflict exists between internationallyrecognized human rights and national laws, seeking of ways to honor the principles of international
human rights

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91▶ Nextness partners respect human rights.
l We will disclose our initiatives on respect for human rights.
The full text of the Human Rights Policy, including annotations,can be found here:
WEB https://www.mitsubishi-motors.com/en/sustainability/
society/human_rights/pdf/human_rights_policy.pdf

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Commitment of
Top Management

Sustainability Strategy

Management Structure
MITSUBISHI MOTORS’ efforts addressing respect forhuman rights are mainly focused on the sustainability,
human resources and procurement departments. The
Executive Officer in charge of sustainability, acting as
the person in charge of promoting initiatives on respectfor human rights, reports the status of human rights
risk assessment and related measures to the Sustainability Committee, which is held three times a year.
Members of the Sustainability Committee share thedetails of these reports with their departments, promoting companywide efforts to respect human rights.
In addition, considering human rights violations to
be a risk to the survival of the Company, we integrate
human rights into the company-wide risk management systems under the Internal Control Committee,
positioning them as one of the priority risks and managing them appropriately.
As for the internal system for promoting anawareness of human rights, the Corporate Officer incharge of human resources leads the promotion ofawareness training. As one aspect of our human rights
awareness education, human rights themes are incorporated into shared materials used in various training
programs, and in each business site human resources
department works to raise employees’ human rights
awareness. We also participate in events held by theIndustrial Federation for Human Rights, Tokyo, andthe Mitsubishi Group Human Rights Enlightenment
Committee (organized by Mitsubishi Group companies), of which we are a member, and attend conferences and research meetings held by other externalorganizations. (In FY2022, we spent a total of 70 days
participating in training sessions.) We also use the latest information obtained through our participation inthese events in our human rights awareness activities
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

FeatureEnvironment

Socialand utilize the knowledge we gain from these activities in our inhouse training programs.
Please see page 110 for details on our internal control systems.

Human Rights Due DiligenceThrough a human rights due diligence framework, wework to identify negative impacts our business activities have on human rights and strive to prevent or
mitigate such impacts.
Our employees are one of our crucial stakeholders
and compromising their dignity and fundamental rights
could lead to a decrease in engagement and have asignificant negative impact on our products and quality.
Accordingly, we recognize that human rightsof employees, such as labor conditions, health andsafety are significant risks for our business activities
and stakeholders. Based on this understanding, we
conduct human rights assessments(*) as part of ourhuman rights due diligence. In FY2021, we conducted
human rights assessments at our headquarters andthree domestic plants, and in FY2022, at Mitsubishi
Motors (Thailand) Co., Ltd. (MMTh), our main produc-

Governance

ESG Datation base in the ASEAN. By engaging an external evaluation organization we ensured the objectivity of theassessments and their alignment with international
standards. During the assessments, we evaluated thehuman rights impact through employee involvement,
including one-on-one interviews between evaluation
organization and employees with various attributes.
The assessment conducted in FY2022 confirmedthat the human rights of MMTh employees are generally in a positive state, and there were no significant
impacts on the business or employees.
In our human rights assessment activities, we areworking to mitigate human rights risk through thefollowing processes.
1. Summarize assessment results
2. Identify matters requiring improvement and thedepartment in charge
3. Monitor implementation status
4. Report to the Sustainability Committee* Examples of assessment items: Wages (payroll records, overtime,
unfair wage deductions), child labor (employment under 15), forcedlabor (freedom of movement and retirement), discrimination(harassment), health and safety (training and education, evacuation disaster prevention), and remedies (consultation services) areevaluated in consultation with an external evaluation organization,using ILO standards and industry initiatives as reference.

The Human Rights Due Diligence Process

Sustainability Committee
STEP 2

STEP 1
Determine
scope

Identify risks

STEP 3
Conduct
assessment

STEP 4
Enact mitigation andpreventive measures

STEP 5
Continuemonitoring<FY2022 Results>
l STEP 1 D
 etermined human rights issues to be addressed by the Company based on the International Bill of Human Rights
and other human rights guidelines
l STEP 2 Identified employee working conditions, health and safety as risks with high human rights impact and identified
sites for assessmentl STEP 3 C
 onducted human rights assessment on Mitsubishi Motors (Thailand) Co., Ltd. (MMTh) in collaboration with an
external evaluation organizationl STEP 4 Based on the assessment results, enact measures to mitigate and prevent human rights risks
l STEP 5 Monitor mitigation and preventive measures for effectiveness (from FY2023)
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Commitment of
Top Management

Sustainability Strategy

Complying with the Human Rights Policy
Coinciding with Human Rights Day on December 10,
to raise awareness, each year MITSUBISHI MOTORS’Executive Officer, President & CEO disseminates amessage to all officers and employees regarding respect for human rights, emphasizing the importanceof sincere words and actions, as well as enhancing
awareness of our human rights policy and explaining
the importance of our human rights initiatives.
Our policies and activities for promoting and realizing respect for human rights are described below.

Prohibiting Discrimination
The Company requires executives and employees torespect diversity and to create equal opportunities
with no allowance for unfair discrimination or harassment on bases such as race, skin color, nationality,
ethnicity, family origin, sex, sexual orientation, gender
identity, age, disability, language or religion.
Also, we emphasize the importance of diversity in
our training programs, and we encourage our employees to work together with respect for diverse values.

Eliminating Unjustifiable Labor Practices
The Company does not tolerate slavery labor, including human trafficking, child labor, forced laboror other unjustifiable labor practices, and strives toeliminate such practices.
To ensure against such practices, we verify potential employees’ ages to ensure statutory requirements are met when entering into labor agreements.
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

FeatureEnvironment

SocialGovernance

ESG Data

We do not charge applicants and hired employees any

for employees who perform well. This system aims

fees and costs related to recruitment. Pay slips clear-

to improve employee motivation and enhance theirly state any legal deductions; we do not make unfair

abilities. To ensure that these efforts are appropri-

deductions, but regularly pay employees their full

ately evaluated, we hold annual labor–management

dues. We do not retain employees’ passports or othernegotiations and implement reviews and revisions as

identifications or prevent them from movement. Em-

necessary based on labor–management agreements.

ployees are free to choose whether to enter or leave

Data (p. 123): Wage levels

the dormitories.

Freedom of Association and Labor–Management Dialogue

Community Involvement
In our efforts to maintain harmony with the local
community, we contribute to society by utilizing each

The Company respects its employees’ right to asso-and every employee’s skills and know-how as well as

ciate, and we engage in sincere dialogue with em-

our technologies and products.

ployees to resolve various types of issues. Regarding
employees’ freedom to engage in legitimate union ac-

Consideration for Human Rights in Work andInvestment

tivity, including collective bargaining. We clearly state

As we believe that positive relationships based onthat employees who engage in such activities will notmutual understanding between employees and ev-

be subject to disadvantageous working conditions oreryone in the community are essential to the sustain-other sanctions.

ability of our business, when establishing businesscollective agreements with labor unions, we recognize

Ensuring Access to Decent (Rewarding andHumane) WorkTo ensure decent work, in addition to complying withsites or related facilities, we give consideration to thecultural values of the country and region including
customs and religions.

individual countries’ laws and regulations, we conduct

In-House Education and Training

activities focused on respect for human rights, based

In order to encourage all employees to cultivate theiron international norms (such as the International Bill

respect for human rights, the Company is offeringof Human Rights and the ILO’s Declaration on Fun-courses that deepen understanding toward humandamental Principles and Rights at Work). We haverights within its training programs tailored to each job

designed our personnel system to ensure that em-

rank, beginning with entry-level employee training. In

ployees are compensated at a level that allows for a

FY2022, we conducted a total of 510 hours of humanstable livelihood, while also providing higher rewards

rights training for 530 employees, including entry-

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

level employees, mid-career employees and newly

Supply Chain Considerations

tation offices (helplines) and the MITSUBISHI MOTORS

promoted managers (department general managers

We conduct appropriate transactions, which includes

Global Hotline, which offers assistance in multiple

and section managers). Details of the training are

not causing human rights violations against its busi-

languages*2 for whistle blowing and consultation for

described below.

ness partners. We determine transaction prices andemployees. The MITSUBISHI MOTORS Global Hotline

delivery dates following thorough consultation withhas established contact points in 10 countries to han-individual suppliers.

dle reports from employees of the Company and its

Raising awareness of social and internal
human rights issues required for workplace
management, sharing information to promote respect for human rights, preventionof harassment, response in the event of
occurrence, etc.
Newly
Recent topics related to human rights,
promoted harassment prevention, responding tomanagers incidents when they occur, and the role ofmanagement
Mid-career Recent topics regarding human rights.
employees The relation between our business and human rights, etc.
Entry-level The significance of corporate initiatives
employees regarding human rights.
Fundamental knowledge regarding humanrights, etc.
Newly
promoted
generalmanagers

To promote awareness of sexual minorities among
our employees, MITSUBISHI MOTORS has been conducting seminars at each business site since FY2018.
In addition, we also conduct an internal e-learning
course covering basic knowledge of LGBTQ issues.
Number of AttendanceTraining Programs in FY2022
Participants
Rate
Entry-level employee training
129
100%
Mid-career employee training
171
100%(newly promoted)
Newly promoted manager
233
100%
training
Seminars to raise under240—*1standing of LGBTQ issues
LGBTQ e-learning course
11,439—*1*1 Attendance ratio not disclosed for voluntary attendance
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

In addition, we promote two-way communication
with our business partners through management
based on the Supplier CSR Guidelines.
The guidelines include provisions on respect for

major affiliates in a total of 13 languages*3.
We have also established the Customer Contact
Center*4 for customers and the Business Partner
Helpline*5 for suppliers. These hotlines receive reports

human rights, including the elimination of discrimi-

and requests for consultations regarding humannation and the prohibition of child labor and forced

rights issues.

labor, and we request that suppliers take humanConfidentiality and user anonymity is guaranteed

rights into consideration. To enhance the guidelines’

at all of these consultation offices. We ensure that

effectiveness, we obtain Supplier Commitment agree-whistleblowers and people who seek consultation arements from our business partners.

not treated unfairly or discriminately. If an internal in-

In addition, based on their CSR evaluations byvestigation is deemed insufficient, and we determine

third-party organizations, we evaluate business part-that an investigation at a business partner’s company

ners on “labor and human rights,” and we ask them tois necessary, we collaborate with the business part-make improvements as necessary.

ner’s compliance personnel and respond accordingly.
In such case, in advance of further investigation, weRequests to Sales Companies

enter into an agreement with the business partner to

At sales companies, we carry out initiatives to provide

strictly prohibit searching for the whistleblower baseda work environment with consideration for the healthon the obtained information and engaging in retalia-

and safety of employees and we prohibit acts thattory actions.

infringe on human rights.

*2 F
 or information on the establishment of Internal and External
Consultation Offices (Helplines) and the MITSUBISHI MOTORSGlobal Hotline, please see page 113.
*3 The MITSUBISHI MOTORS Global Hotline is available in Japanese,
English, Chinese (simplified and traditional), Korean, Tagalog, Indonesian, Thai, Vietnamese, German, Dutch, French and Spanish.
*4 For further information regarding the Customer Contact Center,please see page 73.
*5 For further information regarding the Business Partner Helpline, please see page 96.

Access to Remedy
In order to make timely responses in cases where ahuman rights related issue occurs within the company, we have established internal and external consulBack ◀

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialAchieving a Sustainable Supply Chain

Conducted supplier
CSR evaluations
by third-party organization(Purchase amount basis)[FY2021: 70%]
Conducted supplier process
audits[FY2021: 47 cases]

Targetl 3.9

Basic Approach

Progress in FY2022
Cumulative83%

In April 2018, MITSUBISHI MOTORS, Renault and Nissanestablished the APO (Alliance Purchasing Organization), a joint purchasing organization that integrates
the three companies’ purchasing functions. This orga-

80 cases/year Exchanged opinions and enhanced communications
with suppliers at Suppliers Meetings Supported business partners to undergo third-party evaluations to reinforce supply chain CSR

nization carries out its activities with the three sharedpillars of trust, respect, and transparency as its basic principles. The alliance members are exchanging
information on CSR in the supply chain, as well, andmoving forward with these activities.
We and our overseas production plant bases conduct business directly with around 800 companies,
including suppliers of raw materials and parts and<Related pages>
P15 MITSUBISHI MOTORS’ Materiality
P21 Materiality

business partners providing services, advertising andlogistics. We recognize that the Company’s businessactivities have a significant impact on these companies, as well as on an even greater number of Tier 2
and other suppliers.

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

ESG Data

Governance

Back ◀

Targets
l 8.7
l 8.8

Targetsl 12.4l 12.5

Based on this understanding, all processes, fromthe procurement of raw materials to the manufacture of parts and products to the end delivery, require responsible behavior that takes such factors as
the environment and human rights into account.
To achieve sustainable growth throughout the
supply chain, we have formulated “Supplier CSR
Guidelines” and work together with all our business
partners on CSR initiatives.
In response to one aspect of our CSR that becomeof particular importance in recent years, the environment, we have formulated “Green Procurement
Guidelines” and are promoting initiatives throughout
the supply chain. As compliance with both guidelines
is a priority in our procurement activities, our executives take advantage of opportunities such as supplier briefings to request that the entire supply chain
thoroughly comply with the guidelines.
Please see page 91 for details on respect for human rights.

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

GovernanceTargetl 3.9Management Structure
Formulating Guidelines and Confirming
Them through Agreements and Declarationsof Conformity
To ensure compliance with its “Supplier CSR Guidelines” and “Green Procurement Guidelines,” MITSUBISHI
MOTORS has business partners submit Supplier Commitment to the “Supplier CSR Guidelines” and Declarations of Conformity to Regulations on Substances ofConcern to the “Green Procurement Guidelines.”
We ensure the effectiveness of our business
partnerships by having new business partners submit these documents before commencing transactions, and by continuously confirming the status of
the agreement afterwards.

Communicating with Suppliers
Providing suppliers with appropriate information andtwo-way communication is essential for supply chain
management. At the end of every fiscal year, we holda Suppliers Meeting to make our policy for the next
fiscal year well-known. In FY2022, this meeting
was held in March 2023 and attended by approximately 300 companies. We also participate in the“MITSUBISHI MOTORS Cooperation Council,” a voluntary organization of around 180 supplier companies
that facilitates small-scale meetings between the
management teams of suppliers and our own Company. (These small-scale meetings were held a totalof nine times, involving approximately 20 companies
each time.) The meetings help foster closer communication at the management level.
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Targets
l 8.7
l 8.8

Targetsl 12.4l 12.5

Establishing a Business Partner Helpline

2019, we have clarified CSR evaluations of businessAs part of our efforts to adhere to the METI guide-

partners and the actions to be taken in the event oflines, we have established a Business Partner Help-

noncompliance. We have expanded these efforts toline for the suppliers of our procurement division.

include our major overseas bases—Mitsubishi Mo-

The helpline receives opinions and comments

tors (Thailand) Co.,Ltd. (MMTh), PT Mitsubishi Motors

from business partners, quickly identifies compli-

Krama Yudha Indonesia (MMKI), Mitsubishi Motors

ance issues or concerns, such as legal or regulatory

Philippines Corp. (MMPC)—and received Supplierinfractions or unfair practices in our procurement

Commitment agreements from suppliers at our ma-

activities, and promptly rectifies them, striving to

jor overseas production bases.

achieve even fairer business transactions.

PDF Supplier CSR Guidelines

Ensuring Knowledge of the Guidelines within
the Company

Policies on Conflict Minerals

As part of managing the Supplier CSR Guidelinesgold) and cobalt produced in the Democratic Re-

and the Green Procurement Guidelines, we work to

public of the Congo and neighboring countries haveensure that the guidelines are known within us. We

become a source of funding for armed groups, re-conduct training for all new employees involved insulting in serious violations of human rights.

procurement (both entry-level employees and new

The “conflict minerals” (tin, tantalum, tungsten and

To ensure that we are not complicit in human

mid-career employees), as well as training when em-

rights abuses through the procurement of theseployees are transferred from other divisions to theconflict minerals, we promote responsible procure-procurement division.

ment by clearly specifying in our Supplier CSR Guidelines the prohibition of child labor, forced labor, andthe nonuse of conflict minerals as raw materials.

Supplier CSR Guidelines
Expansion of Guidelines
Through the “Supplier CSR Guidelines,” we promotecollaborative activities with our suppliers from thesame point of view. The scope of these activities
covers all suppliers and includes labor practices, environment management, and compliance.
Having reestablished these guidelines in February

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96▶ NextImproving CSR in the Supply Chain through
Third-Party Evaluations
To level up suppliers’ CSR, MITSUBISHI MOTORS uses
the same third-party evaluations as its alliance partners, Renault and Nissan. Also in FY2022, many business partners had undergo third-party evaluations.
We plan to continue expanding the number of business partners who undergo evaluations in FY2023,

Back to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

GovernanceTargetl 3.9

and MITSUBISHI MOTORS will focus on augmenting

addition to engaging in communication with suppliers

the evaluation scores of business partners who haveof products with high CO2 emissions and asking

already undergone evaluations.

them to reduce CO2 emissions, we have also beenenhancing our activities to assess the efforts, risks,
サステナビリティ課題の範囲:「リファレンスモデル」
and opportunities of our suppliers through the Carbon
企業のサステナビリティ・マネジメントシステムを評価する場合、評価の対象を定義することが重要です。
評価
サステナビリティ課題の範囲:
In FY2023
and beyond, we 国
will continue tothroughout the Supply Chain「リファレンスモデル」
は、4つのテーマに分かれるさまざまなサステナビリティ課題を対象としています。
サステナビリティ課題は、

Efforts to Become Carbon Neutral

Disclosure Project (CDP)*1 Supply Chain Program.

グローバル・レポーティ
ングour・イニシアティブpartners to promote
連グローバル・コンパクトの10原則1、国際労働機関(ILO)協定2、
collaborate
withbusiness
3
4
5、ISO 26000規格、セリーズ(CERES)ロードマップ、
国連ビジネスと人権に関する指導原則(ラギ(GRI)規格
企業のサステナビリティ
・マネジメン
トシステムを評価する場合、評価の対象を定義することが重要です。
評価
activities aimed
at reducing CO国2 emissions
Weーaim
to become6といった国際的なサステナビリティ規格に基づいています。
carbon neutral across the supply
・フレームワーク)は、
4つのテーマに分かれるさまざまなサステナビリティ課題を対象としています。
サステナビリティ課題は、
1
2
throughout
thesupplychain.ブ、国際労働機関(ILO)協定
、
グローバル
・
レポーティ
ング
・イニシアティ連グローバル・
コンパク
トの10原則chain by 2050. To do so, it is essential that our(GRI)規格3、ISO 26000規格4、セリーズ(CERES)ロードマップ5、国連ビジネスと人権に関する指導原則(ラギ* An international
environmental NGO that collects requests
suppliers
reduce製品のライフサイクル全てへの影響(生産工程、
CO
6 2 emissions.
環境テーマでは、製品の利用、
および使用済み製品による影響)
といった国際的なサステナビリティ規格に基づいています。
ー・フレームワーク)from institutional investors and others interested inを審査する事にご留意ください。
一次サプライヤーだけでなく、
二次・三次サプライヤーにおける課題も考慮す
In FY2022, we held a Supplier Meeting in October toenvironmental
issues, and encourages
るために、
サプライチェーンにおけるサステナビリティ課題も「リファレンスモデル」に組み込まれています。
それ major companies andcommunicate
our efforts in企業の状況
the procurement
area. In
organizations
around the world の関連
to disclose environmental
ぞれの評価における課題は、（業種・規模・ロケーションなど）と「21のサステナビリティ課題」
環境テーマでは、製品のライフサイクル全てへの影響(生産工程、製品の利用、
および使用済み製品による影響)
information, and evaluate
性に基づいて決定されます。 一次サプライヤーだけでなく、二次・三次サプライヤーにおける課題も考慮すを審査する事にご留意ください。
Third-party
evaluation items
るために、
サプライチェーンにおけるサステナビリティ課題も「リファレンスモデル」に組み込まれています。
それぞれの評価における課題は、企業の状況（業種・規模・ロケーションなど）と「21のサステナビリティ課題」の関連性に基づいて決定されます。

21のサステナビリティ基準

環境
事業活動

環境
• エネルギー消費と温室効
果ガス

• 水
事業活動
• 生物多様性• エネルギー消費と温室効• 地域公害と汚染事故
果ガス•• 原材料・化学物質・廃棄物
水製品• 生物多様性•• 製品の利用
地域公害と汚染事故•• 使用済み製品
原材料・化学物質・廃棄物•製品
顧客の健康と安全•• 環境に優しいサービスと持製品の利用続可能な消費の促進• 使用済み製品• 顧客の健康と安全• 環境に優しいサービスと持続可能な消費の促進

労働と人権

倫理

21のサステナビリティ基準

人的資源• 腐敗行為• 労働条件• 責任ある情報管理

労働と人権• 従業員の安全衛生
•人的資源
社会対話
•• キャリアマネジメン
従業員の安全衛生トと教育•人権
労働条件• 児童労働
社会対話・強制労働・人身売買• キャリアマネジメン
トと教育倫理• 反競争的慣行• 腐敗行為• 反競争的慣行• 責任ある情報管理

持続可能な資材調達• サプライヤーの環境慣行
持続可能な資材• サプライヤーの社会慣行
調達• サプライヤーの環境慣行• サプライヤーの社会慣行• ダイバーシティ・差別・ハラ人権
スメント• 児童労働・強制労働・人身• 外部の利害関係者の人権
売買• ダイバーシティ・差別・ハラスメント• 外部の利害関係者の人権

1. 国連グローバル・コンパクトは、
持続可能性に関する普遍的原則を実施し、国連の目標達成を支援するために措置を講じる事を目的とした、企業トップのコミットメントに基づく自発的な取り組みです。
国連グローバル・コンパクトの10原則は、
世界人権宣言、労働における基本的原則および権利に関するILO宣言、
環境と開発に関するリオ宣言、および汚職防止に関する国連条約に基づいて定められたものです（国連グローバ
Source:EcoVadis
ル・コンパクト公式ウェブサイト
（英語版)より）。
1. 国連グローバル・コンパクトは、
持続可能性に関する普遍的原則を実施し、国連の目標達成を支援するために措置を講じる事を目的とした、
企
2. 1919年の創設以来、
国際労働機関（Sustainability
ILO)は、
すべての男女が、
自由・平等・
・
安全・人間としての尊厳が確保された条件のもとで、生産的で働MITSUBISHI
MOTORSCORPORATION
Report2023
Back ◀
業トップのコミットメン
トに基づく自発的な取り組みです。
国連グローバルコンパク
トの10原則は、
世界人権宣言、労働における基本的原則お97 ▶ Next
きがいのある人間らしい仕事（ディーセント・ワーク）の機会を促進するという使命のもと、
国際労働基準の維持と策定を行っています（ ILO
よび権利に関するILO宣言、
環境と開発に関するリオ宣言、および汚職防止に関する国連条約に基づいて定められたものです（国連グローバ

Targets
l 8.7
l 8.8

Targetsl 12.4l 12.5

Green Procurement Guidelines
Expansion of Guidelines

In its Green Procurement Guidelines, we ask business
partners to acquire and renew external certifications ofenvironment management systems, as well as to manage hazardous substances, promote the 3Rs (reduce,reuse and recycle), submit LCA*2 data to allow us tounderstand the lifecycle environmental impact, reduce
environmental impact in business activities, and reduce
their environmental impact related to logistics.
In addition to Japan, we have introduced theGreen Procurement Guidelines at overseas production bases, adjusting the guidelines to account for
actual conditions in each country and operational
details at each location. These companies are also
applying the guidelines to their business partners.
PDF Green Procurement Guidelines*2 LCA stands for Life Cycle Assessment, which is a techniquefor calculating and evaluating the environmental impact of a
product from manufacturing to disposal.

Collection of Materials and Hazardous Substance Data through IMDS

To encourage the management and reduction of
hazardous substances, we promote management
under the International Material Data System (IMDS).
For this reason, we ask business partners to disclose
data on environmentally hazardous substances formaterials and parts by inputting them into IMDS in
accordance with the “Green Procurement Guidelines.”
We also ask them to establish a management system for environmentally hazardous substances.
Through these processes, we confirm compliancewith regulations regarding hazardous substancesused in parts and materials for new vehicles andmass production models.
Back to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

GovernanceTargetl 3.9

Working with Suppliers to Improve Quality

Promotion of Localization

MITSUBISHI MOTORS regularly conducts quality au-

To optimize costs at our overseas production bas-

dits and quality self-check guidance with its suppli-es, our basic policy is to source from local suppliers

ers as collaborative efforts to improve quality along

where possible, as long as such procurement is ef-

the entire supply chain.

fective and the necessary technologies are in place.

In FY2022, we conducted process audits for 62

For parts which are already locally procured, we also

suppliers at 80 plants, and indicated items were

promote the local procurement of the components

generally improved within three months. Processused within these parts, etc., to optimize costs further.

audits are conducted every one to three years, with

We conduct advance audits of the systems andthe audit cycle set according to the results of thestructures of new business partners, evaluating

previous audit. Quality self-checks are performed byitems such as their development capabilities, pro-

329 business partners. Each company is working toduction capabilities, and quality management ca-

improve the weak points found in the self-check. In

pabilities and issuing improvement instructions if

addition, we are actively working to improve com-necessary. We also provide support to local businessmunication with suppliers and enhance quality by,partners by serving as a go-between with Japanesefor example, promoting improvements by dissemi-

business partners, joint ventures with local businessnating the results of our self-check trend analysis topartners, technical partnerships, and the like. We

all suppliers.

work to contribute to local regions by creating local

We issue monthly Supplier Score Cards, whichjobs and improving local technical capabilities.

numerically represent suppliers’ quality results. Thisapproach has clarified issues for each company,
making it easier to implement improvement measures quickly and accurately. In cases of particularly
serious defects, we analyze the causes and examine

Country-Specific Parts Procurement Ratios
by Production Base (FY2022)
Indonesia 13%

Philippines 1%

the appropriateness of countermeasures in collaboration with business partners to prevent recurrence.
We cooperate on defect prevention activities tokeep defective parts from being delivered and en-

Japan
53%

Thailand33%

sure we are able to provide customers new models
with confidence.

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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98▶ NextTargets
l 8.7
l 8.8

Targetsl 12.4l 12.5Initiatives for Business Continuity Plans
in the Supply Chain
A large-scale natural disaster, major outbreak ofinfectious disease, or shortage of specific parts ormaterials (such as semiconductors), could interrupt
the flow of parts from our suppliers. We might thenrun the risk of business being suspended.
To avoid or mitigate such risks, as part of our business continuity plans (BCPs) in the supply chain, weare taking measures to identify risks and impacts
early on and to find alternative production options foreach business partner and component.
Specifically, suppliers are asked to register Tier
2 to Tier N suppliers including overseas suppliers, inaddition to their factories, in the Supply Chain Risk
Management System so that target suppliers can be
narrowed down as soon as possible.
In addition, both the Company and its suppliers exchange information on the status of damage
caused by disasters, the impact of specific parts andmaterials shortages, and our response to productionplans so that we can take countermeasures.

Participating in Outside Initiatives
Curbing and combating climate change require efforts that go beyond the scope of individual companies. Entire industries and their supply chains must
work together to reduce CO2 emissions.
As a member of the Japan Automobile Manufacturers Association, we participate via subcommittees
in discussions on industrywide policies and measuresin the area of procurement.
Back to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialPromoting Social Contribution Activities

Disaster cooperationagreements in placewith municipalities[FY2021: 190]

Total of

Total social contribution
expenditures[FY2021: ¥605 million]

Targetl 10.2

Basic Approach and Policies

Progress in FY2022

250
416 million¥

Participants in social
contribution activities[FY2021: Cumulative totalof 50,576]

58,767 people

Hours spent on social
contribution activities*1[FY2021: 32,288 hours]

69,933 hours

Cumulative total of Promoted the DENDO Community Support Program Promoted activities in the “STEP” field Expanded forest preservation activities*1 Activities during working hours<Related pages>
P15 MITSUBISHI MOTORS’ Materiality
P21 Materiality
Social Contribution Activities Report
WEB https://www.mitsubishi-motors.com/en/
sustainability/contribution/report/

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

In accordance with the Social Contribution Activities
Policy formulated on the basis of MITSUBISHI MOTORS’ vision and mission, we are promoting activities that leverage the features of our Plug-in HybridElectric Vehicles (PHEV), including the execution ofcooperative agreements in the event of disasters.

ESG Data

GovernanceTargetl 11.5

Targetl 13.1

Targetl 15.4

to work with local governments and our Group companies throughout Japan to contribute to the safety
and security of local residents through the use of
Electrified Vehicles.
Logo Mark for Social Contribution Activities
The figure shows how our circle of activity in STEP
areas expands outward from the center.

In FY2022, we successfully executed the disaster cooperation agreements with 250 municipalities
across Japan to increase awareness of the usefulness of PHEV in times of disaster. We will continue

Social Contribution Activities Policy
To address diversifying social issues, MITSUBISHI MOTORS carries out its STEP social contribution activities,
focused on four main themes, standing for the first letters of Society, Traffic safety, Environment and People.
Based on this policy, we will continue to contribute tosociety by utilizing each and every employee's skills andknow-how as well as our technologies and products,
aiming to create a better society where people canhope for a better future.

Breakdown of Social Contribution
Expenditures in FY2022*2
Category

Society
Traffic safety
Environment
PeopleSupport for disaster-stricken areas,
support measures to address COVID-19
Total expenditure(¥ million)

Amount
85
4
69
223
35
416

*2 S
 ocial contribution expenditures including donations as well as
in-kind benefits and free use of company facilities converted
into monetary equivalents.

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99▶ NextBack to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialTargetl 10.2Society
DENDO Community Support Program
Including the dispatch of Electrified Vehicles in theevent of a disaster power outage in accordance with
the Cooperation Agreement in the event of a disaster,
MITSUBISHI MOTORS is supporting municipalities with
its PHEV, which can generate power and be tapped assources of electricity.
By combining the power of PHEV to provide transportation and the power of electricity, we are making
people’s lives safer and more reliable.
For details, please see page 27 and our website.
WEB https://www.mitsubishi-motors.co.jp/carlife/phev/dcsp/(only in Japanese)

ESG Data

GovernanceTargetl 11.5

Targetl 13.1

Targetl 15.4“Manhole pump start-up support system for power

In FY2022, with the aim of reducing the number

outage and disaster,” which aims to utilize electricof traffic accidents caused by erroneous driving, we

vehicles and plug-in hybrid electric vehicles to pow-

collaborated with local governments and police sta-er the manhole pumps needed to move water in thetions to conduct “driving aptitude tests,” “car simula-

event of a disaster power outage.

tor experiences,” and “test rides in a SUPPORT CAR” to

In this research, we are conducting verification

experience the collision prevention assist function oftests in the cities of Kawasaki and Hamamatsu in col-the Safety Support Car. A

laboration with pump manufacturers and parties for

total of four test drives

development of a system that combines electrified

were held in Okazaki City,

vehicles, solar power generation and portable storage

Aichi Prefecture, and Ku-

batteries to adapt to a decarbonized society. Goingrashiki City, Okayama Pre-

forward, we will strive to achieve the use of electrified

fecture, for these experi-

vehicles together with this system, aiming to be envi-

ences, with approximately Riding together in a safety
support car
70 people participating.

ronmentally friendly and to contribute to ensuring thesafety and security of people’s lives.

Traffic safety activities around business sites
Our employees regularly serve as traffic safety sentries on the roads around our business sites.
We called for safety for passing vehicles and people with placards and banners during commuting
hours, and also guided traffic for cheildren on their
way to school. In addition, our employees participated

Disaster cooperation agreement

Proposing the utilization of electrified vehicles
in the “Manhole pump start-up support systemfor power outage and disaster”

Demonstration of power supply
utilizing a PHEV.

Traffic safety

in traffic safety awareness events organized by local
traffic safety associations
and police stations in collaboration with the local
community, and cumulative total of 398 em-time due to power outages has increased due toConducting the “School of Vehicle” for Traffic
Safety Classroom

frequent windstorms and floods, and this has become

We are implementing “Kuruma no Gakko,” a program

such activities across oura social problem. We participated in a joint researchin which participants think about traffic safety, learn

business sites.

project in September 2021 to address this issue on a

together and have fun together.

In recent years, the number of manhole pump down-

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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100▶ Nextployees took part in eight
Employees serving as safety
sentries

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialTargetl 10.2

Traffic Safety Awareness for Children
Website for Children “Do You Know the Answer?
MITSUBISHI MOTORS posts a regular feature on its

tion, employees resumed activities for the first time

“Why, Why, Car Development Research Kids” website

in three years to clear the undergrowth needed forto provide information on the automobile industry to

the seedlings to grow, which had been postponed toelementary school age children. The website includes

prevent the spread of COVID-19 infections.

a web-page about traffic safety using a quiz format
to introduce traffic rules and manners they should
follow when walking or riding a bicycle in their dayto-day activities.

Signing a forest preservation
activities collaboration agreement with the city of Okazaki

Forest Preservation Activities
In March 2023, as part of our initiatives to carbon
offsetting through forest preservation, we signed a

Employees engaging in activities
for the first time in three years

Asian Transmission Corp. (ATC), our automotive parts
production base in the Philippines, has been engaged
in greening activities toward the goal of planting a
total of 25,000 seedlings over a period of five years
starting in FY2018, which marked its 45th anniversary.
In FY2022, we donated a total of 3,600 mahogany saplings to schools and local governments with acumulative total of saplings planting to 27,009.

Supporting the Education of Elementary,
Junior and Senior High School Students
We support the education of the children who willtake responsibility for the next generation throughfactory tours (where elementary school students
can experience manufacturing sites) and a hands-on
lesson program, in which employees visit elementary schools to conduct lessons. We also host career
counseling studies to encourage junior and seniorhigh school students to think about the future andbroaden their horizons.
In FY2022, the activities were attended by approximately 30,400 elementary, junior and senior highschool students.

is located. The designated city-owned forest has been
named “Okazaki Outlander Forest,” and forest preservation activities have begun.
Forest preservation activities include environmental
Planting mahogany saplings
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101

Factory tour for elementary
school students▶ NextCompany visit by junior highschool students

Participating in a Joint Industry–Academia
Project with a Vocational School and an
Art University
To help nurture students
with an interest in car
design, in April 2022 webegan a joint industry–
academia project (course)with the industrial design
department of Tama

Okazaki City, Aichi Prefecture, where the Okazaki Plant

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Targetl 15.4

Donating Seedlings as part of Our Environmental Preservation Activities in the Philippines“Forest Preservation Partnership Agreement” witheducation, thinning, tree planting, and underbrush cutting

Targetl 13.1

PeopleIn the “Pajero Forest” in Hayakawa-cho, Yamanashi
Prefecture, in collaboration with the OISCA Founda-

Environment

Targetl 11.5

to foster environmental awareness among employees.

Traffic Safety Quiz”“Do You Know the Answer? Traffic Safety Quiz”
WEB https://www.mitsubishi-motors.com/jp/sustainability/
contribution/people/kids/anzen/ (only in Japanese)

ESG Data

Governance

Designers providing guidanceon-siteBack to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialTargetl 10.2Art University. In September, we also began planningcourse with HAL College of Technology & Design. For
the project with Tama Art University, our designers
provided both online and on-site guidance, and thestudents planned and proposed a new lifestyle mobility for our company under the theme of “Exciting
Mitsubishi Entry Cars for the newcomers to the workforce in 2035.”

Donates Solar Systems for Orang Asli’s Shared
Community Space in Malaysia
In July 2022, MMC Manufacturing Malaysia Sdn. Bhd(MMM), MMC’s official distributor in Malaysia, donatedsolar systems to enable access to solar energy in the indigenous minority group Orang Asli's shared community
space commonly known as their Rumah Adat, throughthe Global Peace Foundation, a non-governmental organization (NGO) that supports this ethnic group.

tomotive industry; and host interns. We also provide
support tailored to national and regional social issues,
including educational opportunities through the organizing events.

Event on Digital Literacy Education in Indonesia
In December 2022, Mitsubishi Motors Krama Yudha
Sales Indonesia (MMKSI), our sales company in Indonesia, conducted events to promote digital literacy.
These activities included coloring contests, production and editing of digital artworks, and training workshops for content posting on social media. The aimof these events was to help children understand andutilize information appropriately in the rapidly developing digital society.

Children learning about digital literacy

The Orang Asli's Shared Community
Space where the solar system wasinstalled

Educational Support in Asia
In Thailand, Indonesia, Vietnam, and Malaysia, wetake part in various efforts to help children who havedifficulty accessing education for economic reasons.
We provide scholarships to junior high school, highschool and university students; donate learning tools
to orphanages; donate teaching vehicles that can help
cultivate high-quality human resources for the auMITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Donating Water Purifiers to Elementary
Schools in Rural Areas of Vietnam
In March 2022, Mitsubishi Motors Vietnam Co., Ltd.
(MMV), a local production and sales company in Vietnam, in cooperation with local dealerships and theVietnam Red Cross Society to donated water
purifiers to elementary schools in the Ninh
Thuan and Quang Nam
provinces, where access to safe and clean
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102▶ NextESG Data

GovernanceTargetl 11.5

Targetl 13.1

Targetl 15.4

water is not available.
This donation is aimed at providing children witheasy access to clean water and improve hygiene conditions in the schools.

MITSUBISHI MOTORS STEP Funds andMatching Gift Program
The MITSUBISHI MOTORS STEP Funds,
introduced in April 2009, is a structure through which employees of
MITSUBISHI MOTORS Group companies can continuously participate insocial contribution activities by voluntarily donating
fixed sums to the funds. These funds are then used
for to support activities in developing countries andareas struck by the Great East Japan Earthquake, inline with the purposes of MITSUBISHI MOTORS social
contribution activities. In addition, to demonstrate it
values employees’ motivation to contribute to society
and to support more people, the Company matches
donations made through the MITSUBISHI MOTORSSTEP Funds.
The recipients of donations and matching gifts are
selected based on their alignment with the focus areasof MITSUBISHI MOTORS Social Contribution Activities
Support Recipient World Vision Japan The MICHINOKU Future Fund OISCA Kindergartens, Nursery schools, elementary schools,
etc., near our workplaces
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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialTargetl 10.2

Policy, business continuity, regular activity reports andtrack record. In addition, we hold debriefing sessions forour employees by the recipients of our support, and we
communicate with them to link our activities with theirs.
Through this support, MITSUBISHI MOTORS andMITSUBISHI MOTORS STEP Funds aim to continue withactivities that meet local needs and contribute to thedevelopment of the local community.

Engaging in the “Forest Wooden Building Block
Project” for Children
The concept of this project is to present nurseries andkindergartens near Company business sites with cozywooden building blocks for enhancing the children’s
creativity through block play, which are made ofJapanese cypress comes from forestry thinning
operations mainly in Hayakawa-cho, located in theprefecture of Yamanashi, where we carry out ourforest conservation activities.
In addition, we have been engaging in “Employee
Presenter Program” through which our employees
hand out a set of forest wooden building blocks tonurseries and kindergartens of their choice (usually
choice from their childhood memories) through ourinternal donation funds.
In FY2022, we presented blocks to 60 kindergartens and nursery schools. The blocks have been donated to 525 kindergartens since 2010.

Building blocks made from thinned cypress
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Support for Disaster-Stricken Areas
In the event of natural disasters and other emergencies, we provide various forms of support, such asmonetary donations, free loan of vehicles, and employee volunteer work.

“TRITON” Pick-Up Trucks Are Provided to Areas
Affected by Flood due to Heavy Rain for disaster relief activities
Mitsubishi Motors Aus-ESG Data

GovernanceTargetl 11.5

Targetl 13.1

Targetl 15.4of eastern Queensland and southeastern New South
Wales. These vehicles provided support for various
relief activities in the affected areas, including thetransportation of rubble and debris.

Donating Three Vehicles to Malaysia for the
East Monsoon
MMC Manufacturing Malaysia Sdn. Bhd. (MMM), ourgeneral sales agent in Malaysia donated three “TRITON” pickup trucks to the Malaysia Red Crescent Society (MRCS), a non-governmental organization (NGO)involved in disaster re-tralia Limited (MMAL), a

sponse for over 60 years.

sales company in Austra-“TRITON” will be used forlia donated approximate-humanitarian aid, such as

ly 30 units of “TRITON”

delivering food and med-

pickup trucks and“PAJERO SPORT” and“ECLIPS CROSS” sport util-

Providing a “TRITON” pickup
truck to Disaster Relief Australia

ity vehicle to Disaster Relief Australia (DRA), an Australian disaster relief organization to support emergency relief activities for the flood-stricken statesical supplies to those inneed in the affected areas

The donated “TRITON”

in the event of flooding.
Please see the following website for details on our disaster relief
support.
WEB https://www.mitsubishi-motors.com/en/sustainability/
contribution/society/relief/

Main Support in FY2022
Implementation
Support
PeriodFebruary–April Cyclone damage in Hawke’s
Donated six “TRITON” pickup trucks
2023
Bay, New ZealandFebruary 2023
Turkey-Syria Earthquake
Donated ¥5 million for relief
January–March Wildfires in New South Wales, Provided various vehicles, including the2023
Australia“TRITON”• Donated 575 million Indonesian rupia in
November 2022 Earthquake in Java, Indonesia relief funds• Donated 200 million Indonesian rupia
Repeated flooding through- Provided approximately 30 vehicles, including the “TRITON,” “PAJERO SPORT” andFrom 2022
out New South Wales and“ECLIPSE CROSS”
Queensland, Australia
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103▶ NextSupport Recipient
Taskforce KiWi
The Japanese Red Cross Society
Disaster Relief Australia
The Indonesian Red Cross
Society
Disaster Relief Australia
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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

GovernanceSocialGovernance

ESG Data

GovernanceCorporate Governance�������������������������������������������������������������������������������������������������������������������������������������������������105
Basic Approach and Policies, System of Corporate Governance���������������������������������������������������105
Status of Audit Committee Audits and Internal Audits�����������������������������������������������������������������������108
Items Relating to Takeover Defense����������������������������������������������������������������������������������������������������������������109

Executive Remuneration�������������������������������������������������������������������������������������������������������������������������������������������109
Basic Views and Policy�����������������������������������������������������������������������������������������������������������������������������������������������109

Internal Control������������������������������������������������������������������������������������������������������������������������������������������������������������������110
Basic Approach, Policies and Organization��������������������������������������������������������������������������������������������������110

Risk Management������������������������������������������������������������������������������������������������������������������������������������������������������������111
Basic Approach and Policies,Development of Risk Management Framework���������������������111

Compliance����������������������������������������������������������������������������������������������������������������������������������������������������������������������������112
Basic Approach and Policies�����������������������������������������������������������������������������������������������������������������������������������112
Management Structure, Establishment of Internal and External Consultation Offices�����113
Education and Training����������������������������������������������������������������������������������������������������������������������������������������������114
Anti-Corruption, Political Involvement (Political Contributions)����������������������������������������������������115
Information Security, Protection of Personal Information, Security Export Control,
Approach to Taxation���������������������������������������������������������������������������������������������������������������������������������������������116
Members of the Board�����������������������������������������������������������������������������������������������������������������������������������������������������117

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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104▶ NextBack to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialCorporate GovernanceDirectors and the composition and size of the overall
Board of Directors.

Based on its Vision and Mission, MITSUBISHI MOTORS
considers compliance to be of topmost importanceand is making the ongoing reinforcement and improvement of governance a management priority,
in order to meet the expectations of shareholders,customers and all other stakeholders, and to achievesustainable growth and increase in corporate value
over the medium to long term.
In addition, we have put together its basic framework for and views on corporate governance in theform of “Corporate Government Guidelines” and publishes these guidelines on our website.

<Basic Policy>
In order for the Board to objectively and multi-dimensionally deliberate on management policies andexecution of specific matters, and to appropriately
supervise the execution status of operation by Executive Officers, it shall be important that the appropriate number of Directors, internal or outside, withdiversity in terms of knowledge, experience, expertiseand background, engage in vigorous discussions froma variety of perspectives. To this end, candidates for
Directors shall be nominated.

System of Corporate Governance
We have adopted the form of a company with aNomination Committee, etc, as part of its efforts toenhance its corporate governance and clearly separate supervisory and execution function, and in orderto achieve swift execution of business in quick response to environmental changes and to ensure thesoundness and transparency of management throughfurther strengthening of supervision and implementation of more thorough risk management.

Board of Directors and Directors

Policy for the Nomination of Candidates for Directors
and Composition of Members of the Board
The Board makes decisions on important management issues and oversees the execution of business
by Executive Officers.
We have established the following basic policy
regarding the policy for nominating candidates for
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

ESG Data

Targetl 8.7

Basic Approach and Policies

PDF Corporate Governance Guidelines

GovernanceIn accordance with this policy, the independence anddiversity of the Board shall be ensured as follows.
In order to strengthen the supervisory function of
the Board, the majority of Board members shall be
Outside Directors. Furthermore, in order to fulfill theirduties from an independent and objective standpoint,
at least one-third of the Directors shall be Independent Directors, and consideration shall be given to
their total term of office. In addition, the majority of
the Nomination, Compensation, and Audit Committees, respectively, shall be Outside Directors, and inprinciple, the chairperson of each committee shall be
an Outside Director.
Outside Directors shall be nominated based on
their diverse knowledge, experience, and expertise,
which cannot be obtained from Internal Directors
alone, for example, specialists in law, accounting,finance, etc., persons with management experienceat global companies above a certain size, and persons
with a wealth of knowledge of world affairs or socialand economic trends, etc. Importance shall be placedon their eagerness to devote the necessary time andefforts to understand the business of the Company
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105▶ NextTargetl 16.5as a group, and discuss the direction the Company asa group should take, and to express their opinions to
the management without hesitation. In addition, thediversity of backgrounds such as gender, age, andinternationality shall be also taken into account, as itshall be recognized that multiple perspectives contribute to business promotion and appropriate supervision and auditing.
As for Internal Directors, Executive Officer, President & CEO, and a person who can appropriately
serve as a member of the Audit Committee based on
his or her execution experience of operation at weshall be nominated.
Also, it shall be ensured that the Board is composedof the number of people who can openly and constructively discuss and exchange opinions.
As of June 22, 2023, the Board comprised 13 Members (2 female Members). 11 of the 13 Directors are
Outside Directors with extensive experience and highlevels of insight, and 5 of the Outside Directors are
Independent Outside Directors.
We publish individual Directors’ knowledge, experience and expertise (skill matrix) on our website.
WEB https://www.mitsubishi-motors.com/en/sustainability/
governance/policy_skill.html

Independence Standards and Qualification for Outside Directors
We have established independence standards for
Outside Directors as follows, and we appoint as independent directors those persons who are not at risk of
having a conflict of interest with general shareholders.
<Independence standards and Qualification for Outside Directors>
The Outside Directors of us shall not be any of the following and shall be in a neutral position independent
from our management.
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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Targetl 8.7

1. A
 n executive of a major shareholder*1 of MITSUBISHI MOTORS
2. A
 n executive of a major business partner*2 of us,
or of a company for which the Company is a major
business partner, or the parent company or subsidiary of such a company
3. An executive of a major lender to the Company or
the parent company or subsidiary of such a company
4. A person affiliated with an auditing firm that conducts statutory audits of us
5. A consultant, an accounting professional such as acertified public accountant, or a legal professionalsuch as an attorney-at-law who receives a large
amount*4 of monetary consideration or other property other than compensation of corporate officers
from us (in the event such property is received bya corporation, association or other group, then any
person belonging to such group)
6. An executive of a company with which we share a
corporate officer
7. A
 n executive of an organization that is receiving alarge donation or grant from us
8. A
 person to whom any of one through seven has
applied during the past three years
9. A person with a close relative (second degree ofkinship) to whom any of one through seven applies
10. A
 person whose total period in office as an Outside
Director exceeds eight years
11. O ther persons for whom the possibility of a relationship with us appears strong under substantive
and comprehensive consideration of the situation*1 a major shareholder: a shareholder who owns a 10% or greater
share of voting rights*2 a major business partner: a major client of the Company withannual transactions valued at 2% or more of our consolidated
net sales in the most recent fiscal year, or a major supplier to
us with annual transactions valued at 2% or more of the supplier’s consolidated net sales in the most recent fiscal year

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Analysis and Evaluation of the Effectiveness of theBoard of Directors
To improve the effectiveness of corporate governance,
we annually evaluate the effectiveness of its Board.
In FY2022, in pursuit of enhancing the oversight capability of the Board, we conducted individual interviewsof all Directors in addition to the questionnaire survey
about the aspects listed below, and the evaluation andanalysis were reported to the Board on March 28, 2023.
In the course of the evaluation this year, we employed
an external consultant for the questionnaire survey andinterviews to ensure in-depth analysis and evaluation
along the latest corporate governance intelligence andsecure objectiveness and transparency in the process.
<Aspects evaluated>
1. Structure and operations of the Board
2. Management and business strategy
3. Corporate ethics and risk management
4. Evaluation of management team and nomination
and remuneration
5. Dialogue with shareholders
6. Committees
As a result, it was confirmed that the Board has
improved on the structure, framework, and operations compared to the FY2021 and is sufficiently
effective in total in its work. The following are theBoard’s strengths recognized through the evaluation:(i) Fostered respect and trust in the executive team’s
managerial efforts(ii) Steady and continuous work to improve its effectiveness and substantive discussions to improve
corporate value(iii) Mutual trust among Directors based on the effective exercise of roles and responsibility by eachof the diverse Outside Directors, with their distinguished personalities, acumen, and experiences.
The evaluation also confirmed improvements inthe following two issues identified in FY2021 throughimplementation of the action plan.
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106▶ NextTargetl 16.5

Issue in FY2021 and Initiative in FY2022 (1)Shift the focus of deliberations and discussions of theBoard to broader matters.
Initiative: E nhanced reporting on matters that underpin
the mid-term business plan, such as products,
technology, new businesses, and other matters.
Issue in FY2021 and Initiative in FY2022 (2)Explore more opportunities to understand deeper thebusiness environment and operations and obtain information about the background of the executive team’s
thoughts and decisionmaking regarding management
matters, which should be the fundamentals for judgments and oversight by the Board.
Initiative: Inception of periodic reporting to the Board regarding business overviews and relevant topics,
enhancement of informal discussions and theunderstanding of issues through continued regular Independent Directors’ meetings, the holding of opportunities for richer communications
between Directors and senior executives, visits
by Directors to domestic and overseas sites,
continued efforts for practical improvements inthe operations of Board meetings, etc.

The FY2022 evaluation concluded that the Board
has developed solid governance base around, among
other things, the structure, framework, and operations and should have more and even richer discussion
about broader-and longer-perspective strategies of us.
Toward the further effectiveness of the above, thefollowing points were identified as key aspects.
(i) Development of a common understanding about
environmental changes and management issues
that the Company faces(ii) F ormulation of a more robust outlook of the futureof the relevant industry’s structure surrounding
automotive and mobility matters and the further
deepening of insights about the MITSUBISHI MOTORS core competencies(iii) T he importance of a greater variety of opportunities for interactive and multilateral communicaBack to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

GovernanceTargetl 8.7

tions and discussions between the Board and theexecutive teams for the purpose of helping adaptations to forthcoming changes in the world
We will endeavor continuously for more heightened effectiveness of the Board and enhanced corporate governance by incorporating the results ofthis evaluation into the agendas of Board meetings in
FY2023 and other relevant efforts.

Committees

The Board of Directors has the following three statutory
committees, which supervise Directors and Executive Officers together with the Board of Directors. Each committee is composed of a majority of Outside Directors, andthe Chairpersons of each committee are Outside Directors. Through this, a system is in place in which corporate
governance functions in a fair and transparent manner.

General Meeting of Shareholders
Proposals for election/
Dismissal of Directors

Election/Dismissal

Election/
Dismissal

Nomination Committee
5 (including 5 Outside Directors)
Board of Directors
13 (including 11 Outside Directors)

Compensation Committee
5 (including 4 Outside Directors)

Supervision

Election/ Determination ofDismissal compensation

ReportInternal Control
Committee
Supervise and order

Corporate Officers and Employees
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107▶ NextAudit Division

Product Discussion
Meeting

Audit Coordination

Instruction

Executive Officer, President
and Executive Officers
Executive Committee

Coordination

Instruction/report(Specific case suchas misconduct)

Audit

Accounting Auditors

Audit Committee
5 (including 4 Outside Directors)
Delegationof authority

Execution function

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Audit Committee
Among other activities, the Audit Committee audits
the execution of duties by Directors and Executive
Officers, supervises the status of the formulation andoperation of the internal control system and prepares audit reports. Additionally, the Audit Committee
conducts internal investigations on matters that theBoard or the Audit Committee deems inappropriate
for the executive side to conduct. The Audit Committee consists of four Outside Directors and one Internal
Director, and an Independent Outside Director (Yoshihiko Nakamura) serves as the chairperson.

Corporate Governance and Business Execution Structures (June 22, 2023)

Supervisory function

Nomination Committee
The Nomination Committee makes decisions on proposals for the appointment and dismissal of Membersof the Board to be proposed to the General Meetingof Shareholders, approves proposals for the appointment and dismissal of Executive Officers proposedby the President to the Board of Directors, and discusses succession planning for MITSUBISHI MOTORS’President. The committee is composed of five Outside
Directors, and an Independent Outside Director (Ms.
Main Kohda) serves as the chairperson.
In FY2022, the Nomination Committee met 10
times. In determining the agenda item for the electionof Directors to be proposed to the General Meeting of
Shareholders, the Nomination Committee prepared alist of candidates and interviewed them for the election of new independent Outside Directors, and deliberated on approval of the proposal for the election of
Executive Officers to be proposed by the President to
the Board of Directors, and on succession planning for
the President, and other matters.

Compensation Committee
The Compensation Committee deliberates and determines the policy regarding determination of remuneration of Directors and Executive Officers, as well as
the details of individual remuneration. The committee
is composed of four Outside Directors and one Internal Director. An Outside Director (Mr. Shunichi Miyanaga) serves as the chairperson.
The Compensation Committee met nine times in
FY2022. The Committee deliberated on the determination of the individual Compensation Plan for Directors and Executive Officers, review of the current
Compensation Plan for Directors, and other matters.

Targetl 16.5

Coordination

Audit
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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Targetl 8.7

In FY2022, the Audit Committee met 15 times. The
status of Audit Committee audits outlined at right.

Executive Officers

The Board make decisions on matters that require aresolution of the Board pursuant to laws, regulations orprovisions of the Articles of Incorporation, matters delegated to the Board by a resolution at a General Meetingof Shareholders, and certain material matters related tobusiness management. Executive Officers are given theauthorization to make decisions relating to the execution of business excluding any of the above matters.
Executive Officers are responsible for making decisions on business execution delegated by the Board.
The President is appointed as the head of the executive departments by a resolution of the Board.
As of June 22, 2023, there are 11 Executive Officers(including the President).

Outline of Decision-Making Process for
Business Execution and Various Committees

When executing business, the Executive Officer, Executive Vice President is positioned as the responsible
person with authority and responsibility for businessexecution within the scope of duties, in addition to
the President who is the head of the executive department. In addition, delegation of decision-making
authority is systematized based on the Delegationof Authority Rules, in which items subject to delegation and their scope are defined, and decision-making procedures for major matters are formulated to
speed up business execution and improve the transparency of the decision-making process.
Important matters on management are decided
after deliberation at the Executive Committee, whichis composed of all Executive Officers and chaired by
the President.
Important matters relating to product development projects are decided after deliberation at the
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Product Decision Meeting.
Additionally, matters related to internal control
are decided after deliberation at the Internal Control Committee.
Each of these committees are chaired by the
President and the relevant Executive Officers serveas members.

Conflicts of Interest

Transactions between MITSUBISHI MOTORS and Directors or Executive Officers that particularly compete with our business operations or conflict with
our interests require prior resolution from, and afterthe-fact reporting to, the Board in accordance withthe rules of the Board (hereinafter referred to as the“Rules of the Board”). In addition, the Rules of theBoard stipulate that Directors with a special interestin a resolution of the Board shall not participate insuch resolution.
Furthermore, we conduct transactions with related parties, such as its Officers or major shareholders,
based on the validation of multiple related departments and approval of the person in charge, pursuant
to the delegation of authority rules, after we havesufficiently considered the economic rationality toconfirm there is no harm to our interests, which is thesame process we go through with non-related parties.

Status of Audit Committee Audits andInternal Audits
Status of Audit Committee audits

Our Audit Committee gathers information and conducts
organizational audits in relation to the implementation and operation status for internal control systems(including internal controls pertaining to financial reporting), such as those for main affiliates in Japan andBack ◀

108▶ NextTargetl 16.5overseas, status of progress with and operation ofcompliance activities, verification of the appropriatenessof risk evaluations, and risk management frameworks
and the like, through Audit Committee meetings thatare held monthly, in principle, and other meetings with
Internal Audit Divisions, interviews with Executive Officers, and the like, based on audit policy and audit plans.
In the Audit Committee during the fiscal year under review, reports made concerning the audit policies
and audit plans; audit methods; the assignment of audit duties; the status of the improvement and maintenance of the internal control systems; responseto the Guidelines under the amended Whistleblower
Protection Act; audit plans made, audit methods used,
and the suitability of the results of audits performedby the Accounting Auditors; communications in relation to Key Audit Matters (KAM); response to theamendment of the Code of Ethics of the JapaneseInstitute of Certified Public Accountants (JICPA); andthe monthly reports on the status of duties executedby the Full-time Member of the Audit Committee.
In addition to the meetings above, based on its
audit policies and audit plans, the Audit Committee held 6 meetings (approximately 90 minutes per
meeting) with the internal audit divisions during theyear, performed audits, and collected informationon the operating status of internal controls throughthe divisions. The Audit Committee also interviewed
Executive Officers and others 9 times during the year
(approximately 90 minutes per interview) to confirm
how the MMC group’s major subsidiaries and affiliates
in Japan and overseas as well as divisions address issues on the development and operation of the internal control system, compliance, risk management, etc.
In addition to the meetings above, full-time Membersof the Audit Committee attended important meetings
including meetings of Executive Committee; inspected
important approval/decision documents; interviewed
Executive Officers and Corporate Officers; visited andBack to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Targetl 8.7

audited, or conducted hearings with MMC’s major business locations and its major subsidiaries and affiliates inJapan and overseas; provided training for and had liaison
meetings with auditors of subsidiaries and affiliates inJapan; and performed the three-pillar audit system (i.e.,internal audits, auditors’ audits, and accounting audits).
The status of duties executed by full-time Members of
the Audit Committee is reported in the meeting of the
Audit Committee (held once a month in principle).
The status of activities carried out by the Audit
Committee is reported to the Board of Directors twicea year. The Audit Committee also exchanges opinionswith Executive Officer, President to communicate its
findings every year.

Status of internal audits

MITSUBISHI MOTORS has established internal audit
departments (the Internal Audit Department and the
Quality Audit Department) in the Internal Audit Division (an independent organization reporting directly to Executive Officer, President & CEO) and thesedepartments systematically conduct internal audits
based on the annual audit plan.
As of the end of March 2023, the Internal Audit
Division consists of 24 members* with specialties,
including those with a variety of managerial experience, certified internal auditors, and eligible internal
auditors. The Internal Audit Department (consisting of
15 members*) conducts audits to determine whether
operational management of the Group is being conducted with transparency using appropriate processes.
The Quality Audit Dept. (6 members*) audits the appropriateness of product quality-related activities by MMC
and subsidiaries and affiliates in Japan and overseas.
The results of the internal audit conducted by theInternal Audit Division are reported to Executive Officer, President & CEO and the Audit Committee.
Besides coordinating meetings with the Audit
Committee six times a year and holding regular meetings with full-time Audit Committee Members oncea month, the Internal Audit Division also exchanges
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

information at tripartite audit meetings with full-time
Audit Committee Members and Accounting Auditors.
* As of June 30, 2023, the Internal Audit Division consists of 25
members (15 from the Internal Audit Department, 7 from the
Quality Audit Department, and 3 from the Division itself).

Cooperation between the Audit Committee
and internal audit departments

The Audit Committee Members regularly hold meetings with the Internal Audit Division to receive information regarding the auditing system, auditing plans,
and internal audit results within us and at its affiliateddomestic and overseas companies, and to provide
feedback to the Internal Audit Division on the statusof the Audit Committee Members’ audits. Additionally,
the Audit Committee summarizes audit activities it
has conducted, including the details of reports received from the Internal Audit Division, and reports
the results to the Board twice a year.

Items Relating to Takeover Defense
Not applicable.

Executive Remuneration
Basic Views and Policy
MITSUBISHI MOTORS’ Compensation Committee,
which is chaired by an Outside Director, has established the following policy regarding remuneration for
Directors and Executive Officers.
<Basic approach>
1.	The compensation system shall contribute to MMC
group’s sustainable growth and medium- to longterm improvement of corporate value.
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109▶ NextTargetl 16.5

2.	The compensation system shall be linked withcorporate results in order to motivate Executive
Officers to accomplish management strategies andmanagement plans as well as to achieve targeted
corporate results in an appropriate manner.
3.	The compensation levels shall contribute to securing
professionals who measure up to ideal standards for
management personnel that MMC expects for those
responsible for corporate operation to have.
4.	The compensation system shall increase a sharedawareness of profits with shareholders and awareness of shareholder-focused management.
5.	The decision-making process relating to compensation shall be highly transparent and objective.
Based on these policies, the Compensation Committee determines the method calculating remuneration and individual remuneration amounts of thedirectors and executive officers. Remuneration for
FY2022 is contained in the FY2022 Annual Securities
Report (pages 91–96).
FY2022 Annual Securities Report
WEB https://www.mitsubishi-motors.com/content/dam/com/
ir_en/pdf/yuka/2023/yuka20230629e.pdf

From FY2022, based on the recognition that the response to sustainability is one of the crucial issues ofthe MMC group, we added ESG-related items as theindex to determine the Medium-and Long-term Performance-linked Compensation for Executive Officers.
l Environmental indicator:
We have introduced “CO2 emissions from businessactivities” as an indicator for measuring progress inaddressing climate change and other increasingly
environmental issues.
lS ocial indicator:
We have introduced “employee engagement” asan indicator of advancement of employee job
satisfaction and increased initiative through securing diversity and work-life balance, and promoting Human Resources development.

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

GovernanceInternal Control
Basic Approach, Policies and Organization

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

fice under the supervision of the Executive Officer forInternal Control Promotion/General Administration/
Corporate Affairs to identify and prevent potential
risks, respond to emergencies when risks materialize,
and make the Company’s major risks visible.
We have been working to establish a global internal
control structure by gradually establishing and operating internal control committees from FY2018 at main
affiliates in Japan and overseas. In addition, we haveestablished a system in which a designated department is responsible for the overall management ofeach affiliated company, and related internal departments support the responsible department according
to their roles, providing various support, checks andbalances, and supervision to strengthen the affiliate
and promote its development. Furthermore, internal
rules have been established to ensure that important
information at subsidiaries is reported to the Company
in a timely and appropriate manner, and subsidiaries
operate in accordance with these rules. To ensure theappropriateness of financial reporting, a specialized or-

Accounting
AuditorAccounting
Audit

Report* See Corporate Governance Report for “Basic Policy on the Establishment of Internal Control Systems” PDF
PDF https://www.mitsubishi-motors.com/en/sustainability/
pdf/governance.pdf

Audit/Report

Coordination
Audit

Nomination
Committee

Coordination

Compensation
Committee

ReportExecutive Officer, President & CEO
ReportReportInternal Control Committee

ReportInternal Audit Division

Audit

Board of Directors

Audit Committee

Instruction/Report(specific issues of
misconduct, etc.)

Targetl 16.5ganization has been set up under the J-SOX Promotion
Committee described above. This organization follows
up on and gathers information about systems in placeat the Company and its affiliates, the scope of evaluation, the evaluation status of companies subject toevaluation, the improvement status and other matters.
We have also positioned the Internal Audit Division
as independent of business execution. The Internal
Audit Division coordinates with other committees, including the Internal Control Committee, with the aimof achieving effective and efficient internal control
system operation.
Going forward, we will continue with initiatives tofurther reinforce governance by working to ensurecompliance with laws and regulations and to promote proper, effective business execution in line withchanges in the domestic and overseas environments.

Internal Control Structure

ReportCoordination

Whistleblowing
contact

Based on the “Basic Policy on the Establishment ofInternal Control Systems”* resolved at the Board of
Directors, MITSUBISHI MOTORS monitors the status ofoperations and strives to improve and reinforce internal control systems.
We recognize the gravity of its improper conduct
in fuel consumption testing, on top of past quality
problems. As one of its priority measures aimed atregaining trust, in FY2017 we appointed a Global Risk
Control Officer to manage compliance and operational hazard risks and report regularly to the Boardof Directors on governance improvement measures.
(In FY2023, the name of the post was changed to the
Executive Officer for Internal Control Promotion/General Administration/Corporate Affairs.) Furthermore,in order to reinforce, and improve the efficiency of,its handling of internal controls based on laws andregulations, it revised its internal control system. In
the revised system, the J-SOX Promotion Committee,
under the direct control of the Executive Officer, Executive Vice President (CFO), handles internal control
related to financial reporting in accordance with the
Financial Instruments and Exchange Act. The Internal
Control Committee, chaired by the Executive Officer,
President & CEO and vice-chaired by the Executive
Officer in charge of Global Risk Control, promotesinternal control related to the Companies Act. This Internal Control Committee confirms and evaluates thecontents reported and /or resolved at subcommittees
in each internal control field, such as Compliance, Information Security, Business Continuity Management(BCM), and J-SOX, in accordance with the “Basic Policyon the Establishment of Internal Control Systems.”
From FY2022, we expanded the scope of risks
covered to address the new risks that have emergedin recent years and are intricately intertwined withmultiple risk factors (strategy, finance, operationaland hazard risks) for a single event. In addition, we
have established the Internal Control Promotion Of-

Targetl 8.7

Executive Officer,
Executive Vice President (CFO)

ReportCoordination

Compliance
Committee

Information
Security
Committee

BCM
Committee

J-SOX
Promotion
Committee

Controls

ReportDepartments/Affiliates
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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernanceRisk Management
Basic Approach and Policies
MITSUBISHI MOTORS has defined a policy for the
management of business risks in the form of the“Basic Policy on the Establishment of Internal Control
Systems,” and promotes risk management activities
throughout the entire MITSUBISHI MOTORS Group.
We consider it one of our most critical management
issues to appropriately assess risks to the MITSUBISHI MOTORS Group’s business, prevent risks fromoccurring, and engage in appropriate management tominimize the impact of risks if they do occur.

Development of Risk Management Framework
We have put in place and works to improve its risk

ESG Data

Targetl 8.7

Targetl 16.5Affiliated company risk management involves reg-safety of customers, as well as employees and theirular confirmation by MITSUBISHI MOTORS of the statusfamilies, and assist local communities. We are prepar-of initiatives addressing various risks faced by subsid-

ing disaster countermeasures and Business Continuity

iaries and associates and activities such as Business

Management (BCM) to this end.

Continuity Planning (BCP) improvements. Improvement

In FY2020, we established the “BCM Committee” assuggestions and guidance are provided as required.

a permanent meeting body. In 2022, we consolidated

As a new strengthening measure, the Internal

our existing internal initiatives to strengthen BCM ac-

Control Promotion Office was established in FY2022.

tivities during normal times and take measures acrossAs geopolitical risks, risks related to economic secu-

the company.

rity, risks related to business and human rights, etc.

We conduct company-wide BCP drills, in which athat are intricately intertwined with strategy, finance,company-wide BCP headquarters is set up, employ-

operational and hazard risks, have surfaced in re-ees’ safety and damage situations are reported fromcent years, the Company has established a system toeach plant, and instructions are given by the com-manage risks with expanded scope.

pany-wide BCP headquarters, under the assumption

These risk management initiatives are regularly
reported to the Board as major internal control activities and their effectiveness is confirmed.

that an emergency has occurred.
As preparations against the possibility that employees will be unable to return to their homes for

management system for the entire Group throughIn addition, to prepare for unforeseen contingen-a three-day period (in accordance with the Metro-

three types of risk management activities: “priority

cies we have developed urgent information commu-

politan Tokyo Ordinance on Measures for Strandedrisk management,” “divisional risk management” andnication system that enable the rapid communication

Individuals), we have ensured means through which“affiliated company risk management.”of information to directors and other key personnel,

they can communicate with their families, cached

as well as a swift and accurate response. In particular,

emergency supplies and are conducting initiatives by

the entire MITSUBISHI MOTORS Group faces directly,

to create a crisis management system to respondcommunicating with local municipal authorities.

that have a high potential impact and a high degree

when serious incidents occur, we have formulated

We have formulated plans of operation that as-of urgency. For each risk, we assign “risk owners,” andan emergency response manual, which we revise as

sume a large-scale earthquake or major outbreak ofwork as quickly as possible to mitigate these risks.

appropriate. This manual outlines the establishmentinfectious disease. We work to improve these BCPs

of an emergency response organization and clarifies

through regular drills and communication amongrisk management officers to each division or plant.

the chain of command, enabling us to put appropriate

individual regions.

These officers work to mitigate risks through repeat-

response systems into place.

For priority risk management, we select risks that

In divisional risk management, we have appointed

ed application of the PDCA cycle involving identifying

The MITSUBISHI MOTORS basic policy in times ofand evaluating each risk, devising and implementing

disaster such as earthquake or other natural disastercountermeasures, and monitoring.

or an outbreak of infectious disease-to ensure the

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernanceComplianceTargetl 8.7

Basic Approach and Policies
Corporate activities are closely interlinked with various laws and public systems such as those related tothe environment, labor, and consumer protection.
Corporate activities must be carried out in compliance with these laws and systems. MITSUBISHI
MOTORS recognizes that the failure to appropriately
comply with these laws, regulations, and systems
would not only impede its business continuity, butwould also place significant burdens on society andthe environment.
In order to fulfill its social responsibilities as acompany by not only complying with laws, international rules, and internal regulations but also by
respecting changing social norms to the greatest
degree possible, we have issued a “Global Code of
Conduct” to serve as a standard of conduct for all
executives and employees. We are also redoubling ourefforts to enhance our compliance framework andemployee training, including those at our major affiliates in Japan and overseas.

Targetl 16.5

MITSUBISHI MOTORS Global Code of Conduct[Principle]
MITSUBISHI MOTORS Group Companies (collectively herein referred to as “MITSUBISHI MOTORS Group” or “Company”) have
set this Global Code of Conduct that all MITSUBISHI MOTORS Group executives and employees must follow in order tofulfill our social responsibilities as a company.
This Global Code of Conduct applies to all MITSUBISHI MOTORS Group executives and employees. Each member of theCompany is charged with responsibility to comply this Global Code of Conduct.
1. Comply with all Laws and Rules

We shall comply with all applicable laws and regulations of
the country where the Company conducts business as well
as all Company policies and rules.

2. Promote Safety

We shall maintain and promote a healthy work environment, and engage in safe work practices. We are also committed to ensuring the safety of our customers and passengers, and continually promoting the safety of products.

3. Avoid Conflict of Interest

We shall act in the best interests of the Company, and shallnot behave, act, or use any information contrary to theCompany's interests. Furthermore, we shall strive to avoid
any conduct that may be considered a conflict of interest.

4. Prohibit Association with Anti-Social Forces

We shall never have any association with anti-social forces
whatsoever. We shall not participate in acts of terrorism,
drug dealings, money laundering, and other individual ororganized criminal activities.

5. Preserve Company Assets

We shall safeguard the Company's assets, and shall never
use the said assets, including funds, confidential businessinformation, physical properties and intellectual properties
without permission.

6. Be Impartial and Fair

We shall maintain impartial and fair relationship with public
servants as well as business partners, including dealers,

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

ESG Data

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112▶ Nextsuppliers, and other third parties. We shall not participate
in or endorse any corrupt practices including bribery, directly or indirectly such as through a third party.

7. Be Transparent and Accountable

We shall maintain accounts and records relating to corporate management with integrity, and disclose Company's
business activities fairly and transparently to our stakeholders, including shareholders, customers, employees,
and local communities with timely and properly manner.

8.	Respect Human Rights and Diversity, Provide Equal
Opportunity

We shall respect the human rights and diversity of suppliers, customers, other executives, colleagues, and local
communities. We shall never tolerate discrimination, retaliation or harassment in any form or degree.

9. Be Environmentally Responsible

We shall strive to take into consideration environmental
conservation when developing products and providing
services, and promote recycling, as well as resource andenergy savings.

10. Be Active and Report Violations

We shall carry out our work in accordance with this Global
Code of Conduct. When we have come to know any violation of this Global Code of Conduct, we shall immediately
report it to the Company, and the executives and employees who have come forward with such information basedon their own beliefs shall be infallibly protected from any
form of retaliation.

Back to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Targetl 8.7

ed to the Executive Officer for Internal Control.
Major subsidiaries and associates in Japan and overseas also appoint compliance officers. To help prevent
compliance infractions, in FY2018 we established andstarted operating MITSUBISHI MOTORS Global Hotline.
The Board of Directors is provided with regular
reports on these compliance structures, efforts related to education and the formulation or revision of the
Global Code of Conduct, as well as the status of any
compliance infractions and their countermeasures.
In the event of a major incident, an emergency response organization is set up in accordance with the
emergency response manual, and a system is in place
to ensure that an appropriate response is taken.

Management Structure
At MITSUBISHI MOTORS, to prevent compliance infractions and information security incidents, under the
direction of the Executive Officer for Internal Control
Promotion/General Administration/Corporate Affairs
each division appoints a compliance officer, and department heads serve as code leaders.
Compliance officers work closely with the codeleaders to prevent compliance violations within theirdepartments. When a compliance violation occurs,
corrective actions are taken, measures to prevent
recurrence and its’ effectiveness are confirmed, andhorizontal dissemination is implemented, then reportOrganizational Framework for Promoting Compliance

Board of Directors
Executive Officer, President & CEO
Executive Officer for Internal Control Promotion/General Administration/Corporate Affairs
General Manager of Internal Control Promotion Office
RequestChief Officers, Division General Managers approval
ReportConsult/
Thoroughly implement focus
reporton compliance prioritization

DirectSupervise
Coordination

Compliance Officers
Consult/
reportComplianceDepartment

Thoroughly implement focus on complianceprioritization

General Managers = Code Leaders(including General Managers of the department incharge of the primary management of the affiliates)

Complianceproblem
consultation

Coordination

Thoroughly
implement
focus oncomplianceprioritization

MITSUBISHI MOTORS
employees

Employee
Consultation
OfficeReportAffiliates
Compliance Officers
Consult/
ReportInformation
Security
Management
OfficeConsultation,
Reporting

Coordination

Outsideattorney
consultation

Consultation,
Reporting

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

MITSUBISHI MOTORS and Affiliates
employees (in Japan)
Back ◀

Business
Partner
Helpline

Reporting Consultation,
ReportingThoroughly implement
focus on complianceprioritization

Affiliates employees

MITSUBISHI
MOTORS
GlobalHotline

MITSUBISHI
MOTORS and
Affiliates
employees(in Japan
and overseas)

113▶ NextBusiness
partners(in Japan)

Targetl 16.5

As for internal controls related to financial reporting, we verify compliance structures and proceduresfor financial summaries. If inadequate controls arefound at us being evaluated, we request reporting on
the nature of the problem and improvements being
made. In FY2022, we checked the status of 19 Group
companies (MITSUBISHI MOTORS, 6 domestic subsidiaries, and 12 overseas affiliates).
In FY2022, we experienced no serious complianceinfractions that might damage our credibility withcustomers, investors, or other parties.

Establishment of Internal andExternal Consultation Offices
To prevent and promptly detect improper conduct,
MITSUBISHI MOTORS has established an internal
consultation office (Employee Consultation Office)allowing employees of us or its subsidiaries andassociates in Japan to report or consult about suchconduct. Outside us, we have set up a consultation office,the “MMC Hotline,” staffed by outside attorneys, as wellas the MITSUBISHI MOTORS Global Hotline, accessible toemployees both in Japan and overseas. We have alsoestablished a Business Partner Helpline designated to be
used by our business partners in Japan.
In a survey we conducted in February 2023 topromote the early detection and prevention ofcompliance violations, 93.7% of the approximately
5,000 employees who participated in the survey
indicated that they were “aware of the hotlines.”
In FY2022, these offices fielded 94 reports or
consultations. Offices endeavor to swiftly resolve
issues raised in reports and consultations after firstseeking to confirm the facts through an investigation
Back to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Targetl 8.7

by the Employee Consultation Office or by enlisting
the assistance of relevant compliance officers. Any
reports or consultations that raise concerns aboutcompliance issues or corporate risks are immediately
reported to the Executive Officer for Internal Control
and Audit Committee Members. After receiving
instructions on how to respond, offices endeavor
to resolve the issues. When we receive a report orconsultation via a hotline, we promptly conduct aninterview or other investigation. If a violation is found,
an incident report is filed, and corrective measuresand measures to prevent recurrence are implemented.
Receive report or consultation

Person in charge of hotline conducts
interview and investigation
Problematic or
fraudulent

Not problematic or
fraudulent

Corrective measures
Formulation of measures
to prevent recurrence
Notify the person reporting orrequesting consultation

Follow up

In handling such information and in investigating
the relevant facts, we established our “ComplianceOriented Whistleblowing Operation Procedure” andmade company personnel aware of the provision inorder to ensure that persons who seek consultation
are not treated unfairly.
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

“The MITSUBISHI MOTORS Global Hotline”
established in FY2018 was set up within an outside
firm providing such services. This makes it possible tofile anonymous reports. Systems for identifying andmanaging risks of the entire group have been put inplace, too, with MITSUBISHI MOTORS headquarters
even able to check details of reports from subsidiaries
and associates.
Number of Reports/Consultations Fielded by
Consultation Offices by Category (FY2022, 94 reports)
Item
Corporate/business proposals
Workplace environment
Labor relations
Human relations/harassment
Compliance, violations of operational rules,
fraud
OthersNumber
4
14
13
29
26
8

Out of total 94 reports and consultations received
in FY2022, the results of the investigation revealed
four cases of compliance problems, including
violations of laws and regulations and harassment.
We instructed the relevant departments to promptly
take corrective actions and confirmed that they were
implemented without fail.

Education and Training
Every fiscal year we formulate compliance-related
education and training programs, and offer them to
employees stratified by each job rank. Each divisionalso draws up and conducts its own measures under
the direction of the compliance officer.
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114▶ NextTargetl 16.5Specifically, in order to improve the complianceawareness of all employees, when new graduates
or mid-career recruits join us, they receive training
regarding the our history of compliance problems
and the lessons to be learned from it. This training
is repeated when employees are given promotions,
helping reinforce employees’ sense of compliance.
Furthermore, similar training is also offered in someJapanese subsidiaries, fostering such sense for thegroup as a whole.
We also provide all our employees with e-learning opportunities, including courses on the basics
of compliance, as well as education on information
security and on working overtime and on holidays.
On and around Safety Pledge Days,* each individual division voluntarily holds events to reaffirm the
day’s significance. Workplace discussions are also heldat the same time to talk about business ethics issues
faced in the workplace and workplace culture.
In addition, we provide easy-to-understand compliance- related information by posting a Compliance
Newsletter on our intranet every month.
As well as the activities outlined above, in FY2022
outside lecturers taught courses on risk management
for executives to raise their awareness of this topic.
For managers at the general manager level or higher,
an external lecturer provided compliance lectures tohelp improve workplace operations. Outside instructors
also provided communication training to managers at
the level of section manager and above to enhance
workplace communication and support remote work.
* To prevent past incidents, such as the regrettable recall coverup,from being forgotten over time, in October 2004 we designatedJanuary 10 and October 19 as “Safety Pledge Days.” These days
were chosen because two fatal accidents involving large trucks
manufactured by Mitsubishi Fuso, a former MITSUBISHI MOTORS
division, occurred on these days.
Back to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Targetl 8.7

Anti-Corruption
Policies and Approach
The “Global Code of Conduct” clearly stipulates that
MITSUBISHI MOTORS executives and employees shallcomply with laws and regulations and shall maintain
fair and equitable relationships with public servants andbusiness partners. Moreover, we have built and operatea system that is designed to prevent corruption.

Management Structure
We implement e-learning programs for all employees
to familiarize them with the Global Code of Conduct
and allows them to review the code at any time by
distributing pamphlets containing this code and posting it to a smartphone app (for managers and above).
We also communicate the code across the group,
distributing the pamphlets to subsidiaries and associates in Japan, and in electronic form to subsidiaries
and associates overseas.
We have formulated the “MITSUBISHI MOTORSGLOBAL ANTI-BRIVERY POLICY” as a global guideline
for the prevention of bribery and corrupt practices.
This policy states clearly that we tolerate absolutely nobribery or corrupt practices. In our efforts to reinforce
measures for preventing bribery and corrupt practices
throughout the Group, we require affiliated companies
in Japan and overseas to comply with the same policies. We also ask our suppliers, contractors, procurement partners, dealers and outside agents to comply
with applicable laws and regulations related to bribery
and with individual companies’ anti-bribery policies.
In particular, we have formulated control regulaMITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Targetl 16.5

tions and operational standards on the provision andWe work to thoroughly prevent corruption atreceipt of gifts or business entertainment for public
servants, prohibiting the improper provision of suchgifts or business entertainment to public servants ortheir receipt from public servants. When providing
gifts or business entertainment to public servants, apreemptive application must be made to the generalmanager of the Legal Department, and must be provided only if approval is received.
We have put in place management and operational standards in addition to those for public servants.
These standards expressly prohibit the provision ofgifts or business entertainment that is illegal or goesbeyond generally accepted bounds and the receipt ofillicit payoffs. In addition to this, we provide guidelines
for the scope of exceptions to the above and makefiling of an application compulsory to ensure transparency. In case these standards are violated, a system isin place for internal reporting and the formulation andimplementation of measures to prevent recurrence.
Since many employees in sales sites directly handle money with customers, there is a heightenedrisk of improper conduct such as embezzlement. At
our domestic sales subsidiaries we conduct regular

overseas affiliates by assigning oversight to their
executives and employees. Prior to their appointment,
we provide training on legal risks, including the prohibition and prevention of corruption.
When conducting audits of overseas subsidiaries,
our Internal Audit Division also verifies the progress ofefforts to prevent bribery and other corrupt practices.
In FY2022, no fine or any other punishment was
imposed on us by regulatory authorities for corrupt
practices.
No executives and employees have been disci-

education and training to instill thorough awarenessof our compliance policies and prevent improper
activity. Each sales subsidiary implements site audits
regularly. As part of our internal auditing of affiliatedcompanies in Japan, our Internal Audit Division also
conducts operational audits of domestic sales subsidiaries. Audit results are reported to our President &CEO, and the results are also shared with our Domestic Sales Division. We follow up the progress of actionplans for improvement.
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115▶ Nextplined for corrupt practices.

Political Involvement(Political Contributions)
We respect the requirements set forth in the Global
Code of Conduct to “comply with all laws and rules,” “beimpartial and fair” and “be transparent and accountable,”and maintain appropriate relationship with politics.
Recognizing that reasonable expenditures are
required to appropriately maintain a democratic government, we consider making political contributions
to be one aspect of its social responsibility. Whenmaking such contributions, we do so in accordancewith the Public Offices Election Act, the Political Funds
Control Act, and other laws and regulations related
to politics. We also ensure to follow our own internal
rules for approval.
In FY2022, we donated ¥13.9 million to the People’s
Political Association.

Back to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Targetl 8.7

Information Security

Security Export Control

MITSUBISHI MOTORS recognizes its social responsi-

We sincerely believe in the importance of strict se-bility to adequately protect its important information

curity export controls to prevent the proliferation

assets (information and the IT systems, equipment,of weapons of mass destruction and the excessive

media, facilities, and products that handle this infor-

accumulation of conventional weapons in order tomation) in the course of its business activities in ordermaintain international peace and security.

to gain the trust of all its stakeholders. We are pro-

To conduct strict export controls, we have estab-moting the following information security measures.

lished “Security Export Control Regulations.” We en-• Putting in place and reviewing internal regulations

sure the legality of our export transactions throughrelated to information security

our management system, with its the Security Ex-• Managing information assets and strengthening

port Control Committee, led by the Executive Officer,

measures against computer viruses and cyberattacks

President & CEO, who serves as chief security export• Providing education and inform employees throughcontrol officer.

e-learning, the internal intranet and other measures• Monitoring information security activities by the
Information Security Committee

Approach to Taxation
We recognize that proper tax payment in all operating

Protection of Personal Information

countries is one of key elements of corporate social

Based on our Privacy Policy, we have built a man-

We have established the following Global Tax

agement framework by establishing internal rules
and taking other measures. We also conduct ongoingeducation, such as through the use of e-learning for
employees. In addition, rules on personal information
protection are being strengthened around the world.

responsibility for multinational companies.
Policy to promote tax compliance in business activities. In line with this policy, we have created a governance system and strive to maintain proper tax
payments in compliance with international rules andnational regulations.

We coordinate with our bases in individual countries,
putting in place systems to respond appropriately

Targetl 16.5Global Tax Policy for MITSUBISHI MOTORS Group
1.	 Tax compliance
The MITSUBISHI MOTORS Group (hereinafter simply
referred to as “MITSUBISHI MOTORS”) pledges topursue proper tax payments all over the world basedon the “MITSUBISHI MOTORS Global Code of Conduct.”This means MITSUBISHI MOTORS maintains appropriate and timely tax payments by understanding theintent and purpose of the Base Erosion and Profit
Shifting (BEPS) Action Plan, which was developed andpublicized by the OECD and G20 countries, as well as
by complying with tax regulations in all countries andregions in which it conducts businesses, tax treaties,
and other international tax regulations related toits business. In addition, MITSUBISHI MOTORS pledges not to use any tax havens or loopholes that areagainst the intentions and purposes of laws.
2.	Corporate governance on tax matters(1) M ITSUBISHI MOTORS recognizes corporate governance on tax matters as an infrastructure topromote tax compliance and tax planning and,
under the initiative of top management, pursues
the optimization of governance systems to secure
the accuracy and transparency of accounting andtax-related information.
(2) The MITSUBISHI MOTORS Group makes disclosures to all relevant taxation authorities and discloses appropriately and in a timely manner the
BEPS transfer pricing documentation and otherinformation required for submission by multinational enterprises.

with their laws and regulations on the protection of
personal information. We did not receive any appeals
related to breaches of customer privacy or loss ofcustomer data in FY2022.
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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116▶ NextBack to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialMembers of the Board (as of June 22, 2023)

Targetl 8.7

Outside Outside director
Name

Position

Attributes

Tomofumi
HirakuMember of
the Board
OutsideChairman of
the Board

Takao
Kato

Member of
the Board

HitoshiInada

Member of
the Board

ShunichiMiyanaga

Member of
the Board

Main
Kohda

Member of
the Board

OutsideIndep.

Kenichiro
Sasae

Member of
the Board

OutsideIndep.

Hideyuki
Sakamoto

Member of Outside
the Board

Yoshihiko
Nakamura

Member of Outside
the Board

Joji
TagawaIndep.

Committees

Attendance at Board of Directors andCommittee Meetings(April 2022 to March 2023)

Tenure as Director(As of June 22, 2023)

Board of Directors
15 of 15 times
Nomination Committee 10 of 10 times*1

2 years

14 of 15 times
Compensation Board of Directors
Committee
Compensation Committee 8 of 9 times

4 years

Nomination
Committee

Audit
Committee(Full timeMember)Compensation
Committee(Chairperson)
Nomination
Committee(Chairperson)
Compensation
Committee
Nomination
Committee
Compensation
Committee

ESG Data

GovernanceIndep. Independent director

Targetl 16.5

Male

FemaleReasons for Appointment
He has served in a series of important roles as Director-General of the Kansai Bureau andDirector-General of the Manufacturing Industries Bureau for the Ministry of Economy, Tradeand Industry (METI) and was engaged in energy policy at the Agency for Natural Resources
and Energy, possessing broad experience and knowledge and a wide network across industrial fields, and we expect he will use these attributes to actively oversee management of theCompany and provide advice and opinions as Director and Chairman.
He has many years of experience and insight concerning management of MMC’s global business, including experience of serving as President of PT Mitsubishi Motors Krama Yudha Indonesia, one of MMC’s largest overseas manufacturing bases. In addition, he has been engaged
in MMC’s management since June 2019 as CEO. We believe he will play an important role in thedecisions in significant matters and business execution of the Company.

12 of 12 times
12 of 12 times*1

1 yearHe has an extensive track record and insight in legal affairs, compliance and corporate governance earned over many years of developing global business at a general trading company
and MMC, that we expect him to utilize in the management of the Company.

Board of Directors
14 of 15 times
Compensation Committee 9 of 9 times

9 years

He possesses considerable experience and knowledge obtained as top management in corporate management in a global manufacturing company, and we expect he will utilize those
attributes to actively oversee management of the Company and provide advice and opinions.

Board of Directors
15 of 15 times
Nomination Committee 10 of 10 times
Compensation Committee 9 of 9 times

5 years

She possesses deep knowledge about international finance, keen acumen and objective
perspective as a writer, and considerable insight and experience gained as a Member of theCouncil of the Ministry of Finance and the Ministry of Land, Infrastructure, Transport and Tourism, and we expect she will utilize those attributes to actively oversee management of theCompany and provide advice and opinions.

Board of Directors
14 of 15 times
Nomination Committee
9 of 10 times
Compensation Committee 8 of 9 times

4 years

He served in a series of important roles at the Ministry of Foreign Affairs and possesses broadinternational understanding and experience as a diplomat, and we expect he will utilize those
attributes to actively oversee management of the Company and provide advice and opinions.

Nomination
Committee

Board of Directors
15 of 15 times
Nomination Committee 10 of 10 times

4 years

Audit
Committee(Chairperson)

Board of Directors
Audit Committee

15 of 15 times
15 of 15 times

3 years

Member of Outside
the Board

15 of 15 times
Compensation Board of Directors
Committee
Compensation Committee 9 of 9 times

3 years

Takahiko
Ikushima

Member of Outside
the Board

Audit
Committee

Board of Directors
Audit Committee

15 of 15 times
15 of 15 times

3 years

Takehiko
KakiuchiMember of Outside
the Board

Nomination
Committee

Board of Directors
11 of 12 times
Nomination Committee 9 of 9 times*1

1 year

Kanetsugu
Mike

Member of Outside
the Board

Audit
Committee

Board of Directors
Audit Committee

1 yearJunko
OgushiMember of Outside
the Board

Audit
Committee—*2OutsideIndep.

Indep.

Board of Directors
Audit Committee

12 of 12 times
11 of 12 times*1—

He has a wealth of knowledge and experience in the management of a global automotive
manufacturer, and we expect that he will utilize those attributes to actively oversee management of the Company and provide advice and opinions.
He has worked for many years as a certified public accountant and possesses extensive
knowledge as a specialist in accounting audits, and we expect that he will utilize those attributes to actively oversee management of the Company and provide advice and opinions.
He has a wealth of knowledge and experience in the management of a global automotive
manufacturer, and we expect that he will utilize those attributes to actively oversee management of the Company and provide advice and opinions.
He has a wealth of knowledge and experience in the management of a global automotive
manufacturer, and we expect that he will utilize those attributes to actively oversee management of the Company and provide advice and opinions.
He possesses considerable experience, achievements and insight on global business management nurtured through his career as top management at a global general trading company,
and we expect he will utilize those attributes to actively oversee management of the Company and provide advice and opinions.
He has a wealth of experience and extensive knowledge as top management of a global international financial institution, and we expect he will utilize those attributes to actively conduct
oversee management of the Company and provide advice and opinions.
She has distinguished herself as a lawyer over a long period, and we expect that she will use
her considerable experience and knowledge as a legal professional to actively oversee management of the Company and provide advice and opinions.

*1 Mr. Hitoshi Inada, Mr. Takehiko Kakiuchi and Mr. Kanetsugu Mike were appointed as director, Audit Committee member and Nomination Committee member, respectively, on June 23, 2022. Accordingly, they haveattended a different number of Board of Directors and committee meetings than other directors.
*2 Ms. Junko Ogushi was appointed as director and Audit Committee member respectively, on June 22, 2023. Accordingly, no Board of Directors or committee meetings had yet been held for them to attend.
For directors’ career summaries, visit:
WEB https://www.mitsubishi-motors.com/en/company/director/
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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117▶ NextBack to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

Governance

ESG Data
Environmental Data Related to Products and Business Activities
Sales of Electrified Vehicles

Unit
Total electrified vehicles Vehicles
Electrified vehicle sales ratio%

Business Activity Indicators

(FY)

2018
54,5724

201975,1437

2020
64,5618

2021
65,496
7

2022
93,588
11

Plug-in hybrid electricvehicles (PHEV)
Japan
Overseas

Vehicles47,23847,75835,55343,021

60,660

Vehicles
Vehicles

6,780
40,4584,970
42,7885,629
29,924

11,66331,35821,544
39,116

Electric vehicles (EV)Japan
Overseas

Vehicles
Vehicles
Vehicles

766
410
356

1,015
901
114

1,566
1,517
49

839
690
149

10,461
9,790
671

Hybrid electric vehicles
(HEV)
Japan
Overseas

Vehicles

6,568

26,37027,442

21,636

22,105

Vehicles
Vehicles

6,568
0

26,370027,442
0

21,636
0

22,1050

Others*1

Vehicles

—

—

—

—

362

Global sales (including
vehicles with internal
combustion engines)

Vehicles 1,243,914 1,126,843

801,442936,749

834,172

2021

2022

CO2 emissions

Unit
UnitedImport passenger
mpg
Statesvehicle(fuelmpg
economy) Light truck
Production facility: MITSUBEurope
g-CO2/km
Passenger ISHI MOTORS(CO2(Japan)emisvehicle
sions)*3
Production fag-CO2/km
cility: MMTh*4
Import vehicle
L/100km
China(fuel
Local production
L/100km
economy) vehicle

2018

2019

2020

45.9

45.4

45.5

45.3

42.2

35.8

35.9

36.8

35.8

37.5

121

115.6

99.6

93.0

—

104.2

115.3

—

12.0

12.0

—

—

—

7.1

7.2

7.5

7.89

7.4

Production
Non-production

2018
518
70

2019
464
62

2020
312
53

2021
358
53

2022
314
52

Japan
Asia
Othersx103t-CO2
x103t-CO2
x103t-CO2

404
178
6

348
173
5

246
116
3

277
132
2

226
138
2

Scope 1 (direct emissions)x103t-CO2
Scope 2 (indirect emissions) x103t-CO2(Scope 1+2) Total
x103t-CO2
Scope 3x103t-CO2 eq(Scope 1+2+3) Total
x103t-CO2 eq

119
469
588
42,58043,168110416
526
35,42935,95580285
365
20,286
20,651

92
319
411
28,29428,70595271
366
28,71029,076

Target sites: Environmental management target companies for each fiscal year (including the Company)
Ratio of data coverage obtained from environmental management target companies: 100%
Please see page 33 for the 20 environmental management target companies in FY2022.
We have adjusted the requirements for environmental management target companies,
removing equity-method associates from this scope from FY2021. Totals (Scope 1+2) for
FY2018–2020 include CO2 emissions from equity-method associates (43 thousand t-CO2 in
FY2018, 35 thousand t-CO2 in FY2019, 28 thousand t-CO2 in FY2020).
Of the environmental management system target companies in FY2022, more than 97%
of sites by CO2 emissions conversion base have acquired ISO 14001 or other environmental
management system certification.
CO2 emission factors•B ased on “Greenhouse Gas Emissions Conversion, Reporting, and Announcement System based on
the Act on Promotion of Global Warming Countermeasures”•O verseas electricity emission factors use values for individual electric power companies. Some bases
use emission factors obtained annually from the IEA’s “CO2 Emissions from Fuel Combustion” or its“Emission Factors.”*1 Vehicles received from Renault on an OEM basis (HEV, PHEV)

Product Fuel Economy and CO2 Emissions (Corporate Average)*2

(FY)

Unit
x103t-CO2
x103t-CO2*2 Values reported publicly in respective countries and regions. Values are by model year in the UnitedStates and by Calender year in Europe and China.
*3 Driving mode: NEDC Mode (until 2020), WLTP Mode (from 2021)*4 Mitsubishi Motors (Thailand) Co., Ltd.
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
Top Management

Scope 3 BreakdownCategory
1

Purchased goods
and services

2 Capital goods
Fuel energy not
3 includedin Scope 1 or 2
Upstream transpor4 tation and distribution
Waste generated in
5
operations
6 Business travel
Employee commuting
Upstream leased
8
assetsDownstream trans9 portation and distribution
Processing of sold10
products
7

Sustainability Strategy

FeatureEnvironment

2018

2019

2020

2021

x103tCO2 eq

6,900

6,331

4,043

5,495

x103tCO2 eq

407

319

310

150

x103tCO2 eq

21

49

36

44

70

Consolidated

x103tCO2 eq

1,278

1,174

541

1,049

1,622

Consolidated

x103tCO2 eq

19

21

11

2022

15

Coverage
Consolidated
6,806(only production)
Non-con121
solidated

4

4

4

4

14

14

13

13

—

—

—

—

—

—

x103tCO2 eq

—

—

—

—

—

—

—

—

—

—

—

—

x103tCO2 eqx103t11 Use of sold products
CO2 eqEnd-of-life treatment x103t12
of sold products
CO2 eqDownstream leased
x103t13
assetsCO2 eq————x103tCO2 eq

12

13

19

14

15 Investment

x103tCO2 eq

Some
12 dealers in
Japan

—

—

—

—

—

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

2021
8.2

2022
8.2

PJ
PJ

9.0
1.2

8.3
1.2

5.9
1.1

7.0
1.2

7.0
1.2

Japan
Asia
Others

PJ
PJ
PJ

7.2
2.9
0.1

6.6
2.8
0.1

4.9
2.0
0.1

5.6
2.5
0.1

5.5
2.6
0.1

Total emissions

(FY)

Unit
t

2018
218

2019
163

2020
125

2021
50

2022
30

Target sites: Environmental management target companies for each fiscal year (including the Company)
Ratio of data coverage obtained from environmental management target companies: 100%
Please see page 33 for the 20 environmental management target companies in FY2022.
Calculation method: calculated the weight of sulfur contained in the used fuel and converted theweight into sulfur dioxide (SO2)NOx (Nitrogen Oxide)
Total emissions

(FY)

Unit
t

2018
65

2019
61

2020
44

2021
58

2022
59

Target sites: Environmental management target companies for each fiscal year (including the Company)
Ratio of data coverage obtained from environmental management target companies: 100%
Please see page 33 for the 20 environmental management target companies in FY2022.
Calculation method: F uel usage volume calculated using the Ministry of the Environment’s “Environmental Activity Evaluation Program” emission factor—

14 Franchises

2020
7.0

Production
Non-production

SOx (Sulfur Oxide)

All desti33,199 26,833 14,927 20,981 19,530
nationAll desti727
671
382
529
517
nation
—

(FY)

2019
9.5

Target sites: Environmental management target companies for each fiscal year (including the Company)
Ratio of data coverage obtained from environmental management target companies: 100%
Please see page 33 for the 20 environmental management target companies in FY2022.
15* 10 joules Unit calorific value: Quoted from the “Act on the Rational Use of Energy”

Consolidated
15(only production)
Consoli4
dated
Consoli13
dated

x103tCO2 eqx103tCO2 eqx103tCO2 eq

ESG Data

Governance

Energy Input (Primary and Secondary Energy)
Unit
2018
Total amount
PJ*
10.2

(FY)

Unit

SocialVOC (Volatile Organic Compounds)
Unit
Total emissions
t

(FY)

2018
2,354

2019
2,243

2020
1,227

2021
1,511

2022
1,667

Target site: Okazaki Plant, Mizushima Plant, Suiryo Plastic Co., Ltd.

—

Emissions of Ozone-Depleting Substances
MITSUBISHI MOTORS CORPORATION estimates its FY2022 emissions at 2.3t
(HCFC equivalent).
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119▶ NextBack to Contents ▶▶

Commitment of
Top Management

Generated Waste
Total emissions
Production
Non-production

Sustainability Strategy

FeatureEnvironment

Wastewater Volume

(FY)

Unit
x103t

2018
187

2019
202

2020
109

2021
143

2022
141

x10 t
x103t

176
11

194
8

103
6

137
6

134
7

3

Generated Waste and Externally Disposed Waste
Unit
2018
Total amount produced
x103t
104
Externally disposed waste
Internal recycle

x103t
x103t

56
48

2020
58

2021
85

2022
84

53
36

40
18

54
31

60
24

2019
141
2.1

2020
97
1.1

2021
117
2.4

2022
139
2.9

(FY)

2018
4,504

2019
4,104

2020
3,266

2021
3,316

2022
3,311

Production
Non-production

x103m3x103m3

4,194
310

3,843
261

3,034
232

3,254
62

3,238
73

SewagePublic waters

x103m3x103m3

2,396
2,108

2,041
2,063

1,713
1,553

1,581
1,735

1,410
1,901

Target sites: Environmental management target companies for each fiscal year (including the Company)
Ratio of data coverage obtained from environmental management target companies: 100%
Please see page 33 for the 20 environmental management target companies in FY2022.
• Includes some estimated figures.

(FY)

2019
89

ESG Data

GovernanceUnitx103m3

Total amount

Target sites: Environmental management target companies for each fiscal year (including the Company)
Ratio of data coverage obtained from environmental management target companies: 100%
Please see page 33 for the 20 environmental management target companies in FY2022.

SocialTarget site: Okazaki Plant, Mizushima Plant, Kyoto Plant

Raw Material Input
Iron and aluminum
Resin

(FY)

Unit
x103t
x103t

2018
154
2.5

Target site: Okazaki Plant, Mizushima Plant, Kyoto Plant

Withdrawn Water Volume

(FY)

Unit
x103m3

2018
6,211

2019
5,915

2020
4,420

2021
4,640

2022
4,659

Production
Non-production

x103m3x103m3

5,901
310

5,654
261

4,188
232

4,389
251

4,405
254

City waterIndustrial water
Underground waterx103m3x103m3x103m3

878
3,412
1,921

988
3,280
1,647

718
2,594
1,108

383
2,938
1,319

438
2,907
1,314

Total amount

Target sites: Environmental management target companies for each fiscal year (including the Company)
Ratio of data coverage obtained from environmental management target companies: 100%
Please see page 33 for the 20 environmental management target companies in FY2022.
• MMKI recycles and reuses some of its wastewater. In FY2022, roughly 181 thousand m3 of water wasrecycled. (Roughly 4% of total MITSUBISHI MOTORS Group water withdrawal.)

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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120▶ NextBack to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

Governance

Environmental Accounting
Environmental Conservation Costs
Category

Business Area Cost

Upstream/Downstream
Costs
Administration Activity
Cost
R&D Cost
Social Activity Cost
Environmental
Remediation Cost
Total

(FY)

Main Initiatives Details

Unit

Preventing air pollution,
Pollution Prevention Cost water pollution and soil
pollution
Global Environmental Con- Preventing global warming
servation Costand the ozone depletion
Reduction, proper disposal
Resource Circulation Costand recycling of the waste
Withdrawing used bumpers and corresponding
automobile recycling law
Maintaining certification of ISO14001, educating
employees and monitoring
Research and development about reductions inenvironmental impact of products such as improving
fuel economy and exhaust gas measures
Hands-on environmental lessons, supporting global
environmental activity, donation to environmentalgroups and disclosing environmental information
Compensation for environmental damage by businessactivities<Reference> Group-wide capital investment, R&D cost

2020
Investment

2021
Investment

Cost

2022
Investment

Cost

Cost

Million yen

203

629

591

658

616

663

Million yen

346

13

78

10

183

56

Million yen

0

933

0

732

0

754

Million yen

0

1,661

0

1,430

1

1,287

Million yen

18

588

30

561

66

551

Million yen

456

32,731

661

27,691

822

41,908Million yen

47

189

0

241

0

269

Million yen

0

5

0

2

0

1

Million yen

1,070

36,7491,359

31,324

1,688

45,489

Capital investment
Unit
100 Million yen
764

R&D cost

Capital investment

1,014

627

R&D cost
907

Capital investment
786

R&D cost
1,072

Target site: MITSUBISHI MOTORS CORPORATION

Economic Benefit Associated with Environmental Conservation Activities (Actual Benefits)
Category
Details of Benefit
Unit
Operating revenue from the sale of recycled waste products
Revenue
Million yen
and used products produced through key business
Energy expense saving through energy conservation
Million yen
Water expense saving through water conservation
Million yen
Cost Reduction
Disposal cost saving through lower resource input or recycle Million yen
Packaging materials cost saving through recycling
Million yen
Total
Million yen

(FY)

2020

2021

2022

1,083

2,540

2,518

2,333
31
(551)
369
3,265

(1,057)
14
389
379
2,265

(4,458)
(7)
(140)
120
(1,982)

Target site: MITSUBISHI MOTORS CORPORATIONMITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

Governance

Human Resource-Related Data
Number of Employees (persons)
Number of Regular
employees employees(nonconsolidated) Non-regular
employees
Of which, parttime employees

MaleFemaleTotal
Male
FemaleTotal
Male
FemaleTotal

Number of Locally-Hired Managerial Employees at Overseas Subsidiaries

FY2018 FY2019 FY2020 FY2021 FY2022
12,695 12,848 12,403 12,309 12,139
1,476
1,559
1,548
1,520
1,532
14,171 14,407 13,951 13,829 13,671
—
2806
2215
3045
3076
—
470
359
396
454
—
3276
2574
3441
3530
—
35
78
318
341
—
77
68
79
91
—
112
146
397
432

Number of Regular
31,314
employees employees(consoli- Non-regular employees
8,682
dated)(Percentage of(22%)
non-regular employees)
Number of Japan
Regular employees—
Employees
Non-regular—
by Region
employees
Regular employees—
Asia
Non-regular—
employees
Regular employees—
North America
Non-regular—
employees
Regular employees—
EuropeNon-regular—
employees
Regular employees—
Australia andothers
Non-regular—
employees


Number of mana- Persons
gerial employees Ratio
Number of employees

Number of Female Management*1
Persons
Ratio
General manager or above

FY2021
1,099
11.5%
9,549

FY2022
1,174
12.3%
9,581

FY2019FY2020

FY2021

FY202268
3.9%
1328,79628,428

7,558
(19%)

6,434
(18%)

7,948
(22%)

8,123
(22%)

—

—

—

18,847

—

—

—

4,261

—

—

—

8,518

Number of Female executives

—

—

—

3,744

—

—

—

508

Persons*2
Ratio

—

—

—

50

*2 Number of female executives includes outside directors

—

—

—

291

—

—

—

57

—

—

—

264

—

—

—

11

Jul. 20195
12.5%

Jul. 20205
12.5%

Employee Composition (non-consolidated)
Average age Male
FemaleAverageMaleyears ofFemaleservice
Number of
Retirement
employees
Voluntary
who have
retirement
left the(Percentage
companyof voluntary(total)retirement)
Involuntary
retirement
Work transfer, other
Total

Japan
18,847(66%)

Back ◀

74
3.5%
14

80
4.1%
13

98
6.0%
14

*1 Figures for FY2022 are as of end-March. FY2022 ratio is calculated based on the number of all managerial employees in the non-consolidated. From FY2018 to FY2021, figures are as of July of eachyear and include dispatched personnel on leave and secondees, excluding medical workers.

Australia and others 264 (1%)

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

58
3.5%
11

FY2020
1,018
10.6%
9,631

30,091

Number of Employees by Region in FY2022: 28,428 (consolidated)

Asia
8,518
(30%)

FY2018FY2019
1,098
10.2%
10,73632,171(As of each fiscal year-end)

Europe 291 (1%)
North America
508 (2%)FY2018
1,028
11.0%
9,762

122

▶ NextJul. 2021

3
8.8%

Jul. 2022
3
8.3%

Jul. 2023
3
8.6%

FY2018
41.6
38.5
16.7

FY2019
41.4
38.1
16.2

FY2020
41.1
37.5
15.8

FY2021
41.9
38.5
15.9

FY2022
42.3
38.8
15.8

12.4

11.6

11.1

11.7

11.9

272

381

203

191

298

240
(1.7%)

303(2.1%)

305(2.2%)

418(3.0%)

392(2.9%)

7

14

11

10

13

14

37

483

25

36

533

735

1,002

644

739

Back to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

Number of New Graduates Hired
University graduate/
Male
Master’s degree or above Female
Junior college/ vocaMaletional school graduates Female
High schoolMale
graduates/otherFemaleTotal
Male
FemaleFY2018
226
47
5
0
83
7
314
54

Number of Mid-Career Employees
Administrative andengineering staff
Manufacturing
workers
Total

Male
FemaleMale
FemaleMale
FemaleFY2018
200
64
0
0
200
64

FeatureEnvironment

FY2019
229
76
1
0
138
16
368
92

FY2020
204
76
0
0
182
9
386
85

FY2021
42
16
5
5
54
1
101
22

FY2022
104
23
2
0
74
4
106
23

FY2019
150
35
0
0
150
35

FY2020

FY2021
143
23
275
5
418
28

FY2022
252
57
0
0
252
57

Wage Levels

7
4
0
0
7
4

High school graduate Administrative and Engineering staff
High school graduate
Manufacturing Worker
Technical college graduate
Starting salary
Junior college graduate
University graduate
Master’s degree
Doctor of Philosophy
Average salary of all employees (annual)
Percentage of women’s(annual)salaries to men’s salaries
Ratio of PerformanceLinked Compensation

Total working
hours per person
per year
Overtime
worked perperson per year
Ratio of annual
paid leave taken*2

110%¥181,300

113%¥195,000¥179,800¥233,000¥249,300¥275,500¥7,437,000

112%
103%
134%
143%
158%

FY2018FY2019FY2020

FY2021

FY2022

2,131.2hours

2,013.6
hours

1,880.8
hours

1,960.3
hours

1,946.7
hours

372.3
hours

288.6
hours

221.4
hours

248.7
hours

298.9
hours

86.6%

100.6%

99.2%

89.5%

94.8%

*2 Days of annual paid leave taken during the year
(days carried forward from the previous year + days granted for the current year)
×100
Days of annual paid leave granted for the current year

Number of Persons Taking Childcare Leave and Retention Rate of Returnees
Male
Number of
Femalepersons taking
childcare leave*3
Total
Retention rate of returnees*4Comparison
with local
minimum
wage*1¥176,400

ESG Data

GovernanceWorking Hours and Ratio of Paid Leave Taken(As of April 1, 2023)

Monthly
compensation

Social

FY2018
10
121
131
100%

FY2019
49
145
194
97.7%

FY2020
35
46
81
96%

FY2021
88
68
156
95%

FY2022
150
57
207
94%

*3 The FY2022 figure of 150 male employees taking childcare leave includes 22 employees taking childcare leave at birth.
*4 Total number of employees still employed 12 months after returning to work from childcare leave
×100
Total number of employees whose childcare leave ended during the previous reporting period

78.9%

Maximum of 35% ofGeneral Manager
annual basic salary
General Manager
Maximum of 30% of(responsible for specific duties) annual basic salary
Maximum of 20% ofManagerannual basic salary*1 Minimum wages are calculated based on the minimum wage in Aichi Prefecture (¥986/hour) for highschool graduates and the minimum wage in Tokyo (¥1,072 /hour) for non-high school graduates asof April 2023, assuming eight-hour work days and 20.3 days per month.
Salary levels are based on job classification, so there is no disparity in salary based on race, nationality, gender or other factors among people performing the same job.
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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123▶ NextBack to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

Number of Persons Who Utilize Major Programs to Promote Work-Life-Balance
FY2022 Results

Pregnancy leave
Maternity leave
Spousal maternity leave
Childcare leave
ChildcareChildcare leave at birthChild nursing leave
Reduced working hours for childcare
Nursing care leave
Short-term nursing care leave
Nursing care
Reduced working hours fornursing care
Life plan leave
Accumulation of unused paid leave
Flextime system (including
managerial employees)*1
Reemployment systemN umber of employees
Miscellaneous
registered as candidates forre-hiring under the reemployment system(Returnees in FY2022)*2
Accompanying leave(Returnees in FY2022)*3

Male

—
—
181
128
22
395
8
7
304

Female

Total

11
70
—
57
—
184
159
2
69

Number of employees who took courses
during the year (total)
Total number of hours attended
Number of course hours/days attended per
employee
Training expenses per employee

11
70
181
185
22
579
167
9
373

3

4

131
873

39
57

170
930

6,345

1,175

7,520

10 (0)

11 (0)

21 (0)9 (1)

ESG Data

Governance

FY2022 training led by the Human Resources Division

1

0 (0)

SocialAccident Rate (Accident Frequency)
Overall accident rate*6
Accident rate with loss of
workdays*7

10,089117,845 hours
8.6 hours/1.08 days
¥9,414FY20180.54

FY20190.42

FY20200.30

FY2021
0.20

FY2021
0.31

0.13

0.10

0.00

0.03

0.06

*6 Number of accidents with or without loss of workdays per 1 million working hours*7 Number of accidents with loss of workdays per 1 million working hours

Employee Shareholding Association
Number of members of
the employee shareholding association
Membership rate
Shares owned

9 (1)*1 With regard to the flextime system, the number of employees eligible to use the system (as of April
1, 2022)*2 Four returnees in FY2021*3 Three returnees in FY2021

As of March 2023
925
6.2%
2,002,092

Employment of People with Disabilities*4, 5(persons)
500
400

Number of disabled persons hired (as of April)

2.14
349.0

2.2
363.0

2.39
361.0

2.41
370.5

Employment rate (%)
2.5

2.32

360.0

2.0

300

1.5

200

1.0

100

0.5

0

2019

2020

2021

2022

2023

0.0

*4 The number of persons hired and the employment rate are calculated in accordance with the “Actto Facilitate the Employment of Persons with Disabilities,” with the employment of one person witha severe physical or intellectual disability being counted as two persons.
*5 In principle, employment of a one with reduced working hour worker is calculated as 0.5 persons. However, one part-time worker with a severe physical or intellectual disability is counted as one person.
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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124▶ NextBack to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialESG Data

Governance

Governance-Related Data
Overview of Corporate Governance in End of FY2022

Compliance-Related Data

Company with a Nomination Committee, etc
Board of Directors members
13
Outside directors
11
Of whom, independent directors
5
Number of Board of Directors meetings
15
Ratio of attendance at Board of Directors meetings 98%
Of which, ratio of attendance by outside directors 98%
Chairperson of the Board of Directors
Chairman of the Board
Statutory committees
Nomination Committee, Compensation
Committee, Auditor Committee
Nomination Committee
5 (including 5 outside directors)
Chairperson: Outside director(independent director)
Compensation Committee
5 (including 4 outside directors)
Chairperson: Outside director
Auditor Committee
5 (including 4 outside directors)
Chairperson: Outside director(independent director)
Organizational form

Number of reports toor consultations with
the internal Employee
Consultation Office(helpline)
Number of reports toor consultations withthe outside attorney
consultation office(helpline)
Number of reports toor consultations with
the MITSUBISHI MOTORS Global Hotline
Number of reports toor consultations with
the Business Partner
Helpline
Serious violations thatdamage trust with customers, investors, etc.

Total Compensation in FY2022
Information related to total compensation is disclosed in the Annual Securities Report.

Harassment
resulting in
disciplinary
actionWEB https://www.mitsubishi-motors.com/en/investors/library/yuka.html

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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125▶ NextSexualharassment
Bullying

FY2018FY2019FY2020

FY2021

FY2022

MITSUBISHI
MOTORS

194

166

112

109

74

MITSUBISHI
MOTORS

13

4

2

5

3

MITSUBISHI
MOTORS

14

25

14

19

16

MITSUBISHI
MOTORS

0

3

4

1

1

0

0

0

0

0

1

7

0

5

0

1

5

1

1

2

0

3

1

1

6

0

2

4

1

1

MITSUBISHI
MOTORS,
affiliatedcompanies
MITSUBISHI
MOTORS
Affiliatedcompanies
MITSUBISHI
MOTORS
Affiliatedcompanies

Back to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

GRI Standards Reference Chart
GRI 1: Foundation 2021
Statement of use

MITSUBISHI MOTORS CORPORATION has referred to GRI standards and reports the information contained in this reference chart for the period from April 1, 2022 toMarch 31, 2023.

GRI 2: General Disclosures 2021
Item
1. The organization and its reporting practices
2-1
Organizational detailsa. Its legal nameb. Its nature of ownership and legal formc. The location of its headquarters
d. Its countries of operation
2-2
Entities included in the organization’s sustainability reporting
2-3
Reporting period, frequency and contact point
a. The reporting period for, and the frequency of, its sustainability reportingb. The reporting period for its financial reporting and, if it does not align with the period for its sustainability reporting, explain the reason for thisc. The publication date of the report or reported informationd. The contact point for questions about the report or reported information
2-4
Restatements of information
2-5
External assurance
a. Its policy and practice for seeking external assurance
b. A link or reference to the external assurance report(s) or assurance statement(s), and what has
been assured and on what basis
2. Activities and workers
2-6
Activities, value chain and other business relationships
a. The sector(s) in which it is activeb. Its value chainc. Other relevant business relationships
d. Significant changes compared to the previous reporting period

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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126▶ NextIndex for applicable pages
Corporate Overview
Securities Report, (P4-5) Description of business, (P6-9) Status of subsidiaries
and associates

Securities Report (P6-10) Status of subsidiaries and associates
Editorial Policy

N/A
Third-Party AssuranceSocial＞Achieving a Sustainable Supply Chain
Securities Report (P4-5) Description of business

Back to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Item
Index for applicable pages
Corporate Overview
2-7
ESG Data＞Human Resource-Related Data
Employees
Securities Report (P11-12) Employees
a. T he total number of employees, and a breakdown of this total by gender and by regionb. The total number of permanent employees and temporary employees, and a breakdown by genderand by region—
2-8
Workers who are not employees
a. The total number of workers who are not employees and whose work is controlled by the organizationb. The methodologies and assumptions used to compile the datac. S ignificant fluctuations in the number of workers who are not employees during the reporting
period and between reporting periods
3. Governance
2-9
Governance＞Corporate Governance＞System of Corporate Governance
Governance structure and composition
Governance＞Internal Control
a. Its governance structure, including committees of the highest governance body
Sustainability Strategy＞Sustainability Management＞Framework for Promoting
Sustainabilityb. The committees of the highest governance body that are responsible for decision-making on andoverseeing the management of the organization’s impacts on the economy, environment, and people Corporate Governance Report (P38) Corporate Governance and Business Execution Structuresc. The composition of the highest governance body and its committees
Corporate Governance Report (P1-30)
2-10
I. Basic Views on Corporate Governance, Capital Structure, Corporate Profile andNomination and selection of the highest governance body
Other Basic Informationa. The nomination and selection processes for the highest governance body and its committees
II.
Business Management Organization and Other Corporate Governance Systems
b. The criteria used for nominating and selecting highest governance body members
regarding Decision-making, Execution of Business, and Oversight in Management
Securities Report (P53) Information about corporate governance, etc.
2-11Chair of the highest governance bodya. Whether the chair of the highest governance body is also a senior executive in the organization
Securities Report (P18-22) Business-related risks, (P53-97) Information about
2-12
corporate governance, etc.
Role of the highest governance body in overseeing the management of impacts
Governance＞Risk Management＞Development of Risk Management Frameworka. T he role of the highest governance body and of senior executives in developing, approving, andSustainability Strategy＞Sustainability Management＞Framework for Promoting
updating the organization’s purpose, value or mission statements, strategies, policies, and goals
Sustainability
related to sustainable developmentb. The role of the highest governance body in overseeing the organization’s due diligence and other processes to identify and manage the organization’s impacts on the economy, environment, and peoplec. T he role of the highest governance body in reviewing the effectiveness of the organization’s processes, and the frequency of this review.
2-13
Securities Report (P53-97) Information about corporate governance, etc.
Delegation of responsibility for managing impacts
Sustainability Strategy＞Sustainability Management＞Framework for Promoting
Sustainabilitya. H
 ow the highest governance body delegates responsibility for managing the organization’s impacts on the economy, environment, and peopleb. The process and frequency for senior executives or other employees to report back to the highest
governance body on the management of the organization’s impacts on the economy, environment, and people
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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

Item
2-14 Role of the highest governance body in sustainability reportinga. T he process for reviewing and approving the reported information, including the organization’smaterial topics by the highest governance body
2-15
Conflicts of interesta. T
 he processes for the highest governance body to ensure that conflicts of interest are prevented
and mitigatedb. Whether conflicts of interest are disclosed to stakeholders
2-16
Communication of critical concerns
a. Whether and how critical concerns are communicated to the highest governance bodyb. The total number and the nature of critical concerns that were communicated to the highest governance body during the reporting period
2-17 Collective knowledge of the highest governance bodya. M easures taken to advance the collective knowledge, skills, and experience of the highest governance body on sustainable development
2-18
Evaluation of the performance of the highest governance bodya. T he processes for evaluating the performance of the highest governance body in overseeing themanagement of the organization’s impacts on the economy, environment, and people
b. Whether the evaluations are independent or not, and the frequency of the evaluationsc. A
 ctions taken in response to the evaluations, including changes to the composition of the highest
governance body and organizational practices
2-19
Remuneration policies
a. The remuneration policies for members of the highest governance body and senior executives
b. How the remuneration policies for members of the highest governance body and senior executives
relate to their objectives and performance in relation to the management of the organization’s
impacts on the economy, environment, and people
2-20
Process to determine remunerationa. The process for designing its remuneration policies and for determining remunerationb. The results of votes of stakeholders (including shareholders) on remuneration policies and proposals
2-21
Annual total compensation ratioa. T he ratio of the annual total compensation for the organization’s highest-paid individual to themedian annual total compensation for all employees (excluding the highest-paid individual)b. The ratio of the percentage increase in annual total compensation for the organization’s highest-paid individual to the median percentage increase in annual total compensation for all employees (excluding the highest-paid individual)
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128▶ NextSocialGovernance

ESG Data

Index for applicable pages
Sustainability Strategy＞Sustainability Management＞Framework for Promoting
Sustainability
Governance＞Corporate Governance＞Conflicts of Interest
Corporate Governance Report (P1) Basic Views on Corporate Governance, Capital
Structure, Corporate Profile and Other Basic Information

Governance＞Compliance＞Management Structure

Corporate Governance Report (P1-12) Basic Views on Corporate Governance,
Capital Structure, Corporate Profile and Other Basic Information
Governance＞Corporate Governance＞System of Corporate GovernanceCorporate Governance Report (P1-12) Basic Views on Corporate Governance,
Capital Structure, Corporate Profile and Other Basic Information

Commitment of Top Management
Governance＞Executive Remuneration
Corporate Governance Report (P24) Incentives
Securities Report (P91-96) Information about corporate governance, etc.
Governance＞Executive Remuneration
Corporate Governance Report (P24) Incentives
Securities Report (P91-96) Information about corporate governance, etc.
—

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Item
Index for applicable pages
4. Strategy, policies and practices
2-22Commitment of Top Management
Statement on sustainable development strategy
a. A statement from the highest governance body or most senior executive of the organization about
the relevance of sustainable development to the organization and its strategy for contributing tosustainable development
2-23 Policy commitments
Sustainability Strategy＞Corporate Philosophy and Policya. Its policy commitments for responsible business conduct
Social＞Respect for Human Rights＞Human Rights Policyb. Its specific policy commitment to respect human rights
Social＞Achieving a Sustainable Supply Chain＞Basic Approachc. Links to the policy commitments
Governance＞Compliance＞Basic Approach and Policies
d. The level at which each of the policy commitments was approvede. The extent to which the policy commitments apply to the organization’s activities and to its business relationships
f. How the policy commitments are communicated to workers, business partners, and other relevant parties
2-24
Sustainability Strategy＞Sustainability Management＞Framework for Promoting
Sustainability
Embedding policy commitments
Social＞Respect for Human Rightsa. H
 ow it embeds each of its policy commitments for responsible business conduct throughout its
activities and business relationships
Social＞Achieving a Sustainable Supply Chain＞Management Structure
Governance＞Compliance
Securities Report (P14-17) Approach to and initiatives for sustainability
2-25
Environment＞Environmental Management＞Environmental Risk Management
Processes to remediate negative impacts
Social＞Respect for Human Rights＞Human Rights Policya. Its commitments to provide for or cooperate in the remediation of negative impacts that the orSocial＞Respect for Human Rights＞Access to Assistanceganization identifies it has caused or contributed toGovernance＞Compliance＞Establishment of Internal and External Consultationb. Its approach to identify and address grievances, including the grievance mechanisms that the
Officesorganization has established or participates inc. Other processes by which the organization provides for or cooperates in the remediation of negative impacts that it identifies it has caused or contributed tod. How the stakeholders who are the intended users of the grievance mechanisms are involved in thedesign, review, operation, and improvement of these mechanisms
e. H
 ow the organization tracks the effectiveness of the grievance mechanisms and other remediation processes
2-26
Environment＞Environmental Management＞Environmental Risk Management
Mechanisms for seeking advice and raising concerns
Social＞Respect for Human Rights＞Access to Assistance
Governance＞Compliance＞Establishment of Internal and External Consultation Offices
2-27
Governance＞Compliance
Compliance with laws and regulations
a. The total number of significant instances of non-compliance with laws and regulations during thereporting periodb. The total number and the monetary value of fines for instances of noncompliance with laws andregulations that were paid during the reporting period
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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

Item
2-28
Membership associations
a. Industry associations, other membership associations, and national or international advocacy
organizations in which it participates in a significant role
5. Stakeholder engagement
2-29
Approach to stakeholder engagement
2-30
Collective bargaining agreements
a. The percentage of total employees covered by collective bargaining agreements

SocialGovernance

ESG Data

Index for applicable pages
Sustainability Strategy＞Sustainability Management＞Participation in External
Organizations
Social＞Promotion of Work Style Reforms in Response to the New Normal＞
Participating in Initiatives Outside the Company
Social＞Respect for Human Rights＞Management Structure
Social＞Achieving a Sustainable Supply Chain＞Participating in Outside Initiatives
Sustainability Strategy＞Sustainability Management＞Stakeholder Engagement
Social＞Promoting Occupational Health and Safety＞Labor-Management Relations

GRI 3: Material topics 2021
Item

Index for applicable pages

3-1
Process to determine material topics

Sustainability Strategy＞Sustainability Management＞MITSUBISHI MOTORS’Materiality

3-2
List of material topics
a. List of material topics
b. Changes to the list of material topics compared to the previous reporting period

Sustainability Strategy＞Sustainability Management＞MITSUBISHI MOTORS’Materiality

3-3Management of material topics
a. T he actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights
b. Whether the organization is involved with the negative impacts through its activities or as a resultof its business relationships
c. Its policies or commitments regarding the material topic
d. Actions taken to manage the topic and related impacts
e. Information about tracking the effectiveness of the actions takenf. How engagement with stakeholders has informed the actions taken and how it has informed
whether the actions have been effective

Sustainability Strategy＞Sustainability Management＞MITSUBISHI MOTORS’Materiality
Top Pages of Performance Reports for Each Material Issue P36, 54, 57, 61, 63,
66, 70, 76, 81, 85, 88, 95, 99, 105

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialItem
Economical
GRI201: Economic performance 2016
201-1
a. Direct economic value generated and distributed
b. Where significant, report EVG&D separately at country, regional, or market levels, and the criteria used for defining significance201-2
a. Risks and opportunities posed by climate change that have the potential to generate substantive changes inoperations, revenue, or expenditure
201-3

a. If the plan’s liabilities are met by the organization’s general resources, the estimated value of those liabilities
b. If a separate fund exists to pay the plan’s pension liabilities, its explainc. If a fund set up to pay the plan’s pension liabilities is not fully covered, explain the strategy, if any, adopted by
the employer to work towards full coverage, and the timescale, if any, by which the employer hopes to achieve
full coveraged. Percentage of salary contributed by employee or employer
e. Level of participation in retirement plans
201-4
a. Total monetary value of financial assistance received by the organization from any government during the reporting periodb. The information in 201-4-a by countryc. Whether, and the extent to which, any government is present in the shareholding structure
GRI 202: Market Presence 2016
202-1
Ratios of standard entry level wage by gender compared to local minimum wage
202-2
Proportion of senior management hired from the local community
GRI 203: Indirect Economic Impacts 2016
203-1
Infrastructure investments and services supported
203-2

Examples of significant identified indirect economic impacts of the organization, including positive and negative
impacts
GRI 204: Procurement Practices 2016
204-1
Proportion of spending on local suppliers
GRI 205: Anti-corruption 2016
205-1
Operations assessed for risks related to corruption
205-2
Communication and training about anti-corruption policies and procedures
205-3
Confirmed incidents of corruption and actions taken
GRI 206: Anti-competitive Behavior 2016
206-1
Legal actions for anti-competitive behavior, anti-trust, and monopoly practices
GRI 207: TAX 2019
207-1
Approach to tax
207-2
Tax governance, control, and risk management

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Governance

ESG Data

Index for applicable pages

Securities Report (P101) Consolidated statement of income
Social＞Promoting Social Contribution Activities＞BasicApproach and Policies
Environment＞Responding to Climate Change and Energy
IssuesSecurities Report (18-22) Business-related risks
Securities Report (P131-133) Retirement benefits—

ESG Data＞Human Resource-Related Data
ESG Data＞Human Resource-Related Data
Social＞Contribution to Local Economy through Business
Activities＞Basic ApproachSocial＞Contribution to Local Economy through Business
Activities＞Basic ApproachSocial＞Achieving a Sustainable Supply Chain＞Promotionof Localization
Governance＞Compliance＞Anti-Corruption
Governance＞Compliance＞Anti-Corruption
Governance＞Compliance＞Anti-Corruption
Governance＞Compliance＞Management Structure
Governance＞Compliance＞Approach to Taxation
Governance＞Compliance＞Approach to Taxation

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialItem
207-3
Stakeholder engagement and management of concerns related to tax
207-4
Country-by-country reporting
Environment
GRI 301: Materials 2016
301-1
Materials used by weight or volume

Energy consumption outside of the organization

302-3
302-4

Energy intensity
Reduction of energy consumption

302-5

Reductions in energy requirements of products and services

GRI 303: Water and Effluents 2018
303-1
Interactions with water as a shared resource
303-2
Management of water discharge-related impacts
303-3
Water withdrawal
303-4

Water discharge

303-5

Water consumption

GRI 304: Biodiversity 2016
304-1
Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value
outside protected areas
304-2
Significant impacts of activities, products, and services on biodiversity
304-3
Habitats protected or restored
304-4
IUCN Red List species and national conservation list species with habitats in areas affected by operations
GRI305: Emissions 2016
305-1
Direct GHG emissions (Scope 1)

305-2

Energy indirect GHG emissions (Scope 2)

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

ESG Data

Index for applicable pages
Governance＞Compliance＞Approach to Taxation—

301-2
Percentage of recycled input materials used to manufacture the organization’s primary products and services
301-3
Reclaimed products and their packaging materials
GRI302: Energy 2016
302-1
Energy consumption within the organization
302-2

Governance

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132▶ NextESG Data＞Environmental Data Related to Products andBusiness Activities—
Environment＞Resource Recycling Initiatives
ESG Data＞Environmental Data Related to Products andBusiness Activities
ESG Data＞Environmental Data Related to Products andBusiness Activities—
ESG Data＞Environmental Data Related to Products andBusiness Activities
ESG Data＞Environmental Data Related to Products andBusiness Activities
Environment＞Conservation of Water Resources
Environment＞Conservation of Water Resources
ESG Data＞Environmental Data Related to Products andBusiness Activities
Environment＞Conservation of Water Resources
ESG Data＞Environmental Data Related to Products andBusiness Activities
WEB＞Atmosphere/Wastewater Quality/PRTR-designatedPollutants Data
Environment＞Conservation of Water Resources
ESG Data＞Environmental Data Related to Products andBusiness Activities
Environment＞Preservation of Biodiversity
Environment＞Preservation of Biodiversity
Environment＞Preservation of Biodiversity
WEB＞ESG Data＞Biodiversity Data
ESG Data＞Environmental Data Related to Products andBusiness Activities
Responding to Climate Change and Energy Issues＞
Reducing CO2 Emissions across the Supply Chain
ESG Data＞Environmental Data Related to Products andBusiness Activities
Responding to Climate Change and Energy Issues＞
Reducing CO2 Emissions across the Supply Chain
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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

Item

305-3

Other indirect GHG emissions (Scope 3)

305-4

GHG emissions intensity

305-5

Reduction of GHG emissions

305-6

Emissions of ozone-depleting substances (ODS)

305-7

Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions

Waste diverted from disposal

306-5

Waste directed to disposal

ESG Data

Environment＞Resource Recycling Initiatives
Environment＞Resource Recycling Initiatives
ESG Data＞Environmental Data Related to Products andBusiness Activities
Environment＞Resource Recycling Initiatives
WEB＞ESG Data＞Atmosphere/Wastewater Quality/
PRTR-designated Pollutants Data
WEB＞ESG Data＞Atmosphere/Wastewater Quality/
PRTR-designated Pollutants Data

GRI 307: Environmental Compliance 2016
307-1
Non-compliance with environmental laws and regulations
GRI 308: Supplier Environmental Assessment 2016308-1
New suppliers that were screened using environmental criteria
308-2
Negative environmental impacts in the supply chain and actions taken
SocialGRI 401: Employment 2016
401-1
Total number and rate of new employee hires during the reporting period, by age group, gender and region
401-2
Benefits provided to full-time employees that are not provided to temporary or part-time employees
401-3
Total number of employees that took parental leave, by gender
GRI 402: Labor/Management Relations 2016
402-1
Minimum notice periods regarding operational changes
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

GovernanceIndex for applicable pages
ESG Data＞Environmental Data Related to Products andBusiness Activities
Responding to Climate Change and Energy Issues＞
Reducing CO2 Emissions across the Supply Chain
ESG Data＞Environmental Data Related to Products andBusiness Activities
ESG Data＞Environmental Data Related to Products andBusiness Activities
Identifying Material Issues
Environment＞Environmental Plan Package＞Environmental
Targets 2030
Sustainability Strategy＞Management Strategy andSustainability＞Revising Environmental Targets 2030
ESG Data＞Environmental Data Related to Products andBusiness Activities
Prevention of Pollution＞Preventing Air Pollution
ESG Data＞Environmental Data Related to Products andBusiness Activities
WEB＞ESG Data＞Atmosphere/Wastewater Quality/
PRTR-designated Pollutants Data

GRI 306: Waste 2020
306-1
Waste generation and significant waste-related impacts
306-2Management of significant waste-related impacts
306-3
Waste generated
306-4

SocialEnvironment＞Environmental Management＞
Environmental Risk Management
Social＞Achieving a Sustainable Supply Chain
Social＞Achieving a Sustainable Supply Chain
ESG Data＞Human Resource-Related Data
ESG Data＞Human Resource-Related Data
Securities Report (P131-133) Retirement benefits
ESG Data＞Human Resource-Related Data
Social＞Promoting Occupational Health and Safety＞
Labor-Management Relations

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialItem
GRI403: Occupational Health and Safety 2018403-1
Occupational health and safety management system

Hazard identification, risk assessment, and incident investigation

403-3

Occupational health services

403-4

Worker participation, consultation, and communication on occupational health and safety

403-5

Worker training on occupational health and safety

403-6

Promotion of worker health403-7

Prevention and mitigation of occupational health and safety impacts directly linked by business relationships

403-8

Workers covered by an occupational health and safety management system

403-9Work-related injuries

403-10Work-related ill health

GRI 404: Training and Education 2016
404-1
Average hours of training per year per employee
404-2
Programs for upgrading employee skills and transition assistance programs
404-3
Percentage of employees receiving regular performance and career development reviews
GRI 405: Diversity and Equal Opportunity 2016405-1
Diversity of governance bodies and employees
Ratio of basic salary and remuneration of women to men

GRI 406: Non-discrimination 2016406-1
Incidents of discrimination and corrective actions taken
GRI407: Freedom of Association and Collective Bargaining 2016
407-1
Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk
GRI 408: Child Labor 2016
408-1
Operations and suppliers at significant risk for incidents of child labor

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134

Social＞Promoting Occupational Health and Safety＞
Basic ApproachSocial＞Promoting Occupational Health and Safety＞
Management Structure
Social＞Promoting Occupational Health and Safety＞
Initiatives to Ensure Workplace Safety
Social＞Promoting Occupational Health and Safety＞
Management Structure
Social＞Promoting Occupational Health and Safety＞
Management Structure
Social＞Promoting Occupational Health and Safety＞
Initiatives to Ensure Workplace Safety
Social＞Promoting Occupational Health and Safety＞
Initiatives to Ensure Workplace Safety
Social＞Promoting Occupational Health and Safety＞
Initiatives to Ensure Workplace Safety
Social＞Promoting Occupational Health and Safety＞
Basic ApproachSocial＞Promoting Occupational Health and Safety＞
Initiatives to Ensure Workplace Safety
ESG Data＞Human Resource-Related Data
Social＞Promoting Occupational Health and Safety＞
Initiatives to Ensure Workplace Safety
ESG Data＞Human Resource-Related Data
Social＞Stepping up Human Resource Development
Social＞Stepping up Human Resource Development
Governance＞Members of the BoardESG Data＞Human Resource-Related Data
Social＞Human Resources Management＞Fair Compensation System
ESG Data＞Human Resource-Related Data—
Social＞Promoting Occupational Health and Safety＞
Labor-Management Relations
Social＞Respect for Human Rights＞Complying with the
Human Rights Policy

GRI 409: Forced or Compulsory Labor 2016409-1
Operations and suppliers at significant risk for incidents of forced or compulsory labor
MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

ESG Data

Index for applicable pages

403-2

405-2

GovernanceSocial＞Respect for Human Rights＞Complying with the
Human Rights Policy▶ NextBack to Contents ▶▶

Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialItem
GRI 410: Security Practices 2016
410-1
Security personnel trained in human rights policies or procedures
GRI411: Rights of Indigenous Peoples 2016
411-1
Incidents of violations involving rights of indigenous peoples
GRI 412: Human Rights Assessment 2016
412-1
Operations that have been subject to human rights reviews or impact assessments
412-2

N/A
N/A

412-3

Significant investment agreements and contracts that include human rights clauses or that underwent humanrights screening
GRI413: Local Communities 2016413-1
Operations with local community engagement, impact assessments, and development programs
413-2
Operations with significant actual and potential negative impacts on local communities
GRI 414: Supplier Social Assessment 2016414-1
New suppliers that were screened using social criteria
414-2
Negative social impacts in the supply chain and actions taken

GRI 415: Public Policy 2016
415-1
Political contributions
GRI416: Customer Health and Safety 2016
416-1
Assessment of the health and safety impacts of product and service categories
416-2
Incidents of non-compliance concerning the health and safety impacts of products and services
GRI 417: Marketing and Labeling 2016
417-1
Requirements for product and service information and labeling
417-2
Incidents of non-compliance concerning product and service information and labeling
417-3
Incidents of non-compliance concerning marketing communications
GRI 418: Customer Privacy 2016
418-1
Substantiated complaints concerning breaches of customer privacy and losses of customer data
GRI419: Socioeconomic Compliance 2016
419-1
Non-compliance with laws and regulations in the social and economic area

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ESG Data

Index for applicable pages

Employee training on human rights policies or procedures

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

Governance▶ NextSocial＞Respect for Human Rights＞Human Rights Due
Diligence
Social＞Respect for Human Rights＞Complying with the
Human Rights Policy
Social＞Respect for Human Rights＞Complying with the
Human Rights Policy
Social＞Contribution to Local Economy through Business
Activities
N/A
Social＞Achieving a Sustainable Supply Chain
Social＞Achieving a Sustainable Supply Chain＞Basic ApproachSocial＞Achieving a Sustainable Supply Chain＞Supplier
CSR Guidelines
Social＞Achieving a Sustainable Supply Chain＞Efforts
to Become Carbon Neutral throughout the Supply Chain,
Green Procurement Guidelines
Governance＞Compliance＞Political Involvement (PoliticalContributions)
Securities Report (P4-5) Description of business
Recall Information (only in Japanese)
Social＞Improvement of Product, Sales, and Service Quality
Governance＞Compliance＞Management Structure
Governance＞Compliance＞Management Structure
Governance＞Compliance＞Protection of Personal Information
Governance＞Compliance＞Management Structure

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Third-Party Assurance
Of our environmental data related to products and business activities, we have obtained third-party assurance of our CO2 emissions from business activities and energy
input related to manufacturing and non-manufacturing divisions in FY2022 (CO2 emissions (Scope 1+2) of 346x103t-CO2, energy input of 7.8PJ).
Manufacturing Sites
CountryJapan
ThailandPhilippines
Indonesia
Vietnam
Malaysia

Company NameMITSUBISHI MOTORS CORPORATION (Okazaki Plant, Mizushima Plant, Kyoto Plant-Kyoto,
Kyoto Plant-Shiga), Suiryo Plastics Co., Ltd.
Mitsubishi Motors (Thailand) Co., Ltd. (MMTh)
MMTh Engine Co., Ltd. (MEC)
Mitsubishi Motors Philippines Corporation (MMPC)
Asian Transmission Corporation (ATC)Mitsubishi Motors Krama Yudha Indonesia (MMKI)
Mitsubishi Motors Vietnam Co., Ltd. (MMV)
MMC Manufacturing Malaysia Sdn. Bhd, (MMCMM)

Non-Production Sites (Research & Development)
CountryJapan

Company Name
Research & Development Center, EV Research & Development Center,
Kyoto Research & Development Center, Tokachi Research & Development CenterNo. 1811004572

Greenhouse Gas Emissions
Verification Report
To: Mitsubishi Motors Corporation
1. Objective and Scope
Japan Quality Assurance Organization (hereafter “JQA”) was engaged by Mitsubishi Motors Corporation (hereafter “theCompany”) to provide an independent verification on “FY2022 Environmental Impact Report (Summary of calculation results)”(hereafter “the Report”). The content of our verification was to express our conclusion, based on our verification procedures, onwhether the statement of information regarding Greenhouse Gas emissions from Scope 1 & 2 (hereafter "Scope 1 & 2 GHG
emissions"), and Energy consumption in the Report was correctly measured and calculated, in accordance with the “Environmental
information aggregation guidelines” (hereafter “the Rule”). The purpose of the verification is to evaluate the Report objectively
and to enhance the credibility of the Report.
*The fiscal year 2022 of the Company ended on March 31, 2023.

2. Procedures Performed
JQA conducted verification in accordance with “ISO 14064-3” for Scope 1 & 2 GHG emissions and with “ISAE3000” forEnergy consumption, respectively. The scope of this verification assignment covers Scope 1 & 2 GHG emissions (energyderived CO2) and Energy consumption. The verification was conducted to a limited level of assurance and quantitative
materiality was set at 5 percent of the total emissions in the Report. The organizational boundaries of this verification include 5
domestic and 7 overseas manufacturing sites, and 4 non-production (Research & Development) domestic sites of the Company.
Our verification procedures included:• Performing validation of integrated functions to check the Rule.
• Visiting 2 domestic sites, Tokachi Research & Development Center and Kyoto Research & Development Center, selectedby the Company.
• On-site assessment to check the Report scope and boundaries; source of Scope 1 & 2 GHG emissions and Energy
consumption; monitoring points; monitoring and calculation system; and its controls for overall.
• Vouching: Cross-checking the data against evidence.

3. Conclusion
Based on the procedures described above, nothing has come to our attention that caused us to believe that the statement of theinformation regarding Scope 1 & 2 GHG emissions and Energy consumption in the Report, is not materially correct, or has notbeen prepared in accordance with the Rule. The Scope 1 & 2 GHG emissions in FY2022 are 346,368ｔ-CO2.

4. Consideration

The Company was responsible for preparing the Report, and JQA’s responsibility was to conduct verification of Scope 1 & 2 GHG
emissions and Energy consumption in the Report only. There is no conflict of interest between the Company and JQA.

Sumio Asada, Board Director
For and on behalf of Japan Quality Assurance Organization
1-25, Kandasudacho, Chiyoda-ku, Tokyo, Japan
July 4, 2023

MITSUBISHI MOTORS CORPORATION Sustainability Report 2023

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Commitment of
Top Management

Sustainability Strategy

FeatureEnvironment

SocialGovernance

ESG Data

Third-Party Opinion

Mr. Keisuke
Takegahara
Executive Director
Research Institute of
Capital Formation
Development Bank ofJapan Inc.

The Sustainability Report 2023 is published with theaim of conveying and continuously communicating
sustainability information on the MITSUBISHI MOTORSGroup. In reviewing the details, let us look again at thesystem for disclosing information on sustainability atthe beginning of the report. This visually clarifies thedivision of roles between the Sustainability Report
and the Integrated Report, which targets investors
and discloses financial and non-financial information
directly related to management strategies. The size ofthe area indicates the volume of information coveredin this report.
It is not easy to make such a vast amount of
information on diverse activities function as a toolfor communication with readers, rather than merely
disseminating information one-sidedly. The key liesin the overlap of roles between the two reports inthe system chart or the common part in the Venn
diagram. This area corresponds to the essence ofintegrated reporting, the value creation story, i.e. thestrategy part that supports the long-term sustainMITSUBISHI MOTORS CORPORATION Sustainability Report 2023

ability of the business model. Whereas the integrated
reporting is structured primarily on the connection(connectivity) between this essence and financial andnon-financial data, this report plays a multifacetedrole in presenting how diverse sustainability activities contribute to the value creation story. Therefore,
the main role expected of this third-party opinion is
to consider not only the review of individual activity
reports but also the connection and consistency between them and the overall strategy.
From this perspective, the steady evolution of thisreport is evident. Its structure remains unchanged,
consisting of the first half that outlines the corporate
mission and strategy, and the latter half that detailed
reports on diverse activities of the previous year.
However, throughout the report, the well-designed
connection between a series of sustainability activities and management strategies can be observed.
Symbolic of these efforts is the newly establishedentitled “Management Strategy and Sustainability.”
The new medium-term management plan “Challenge 2025” defines the concept of “Mitsubishi Motors-ness,” which is the main theme of this report,
and clarifies the direction of value creation. Furthermore, our growth strategy, which is based on thethree pillars of challenge that support this concept.
namely, (1) focus on the ASEAN region as a growth
driver to establish and strengthen an absolutely
stable revenue base, (2) pursue carbon neutrality(CN) through the shift to electrified vehicles based on
proprietary technologies and alliances, and (3) drive
digital transformation (DX) to meet the needs of thenext generation users of digital native, describes a
story of value creation from a medium- to long term
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137▶ Nextperspective, based on our recognition that we are in aonce-in-a-century of great change.
Once this point is clear, we shall then look at theconnection with the individual activity reports. What
I found impressive this year is the clear connection
between strategy and initiatives with regard to carbon neutrality. In FY2022, the company made significant progress by revising its “Environmental Vision
2050,” declaring its aim to achieve CN across the
supply chain, and also reinforcing the milestone of“Environmental Target 2030.” This report presents aclear overview initiative of CN in a special feature, andhighlighting specific measures that include (1) promoting electrification, leveraging core technologies
such as PHEV and Kei-car segment commercial EV,
underpinned by the Alliance and (2) enhancing new
mobility businesses utilizing connected functions inline with the progress of electrification, and pursuing
new revenue opportunities by strengthening energy
management through the use of electrified vehicles.
On the other hand, the connection between areaand digital strategies and the sustainability activities
that support these strategies still needs to be worked
out. For example, reflecting the characteristics ofeach region could enhance the visibility and resolution of the Company’s initiatives and potential towards CN. Furthermore, the human capital initiatives
emphasized in the “Commitment of Top Management” also show potential for further strengthening
linkage with the management strategy, such as leveraging global talent and the focus on human rights.
The narrative of the Company pertaining to value
creation is steadily being enhanced. I look forward toseeing its further evolution.
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