(Excerpt from Ghosn CEO's speech at the announcement of the Nissan Green Program 2016 in October 2011.)
Nissan Green Program 2016 (NGP 2016) represents the pillar of sustainability within Blue Citizenship, which is Nissan's corporate social responsibility platform. NGP 2016 is the company's third environmental mid-term plan. Our track record demonstrates these plans are driven by clear and challenging operational objectives that we are able to consistently achieve.
For example, Nissan Green Program 2010 (NGP 2010) was launched in 2006 with a focus on the management of CO2 emissions. Under NGP 2010, Nissan introduced core green technologies, including idling stop and CVT, for application in a wide range of vehicles. Nissan also launched cars with low or zero CO2-emissions, such as clean diesels, our original-design HEV, and the Nissan LEAF electric vehicle. We achieved our objective to reduce corporate average CO2 emissions from Nissan products between 2000 and 2010 by 18%. And between 2005 and 2010, we over-reached our goal to reduce manufacturing-related CO2 emissions per vehicle by 7%, achieving a total reduction of 19%. As a result, Nissan kept its overall CO2 emissions flat, while increasing vehicle production over the plan period.
Corporations face many challenges on the path toward sustainability. According to the United Nations, the world's projected population in 2050 will be 9 billion, up from 7 billion today, and 70% of people will live in urban areas. Unsurprisingly, our future bears an increase of consumption of natural resources, industrial and agricultural production and energy use. For example, China and India will account for one-third of total world energy consumption in 2035*1. These challenges demand decisive action plans to be implemented today, plans that align and reframe business strategies and policies with a green economy. NGP 2016 is our company's comprehensive response to these challenges, focused on three areas: reducing our carbon footprint, shifting to renewable energies, and increasing the diversity of our resources.
- *1 EIA, US Energy Outlook 2011
NGP DETAILED PLAN
Initiative one: No. 1 in Zero-Emission Vehicles
President and Chief Executive Officer, Nissan Motor Co., Ltd.
Under NGP 2016, Nissan will be the clear leader in the production and sale of zero-emission electric vehicles. We will expand our EV market penetration with at least three additional electric vehicles by 2016. This will push us toward our target - which we share with our Alliance partner Renault - of 1.5 million zero-emission vehicles sold globally by 2016.
In addition to our electric vehicle technology, we expect fuel cell electric vehicle to contribute to advancing Nissan's leadership in zero emissions. For this reason, Nissan, within the Alliance, will jointly develop an all-new fuel cell electric vehicle with our strategic partner Daimler.
Nissan's leadership role extends to the development of batteries, battery recycling, and batteries for domestic and industrial energy storage and car-to-grid power management technologies.
Nissan is also collaborating with various partners to develop EV charge- and discharge-control technology that can be built into the infrastructure for future "smart-houses" and "smart communities".
Initiative two: Leading Fuel Efficiency
The second key initiative in NGP 2016 is to attain leading fuel efficiency across the entire Nissan global fleet. Under the PURE DRIVE badge, Nissan is providing a variety of powertrain technologies designed to improve fuel efficiency, reduce emissions but still deliver the power and performance expected by our customers.
- Extending our unique dual-clutch hybrid system including a new front-drive hybrid model, to be launched in 2013
- An all-new plug-in hybrid model based on unique Nissan technology in 2015
- The next generation X-Tronic CVT automatic transmission debuting in March 2012. By fiscal 2016, we will have sold a cumulative 20 million CVT-equipped vehicles, since launch in 1992.
Our technologies will be the main enabler in Nissan's ability to achieve a 35% improvement in Corporate Average Fuel Efficiency (CAFE) between 2005 and 2016, for all Nissan vehicles sold in Japan, China, Europe and the United States.
Initiative three: Leading low corporate carbon footprint
Power-generating wind turbines introduced on the grounds of Nissan Motor Manufacturing (UK) Ltd. in 2005
Our third key initiative is to minimize Nissan's carbon footprint through continuous energy improvements across all areas of our business, and by increasing our use of renewable energy, including wind and solar. Nissan's long-term vision is to have the lowest carbon footprint of any major automobile manufacturer.
Nissan is committed to reducing CO2 emissions from corporate activities to average 20% per vehicle in 2016 over fiscal year 2005. This objective will affect logistics and activities at offices, dealerships and production sites.
Initiative four: Leading closed-loop recycling
The fourth key initiative in NGP 2016 focuses on reducing Nissan's use of new natural resources, and raising our use of recycled materials in new Nissan vehicles to 25% in 2016. Our long-term target is to minimize, as much as possible, our use of new natural resources. The key to achieving this objective is Nissan's unique approach to closed-loop recycling.
In closed-loop recycling, we extend the life of materials beyond use in just one vehicle to many vehicles. By reintroducing this recyclable material back into the value chain, we significantly reduce the entire carbon and environmental footprint of the vehicle - from start to finish - on a global scale. Nissan is the first in the automobile industry to set this recycling objective and to adopt a comprehensive closed-loop scheme, which includes the recycling of steel, aluminum and plastic. This closed-loop scheme will promote the development of technologies that enable sorting and recycling and eventually help reduce Nissan's consumption of rare-earth elements, such as those used in our zero-emission vehicles.
Nissan moves towards fiscal 2016 on two, complementary tracks: our environmental and business midterm plans. Together, these action plans will ensure the company's balance of value creation and corporate social responsibility.
With NGP 2016, Nissan's financial achievements are inseparable from our initiatives to reduce CO2 emissions, diversify our energy resources, promote sustainable mobility and give a return back to society.
I am confident that we will deliver the objectives of this plan, relying on the capable, hard-working and motivated men and women of Nissan global.