ENVIRONMENTAL ACTIVITIES

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Business Foundation

Governance

Corporations today are expected to disclose on environmental initiatives and related decision-making in a reliable and transparent manner.

Nissan issues its Sustainability Report each year including detailed information from scorecards, which serve as tools for monitoring its progress on environmental initiatives and a materiality assessment for identifying priority issues. The company also communicates with a broad range of stakeholders through other means, including responses to inquiries from environmental rating agencies.

To carry out comprehensive environmental management as a global company while responding to a diversifying range of environmental challenges, Nissan has established an organizational approach linking its various functions and regions. The Global Environmental Management Committee (G-EMC), co-chaired by a board member, determines overall policies and the content of reports put before the Board of Directors. Its meetings are attended by corporate officers chosen based on the issues to be discussed. Executives also clarify the risks and opportunities before the company and assign specific actions to each division, as well as managing and operating environmental programs efficiently based on the PDCA (plan, do, check, act) cycle.

Life cycle Assessment (LCA)

Lifecycle Assessment (LCA) to reduce environmental impact

On a daily basis, we implement several mechanisms such as risk management conducted by field personnel, validation and periodical audits by supervisors to ensure solid environmental management. Furthermore, we use lifecycle assessment (LCA) as a tool to extract potential risks.

Nissan uses the LCA method to quantitatively evaluate and comprehensively assess environmental impact not just while vehicles are in use but at all stages of their lifecycle, from resource extraction, manufacturing and transport to disposal. Nissan is working to understand the current status of environmental activities and review the path for future environmental impact reduction during the period of NGP2022, and by carrying out LCAs for new technologies.

Nissanfs LCA methodology was certified by the Japan Environmental Management Association for Industry in 2010, and by TÜV Rheinland (Germany) for the first time in December 2013. These certifications are based on ISO 14040/14044 standards and guarantees the soundness of the environmental impact calculations in Nissanfs product LCAs.

During the NGP2022 period, Nissan will seek to further reduce the lifecycle environmental impact of new vehicles and new technologies through LCA and advancing on use-phase vehicle and manufacturing efficiency.

Global Top Selling Modelfs Lifecycle Improvements

Nissan has been working to enhance the application of the LCA method and to extend quantitative understanding of the environmental impact of its products, especially the most impactful top-selling models worldwide. LCA has been applied to models representing over 90% of vehicle sold.

Percentage of vehicles in the EU market for which LCA has been conducted

With the X-Trail and Teana, for example, CO2 emissions have been lowered thanks to internal combustion engine efficiency improvements and vehicle weight reduction while increasing safety compared to the previous model. In the case of the all-new Sylphy launched in China in 2019, CO2 emissions have been reduced by 7% due to efficiency improvements in the internal combustion engine, while pursuing the evolution as Nissan Intelligent Mobility (NIM). The new Versa launched in 2019, though having achieved fuel economy improvements, showed only a 1% reduction in life cycle CO2 due to a slight car body weight increase. The new Juke released in the European market in the same year has achieved substantial fuel economy improvements due to the utilization of a new DST (down-sizing turbo) engine, which resulted in a 10% reduction in life cycle CO2 emissions.

(1) Production in North America, 120,000 miles driven in North America (basis for comparison)
(2) Production in the EU, 150,000 km driven in the EU (basis for comparison)
(3) Production in China, 150,000 km driven in China (basis for comparison)

CO2-equivalent emissions over the life-cycle ue-POWERv vehicles

Nissan introduced its new e-POWER powertrain in 2016, marking another significant milestone in the electrification strategy with lifecycle emission improvements. Compared to their gasoline-powered counterpart models, the Note e-POWER and Serena e-POWER emit 18-27% less CO2.

Electrified e-POWER vehicles use a system which is supported by a gasoline engine as a power generation source. Since the engine only operates under certain fixed conditions, it is possible to achieve lower exhaust emissions and better fuel efficiency for driving. Also, since an e-POWER vehicle only requires a small battery (unlike a full EV), emissions from the manufacture of dedicated EV parts such as batteries can be kept at a level only slightly above that of conventional vehicles. There is potential for further reduction in CO2 emissions through weight reduction and the energy efficiency optimization of e-POWER vehicles.

(1) Production in Japan, 100,000 miles driven in Japan (basis for comparison)

CO2-equivalent emissions over the life-cycle of the New Nissan Leaf

Compared to conventional vehicles of the same class in Japan, the Nissan LEAF results in around 32% less CO2 emissions during its lifecycle.

Nissan is continuously promoting efforts to reduce CO2 equivalent emissions during EV production by improving the yield ratio of materials, using more efficient manufacturing processes and increasing the use of recycled materials.

Meanwhile, the company also continues to pursue efficiency improvement on electric powertrains, power savings on ancillary devices and the use of renewable energy for driving to reduce CO2 emissions over the entire electrified vehiclesf lifecycle.

Also, at the end-of-life stage, used batteries can be utilized for energy storage in various ways and contribute to CO2 emission reduction in society as a whole.

(1) Production in Japan, 100,000 miles driven in Japan (basis for comparison)

Supplier Engagement

The environmental challenges facing modern societies, such as climate change and water supply, are increasingly global in their scope. According to the CDPfs Global Supply Chain Report 2018, greenhouse gas emissions located in the supply chain are on average four times higher than those arising from direct operations. To meet these challenges, it is essential for Nissan to identify significant issues at various stages of the value chain and make ongoing effort to address them. As a business with worldwide operations, the company promotes consistency in the procurement practices undertaken throughout the global value chain, sharing its vision and principles with suppliers and engaging with them to ensure their adoption.

The purchasing division of Nissan and Renault carry out supply-chain management in a manner consistent with the "Renault-Nissan Purchasing Way," a booklet outlining policies for dealing with suppliers, and the "Renault-Nissan CSR Guidelines for Suppliers" published in 2010. In the environmental aspect, we adopted the Nissan Green Purchasing Guidelines, a set of standards for the environmental efforts of our automobile parts and material suppliers in 2008.

In fiscal 2012 we added a number of environment-related items in working with our suppliers in an effort to reduce the environmental impact of upstream processes in the supply chain. To do this, we ask suppliers for their environmental targets and data regarding their CO2 emission levels and energy use, and consider their management of environmentally hazardous substances, recycling of resources and water-conservation efforts. We also organized briefing sessions on NGP 2016 for suppliers during fiscal 2012 to fully share our targets and action plans.

Key Activities in NGP2022

Responsible supply chain

Provide support and guidance
Provide the Nissan Green Purchasing Guidelines as a basis for ensuring suppliersf performance in meeting internal standards and regulatory compliance. Provide professional consultation and advice to suppliers for energy-saving activities.
Identify key risks
Conduct regular surveys to gather environmental performance information in areas including CO2 emission levels, water use and water waste since fiscal 2012, and develop a strong baseline to identify the key risk areas and focus on suppliers with material impact to Nissan and society.
Performance review and assessment
Expand the scope of suppliersf performance reviews from several environmental indicators such as CO2 emissions, water use and water waste to the strategic and governance levels. We currently collaborate with CDP, an international nonprofit organization that manages a global disclosure system on environmental impact and strategies, for comprehensive performance reviews and assessments of our suppliersf performance annually. We use CDP as a means to identify risk areas as well as to help suppliers reduce their environmental footprint.
Continuous improvement
Under NGP2022, Nissan holds annual environmental briefing sessions to share its environmental principles, strategy and action plan with suppliers. To improve environmental performance across the value chain, Nissan published the Nissan Green Purchasing Guidelines in 2001, regularly revises these guidelines in light of the latest risks and trends, and continues to promote actions that are in line with them.

NGO/Next Generation

NGO Collaboration

The Global Risks Report 2017 published by the World Economic Forum notes that climate change and water crises are consistently featured among the top-ranked global risks in the past seven editions of the report. Nissan fully understands the drive for all companies to contribute in these areas. We believe that working alone via our operations is not sufficient; hence we collaborate with NGOs, targeting climate change- and water-related community projects to align with our environmental ambition.

Our Corporate Philanthropy Goal is to create a cleaner, safer and more inclusive society. In NGP2022, we collaborate globally with nongovernmental organizations, targeting major areas such as climate change and water scarcity, and will contribute to supporting local communities through our projects.

Key Activities in NGP2022

Collaboration with WWF Japan on climate change mitigation

  • Support and financially contribute to World Wide Fund for Nature (WWF) Japanfs climate change mitigation project;
  • Continue participation in WWFfs worldwide Earth Hour environmental enlightenment campaign for greenhouse gas emission reduction.

Collaboration with Conservation International on water supply catchment protection

  • Support and financially contribute in watershed reforestation projects, beginning in Indonesia;
  • Create jobs and build capacity for local communities through their involvement in our conservation projects.

Engagement with Future Generations

Todayfs youths are the future leaders of our society. Nissan aims to engage and enlighten these leaders of tomorrow, raising their environmental awareness, and to introduce to them the latest green technologies and mobility services, so they can make the best decisions for the environment in their daily lives.

Nissan has been conducting environmental programs for young people in school visits in Japan since 2008, with more than 50,000 participants in total (as of March 2017). In NGP2022, we will further expand the program in Japan, as well as in other countries all around the world.

Key Activities in NGP2022

Global expansion of youth education programs, such as Nissan Waku-Waku Eco School, an interactive and fun program delivered by Nissan employees to schoolchildren on:

  • Basic knowledge of global environmental issues
  • Nissan's environmental initiatives, such as the Nissan LEAF electric vehicle and green technology

Through environmental education, the program encourages participants to adopt eco-friendly initiatives in their daily lives.

Video on how to recycle vehicles used in Nissan Waku-Waku Eco SchooliJapanese Onlyj

An "Eco First" Industry Leader

In recognition of Nissan's environmental commitments, including the company's pledge of comprehensive reduction of CO2 emissions and its aim to become an industry leader in producing zero-emission vehicles, Japan's Ministry of the Environment in July 2008 endorsed Nissan as an "Eco First" company under a program that helps businesses become eco-sustainable. In line with the terms of the "Eco First" program and Nissan's program commitments, provided to the Minister of the Environment at the time of accreditation, the company will systematically report to the ministry on the progress and results of its environmental initiatives and regularly disclose such information publicly.

Dialogue with Stakeholders

Valuing our exchanges with the local community


Nissan Mexicana opening
Environmental Education Center for
members of the local community
as well as employees.

Nissan conducts various activities for better communication with people living near our plants or business offices around the world, including open-plant days, community beautification activities, and tours of environmental facilities for local residents' associations. At our Oppama Plant in Japan, for example, we have established an environmental facilities tour course. Our efforts have been acknowledged by the many people who have taken this tour.

In the area of community partnership activities, we are promoting efforts suited to the characteristics of our plants in cooperation with the local community in all parts of the world. For example, in addition to the perspective of biodiversity in communications with communities, we are conducting various activities suited to local characteristics, such as "Firefly Protection Activities" at our Tochigi Plant in Japan, which is surrounded by abundant nature and clear streams; the "Water Bird Protection Project" at our plant in Sunderland, England, which is a stopover point for migrating birds; and rainwater use and water resources preservation activities at our Aguascalientes Plant in Mexico, where water is scarce.

Plant information (information on festivals, plant tours, and more) (Japanese Only)

Nissan Environmental Advisory Meeting


Environmental Advisory Meeting

We invite globally active authorities in the environmental field to our annual Environmental Advisory Meetings, including both academics and people on the front lines of the business world. At these meetings, we listen to the opinions of these experts on Nissan's business direction and the validity of our strategy in the area of the environment, and then use the input from these discussions in crafting our future environmental strategy.

We continue to take outside opinions into serious consideration and reflect them in our environmental strategy, and move forward with activities to create a sustainable mobile society.

Biodiversity Conservation

Since the convention on Biological Diversity was adopted at the 1992 U.N. Conference on Environment and Development (Earth Summit), efforts to conserve biodiversity have been made by signatory countries at the national scale. The need for participation by industry was later debated at the ninth meeting of the Conference of the Parties to the Convention on Biological Diversity (COP9) in 2008. At Nissan we define our relationship with biodiversity as below, based on the U.N. Millennium Ecosystem Assessment framework, and are working to identify issues that must be addressed while promoting activities including cooperation with external organizations.

Joint Research with the U.N. University


Ecosystem Services and the Automotive Sector

Nissan has carried out extensive studies on the relationship between mobility and ecosystem services through workshops with specialists in the field. We have cooperated with the United Nations University Institute of Advanced Studies, which played a central role in the U.N. Millennium Ecosystem Assessment, on the impact of mobility on the ecosystem and the benefits to humans derived from ecosystem services. In 2010, we published the results of this research in "Ecosystem Services and the Automotive Sector." This joint study focused on the value of ecosystem services that nature produces in human society when biodiversity is protected. The studyfs aim was to investigate how the automobile business depends on ecosystem services through the entire value chain and what kinds of effects it has on the ecosystem. Using the method of Corporate Ecosystem Services Review,* we have evaluated value chains such as that from extraction of material resources to vehicle production and operation.

Based on the results, we then identified three priority areas for us as an automobile manufacturer: energy sourcing, mineral material sourcing and water usage.

From now on, we will work to position the business risks and opportunities identified through this research, reevaluating and further developing our traditional environmental initiatives as we implement strategic measures primarily in the areas of focus that we have defined.

* Developed by the World Resources Institute in cooperation with the World Business Council for Sustainable Development and Meridian Institute based on the U.N. Millennium Ecosystem Assessment.