Commitment ofTop 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 butBeautiful,” 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 CO2emissions 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 ICE

DX/New Business

Use of digital techin business

System upgrade
DXBusiness
FormVehicle 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 BEVBack ◀

12▶ NextP rovision of energy management services utilizing
electrified vehicles and used batteries
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Commitment ofTop 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 inASEAN 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 ofProduct, Sales, and Service Quality.”
Please see page 76 for details on “Contribution toLocal 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 andSUV 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 ofTop Management

Sustainability Strategy

Thirdly, it is “digitalization/expansion into newbusiness 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 “MMCWAY,” 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 ourstakeholders 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 ResourcesManagement.”

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 friendlyand enable activities close
to nature

Help contribute to carbon
neutrality with
Commercial EV

DurabilityandReliability

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▶ Next

Returning home with peaceof mind from safety
technology for just about
every adventure

Four-wheelcontrol(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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